City Council and Successor Agency
to the Brea Redevelopment
Agency Agenda
Study Session - 6:00 p.m.
General Session - 7:00 p.m.
Tuesday, January 21, 2025, 7:00 PM
1 Civic Center Circle
Brea, California 92821
Blair Stewart, Mayor Cecilia Hupp, Mayor Pro Tem Christine Marick, Council Member Marty Simonoff, Council Member Steven Vargas, Council Member This agenda contains a brief general description of each item Council will consider. The City Clerk has on file copies of written documentation relating to each item of business on this Agenda available for public inspection.
Contact the City Clerk’s Office at (714) 990-7756 or view the Agenda and related materials on the City’s website at www.cityofbrea.net. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 1 Civic Center Circle, Brea, CA during normal business hours. Such documents may also be available on the City’s website subject to staff’s ability to post documents before the meeting.
Procedures for Addressing the Council
The Council encourages interested people to address this legislative body by making a brief presentation on a public hearing item when the Mayor calls the item or address other items under Matters from the Audience. State law generally prohibits the City Council from responding to or acting upon matters not listed on this agenda.
The Council encourages free expression of all points of view. To allow all persons the opportunity to speak, please keep your remarks brief. If others have already expressed your position, you may simply indicate that you agree with a previous speaker. If appropriate, a spokesperson may present the views of your entire group. Council rules prohibit clapping, booing or shouts of approval or disagreement from the audience. Please silence all cell phones and other electronic equipment while the Council is in session. Thank you.
Written comments may be submitted in advance of the meeting by emailing [email protected].
Written comments received by 3 p.m. on the day of the meeting will be provided to the Council, will be made available to the public at the meeting, and will be included in the official record of the meeting.
Special Accommodations
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (714) 990-7757. Notification 48 hours prior to the meeting will enable City staff to make reasonable arrangements to ensure accessibility. (28 CFR 35.102.35.104 ADA Title II) Important Notice
The City of Brea shows both live broadcasts and replays of City Council Meetings on Brea Cable Channel 3 and over the Internet at www.cityofbrea.net. Your attendance at this public meeting may result in the recording and broadcast of your image and/or voice as previously described.
1. STUDY SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR - 6:00 P.M. 1A. Call to Order/Roll Call
1B. Public Comment
1C. Clarify Regular Meeting Topics
1D. Council Member Reports/Requests
1E. E. Study Session Adjournment
1F. 2025 Legislative Platform Update
1G. Camping / Property Storage Ordinances Update
1H. Southern California Association of Governments (SCAG) Delegate and Alternate for the Regional Conference and General Assembly, scheduled for May 1-2, 2025. 1I. Appointments to the Art in Public Places Committee; Cultural Arts Commission; Parks, Recreation and Human Services Commission; Planning Commission; Investment Advisory Committee; and Traffic Committee
1J. Mayor Appointments
2. GENERAL SESSION - COUNCIL CHAMBERS PLAZA LEVEL - 7:00 P.M. 2A. Call to Order/Roll Call
2B. Pledge of Allegiance: Girl Scout Troop 2003
2C. Invocation: Pastor Rick Darden, Friends Community Church 2D. Presentation: OC Free Gun Locks Program
2E. Presentation: Visiting Student Delegation from Brea Sister City - Hanno, Japan 2F. Report - Prior Study Session
2G. Community Announcements
2H. Matters from the Audience
2I. Response to Public Inquiries
3. ADMINISTRATIVE ITEMS
This agenda category is for City Council consideration of a wide variety of topics related to the City's operations. Public comments regarding items in this section should be presented during "Matters from the Audience."
3A. City of Brea Annual Comprehensive Financial Report and Related Audit Reports for the Fiscal Year Ended June 30, 2024
— Receive and file the City's Annual Comprehensive Financial Report (ACFR) and Related Audit Reports for the Fiscal Year ended June 30, 2024.
3B. Camping / Property Storage Ordinances Update
— Introduce Ordinance No. 1253 "An Ordinance of the City Council of the City of Brea amending the Brea City Code to Update Camping and Property Storage Regulations and Approving a CEQA Exemption Determination" by title only and waive further reading.
4. CONSENT CALENDAR
The City Council/Successor Agency approves all Consent Calendar matters with one motion unless Council/Agency or Staff requests further discussion of a particular item. To provide public comment on Consent Calendar items, matters should be presented during “Matters from the Audience." 4A. December 3, 2024 Regular Meeting Minutes
— 1. Approve.
4B. Adopt Resolution No. 2025-01, 2025-02, 2025-03, and 2025-04 to Adopt New and Amended Job Descriptions and Salary Tables for Various Positions Across Multiple Departments, Amend the Position Allocation List for FY 2024/25, and Place the Classifications in the Appropriate Bargaining Units for Representation Purposes.
— Approve the Resolutions: 1) adopting job descriptions and salary tables for the positions of Payroll Supervisor, Principal's (Accounting, Human Resources, Management and Planning), Public Works Utilities Supervisor, Utility Billing Supervisor, Management Assistant, Payroll Technician, Fire Division Chief, Fire Deputy Chief, Deputy Director of Community Development, Deputy Director of Public Works, Public Works Manager, and Public Works Utilities Manager; 2) placing the classifications in the Administrative and Professional Employees’ Association (APEA), the Brea City Employees’ Association (BCEA), The Brea Fire Management Association (BFMA), and the Brea Management Association (BMA) bargaining units respectively for representation purposes including moving the Building Official from APEA to BMA; and 3) amending the City’s Position Allocation List to include these positions in the appropriate Department and/or Division.
4C. Approve Grant-Funded Purchase of Two Drone Aircraft — Approve the Police Department's purchase of two DJI Matrice 350 drone aircraft and related accessories from Advexure Unmanned Systems for $59,727.21. 4D. Approve Grant-Funded Increase to December 2023 Agreement with Motorola Solutions, Inc. — Approve a $274,140 increase to a December 2023 agreement with Motorola Solutions, Inc., to fund Rooftop Pilot in Command (RPIC) services for Police Department's Drone as a First Responder (DFR) program.
4E. Award Professional Services Agreements with CSG Consultants, Inc. and JAS Pacific for Building Plan Check and Inspection Services
— 1) Approve a Professional Services Agreement between the City of Brea and CSG Consultants, Inc. for as-needed building and safety services in the amount not-to-exceed $250,000.00 per agreement;
— 2) Approve a Professional Services Agreement between the City of Brea and JAS Pacific and for as-needed building and safety services in the amount not-to-exceed $250,000.00 per agreement;
— 3) Authorize the City Manager or designee to execute the Professional Services Agreements; and
— 4) Authorize the City Manager to extend the term of the Professional Services Agreements for one additional one-year term.
4F. Adopt Resolutions Authorizing the Director of Public Works to Prepare and File Reports Relating to Annual Maintenance Assessment in Landscape and Lighting Maintenance Districts 1 through 7 — Adopt resolutions authorizing the Director of Public Works to prepare the Annual Maintenance Assessment Report for each Landscape and Lighting Maintenance District to present at the City Council meeting on April 15, 2025.
4G. November Outgoing Payment Log and December 6, 13, 20, and 27 City and Successor Agency Registers
— 1. Receive and file.
4H. Monthly Report of Investments for the City of Brea for Period Ended November 30, 2024 — 1. Receive and file.
4I. Monthly Report of Investments for the City of Brea for Period Ended December 31, 2024 — 1. Receive and file.
5. CITY/SUCCESSOR AGENCY - CONSENT
5A. Monthly Report of Investments for the Successor Agency to the Brea Redevelopment Agency for Period Ended November 30, 2024
— 1. Receive and file.
5B. Monthly Report of Investments for the Successor Agency to the Brea Redevelopment Agency for Period Ended December 31, 2024
— 1. Receive and file.
6. ADMINISTRATIVE ANNOUNCEMENTS
6A. City Manager
6B. City Attorney
6C. Council Requests
7. COUNCIL ANNOUNCEMENTS
7A. Council Announcements
8. ADJOURNMENT
8A. Meeting Adjournment
Date Posted: January 16, 2025
City of Brea
City Council Regular Meeting Communication
F. 2025 Legislative Platform Update
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
STUDY SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR
- 6:00 P.M. Item: 1F.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
It is recommended that the City Council review the attached 2024 Legislative Platform and the draft 2025 Legislative Platform to provide feedback prior to adoption.
BACKGROUND/DISCUSSION
The City’s Legislative Platform is used to outline City Council positions on essential issues and serves as City Council authorization for Brea elected officials and professional staff to advocate the City’s position as legislation proceeds at the federal, state and regional levels. It also provides staff with clear direction regarding the types of issues the City will monitor during the legislative session and enables staff to respond quickly with the City’s position as amendments to bills occur in the legislature.
Brea’s Legislative Platform is updated annually to coincide with the state and federal legislative sessions. The updating process includes a review of the previous year’s Legislative Platform by City Council, staff, the Executive Directors, and Townsend Public Affairs, the City’s Legislative Advocate. Through the process, edits are suggested to keep the Platform current. Attached are the 2024 Legislative Platform and the draft 2025 Legislative Platform with proposed changes highlighted.
FISCAL IMPACT/SUMMARY
The City of Brea proactively engages in the legislative process by annually adopting a legislative platform. The platform outlines City Council positions on essential issues and serves as authorization for Brea elected officials and professional staff to advocate the City’s position as legislation proceeds at the federal, state and regional levels.
There is no fiscal impact.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Liz Pharis, Communications & Marketing Manager/PIO Attachments
2024 Legislative Platform.pdf
DRAFT 2025 Legislative Platform.pdf
1 2024 State and Federal Legislative Platform
Adopted by the City Council on December 5, 2023
The Legislative Platform provides a streamlined process through which the City Council, City Manager, City staff, and the City’s legislative advocates can act in a timely manner in response to legislative proposals. Legislation that is consistent with the Legislative Platform are reviewed, approved and signed by the Mayor or City Manager. In addition, legislative positions that are deemed time-sensitive and are consistent with the Legislative Platform may be approved and signed by the City Manager when the Mayor is unavailable. Once approved, a position letter is sent to the bill’s author, the City’s legislative advocate, and other stakeholders as deemed appropriate by staff, and a copy of the letter is distributed to the City Council.
Additionally, to remain nimble throughout the Legislative Session and respond to amendments, the City Manager or his/her designee may sign and submit position letters so long as the position is consistent with the position taken by Cal Cities and/or other City affiliated organizations, even if the scope of the legislation is not already incorporated into the City's Legislative Platform.
GUIDING PRINCIPLES
1. Preserve Local Control
Preserve and protect the City’s powers, duties and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for revenues raised and services provided.
2. Support Funding Opportunities
Support opportunities that allow the City to compete and receive its fair share of regional, state, and federal funding for City projects and priorities. Opportunities include, not are not limited to, state and federal stimulus funding for state and local governments, economic development and job training, transportation, cultural arts, parks and recreation, energy efficiency, public safety, and public health.
3. Promote Fiscal Stability
Support measures that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximum local control over local government budgeting. Oppose measures that shift local funds to the County, State or Federal Governments and/or make cities more dependent on the County, State or Federal Governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits.
2 CITY OF BREA POLICY PLATFORM POSITIONS
City Governance and Finance
1. Support stability, predictability, and independence in local government budgeting.
2. Support increases in local flexibility for use of state, federal and regional funding opportunities.
3. Support the continuation of the tax-free status of municipal bonds.
4. Encourage the County of Orange to make available more detailed auditing and reporting information regarding property tax and assessment appeals filed on property within city limits.
5. Support modification of the tax system to reflect the change in the State’s economy from a manufacturing base to a service and information base.
6. Support the preservation and enhancement of the City’s ability to generate revenues from all types of sales.
7. Support supplements to local funds to comply with mandates created by the National Pollutant Discharge Elimination System (NPDES) provisions of the Federal Clean Water Act.
8. Support generation, protection and timely allocation of local funding distributed by the state and federal government.
9. Support policies that add additional flexibilities and reduce burdensome requirements within the Brown Act.
10. Support local sales and use tax reform to create an equitable distribution structure that appropriately captures and allocates online sales tax.
11. Support measures that apply general communications taxes, such as UUT, to all communications providers across including, but not limited to, providers of cable, video services, wireless, wire line (telephone lines), and satellite.
12. Oppose policies that would increase the voter threshold for local revenue measures or would increase the potential for litigation over local taxes and fees.
Economic Development
1. Support legislation that provides financial incentives (state grants or tax incentives) for mixed-use or “smart growth” principles.
2. Support efforts to facilitate the production of workforce housing, including infill housing incentives, grants to local agencies and private developer partnerships. 3 3. Support legislation that clarifies and narrows the prevailing wage standard for economic development, public works, and affordable housing projects.
4. Support increasing the State’s minimum threshold for public works projects that require prevailing wage.
5. Support efforts to assist local business growth and economic development post Redevelopment.
6. Oppose efforts to cut funding from Community Development Block Grant and other federal grant programs.
Environmental Sustainability
1. Support efforts that encourage and incentivize regional coordinated planning activities for sustainable water resources, infrastructure, and planning.
2. Support limiting local government liability as a third party to superfund cleanup litigation.
3. Support Federal, State, and regional efforts to encourage and fund acquisition, preservation, and management of open space.
4. Support legislation that revises the California Environmental Quality Act (CEQA) for purposes of expediting projects.
5. Support policies and guidelines to facilitate alternative building methods, materials and technologies.
6. Support incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting state and local emission reduction objectives for all sources.
7. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals.
8. Support the expansion of infrastructure to support recyclable materials, the reuse of recyclable materials, as well as increase waste diversion rates and support “green” projects that do not place an undue burden on local government.
9. Support financial incentive mechanisms to cities and businesses to fund public and private capital for organic waste diversion and recycling infrastructure in order to comply with the Organic waste procurement mandates.
10. Support efforts to mitigate traffic congestion, leading to improved mobility and air quality, without incurring excessive public and private costs associated with their implementation.
11. Oppose efforts by other governmental agencies to enlist cities as implementers of their environmental mandates.
4 12. Oppose any new or more restrictive water reduction measures by the state that do not consider new development and regulatory water requirements.
Housing and Land Use
1. Support housing element reform that provides local government the greatest flexibility to achieve realistic goals and support incentives for smart growth as well as funding for mandated General Plan Housing Element Updates and related processes.
2. Support reduction of housing density requirements to qualify for state grant funding.
3. Support legislation that preserves local discretion in the assessment, collection, and usage of development fees for projects including, but not limited to, water, wastewater, transportation, and other critical infrastructure needs.
4. Support funding and tax incentives for the identification, acquisition, maintenance, adaptive reuse and restoration of historic or vacant sites and structures.
5. Support legislation to allow local jurisdictions to work with others to fulfill RHNA requirements in order to meet regional demand.
6. Support legislation that preserves local flexibility in the adoption and implementation of health and safety standards contained in the building codes
7. Oppose legislation which weakens the City’s position for land use controls due to potential claims of partial takings and any requirements for compensation of such claims.
8. Oppose actions that redefine the annexation process to require so-called "revenue neutral" annexations.
9. Oppose County of Orange processing of development projects within Brea's Sphere of Influence and any development agreements or other entitlements in sphere of influence areas that do not conform to City standards. Promote County of Orange compliance with existing Memorandum of Understanding regarding development within the Sphere of Influence.
Human Resources
1. Support workers’ compensation reform that requires formulas to rely on more evidence of work-related causation to determine compensability, higher thresholds for compensation, or a proportionate exposure formula.
2. Support reform and responsible changes to the CalPERS medical insurance program and CalPERS Public Employees’ Medical and Hospital Care Program (PEMCHA) to address rising costs of premiums and the City’s future liability for retiree medical insurance.
3. Support easing applicability of the Fair Labor Standards Act (FLSA) on public agencies. 5 4. Support reforms to CalPERS that promote Investment Restrictions that are similar or the same as those adopted by Public Agency Retirement Services (PARS).
5. Support legislative proposals that establish Defined Contribution Retirement Plans for new hires within CalPERS retirement programs.
6. Support fiscally responsible changes to CalPERS Projected Investment Returns based upon Historical Returns and Conservative Market Projections.
7. Oppose legislation that expands or extends any public safety presumptions of occupational injury or illness and support legislation that repeals the presumption that the findings of a treating physician are correct.
8. Oppose the imposition of compulsory and binding arbitration with respect to public employees upon local government.
9. Oppose efforts that restrict the investment ability of CalPERS based on social or political statements.
10. Oppose the imposition of mandated employee benefits that are more properly negotiated at the bargaining table upon local government.
11. Oppose the imposition of Federal or State mandates on the collective bargaining process.
12. Oppose making disciplinary proceedings for public safety employees similar to criminal proceedings thus rendering it impossible for employers to prove an administrative violation.
Public Safety
1. Support measures that encourage community safety, well-being and emergency planning.
2. Support legislation that promotes recruitment, retention, and resources, as well as increases the minimum hiring and training standards for law enforcement officers.
3. Support legislation that funds innovations in law enforcement technology that integrates data sources and facilitates solvability and reduction of crime.
4. Support increased State support for local services related to homeless and youth violence prevention programs through the North Orange County Public Safety Collaborative.
5. Support policies and funding that provide resources to combat organized retail, cargo, and vehicle theft operations.
6. Support clarifying legislation related to recreational marijuana, including DUI Drugs presumed intoxication and state funding for research and identification of intoxication measurement devices.
6 7. Support increased funding and State reimbursements for law enforcement training costs related to homelessness, mental illness, de-escalation, use of force, and public record act requests.
8. Support the state adoption of building, development and fuel modification requirements that provide for fire safety in the Wildland Urban Interface and Intermix.
9. Support policies that create restrictions on the early release of state inmates from incarceration for the purpose of alleviating overcrowding, and limit parole hearing opportunities for state inmates serving a life sentence or paroled inmates with a violation.
10. Support clarifying legislation to further define ‘non-violent’ offenses.
11. Support legislation that increases safety of all modes of transportation, including electric bikes.
12. Oppose legislation which would interfere with the ability of law enforcement to remove individuals, either in person or in a vehicle, from public facilities, property, or streets.
13. Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety.
14. Oppose restrictions on access to social media material for the purposes of law enforcement personnel background investigations.
15. Oppose legislation that would support creating a politically appointed police oversight committee.
16. Oppose legislation that serves to impact eligibility for local jurisdictions for disaster response and recovery assistance.
Parks, Recreation, and Community Services
1. Support efforts that facilitate the provision of quality, affordable "dependent care" for both children and seniors.
2. Support Federal and State funding opportunities and/or legislation that provides for senior citizen nutrition programs, prescription drug benefits, transportation, adult day care, technology improvements, education, and emergency education for seniors.
3. Work to strengthen policies and support the creation of more affordable, innovative, inclusive, and quality parks and recreation, open space, the acquisition of open space, bike lanes, and non-motorized trails.
4. Support continued State funding for local art, cultural, and music programs, as well as funding for facilities and programs for the City’s youth, adults, and seniors. 7 5. Support funding for local and regional collaboration that supports equitable access for connected multimodal networks.
6. Support increasing opportunities for California’s multi-generational residents to participate in civic engagement activities.
7. Support the County of Orange response to homeless issues, such as shelters and housing programs.
General Issues
1. Support measures that create or expand home rule authority as it applies to the cable, video and telecommunications industry and franchising processes.
2. Support policies and funding that expand access to broadband.
3. Support measures that require companies providing communication services to a local community to provide or support Public, Educational and Governmental (PEG) access to new networks, including PEG equipment, funding, and support.
4. Support measures to reform California’s tort system to curtail unreasonable liability exposure for public agencies and restore the ability of public agencies to obtain affordable insurance.
5. Support legislation to extend the protections limiting local government liability for property damage caused by hillsides and mudslides.
6. Oppose any state or federal effort by the wireless industry that would force local governments to lease out publicly owned infrastructure, eliminate reasonable local environmental and design review, and eliminate the ability for local governments to negotiate fair leases or public benefits for the installation of “small cell” wireless equipment on taxpayer-funded property.
7. Consider the League of California Cities’ Policy and Guiding Principles when taking into consideration supporting or opposing legislation.
1 2025 State and Federal Legislative Platform
Adopted by the City Council on
The Legislative Platform provides a streamlined process through which the City Council, City Manager, City staff, and the City’s legislative advocates can act in a timely manner in response to legislative proposals. Legislation that is consistent with the Legislative Platform are reviewed, approved and signed by the Mayor or City Manager. In addition, legislative positions that are deemed time-sensitive and are consistent with the Legislative Platform may be approved and signed by the City Manager when the Mayor is unavailable. Once approved, a position letter is sent to the bill’s author, the City’s legislative advocate, and other stakeholders as deemed appropriate by staff, and a copy of the letter is distributed to the City Council.
Additionally, to remain nimble throughout the Legislative Session and respond to amendments, the City Manager or his/her designee may sign and submit position letters so long as the position is consistent with the position taken by Cal Cities and/or other City affiliated organizations, even if the scope of the legislation is not already incorporated into the City's Legislative Platform.
GUIDING PRINCIPLES
1. Preserve Local Control
Preserve and protect the City’s powers, duties and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for revenues raised and services provided.
2. Support Funding Opportunities
Support opportunities that allow the City to compete and receive its fair share of regional, state, and federal funding for City projects and priorities. Opportunities include, not are not limited to, state and federal stimulus funding for state and local governments, economic development and job training, transportation, cultural arts, parks and recreation, energy efficiency, public safety, and public health.
3. Promote Fiscal Stability
Support measures that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximum local control over local government budgeting. Oppose measures that shift local funds to the County, State or Federal Governments and/or make cities more dependent on the County, State or Federal Governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits.
2 CITY OF BREA POLICY PLATFORM POSITIONS
City Governance and Finance
1. Support stability, predictability, and independence in local government budgeting.
2. Support increases in local flexibility for use of state, federal and regional funding opportunities.
3. Support the continuation of the tax-free status of municipal bonds.
4. Encourage the County of Orange to make available more detailed auditing and reporting information regarding property tax and assessment appeals filed on property within city limits.
5. Support modification of the tax system to reflect the change in the State’s economy from a manufacturing base to a service and information base.
6. Support the preservation and enhancement of the City’s ability to generate revenues from all types of sales.
7. Support supplements to local funds to comply with mandates created by the National Pollutant Discharge Elimination System (NPDES) provisions of the Federal Clean Water Act.
8. Support generation, protection and timely allocation of local funding distributed by the state and federal government.
9. Support policies that add additional flexibilities and reduce burdensome requirements within the Brown Act.
10. Support local sales and use tax reform to create an equitable distribution structure that appropriately captures and allocates online sales tax.
11. Support measures that apply general communications taxes, such as UUT, to all communications providers across including, but not limited to, providers of cable, video services, wireless, wire line (telephone lines), and satellite.
12. Oppose policies that would increase the voter threshold for local revenue measures or would increase the potential for litigation over local taxes and fees.
Economic Development
1. Support legislation that provides financial incentives (state grants or tax incentives) for mixed-use or “smart growth” principles.
2. Support efforts to facilitate the production of workforce housing, including infill housing incentives, grants to local agencies and private developer partnerships. 3 3. Support legislation that clarifies and narrows the prevailing wage standard for economic development, public works, and affordable housing projects.
4. Support increasing the State’s minimum threshold for public works projects that require prevailing wage.
5. Support efforts to assist local business growth and economic development post Redevelopment.
6. Oppose efforts to cut funding from Community Development Block Grant and other federal grant programs.
Environmental Sustainability
1. Support efforts that encourage and incentivize regional coordinated planning activities for sustainable water resources, infrastructure, and planning.
2. Support limiting local government liability as a third party to superfund cleanup litigation.
3. Support Federal, State, and regional efforts to encourage and fund acquisition, preservation, and management of open space.
4. Support legislation that revises the California Environmental Quality Act (CEQA) for purposes of expediting projects.
5. Support policies and guidelines to facilitate alternative building methods, materials and technologies.
6. Support incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting state and local emission reduction objectives for all sources.
7. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals.
8. Support the expansion of infrastructure to support recyclable materials, the reuse of recyclable materials, as well as increase waste diversion rates and support “green” projects that do not place an undue burden on local government.
9. Support financial incentive mechanisms to cities and businesses to fund public and private capital for organic waste diversion and recycling infrastructure in order to comply with the Organic waste procurement mandates.
10. Support efforts to mitigate traffic congestion, leading to improved mobility and air quality, without incurring excessive public and private costs associated with their implementation.
11. Oppose efforts by other governmental agencies to enlist cities as implementers of their environmental mandates.
4 12. Oppose any new or more restrictive water reduction measures by the state that do not consider new development and regulatory water requirements.
Housing and Land Use
1. Support housing element reform that provides local government the greatest flexibility to achieve realistic goals and support incentives for smart growth as well as funding for mandated General Plan Housing Element Updates and related processes.
2. Support reduction of housing density requirements to qualify for state grant funding.
3. Support legislation that preserves local discretion in the assessment, collection, and usage of development fees for projects including, but not limited to, water, wastewater, transportation, and other critical infrastructure needs.
4. Support funding and tax incentives for the identification, acquisition, maintenance, adaptive reuse and restoration of historic or vacant sites and structures.
5. Support legislation to allow local jurisdictions to work with others to fulfill RHNA requirements in order to meet regional demand.
6. Support legislation that preserves local flexibility in the adoption and implementation of health and safety standards contained in the building codes
7. Oppose legislation which weakens the City’s position for land use controls due to potential claims of partial takings and any requirements for compensation of such claims.
8. Oppose actions that redefine the annexation process to require so-called "revenue neutral" annexations.
9. Oppose County of Orange processing of development projects within Brea's Sphere of Influence and any development agreements or other entitlements in sphere of influence areas that do not conform to City standards. Promote County of Orange compliance with existing Memorandum of Understanding regarding development within the Sphere of Influence.
Human Resources
1. Support workers’ compensation reform that requires formulas to rely on more evidence of work-related causation to determine compensability, higher thresholds for compensation, or a proportionate exposure formula.
2. Support reform and responsible changes to the CalPERS medical insurance program and CalPERS Public Employees’ Medical and Hospital Care Program (PEMCHA) to address rising costs of premiums and the City’s future liability for retiree medical insurance.
3. Support easing applicability of the Fair Labor Standards Act (FLSA) on public agencies. 5 4. Support reforms to CalPERS that promote Investment Restrictions that are similar or the same as those adopted by Public Agency Retirement Services (PARS).
5. Support legislative proposals that establish Defined Contribution Retirement Plans for new hires within CalPERS retirement programs.
6. Support fiscally responsible changes to CalPERS Projected Investment Returns based upon Historical Returns and Conservative Market Projections.
7. Oppose legislation that expands or extends any public safety presumptions of occupational injury or illness and support legislation that repeals the presumption that the findings of a treating physician are correct.
8. Oppose the imposition of compulsory and binding arbitration with respect to public employees upon local government.
9. Oppose efforts that restrict the investment ability of CalPERS based on social or political statements.
10. Oppose the imposition of mandated employee benefits that are more properly negotiated at the bargaining table upon local government.
11. Oppose the imposition of Federal or State mandates on the collective bargaining process.
12. Oppose making disciplinary proceedings for public safety employees similar to criminal proceedings thus rendering it impossible for employers to prove an administrative violation.
Public Safety and First Responders
1. Support measures that encourage community safety, well-being and emergency planning.
2. Support legislation that promotes recruitment, retention, resources, and elevated hiring and training standards across law enforcement and fire departments, with a focus on highrisk and high-need areas.
3. Support legislation that funds innovations in law enforcement technology that integrates data sources and facilitates solvability and reduction of crime.
4. Support legislation for consistent funding for advanced firefighting equipment, including SCBA’s, thermal imaging devices and specialized apparatus for more effective incident assessment and control.
5. Support increased State support for local services related to homeless and youth violence prevention programs through the North Orange County Public Safety Collaborative.
6. Support policies and funding that provide resources to combat organized retail, cargo, and vehicle theft operations.
6 7. Support clarifying legislation related to recreational marijuana, including DUI Drugs presumed intoxication and state funding for research and identification of intoxication measurement devices.
8. Support increased funding and State reimbursements for law enforcement training costs related to homelessness, mental illness, de-escalation, use of force, and public record act requests.
9. Support initiatives for specialized fire simulation training, hazardous material response and advance emergency medical services training to ensure the highest level of readiness and service.
10. Support State adoption of building and fuel modification requirements, and legislation for wildfire resilience and prevention, including fire-safe development in Wildland Urban Interface areas, regional vegetation management, fire-resistant building materials and enforcement of fire-safe community standards.
11. Support legislation that secures funding for fire department mental health programs, with a focus on post-incident trauma resources, peer support and access to licensed professionals to support long-term resilience.
12. Support enhanced emergency preparedness and response initiatives by securing funding and legislation that prioritizes community resilience programs, modernizes emergency operations equipment, and ensures rigorous training for first responders.
13. Support comprehensive disaster readiness education and drills to prepare both residents and first responders, promoting community awareness and resilience through regular, coordinated practices.
14. Support policies that create restrictions on the early release of state inmates from incarceration for the purpose of alleviating overcrowding, and limit parole hearing opportunities for state inmates serving a life sentence or paroled inmates with a violation.
15. Support clarifying legislation to further define ‘non-violent’ offenses.
16. Support legislation that increases safety of all modes of transportation, including electric bikes.
17. Oppose legislation which would interfere with the ability of law enforcement to remove individuals, either in person or in a vehicle, from public facilities, property, or streets.
18. Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety.
19. Oppose restrictions on access to social media material for the purposes of law enforcement personnel background investigations.
20. Oppose legislation that serves to impact eligibility for local jurisdictions for disaster response and recovery assistance.
7 21. Support legislation which grants law enforcement access via proper legal process to electronic data held by private corporations for use in criminal investigations.
22. Support clarifying legislation which would prohibit the use of marijuana by peace officers.
23. Support clarifying legislation which would amend AB 89 to mandate that peace officers obtain a bachelor's degree OR a modern policing degree (not AND) within three years of attaining a basic POST certificate.
24. Support legislation which would prohibit the use of Artificial Intelligence to impersonate another person.
25. Support legislation which would establish guardrails for law enforcement use of Artificial Intelligence for criminal investigations.
Parks, Recreation, Cultural Arts and Community Services
1. Support efforts that facilitate the provision of quality, affordable "dependent care" for both children and seniors.
2. Support Federal and State funding opportunities and/or legislation that provides for senior citizen nutrition programs, prescription drug benefits, transportation, adult day care, technology improvements, education, and emergency education for seniors.
3. Work to strengthen policies and support the creation of more affordable, innovative, inclusive, and quality parks and recreation, open space, the acquisition of open space, bike lanes, and non-motorized trails.
4. Support continued State funding for local art, visual and performing arts, cultural, and music programs, as well as funding for facilities and programs for the City’s youth, adults, and seniors.
5. Support funding for local and regional collaboration that supports equitable access for connected multimodal networks.
6. Support increasing opportunities for California’s multi-generational residents to participate in civic engagement activities.
7. Support the County of Orange response to homeless issues, such as shelters and housing programs.
General Issues
1. Support measures that create or expand home rule authority as it applies to the cable, video and telecommunications industry and franchising processes. 8 2. Support policies and funding that expand access to broadband.
3. Support measures that require companies providing communication services to a local community to provide or support Public, Educational and Governmental (PEG) access to new networks, including PEG equipment, funding, and support.
4. Support measures to reform California’s tort system to curtail unreasonable liability exposure for public agencies and restore the ability of public agencies to obtain affordable insurance.
5. Support legislation to extend the protections limiting local government liability for property damage caused by hillsides and mudslides.
6. Oppose any state or federal effort by the wireless industry that would force local governments to lease out publicly owned infrastructure, eliminate reasonable local environmental and design review, and eliminate the ability for local governments to negotiate fair leases or public benefits for the installation of “small cell” wireless equipment on taxpayer-funded property.
7. Consider the League of California Cities’ Policy and Guiding Principles when taking into consideration supporting or opposing legislation.
City of Brea
City Council Regular Meeting Communication
G. Camping / Property Storage Ordinances Update
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
STUDY SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR
- 6:00 P.M. Item: 1G.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Introduce Ordinance No. 1253 "An Ordinance of the City Council of the City of Brea amending the Brea City Code to Update Camping and Property Storage Regulations and Approving a CEQA Exemption Determination" by title only and waive further reading.
BACKGROUND/DISCUSSION
On January 14, 2025, City Council held a study session to discuss and provide direction on an update of camping and property storage ordinances to provide additional tools for protecting public access to public and private facilities.
Proposed Ordinance No. 1253 will enact the City Code amendments proposed by staff at the study session with modifications requested by City Council.
COMMISSION/COMMITTEE RECOMMENDATION
Ordinance No. 1253 will amend Chapter 8.44 of the City Code to strengthen restrictions on camping and property storage in order to further promote the public health, safety, and welfare.
FISCAL IMPACT/SUMMARY
Adoption of the ordinance is not expected to have a budget impact.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Terence Boga, City Attorney
Concurrence: Adam Hawley, Chief of Police
Attachments
exhibit a (ord).pdf
exhibit b (city code excerpts).pdf
exhibit c (redline).pdf
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ORD. ____
3065636.1 1
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BREA
AMENDING THE BREA CITY CODE TO UPDATE CAMPING AND
PROPERTY STORAGE REGULATIONS AND APPROVING A CEQA
EXEMPTION DETERMINATION
THE CITY COUNCIL OF THE CITY OF BREA DOES ORDAIN AS FOLLOWS:
A. RECITALS:
(i) On October 4, 2016, the City Council adopted Ordinance No. 1185 to add Chapter 8.44 to the City Code to regulate storage of personal property in public areas. (ii) On October 6, 2020, the City Council adopted Ordinance no. 1217 to amend Chapter 8.44 of the City Code by establishing new restrictions on camping in public areas.
(iii) The purposes of Chapter 8.44 of the City Code are to maintain public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly-owned or controlled property in a clean, sanitary, safe and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in Brea.
(iv) On June 28, 2024, the U.S. Supreme Court issued its decision in the case of City of Grants Pass v. Johnson [144 S.Ct. 2202] reestablishing the potential for criminal penalties to be imposed on conduct related to unlawful encampments on public property.
(v) The City Council desire to further promote the purposes of Chapter 8.44 __________, 2025
ORD. ____
3065636.1 2
of the City Code by establishing additional camping and property storage regulations.
B. ORDINANCE:
SECTION 1. Declaration. The facts set forth in the Recitals, Part A of this Ordinance, are true and correct.
SECTION 2. Code Amendment. Section 8.44.020 (Definitions) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by revising the “Public Area” definition to read as follows:
“PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. ‘Public Area’ includes places owned or controlled by the County of Orange or another government entity. ‘Public Area’ shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.”
SECTION 3. Code Amendment. Section 8.44.050 (Notice Prior To Impoundment) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by revising subparagraph C to read as follows:
__________, 2025
ORD. ____
3065636.1 3
“C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than twentyfour (24) hours after the notice is left.” SECTION 4. Code Amendment. Section 8.44.135 (Camping In Public Areas Prohibited) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended to read as follows:
“8.44.135 PROHIBITED CAMPING.
A. Public Areas. No person shall camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp in, on, or underground of any public area except as permitted by paragraph (C)(1).
B. Private Property. No landowner or occupant of private property shall willfully allow, authorize, or permit another person to camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp on such private property except as permitted by paragraph (C)(2) or as mandated by law. This prohibition is applicable to all private property including parking lots of large markets and retail sales warehouse stores.
C. Exceptions. This section shall not apply to the following:
1. Camping in a public area at a park, recreational facility, or trail pursuant to authorization from the City.
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ORD. ____
3065636.1 4
2. Camping on private property in the rear or side yard of a residential structure with the consent of the landowner or occupant as long as all of the following criteria are satisfied: (i) the camping facility is separated from the street by a fence, hedge, or other permanent obstruction; (ii) the camping facility is not visible from public right-of-way; and (iii) the camping does not occur for a period longer than 48 consecutive hours in a 30-day period.”
SECTION 5. Code Amendment. Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by adding a new Section 8.44.136 to read as follows:
“8.44.136 UNLAWFUL OBSTRUCTIONS.
A. No person shall obstruct access to or maintenance of public equipment or a public facility by loitering, sitting, lying, or sleeping on public property.
B. No person shall obstruct access to or maintenance of public equipment or a public facility by abandoning, storing, using, maintaining, or placing personal property on public property.
C. No person shall obstruct access to or maintenance of a school or playground by loitering, sitting, lying, or sleeping on public property.
D. No person shall obstruct access to or maintenance of a school or playground by abandoning, storing, using, maintaining, or placing personal property on public property.
E. No person shall sleep, lie down, or sit on any moveable chair, bucket, crate, cooler, or similar personal property in a public area other than as part of a lawful __________, 2025
ORD. ____
3065636.1 5
event taking place along a public area.
F. No person shall sleep or lie down on or under a public transit/bus bench or a bench, table, playground equipment, or similar fixture or structure in a public park.
G. No person shall obstruct access to a private facility by loitering, sitting, lying, or sleeping on public property.
H. No person shall obstruct access to a private facility by abandoning, storing, using, maintaining, or placing personal property on public property.” SECTION 6. CEQA. The City Council finds and determines that adoption of this Ordinance is exempt from California Environmental Quality Act (“CEQA”) review pursuant to statutory and categorical exemptions including those set forth at California Code of Regulations Title 14, Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3).
SECTION 7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 8. The City Clerk shall certify to the adoption of this Ordinance.
APPROVED AND ADOPTED this __ day of __________, 2025.
________________________________
Blair Stewart, Mayor
__________, 2025
ORD. ____
3065636.1 6
ATTEST: _____________________________
Lillian Harris-Neal, City Clerk
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ORD. ____
3065636.1 7
I, Lillian Harris-Neal, City Clerk of the City of Brea, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Brea held on the ___ day of ___________, 2025, and was finally passed at a regular meeting of the City Council of the City of Brea held on the ____ day of ___________, 2025, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
DATED: _______________, 2025
________________________________
Lillian Harris-Neal, City Clerk
§ 8.32.050 OBSTRUCTING ENTRANCE TO PLACES OF PUBLIC ASSEMBLAGE.
It shall be unlawful for any person to loiter or to stand or sit in or at the entrance of any church, hall, theater or place of public assemblage so as in any manner to obstruct such entrance. ('61 Code, § 15.8) (Ord. 156, passed - - )
CHAPTER 8.44: STORAGE OF PERSONAL PROPERTY AND CAMPING
IN PUBLIC AREAS
Section
8.44.010 Purpose and intent
8.44.020 Definitions
8.44.030 Storage of personal property in public areas prohibited
8.44.040 Chief of Police to receive stored personal property
8.44.050 Notice prior to impoundment
8.44.060 Notice upon impoundment
8.44.070 Holding and disposal of stored personal property
8.44.080 Owner may claim personal property
8.44.090 Unclaimed personal property to be used by city or sold at auctionnotice
8.44.100 Conduct of auction
8.44.110 Proceeds to be deposited in general fund
8.44.120 Unsalable and unusable personal property
8.44.130 Dangerous or perishable personal property; evidence
8.44.135 Camping in public areas prohibited
8.44.140 Provisions not applicable
8.44.150 Violations, penalties and enforcement
§ 8.44.010 PURPOSE AND INTENT.
The public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly owned or controlled property within the city should be readily accessible and available to residents, businesses, and the public at large for their intended purposes. The use of these public areas for the storage of personal property or camping interferes with the rights of others to use and enjoy these public areas as they are intended. Such activity can constitute a public health and safety hazard which adversely impacts public offices, facilities, and services, as well as neighborhoods and commercial areas. The purposes of this chapter are to maintain these public areas within the city in a clean, sanitary, safe, and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that these public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in the city. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public property.
(Ord. 1185, passed 10-4-16; Am. Ord. 1217, passed 10-6-20) § 8.44.020 DEFINITIONS.
Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter.
ABANDONED PERSONAL PROPERTY. Personal property as to which it reasonably appears that the owner surrenders, relinquishes or disclaims all right, title, claim and possession, with intention of not reclaiming it or resuming its ownership, possession or enjoyment.
ALLEY. Shall have the meaning set forth in § 110 of the California Vehicle Code.
CAMP. To pitch or occupy camp facilities; to use camp paraphernalia.
CAMP FACILITIES. Shall include, but not be limited to, tents, huts or temporary shelters.
CAMPING PARAPHERNALIA. Shall include, but not be limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city provided cooking facilities and similar equipment.
CHIEF OF POLICE. The Chief of Police of the City of Brea, or his or her designee.
CITY CLERK. The City Clerk of the City of Brea, or his or her designee.
CITY MANAGER. The City Manager of the City of Brea, and shall include his or her designee.
COMMUNITY SERVICES DIRECTOR. The Community Services Director of the City of Brea, or his or her designee.
PARK. Shall have the same meaning as defined in § 12.00.020 of this Code.
PERSONAL PROPERTY. Tangible personal belongings or possessions, which shall include any movable or tangible thing that is subject to ownership; property or chattels that can be seen, weighed, measured, felt, or touched, including, but not limited to, furniture, appliances, camping equipment or paraphernalia, money, books, and “shopping carts” or “carts” as defined in this section.
POLICE DEPARTMENT. The Brea Police Department.
PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. “Public Area” shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.
SHOPPING CARTS or CARTS. Shall have the meaning set forth in Business and Professions Code § 22435.
STORE, STORED or STORAGE. To place or put aside personal property in a public area or accumulate it for use when needed; to place personal
property in a public area for safekeeping; and/or to leave personal property unattended in a public area.
STREET. Shall have the meaning set forth in § 590 of the California Vehicle Code.
UNCLAIMED PERSONAL PROPERTY. Personal property that has been turned in to the Chief of Police pursuant to § 8.44.040 and/or impounded pursuant to § 8.44.050, and that has not been claimed within a period of ninety (90) days by its owner. (Ord. 1185, passed 10-4-16; Am. Ord. 1217, passed 10-6-20) § 8.44.030 STORAGE OF PERSONAL PROPERTY IN PUBLIC AREAS PROHIBITED.
It shall be unlawful and a public nuisance for any person to store personal property in any public area, except as otherwise approved by the Chief of Police, the Community Services Director or by resolution of the City Council. Personal property stored in public areas in violation of this section shall be impounded pursuant to §§ 8.44.040 through 8.44.150 of this chapter. (Ord. 1185, passed 10-4-16)
§ 8.44.040 CHIEF OF POLICE TO RECEIVE STORED PERSONAL PROPERTY.
The Chief of Police is authorized to impound personal property pursuant to the provisions of §§
8.44.040 through 8.44.150 of this chapter, and shall make provisions for the receipt and safekeeping of personal property coming into his or her possession pursuant to this chapter. A receipt shall be issued to the person delivering such personal property, unless the personal property was found in the course of employment by an employee of the city. The Chief of Police shall notify the owner of the personal property, in writing, if his or her identity is reasonably ascertainable, or, if the identity of the owner is not reasonably ascertainable, cause a written notice to be left in a prominent place at or near where the personal property was located prior to removal, for any personal property impounded pursuant to § 8.44.030, advising that the Chief of Police is in possession of the personal property and the location where it may be claimed.
(Ord. 1185, passed 10-4-16)
§ 8.44.050 NOTICE PRIOR TO IMPOUNDMENT.
A. Stored personal property may be impounded without notice if there is a reasonable belief that it is abandoned, presents an immediate threat to public health or safety, is evidence of a crime, is evidence in a criminal investigation, or is contraband.
B. The city may erect signs in any public area or areas conspicuously stating that any personal property stored in those areas is subject to immediate impoundment. Those signs shall serve to provide the prior notice otherwise required by § 8.44.050C. Personal property unlawfully stored where any such sign has been posted may be immediately impounded.
C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than forty-eight (48) hours after the notice is left. (Ord. 1185, passed 10-4-16)
§ 8.44.060 NOTICE UPON IMPOUNDMENT.
If, after any notice required by § 8.44.050 is given, personal property remains unlawfully stored in any public area, that personal property may be impounded. The person impounding the personal property shall leave a notice in a conspicuous place at or near where the personal property was located prior to being impounded, advising where the personal property is being kept and when and where it may be claimed by its owner.
(Ord. 1185, passed 10-4-16)
§ 8.44.070 HOLDING AND DISPOSAL OF STORED PERSONAL PROPERTY.
Personal property coming into possession of the Chief of Police pursuant to this chapter shall be deposited in a safe place for a period of at least ninety (90) days. If the personal property consists of money, it shall be deposited with the City’s Director of Finance for a period of not less than ninety (90) days, unless sooner claimed by its owner. In the event the personal property or money is not claimed within ninety (90) days, it shall be deemed to be abandoned personal property, subject to disposition as provided in this chapter.
(Ord. 1185, passed 10-4-16)
§ 8.44.080 OWNER MAY CLAIM PERSONAL PROPERTY.
During the time that any personal property is held by the city, it may be delivered or paid to its owner as follows:
A. The personal property shall be delivered upon proof of ownership satisfactory to the Chief of Police after ten (10) days’ notice by mail to any other person(s) who have asserted a claim of ownership at any address given by such person(s).
B. If the personal property consists of money, it shall be paid to the owner upon written order from the Chief of Police to the Director of Finance. The Chief of Police shall make such order upon the same proof of ownership and with the same notice as prescribed in the case of personal property.
C. If ownership cannot be determined to the satisfaction of the Chief of Police, he or she may refuse to deliver the personal property or refuse to order the payment of such money to anyone until ordered to do so by a court of competent jurisdiction.
(Ord. 1185, passed 10-4-16)
§ 8.44.090 UNCLAIMED PERSONAL PROPERTY TO BE USED BY CITY OR SOLD AT AUCTIONNOTICE.
A. Upon expiration of the ninety (90)-day period, any personal property received by the city and not delivered to the owner may be appropriated for the use of the city upon order of the City Manager on his or her finding that the personal property is needed for a public use, and any personal property not appropriated for city use may be sold at public auction to the highest bidder or, if determined to be of de minimus or no apparent monetary value, such property may be disposed of in any lawful manner.
B. All unclaimed money received by the Chief of Police, and not delivered to the owner during the ninety (90)-day period, shall thereafter be deposited in the general fund.
C. Notice of the sale at auction of unclaimed personal property shall be given by the City Clerk at the direction of the Chief of Police at least five (5) days before the time fixed therefor by publication at least once in a newspaper of general circulation.
(Ord. 1185, passed 10-4-16)
§ 8.44.100 CONDUCT OF AUCTION.
An auction for the sale of unclaimed personal property shall be conducted by the Chief of Police. (Ord. 1185, passed 10-4-16)
§ 8.44.110 PROCEEDS TO BE DEPOSITED IN GENERAL FUND.
After any auction for unclaimed personal property is completed, the proceeds of the auction shall be delivered to the Director of Finance for deposit in the general fund. (Ord. 1185, passed 10-4-16)
§ 8.44.120 UNSALABLE AND UNUSABLE PERSONAL PROPERTY.
Any personal property advertised and offered for sale but not sold and not suitable for appropriation for the use of the city shall be deemed to be of no value and shall be disposed of in such manner as the City Manager deems appropriate.
(Ord. 1185, passed 10-4-16)
§ 8.44.130 DANGEROUS OR PERISHABLE PERSONAL PROPERTY; EVIDENCE.
Subject to the provisions of § 8.44.140 below, any personal property coming into the possession of the Chief of Police may be disposed of immediately and without notice, in a manner that the Chief of Police determines to be in the public interest and otherwise as provided by law, when such personal property is perishable, contraband, evidence of a crime, evidence in a criminal investigation, or is reasonably believed to constitute an immediate threat to the public health or safety. (Ord. 1185, passed 10-4-16)
§ 8.44.135 CAMPING IN PUBLIC AREAS PROHIBITED.
(A) No person shall camp, occupy camp facilities, or use camp paraphernalia in any public area. (B) This section shall not apply to camping at a park, recreational facility, or trail pursuant to written consent of the Community Services Department in accordance with §§ 12.00.050(A)(14) and
12.00.070.
(C) This section shall be enforced in accordance with the protocols set forth in the city’s settlement agreement in the U.S. District Court case of Orange County Catholic Worker et al. v. Orange County et al. (Case No. 8:18-cv-00155 DOC (JDE)).
(Ord. 1217, passed 10-6-20)
§ 8.44.140 PROVISIONS NOT APPLICABLE.
A. The provisions of §§ 8.44.040 through 8.44.110 shall not apply to real property, or personal property or money that is subject to confiscation pursuant to state or federal law; or to personal property that constitutes evidence of a crime, evidence in an ongoing criminal investigation and/or civil proceeding pursuant to state or federal law. The provisions of this chapter shall not apply to any motor vehicle. Personal property found or saved on private property shall be subject to the provisions of §
8.32.070 of this code.
B. The provisions/of this chapter shall not apply to abandoned personal property, which shall be disposed of forthwith.
C. “Shopping carts” or “carts” shall be subject to release to the owners and operators of businesses which provide shopping carts for the convenience of their customers or abatement and/or disposal thereof as may be permitted by law.
D. Notwithstanding the regulations set forth in this chapter, the City Manager and/or Chief of Police are hereby authorized to promulgate additional rules and policies for the implementation of this chapter in a manner consistent with state and federal law. (Ord. 1185, passed 10-4-16)
§ 8.44.150 VIOLATIONS, PENALTIES AND ENFORCEMENT.
Notwithstanding any other provision in this code, each violation of the provisions of this chapter may be enforced as follows:
A. A violation of this chapter may be punishable alternatively as a misdemeanor or an infraction at the discretion of the City Attorney or City Prosecutor. The penalty for an infraction and/or misdemeanor shall be as set forth in Chapter 1.04 of this code.
B. A violation of any of the provisions of this chapter hereby adopted shall constitute a nuisance and may be abated by the city through civil process by means of restraining order, preliminary or permanent injunction or in any other manner provided by law for the abatement of such nuisances. (Ord. 1185, passed 10-4-16)
§ 12.00.050 PROHIBITED CONDUCT GENERALLY.
A. Within any park or recreational facility, or upon any trail, it shall be unlawful for any person to do any of the following:
1. Throw or cause to be launched rocks, stones or any other object or projectile, with intent to cause serious injury to any person or animal, or damage to property.
2. Make any fire or utilize a lit barbecue, except at places designated by a sign, or by the provision of a fire ring or barbeque equipment, for such purpose. No person starting or maintaining a fire or barbecue shall leave the area where the fire/barbecue is located without first completely extinguishing such fire or barbecue such that no embers exist and no other combustion is occurring.
3. Conduct or cause to be conducted any business. For purposes of this subsection, the term BUSINESS shall mean the sale or purchase, or solicitation or offer to sell or purchase, for any form of consideration, any goods, product, thing of value, or service, or the delivery of any goods, product or thing of value, or provision of any service, following the sale thereof, whether such sale occurred on or off city property. Prohibited BUSINESS includes providing lessons or instruction for any form of compensation, regardless of where payment is made. This subsection shall not apply to any cityoperated or permitted (by written permit) activity.
4. Climb upon any wall, fence, shelter, seat, building, structure, tree, shrub, device or other equipment, excepting play equipment posted or otherwise designated by the city for such use.
5. Bring, land, or cause to descend or alight any aircraft, balloon, toy plane, parachute or other instrumentality, machine or apparatus for human aviation or flight, without written permission of the Community Services or Maintenance Services Department, or City Manager, excluding any emergency personnel, i.e., helicopter, from this provision.
6. Damage, deface, alter, injure, destroy, paint, graffiti, tamper with, or remove any equipment, pathway, building, facility, tree, wood, bush, turf, flower, plant, grass, soil, rock, or any tangible thing or part of any park, trail or recreational facility.
7. Frighten, molest, chase, tease, injure, kill or remove any animal. This subsection shall not apply to any city, county, state or federal government employee whose official duty includes control of animals, while such employee is engaged in such duty.
8. Place, pile, deposit, leave or cause to be deposited any building material, soil, solid waste, refuse, hazardous material, or any other thing or material, except as permitted by the Maintenance Services Department or the Community Services Department, or in an area or receptacle posted or designated by the Maintenance Services Department for such purpose.
9. Swim, bathe, wade in or pollute the waters of any water feature not posted for such use, including but not limited to, any flood control channel, fountain, stream, lake, marsh or fishpond.
10. Operate any remote-controlled vehicle (including model cars) or motorized and self-propelled flying vehicles (including model airplanes and drones), except in areas posted for such use.
11. Operate inflatable “bounce houses” and/or generators of any kind. This subsection shall not apply to official city functions.
12. Feed or cause to be fed any wild animals, including but not limited to, opossums, skunks, raccoons, and squirrels, ducks, geese, pigeons, or other wild animals or fowl, except where specifically allowed as part of a city-sponsored or permitted event.
13. Play or engage in the game of golf, or to hit any golf ball with a golf club, in any area not posted or otherwise specifically designated for such activity.
14. To camp or stay overnight without possessing written consent of the Community Services Department.
15. Leave garbage, cans, bottles, papers or other refuse other than in trash receptacles.
16. Bring garbage or refuse from outside the limits of the park, trail or recreational facility, and deposit the same in garbage cans or receptacles at a city park, trail or recreational facility.
17. Change into bathing clothes from street clothes or from street clothes to bathing clothes, except in a locker room, bath house or other structure posted or otherwise designated for such use.
18. Assemble, collect, gather together in or upon, or occupy, any walk, passageway or pathway, or any other place designated or posted for travel of persons, in any manner to prevent or obstruct any person's free passage thereon or use thereof.
19. Fire, discharge or carry any dangerous weapon. As used in this subsection, the term DANGEROUS WEAPON includes, but is not limited to, any paintball gun, bow and arrow, slingshot, or any other type of device, other than a firearm, capable of propelling a projectile and causing injury, and not otherwise prohibited from being possessed in a park, recreational facility or on any trail, by any other chapter of this code, or any state or federal law. Violations of any other chapter of this code, or state or federal law, pertaining to the possession or discharge of any firearm or other dangerous weapon, shall be prosecuted under such chapter, or state or federal law.
20. Urinate or defecate except in urinals and/or toilets within a restroom open to the public.
21. Smoke any cigarette or cigar within twenty-five (25) feet of any playground or tot lot area, or leave or deposit any cigarette or cigar butt outside of a trash receptacle.
B. Any person who commits any of the acts set forth in this section shall be subject to punishment as provided in this chapter and/or ejection by a Police Officer.
C. Nothing in this section or chapter shall be deemed to authorize any conduct otherwise prohibited by any other provision of this code.
(Ord. 1109, passed 12-4-07; Am. Ord. 1240, passed 6-20-23) Penalty, see §§ 1.04.010 and 1.04.030 § 12.00.080 USE OF RESTROOMS AND WASHROOMS.
It is unlawful for any person to use any public restroom for the purpose of bathing oneself or any other individual, or any animal, or to change clothes.
(Ord. 1109, passed 12-4-07; Am. Ord. 1240, passed 6-20-23) Penalty, see §§ 1.04.010 and 1.04.030 § 12.04.040 OBSTRUCTING PASSAGE AND ANNOYING PERSONS ON STREETS, ETC.
It shall be unlawful for any person to loiter, stand or sit in or upon any public highway, alley, sidewalk or crosswalk so as to in any manner hinder or obstruct the free passage therein or thereon of persons or vehicles passing or attempting to pass along the same, or so as to in any manner annoy or molest persons passing along the same.
('61 Code, § 20.7) (Ord. 156, passed - - )
BREA CITY CODE CHAPTER 8.44 UPDATE
- 1 of 2 - 3061872.6
Text to be added shown in italics
Text to be deleted shown in strike-through
CHAPTER 8.44:STORAGE OF PERSONAL PROPERTY AND CAMPING IN PUBLIC AREAS
§ 8.44.010 PURPOSE AND INTENT.
The public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly owned or controlled property within the city should be readily accessible and available to residents, businesses, and the public at large for their intended purposes. The use of these public areas for the storage of personal property or camping interferes with the rights of others to use and enjoy these public areas as they are intended. Such activity can constitute a public health and safety hazard which adversely impacts public offices, facilities, and services, as well as neighborhoods and commercial areas. The purposes of this chapter are to maintain these public areas within the city in a clean, sanitary, safe, and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that these public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in the city. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public property. § 8.44.020 DEFINITIONS.
Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter.
ABANDONED PERSONAL PROPERTY. Personal property as to which it reasonably appears that the owner surrenders, relinquishes or disclaims all right, title, claim and possession, with intention of not reclaiming it or resuming its ownership, possession or enjoyment.
ALLEY. Shall have the meaning set forth in § 110 of the California Vehicle Code.
CAMP. To pitch or occupy camp facilities; to use camp paraphernalia.
CAMP FACILITIES. Shall include, but not be limited to, tents, huts or temporary shelters.
CAMPING PARAPHERNALIA. Shall include, but not be limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city provided cooking facilities and similar equipment.
CHIEF OF POLICE. The Chief of Police of the City of Brea, or his or her designee.
CITY CLERK. The City Clerk of the City of Brea, or his or her designee. - 2 of 7 - 3061872.6
CITY MANAGER. The City Manager of the City of Brea, and shall include his or her designee.
COMMUNITY SERVICES DIRECTOR. The Community Services Director of the City of Brea, or his or her designee.
PARK. Shall have the same meaning as defined in § 12.00.020 of this Code.
PERSONAL PROPERTY. Tangible personal belongings or possessions, which shall include any movable or tangible thing that is subject to ownership; property or chattels that can be seen, weighed, measured, felt, or touched, including, but not limited to, furniture, appliances, camping equipment or paraphernalia, money, books, and “shopping carts” or “carts” as defined in this section.
POLICE DEPARTMENT. The Brea Police Department.
PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. ‘Public Area’ includes places owned or controlled by the County of Orange or another government entity. “Public Area” shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.
SHOPPING CARTS or CARTS. Shall have the meaning set forth in Business and Professions Code § 22435.
STORE, STORED or STORAGE. To place or put aside personal property in a public area or accumulate it for use when needed; to place personal property in a public area for safekeeping; and/or to leave personal property unattended in a public area.
STREET. Shall have the meaning set forth in § 590 of the California Vehicle Code.
UNCLAIMED PERSONAL PROPERTY. Personal property that has been turned in to the Chief of Police pursuant to § 8.44.040 and/or impounded pursuant to § 8.44.050, and that has not been claimed within a period of ninety (90) days by its owner. § 8.44.030 STORAGE OF PERSONAL PROPERTY IN PUBLIC AREAS PROHIBITED.
It shall be unlawful and a public nuisance for any person to store personal property in any public area, except as otherwise approved by the Chief of Police, the Community Services Director or by resolution of the City Council. Personal property stored in public areas in violation of this section shall be impounded pursuant to §§ 8.44.040 through
8.44.150 of this chapter.
- 3 of 7 - 3061872.6
§ 8.44.040 CHIEF OF POLICE TO RECEIVE STORED PERSONAL PROPERTY.
The Chief of Police is authorized to impound personal property pursuant to the provisions of §§ 8.44.040 through 8.44.150 of this chapter, and shall make provisions for the receipt and safekeeping of personal property coming into his or her possession pursuant to this chapter. A receipt shall be issued to the person delivering such personal property, unless the personal property was found in the course of employment by an employee of the city. The Chief of Police shall notify the owner of the personal property, in writing, if his or her identity is reasonably ascertainable, or, if the identity of the owner is not reasonably ascertainable, cause a written notice to be left in a prominent place at or near where the personal property was located prior to removal, for any personal property impounded pursuant to § 8.44.030, advising that the Chief of Police is in possession of the personal property and the location where it may be claimed. § 8.44.050 NOTICE PRIOR TO IMPOUNDMENT.
A. Stored personal property may be impounded without notice if there is a reasonable belief that it is abandoned, presents an immediate threat to public health or safety, is evidence of a crime, is evidence in a criminal investigation, or is contraband.
B. The city may erect signs in any public area or areas conspicuously stating that any personal property stored in those areas is subject to immediate impoundment. Those signs shall serve to provide the prior notice otherwise required by § 8.44.050C. Personal property unlawfully stored where any such sign has been posted may be immediately impounded.
C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than forty-eight (48) twenty-four (24) hours after the notice is left.
§ 8.44.060 NOTICE UPON IMPOUNDMENT.
If, after any notice required by § 8.44.050 is given, personal property remains unlawfully stored in any public area, that personal property may be impounded. The person impounding the personal property shall leave a notice in a conspicuous place at or near where the personal property was located prior to being impounded, advising where the personal property is being kept and when and where it may be claimed by its owner.
§ 8.44.070 HOLDING AND DISPOSAL OF STORED PERSONAL PROPERTY.
Personal property coming into possession of the Chief of Police pursuant to this chapter shall be deposited in a safe place for a period of at least ninety (90) days. If the personal property consists of money, it shall be deposited with the City’s Director of Finance for a period of not less than ninety (90) days, unless sooner claimed by its owner. - 4 of 7 - 3061872.6
In the event the personal property or money is not claimed within ninety (90) days, it shall be deemed to be abandoned personal property, subject to disposition as provided in this chapter.
§ 8.44.080 OWNER MAY CLAIM PERSONAL PROPERTY.
During the time that any personal property is held by the city, it may be delivered or paid to its owner as follows:
A. The personal property shall be delivered upon proof of ownership satisfactory to the Chief of Police after ten (10) days’ notice by mail to any other person(s) who have asserted a claim of ownership at any address given by such person(s).
B. If the personal property consists of money, it shall be paid to the owner upon written order from the Chief of Police to the Director of Finance. The Chief of Police shall make such order upon the same proof of ownership and with the same notice as prescribed in the case of personal property.
C. If ownership cannot be determined to the satisfaction of the Chief of Police, he or she may refuse to deliver the personal property or refuse to order the payment of such money to anyone until ordered to do so by a court of competent jurisdiction. § 8.44.090 UNCLAIMED PERSONAL PROPERTY TO BE USED BY CITY OR SOLD AT AUCTION-NOTICE.
A. Upon expiration of the ninety (90)-day period, any personal property received by the city and not delivered to the owner may be appropriated for the use of the city upon order of the City Manager on his or her finding that the personal property is needed for a public use, and any personal property not appropriated for city use may be sold at public auction to the highest bidder or, if determined to be of de minimus or no apparent monetary value, such property may be disposed of in any lawful manner.
B. All unclaimed money received by the Chief of Police, and not delivered to the owner during the ninety (90)-day period, shall thereafter be deposited in the general fund.
C. Notice of the sale at auction of unclaimed personal property shall be given by the City Clerk at the direction of the Chief of Police at least five (5) days before the time fixed therefor by publication at least once in a newspaper of general circulation. § 8.44.100 CONDUCT OF AUCTION.
An auction for the sale of unclaimed personal property shall be conducted by the Chief of Police.
§ 8.44.110 PROCEEDS TO BE DEPOSITED IN GENERAL FUND.
After any auction for unclaimed personal property is completed, the proceeds of the auction shall be delivered to the Director of Finance for deposit in the general fund. - 5 of 7 - 3061872.6
§ 8.44.120 UNSALABLE AND UNUSABLE PERSONAL PROPERTY.
Any personal property advertised and offered for sale but not sold and not suitable for appropriation for the use of the city shall be deemed to be of no value and shall be disposed of in such manner as the City Manager deems appropriate. § 8.44.130 DANGEROUS OR PERISHABLE PERSONAL PROPERTY; EVIDENCE.
Subject to the provisions of § 8.44.140 below, any personal property coming into the possession of the Chief of Police may be disposed of immediately and without notice, in a manner that the Chief of Police determines to be in the public interest and otherwise as provided by law, when such personal property is perishable, contraband, evidence of a crime, evidence in a criminal investigation, or is reasonably believed to constitute an immediate threat to the public health or safety.
§ 8.44.135 CAMPING IN PUBLIC AREAS PROHIBITED.
A. Public Areas. No person shall camp, occupy camp facilities, or use camp paraphernalia, or use a vehicle to camp in, on, or underground any public area except as permitted by paragraph (C)(1).
B. Private Property. This section shall not apply to camping at a park, recreational facility, or trail pursuant to written consent of the Community Services Department in accordance with §§ 12.00.050(A)(14) and 12.00.070. No landowner or occupant of private property shall willfully allow, authorize, or permit another person to camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp on such private property except as permitted by paragraph (C)(2) or as mandated by law. This prohibition is applicable to all private property including parking lots of large markets and retail sales warehouse stores.
C. Exceptions. This section shall be enforced in accordance with the protocols set forth in the city’s settlement agreement in the U.S. District Court case of Orange County Catholic Worker et al. v. Orange County et al. (Case No. 8:18-cv-00155 DOC (JDE)).
This section shall not apply to the following:
1. Camping in a public area at a park, recreational facility, or trail pursuant to authorization from the City.
2. Camping on private property in the rear or side yard of a residential structure with the consent of the landowner or occupant as long as all of the following criteria are satisfied: (i) the camping facility is separated from the street by a fence, hedge, or other permanent obstruction; (ii) the camping facility is not visible from public right-of-way; and (iii) the camping does not occur for a period longer than 48 consecutive hours in a 30-day period.
§ 8.44.136 UNLAWFUL OBSTRUCTIONS.
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A. No person shall obstruct access to or maintenance of public equipment or a public facility by loitering, sitting, lying, or sleeping on public property.
B. No person shall obstruct access to or maintenance of public equipment or a public facility by abandoning, storing, using, maintaining, or placing personal property on public property.
C. No person shall obstruct access to or maintenance of a school or playground by loitering, sitting, lying, or sleeping on public property.
D. No person shall obstruct access to or maintenance of a school or playground by abandoning, storing, using, maintaining, or placing personal property on public property.
E. No person shall sleep, lie down, or sit on any moveable chair, bucket, crate, cooler, or similar personal property in a public area other than as part of a lawful event taking place along a public area.
F. No person shall sleep or lie down on or under a public transit/bus bench or a bench, table, playground equipment, or similar fixture or structure in a public park.
G. No person shall obstruct access to a private facility by loitering, sitting, lying, or sleeping on public property.
H. No person shall obstruct access to a private facility by abandoning, storing, using, maintaining, or placing personal property on public property. § 8.44.140 PROVISIONS NOT APPLICABLE.
A. The provisions of §§ 8.44.040 through 8.44.110 shall not apply to real property, or personal property or money that is subject to confiscation pursuant to state or federal law; or to personal property that constitutes evidence of a crime, evidence in an ongoing criminal investigation and/or civil proceeding pursuant to state or federal law. The provisions of this chapter shall not apply to any motor vehicle. Personal property found or saved on private property shall be subject to the provisions of § 8.32.070 of this code.
B. The provisions/of this chapter shall not apply to abandoned personal property, which shall be disposed of forthwith.
C. “Shopping carts” or “carts” shall be subject to release to the owners and operators of businesses which provide shopping carts for the convenience of their customers or abatement and/or disposal thereof as may be permitted by law.
D. Notwithstanding the regulations set forth in this chapter, the City Manager and/or Chief of Police are hereby authorized to promulgate additional rules and policies for the implementation of this chapter in a manner consistent with state and federal law. § 8.44.150 VIOLATIONS, PENALTIES AND ENFORCEMENT.
- 7 of 7 - 3061872.6
Notwithstanding any other provision in this code, each violation of the provisions of this chapter may be enforced as follows:
A. A violation of this chapter may be punishable alternatively as a misdemeanor or an infraction at the discretion of the City Attorney or City Prosecutor. The penalty for an infraction and/or misdemeanor shall be as set forth in Chapter 1.04 of this code.
B. A violation of any of the provisions of this chapter hereby adopted shall constitute a nuisance and may be abated by the city through civil process by means of restraining order, preliminary or permanent injunction or in any other manner provided by law for the abatement of such nuisances.
City of Brea
City Council Regular Meeting Communication
H. Southern California Association of Governments (SCAG) Delegate and Alternate for the Regional Conference and General Assembly, scheduled for May 1-2, 2025.
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
STUDY SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR
- 6:00 P.M. Item: 1H.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Appoint a Delegate and Alternate to represent the City during the Annual SCAG General Assembly (GA).
BACKGROUND/DISCUSSION
Founded in 1965, the Southern California Association of Governments (SCAG) is a Joint Powers Authority under California state law, established as an association of local governments and agencies that voluntarily convene as a forum to address regional issues.
The SCAG region encompasses six counties (Imperial, Los Angeles, Orange, Riverside, San Bernardino and Ventura) and 191 cities in an area covering more than 38,000 square miles. The agency develops long-range regional transportation plans including sustainable communities strategy and growth forecast components, regional transportation improvement programs, regional housing needs allocations and a portion of the South Coast Air Quality management plans.
Each year, the City Council appoints a Delegate and Alternate Representative to attend the SCAG General Assembly (GA) to vote on any policy matter for determination by the General Assembly in the form of a proposed Resolution and/or to propose revisions to the SCAG Bylaws. All proposed Resolutions and/or Bylaw revisions will be reviewed by the SCAG Bylaws and Resolutions Committee and the Regional Council before being considered at the GA meeting, scheduled for May 3, 2018.
FISCAL IMPACT/SUMMARY
None.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Lillian Harris-Neal, City Clerk
City of Brea
City Council Regular Meeting Communication
I. Appointments to the Art in Public Places Committee; Cultural Arts Commission; Parks, Recreation and Human Services Commission; Planning Commission; Investment Advisory Committee; and Traffic Committee Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
STUDY SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR
- 6:00 P.M. Item: 1I.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Appoint four (4) Art in Public Places Committee Members, five (5) Traffic Committee Members, two (2) Planning Commissioners, two (2) Cultural Arts Commissioners, two (2) Parks, Recreation and Human Services Commissioners; and one Investment Advisory Committee Member
BACKGROUND/DISCUSSION
The Interview Committee consisting of Council Members Marick and Simonoff interviewed interested applicants for the various Committee openings and will make a recommendation to the City Council.
FISCAL IMPACT/SUMMARY
There is No Impact to the General Fund.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Lillian Harris-Neal, City Clerk
City of Brea
City Council Regular Meeting Communication
A. City of Brea Annual Comprehensive Financial Report and Related Audit Reports for the Fiscal Year Ended June 30, 2024
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
ADMINISTRATIVE ITEMS Item: 3A.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Staff recommends that the City Council to:
Receive and file the City's Annual Comprehensive Financial Report (ACFR) and Related Audit Reports for the Fiscal Year ended June 30, 2024.
BACKGROUND/DISCUSSION
Each year the City of Brea issues an Annual Comprehensive Financial Report (ACFR) (attached). The ACFR summarizes the financial transactions of the agency for the year in accordance with the financial presentation requirements prescribed by governmental accounting standards.
On February 20, 2024, the City Council approved awarding the contract for auditing services to Lance, Soll & Lunghard, LLP (LSL) for a five-year period from 2023-24 through 2027-28.
The City’s independent auditor, LSL, has completed its audit of the City’s ACFR for fiscal year ended June 30, 2024.
LSL has issued an unmodified or ‘clean’ opinion on the City's ACFR in accordance with Generally Accepted Accounting Principles (GAAP), stating that it fairly presents both the financial position and the results of operations for the year ended June 30, 2024.
Financial Highlights
The City’s overall net position decreased by $15.6 million, from $360.4 million to $344.7 million as of June 30, 2024. The decrease in the governmental activities’ net position was primarily due to the increase of net pension liability, while the business-type activities saw an increase related to the Water Utility fund revenues exceeding expenditures.
The City's capital assets increased by $6.5 million, primarily due to construction in progress for projects such as the Arovista Park Modernization Project, the Integrated Crime Center (ICC), and various other water projects currently in different phases of construction throughout the City. The City's long-term liabilities include $188.4 million in net pension and other post-employment benefit liabilities, in addition to $51.9 million of outstanding bonds, leases and other long-term liabilities.
As of June 30, 2024, the General Fund's ending fund balance included a reserve of $9.2 million deposited in the City's pension rate stabilization program with Public Agency Retirement Services (PARS). There was an adjustment to the financial statements that included the restatement of the Affordable Housing Fund, which was previously reported as a non-major governmental fund during the prior fiscal year. Due to the significant increase in assets of the fund during the year, it met the requirements of being presented as a Major Fund, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34. This restatement was a result of implementing the new accounting standard, GASB Statement No. 100, during the fiscal year ended June 30, 2024.
Related Audit Reports
Audit Communication Letter (Statement on Auditing Standards (SAS) 114 Report The Statement on Auditing Standards (SAS) 114 was issued by the American Institute of Certified Public Accountants (AICPA) to establish a two-way communication between the independent auditors and those charged with governance (i.e. City Council). SAS 114 requires that the City's auditor communicate, either orally or in writing, certain information to an audit committee or another designated party that performs oversight on the financial reporting and auditing process.
The City's Finance Committee has been identified by the City Council to receive and review the report on the annual audit from the City's independent auditor and to review and make recommendations to the City Council to receive and file the report. The Audit Communication Letter dated December 20, 2024 (attached), and issued as part of the annual audit, did not identify any significant difficulties or disagreements with management that arose during the course of the audit, nor identified any uncorrected misstatements. This letter indicates a ‘clean report’ for the fiscal year ended June 30, 2024.
In addition, prior to the start of the audit, the auditors met with members of the City's Finance Committee to discuss the planning of audit.
Article XIII-B Limit on Appropriations Calculation Report (Appropriations Limit Report) This report (attached) communicates the results of the audit firm's testing of the City's computation of the statutory appropriation limitation. No exceptions were noted in this report, and the City is well within the constraints of the statutory limit provided by state law.
Single Audit Report
The City was required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget’s 2 CFR Part 200 Uniform Guidance, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The City continually seeks federal assistance whenever possible and for the fiscal year ending June 30, 2024, received more than $750,000 in grant revenues and was required to issue the Single Audit Report for FY 2023-24. For FY 2023-24, the City received $1.5 million in federal awards. Information related to this single audit, including a schedule of expenditures of federal awards assistance and the independent auditors’ reports on the internal controls and compliance with applicable laws and regulations is available in the City of Brea’s separately issued Single Audit Report (attached).
COMMITTEE RECOMMENDATION
The Finance Committee reviewed this item at their January 14, 2025, meeting and recommended to receive and file.
SUMMARY/FISCAL IMPACT
The City's annual audit for the fiscal year ended June 30, 2024 (FY 2023-24), has been completed. The City's independent auditor has issued an unmodified opinion on the City's ACFR, which is the highest level of assurance an entity can receive from its independent auditors (a ‘clean audit’). There were no findings or questioned costs as a result of their audit for FY 2023-24. The total cost of audit services for the FY 2023-24 is $85,210 and had been appropriated during the budget process.
RESPECTFULLY SUBMITTED
Kristin Griffith, Interim City Manager
Prepared by: Monica Lo, Deputy Director of Administrative Services Concurrence: Kristin Griffith, Interim City Manager
Attachments
City of Brea Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 City of Brea Single Audit Report
City of Brea FY 2023-24 Gann Limit AUP Report
City of Brea Audit Communication Letter
Annual
Comprehensive
Financial
Report
JUNE 30, 2024
FISCAL YEAR ENDING
Brea, California
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CITY OF BREA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION
Transmittal Letter ............................................................................................................................................... i List of Principal Officials ................................................................................................................................... ix Organizational Chart ......................................................................................................................................... x Certificate of Achievement for Excellence in Financial Reporting (GFOA) ...................................................... xi
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................................. 1 Management’s Discussion and Analysis (Unaudited) ............................................................................................ 4 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ........................................................................................................................ 16 Statement of Activities ............................................................................................................................. 17 Balance Sheet ......................................................................................................................................... 20 Reconciliation of the Balance Sheet Governmental Funds
to the Government-Wide Statement of Net Position ............................................................................ 22 Statement of Revenues, Expenditures and Changes in Fund Balances ................................................ 23 Reconciliation of the Statement of Revenues,
Expenditures and Changes Fund Balances of Governmental Funds to the Statement of Activities .......................................................................................................................... 24 Proprietary Funds Financial Statements:
Statement of Net Position ................................................................................................................. 27 Statement of Revenues, Expenses and Changes in Fund Net Position .......................................... 28 Statement of Cash Flows .................................................................................................................. 29 Fiduciary Funds Financial Statements:
Statement of Fiduciary Net Position .................................................................................................. 32 Statement of Changes in Fiduciary Net Position .............................................................................. 33 Notes to the Basic Financial Statements................................................................................................... 34
CITY OF BREA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Required Supplementary Information:
Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ...................... 78 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ................................... 80 Schedule of Changes in Proportionate Share of the Net Pension Liability – Safety Plan ............................. 82 Schedule of Plan Contributions – Miscellaneous and Safety Plans .............................................................. 83 Schedule of Plan Changes in Net OPEB Liability and Related Ratios .......................................................... 84 Schedule of Plan Contributions – Single Employer OPEB Plan .................................................................... 86 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetary and Actual:
General Fund ........................................................................................................................................... 87 Affordable Housing Fund ......................................................................................................................... 88 Housing Successor .................................................................................................................................. 89 Notes to Required Supplementary Information ........................................................................................ 90 Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetary and Actual:
Capital Improvement Fund ...................................................................................................................... 93 Nonmajor Governmental Funds:
Combining Balance Sheets ..................................................................................................................... 96 Combining Statements of Revenues, Expenditures, and Change in Fund Balance ............................. 101 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetary and Actual:
Gas Tax ..................................................................................................................................................... 106 Narcotics Enforcement Asset Seizure ................................................................................................... 107 Air Quality Improvement ........................................................................................................................ 108 Park Development ................................................................................................................................. 109 Measure M ............................................................................................................................................. 110 Community Development Block Grant .................................................................................................. 111 Blackstone CFD ..................................................................................................................................... 112 La Floresta CFD .................................................................................................................................... 113 Taylor-Morrison CFD ............................................................................................................................. 114 Central Park Village CFD ...................................................................................................................... 115 Development Fund ................................................................................................................................ 116 National Opioid Settlement .................................................................................................................... 117 Organized Retail Theft ........................................................................................................................... 118 Capital and Mitigation Improvement ...................................................................................................... 119 Storm Drain ............................................................................................................................................ 120 Non – Major Enterprise Funds:
Combining Statement of Net Position.................................................................................................... 122 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ............................. 123 Combining Statement of Cash Flows .................................................................................................... 124
CITY OF BREA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Internal Service Funds:
Combining Statement of Net Position.................................................................................................... 126 Combining Statements of Revenues, Expenses, and Change in Net Position ..................................... 127 Combining Statement of Cash Flows .................................................................................................... 128 Custodial Funds:
Combining Balance Sheet ..................................................................................................................... 130 Combining Statements of Change in Net Position ................................................................................ 132
STATISTICAL SECTION
Financial Trends:
Net Position by Component, Last Ten Fiscal Years ........................................................................................ 135 Changes in Net Position, Last Ten Fiscal Years ............................................................................................. 136 Fund Balance – Government Funds, Last Ten Fiscal Years ........................................................................... 138 Changes in Fund Balances – Governmental Funds, Last Ten Fiscal Years .................................................. 139 Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years ........................ 140 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years ........................................................... 141 Principal Property Tax Rates, Last Ten Fiscal Years .................................................................................. 142 Property Tax Levies and Collections, Last Ten Fiscal Years ...................................................................... 143 Taxable Sales by Category, Last Ten Fiscal Years ..................................................................................... 144 Debt Capacity:
Ratio of Outstanding Debt by Type, Last Ten Fiscal Years ......................................................................... 145 Ratio of Net general Bonded Debt Outstanding, Last Ten Fiscal Years ..................................................... 146 Direct and Overlapping Governmental Activities Debt ................................................................................. 147 Legal Debt Margin, Last Ten Fiscal Years ................................................................................................... 148 Pledged Revenue Coverage, Last Ten Fiscal Years ................................................................................... 149 Demographic and Economic Information:
Demographic and Economic Statistics, Last Ten Fiscal Years ................................................................... 150 Principal Employers, Current Year and Ten Fiscal Years ........................................................................... 151 Operating Information:
Full Time Equivalent City Government Employees by Function, Last Ten Fiscal Years ............................. 152 Operating Indicators, Last Ten Fiscal Years ................................................................................................ 153 Capital Assets Statistics, Last Ten Fiscal Years .......................................................................................... 154
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December 20, 2024
Honorable Mayor, Members of the City Council, and Citizens of the City of Brea:
We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) of the City of Brea, a California City, for the Fiscal Year ended June 30, 2024. This report has been prepared in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants.
This report consists of management’s representations concerning the finances of the City of Brea. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Brea has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements.
Because 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 financial statements will be free from material misstatement.
As management, we assert that, to the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and component units of the City of Brea. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.
Lance, Soll & Lunghard, LLP, a firm of licensed certified public accountants, has audited the City of Brea’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Brea for the Fiscal Year ended June 30, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded that there was a reasonable basis for rendering an unmodified opinion that the City of Brea’s financial statements for the Fiscal Year ended June 30, 2024, are fairly presented in all material respects in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report.
The City of Brea is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget’s 2 CFR Part 200 Uniform Guidance, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The City continually seeks federal assistance whenever possible and for Fiscal Year ending June 30, 2024 received more than $750,000 in grant revenues and is required to issue the Single Audit Report for FY 2023-24. For FY 2023-24, the City received approximately $1.5 million in federal awards. Information related to this single audit, including a schedule of expenditures of federal awards assistance and the independent auditors’ reports on the internal controls and compliance with applicable laws and regulations is available in the City of Brea’s separately issued Single Audit Report.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Brea’s MD&A can be found immediately following the report of the independent auditors. ii
CITY OF BREA PROFILE
The City of Brea, a diverse residential and business community is located at the most northern tip of Orange County at the juncture of three counties with access to major airports, popular regional attractions, beaches, deserts and mountains. Nestled among the hillsides, just 25 miles southeast of Los Angeles, Brea is home to more than 47,725 residents and hosts a daytime working population of more than 125,000.
The City is a major retail center featuring one of the county’s largest shopping centers, the Brea Mall; the Brea Union Plaza; and a host of other retail and service businesses. Brea is also a center for big businesses such as ViewSonic Corporation, NCH Management Systems Inc., EVGA Corporation, Beckman-Coulter, American Financial Network, Inc., California Roadside Service, Kirkhill Aircraft Part Co. and Flexfit LLC. Several companies’ corporate headquarters are located within Brea, including Beckman-Coulter, and Suzuki Motor of America.
Although Brea is a major retail and business hub, it maintains a balance with nature, preserving its hillside and canyon areas, which also contribute to Brea’s quality of life. Brea is home to one of the nation’s largest outdoor sculpture collections, with currently 191 pieces of sculpture created to date, an art gallery and a performing arts theatre. Brea has long been recognized for its vision and innovation. It possesses a focused economic development strategy, designed to ensure a well-balanced, economically viable community which includes a wide range of housing, beautiful parks and excellent schools.
Brea provides an excellent portfolio of responsive municipal services. The City operates as a “full service city,” providing a full range of services including police and fire protection, water and sanitation services, construction and maintenance of streets and infrastructure, as well as recreational and cultural services. Besides serving its own residential and business customers, Brea has a tradition of entrepreneurial ventures providing services to numerous other public agencies such as information technology and printing services.
The City of Brea operates under the Council-Manager form of government, and is governed by a five-member City Council elected at large, serving staggered four-year terms. Council elections are held in November of even-numbered years in conjunction with statewide general elections.
The budget serves as the foundation for the City of Brea’s financial planning and control. The budget is adopted on a biennial basis by the City Council in June of each odd year. The budget team, with the approval of the City Manager, develops budget guidelines in January. The various City departments then submit revenue estimates and expenditure appropriation requests for the period that begins July 1 of each odd year. Budget meetings are held with each department, which leads to the development of the proposed budget. The City Manager then presents the proposed budget document to the City Council, which is discussed with the City Council in public workshops in mid-May. Formal public hearings are held in early June with final approval by City Council on or before June 30 of each odd year. At the conclusion of the first year, the budget team prepares a report on the progress of the first half of the biennial budget cycle. The City Manager formally reviews the report with the City Council. The City Council adopts budget adjustments as needed. The level of budgetary control is established at the fund level for all funds.
LOCAL ECONOMIC FACTORS
Brea encompasses about 8,300 acres or 13 square miles of land. The City’s land use is distributed as follows:
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Land Use Distribution
The current land use mix produces General Fund revenues of approximately $77.4 million. Sales taxes, property taxes and franchise taxes account for the top three revenue sources. These revenue sources account for 62.8% of the total amount of General Fund revenues. The remaining revenues account for 37.2% of the total and are represented by a broad range of sources.
Land Use Percent
Residential (single-family, multi-family, and mobile homes) 45.3% Commercial and Office 4.0%
Industrial 11.6%
Parks and Open Space 18.2%
Public Facilities (City facilities, schools, drainage channels, and fire stations) 2.6% Mixed Use 3.7%
Cemetery 0.3%
Other (streets) 14.3%
Total 100.0%
Source: City of Brea General Plan (2003, and subsequent updates 2008, 2014, 2021) iv
Sales Tax
Sales tax represents the single largest source of General Fund revenue at $25.2 million. It is derived from six major economic categories as listed in the following chart. The retail category, including department stores, apparel stores and general merchandise, makes up 29% of the total sales tax generated. This sector includes the regional Brea Mall, which is one of the largest malls in Orange County. The second largest economic sector being business to business.
Overall, Brea’s sales tax on a per capita basis consistently outperforms other municipalities, a strong indicator that the City imports sales tax dollars from surrounding communities.
Property Taxes
Brea is a very diverse community as previously indicated in the land use chart. General Fund property taxes represent $20.3 million or 30% of General Fund revenues. Assessed valuation of all property (including the former Brea Redevelopment Agency) in Brea is $13.2 billion, an increase of 6.3% over the prior fiscal year. The valuation is split between residential at 60%, commercial/industrial at 36%, and the remaining 3% for other miscellaneous uses.
Of the City’s 18,711 dwelling units, 62% are single-family units, 33% are multi-family units and 5% are mobile homes.
Housing costs in Brea continue to rank among the highest in North Orange County. Brea, like other cities in Orange County, is experiencing an increase in housing prices. The median price of a single-family home increased to $1,040,000, up from $975,000, which is a 6.7% rise compared to the previous fiscal year.
Vehicle License Fees (VLF)
When a vehicle is registered in California, a license fee is charged by the State of California. This fee includes a small administrative fee and a property tax in-lieu fee. The in-lieu fee is based on depreciated value of the vehicle and declines over the useful life of the vehicle. The in-lieu fee, while collected by the State Department of Motor Vehicles, belongs to local government (cities and counties). It is allocated based on a per capita basis. v
Beginning in January 2005, the Vehicle License Fee was permanently reduced to 0.65% from 2.0% of the vehicle’s fair market value. Any loss to cities by this rate reduction at that time was made up, dollar for dollar, with an allocation from the County’s Educational Revenue Augmentation Fund (ERAF) property tax account with two payments, due on or before January 31st and May 1st of each year. This allocation will grow with any corresponding growth in the City’s secured property tax valuation.
Franchise Taxes
The franchise revenue received by the City is based on adopted City ordinances and contractual agreements. Public utilities (electric and gas) account for 39.8% of the $2.8 million in annual franchise tax revenue. The remaining 60.2% of this revenue includes franchise fees for oil pipelines, cable television, and other non-city utilities.
ECONOMIC OUTLOOK
Development within Brea continues to remain active and there are many projects in different phases throughout the City. Development within Brea continues and remains active with large scale projects underway including the Brea Mall Mixed Use Project which will redevelop a 15.5-acre portion of the current Brea Mall providing new retail, restaurants, residential and commercial opportunities for the community including a Lifetime Fitness. Demolition started and construction of various buildings have begun including a new mall entrance. Once the current phases are further along, construction on the landscaping and outdoor plaza will begin. The residential and Lifetime Fitness buildings are next to start construction. This project is a multi-phased effort and is anticipated new retail and restaurants will be available to the public Spring/Summer 2025.
Brea Plaza, a vibrant shopping center located along Imperial Highway, between the 57 Freeway and Associated Road, is also undergoing a remodel that will modernize the area located northwest corner of the shopping center.
This project will demolish the existing theatre building and add additional ground floor retail spaces and second-floor office spaces with outdoor balcony areas to two of the existing buildings. Construction has started and is anticipated to be completed by late 2025.
Development improvements are also being made to the Gaslight Square site located on Imperial Highway west of State Route 57 which is a mixed-use site that will demolition a portion of the project site to add a new 2,000 square food-drive through restaurant with an outdoor seating area and a 6,000 square foot commercial building consisting of 2,400 square feet of restaurant and 3,600 square feet of medical or retail space. Construction is currently underway.
New development within the City provides an opportunity to generate additional revenue that will assist the City in tempering the increasing cost of goods and services that have remained constant these past few years following the COVID-19 pandemic. Though the organization has been able to pivot and think strategically when navigating a rapidly changing economic environment, the organization continues to maintain and enhance core service levels to Annual Percent
Revenue of Total
Public Utilities $ 1,128,139 35.8%
All Others 2,020,906 64.2%
Totals $ 3,149,045 100.0%
Fiscal Year Ended June 30, 2024
Franchise Taxes
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the community. This has been especially difficult as the organization repositions itself as work capacity attributed to employee attrition (“Great Resignation”) which continued through this post-pandemic environment. To allow flexibility and responsiveness within the organization, the City Manager’s authority as it relates to the budget appropriation carryovers is recommended to be expanded to allow the ability to carryover available appropriation from one year to another year for a new expenditure so long as the total appropriation per expenditure does not exceed the City Manager’s authority limit of $50,000. This will provide the organization the ability to respond and adapt quicker.
Fortunately, through the guidance of the City Council, the organization has positioned itself with healthy General Fund reserves, above the current policy level of 25%. The excess reserves above the 25% policy limit may help the organization maintain and expand current service levels as the organization adapts to economic pressures in the current and upcoming fiscal years. Staff will also continue to closely monitor actual versus projected revenues and opportunities for vacancy savings that will assist in providing more firm estimates as we navigate the next two fiscal years. Staff commits to providing budget updates to the City Council as the financial picture changes.
Overall it is important to note that Brea is paying all of its obligations on time; is setting aside funding for ongoing capital facility and equipment replacement; and is funding a robust Capital Improvement Program (CIP) to adequately maintain City infrastructure systems. The City Council also took the opportunity as part of this budget process to refine the organization’s Fiscal Policies Statement to provide additional guidance regarding capital replacement reserve policies and the inclusion of the City’s Reserve Fund Transparency Ordinance.
The organization will make every effort to continue to build prudent reserves and strategic savings programs to be able to insulate the City from a downturn in the economy and minimize organizational disruption. The City Council is also committed to pension modifications and plans to continue setting aside money in an irrevocable trust fund, administered through the Public Agency Retirement Services (PARS), that is specifically designed to help stabilize pension costs. This, combined with continued efforts to promote pension modifications at the legislation front, are steps in the right direction.
The entire organization continues to work hard to preserve core City services. Staff will continue to be diligent in monitoring long-term economic uncertainties that could impact Brea’s budget picture. These include:
The effects of the pandemic and the likelihood of a resurgence; Increases in the cost-of-living (inflation);
Uncertainty in the State’s budget; and
CalPERS projected rate increases
City staff uses a variety of tools, such as looking strategically at vacancies and consolidation of functions to structurally close the budget gap when needed. Staff continues to research new and innovative ways of doing business.
LONG-TERM FINANICAL PLANNING
Brea Forward Strategy Team
Representatives from all City departments meet to discuss strategic planning issues. Over 40 City staff members work collaboratively on an ongoing basis to focus on identifying and evaluating changing City needs. As needed, this group is also instrumental in tackling economic impacts on the City’s Budget. Brea Forward meets as needed to address changes to the organization that may be necessary to financially sustain the City over the course of the next several fiscal years and beyond.
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Capital Improvement Program (CIP) Budget
The goal of the seven-year CIP is to enhance the quality of life in the community, ensure a safe environment and to promote transportation improvement in the City. The CIP budget for Fiscal Year 2023-25 reflects the City Council’s commitment to this goal by enhancing existing infrastructure and providing new infrastructure to aid in service delivery to the community. The remaining six years of the CIP are not a commitment of actual funds, but rather a long-range planning tool for subsequent investments in the City’s infrastructure. The CIP is divided into six categories: streets, traffic safety, water, storm drain, sewer, and facility improvements.
Community Center Reserves
Funds are set aside annually for the future replacement of the Community Center facility and equipment. Ongoing review of facility and equipment needs allows the City to manage and plan for expenditures in a more proactive manner. The balance in Community Center Reserves at June 30, 2024 was $1,053,819.
Capital Asset Replacement Reserves
Funds are set aside annually for the replacement of City-owned infrastructure, facilities and capital assets. In addition to a fixed annual contribution, an assessment is made at the end of each fiscal year to determine whether an additional contribution can be made based upon a review of General Fund excess revenues over expenditures. The balance in Capital Asset Replacement Reserves at June 30, 2024 was $4,406,226.
Pension Rate Stabilization Program
On November 17, 2015, the City of Brea established a pension rate stabilization program with Public Agency Retirement Services (PARS) to reduce the future unfunded pension liability for current and future retirement costs for both safety and non-safety employees. The City’s initial contribution of $6,000,000 from the General Fund was made during FY 2015-16. During FY 2018-19, the City’s Enterprise Funds contributed an additional $756,800 for a total contribution of $6,756,800. The balance as of June 30, 2024 including interest earned to date was $10,592,454.
MAJOR INITIATIVES
State Route 57/Lambert Road Interchange Improvements
Starting in August 2019, the City in conjunction with Caltrans began construction on a new eastbound to northbound loop on-ramp and modify the spacing between the existing SR-57 on and off ramps to improve traffic flow on Lambert Road. The project budget is $100 million with more than 90% of the funding from grants; federal funding of $74 million and $18 million from the Orange County Transportation Authority (OCTA). The remainder is funded by the City with Traffic Impact Fees. Caltrans is the lead agency for environmental and implementation while the City of Brea is the lead for the Right-of-Way and Design.
Arovista Park Modernization Project
The City embarked on the modernization of a 30+ year old park in its historic south Brea neighborhood. With key pedestrian connections to the downtown via the Tracks at Brea trail system, and adjacency to the Brea Senior Center, Brea Creek Golf Course and local schools, this 14-acre site serves as a primary location for multi-generational recreational uses for the community. The City is also adding the first all-accessible playground in North Orange County which will provide an opportunity for children and adults of all ages and all abilities to have a safe space to play and enjoy the outdoors. The construction of Arovista Park East (Phase One) began in May 2024 and is anticipated to be completed in Fall of 2025 with a project budget of $24.1 million.
In-House Ambulance Program
In order to enhance service to the Brea community, the Brea Fire Department is developing an in-house ambulance program. Rather than contracting with a private ambulance company, the fire department will own and operate the ambulances, and the ambulance operators/Emergency Medical Technicians (EMTs) on the ambulances will be City employees. The in-house ambulance program is anticipated to be fully implemented by January 2025. As part of the development of this program, the City has entered into a contract with third party ambulance billing provider. As of July 1, 2024, the City has taken over the billing component of ambulance transportation. Brea’s current contracted private ambulance provider, Emergency Ambulance Services (EAS) Inc., will continue providing transport services in Brea until January 2025, at which time, all services will be transferred over to the Brea Fire Department.
Integrated Crime Center (ICC)
The ICC at the Brea Police Department is a modern, technology-based system that is designed to change the paradigm in crime prevention, management, and resolution. Equipped with advanced tools such as video management systems, video analytics, Automated License Plate Readers (LPR), Unmanned Aerial Systems (UAS), and a Drone as a First Responder Program (DFR), the ICC provides first responders with real-time, critical information while generating investigative leads. To further extend the system, the City of Brea has hired a company that will design the fiber network required for a citywide camera system. This will be used as the foundation for construction bids to be solicited in January 2025, expanding ICC's reach and effectiveness and enhancing public safety and community engagement.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brea for its Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023. This was the 34th consecutive year that the City of Brea has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive financial report continues to conform to the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEGMENTS
The preparation of the Annual Comprehensive Financial Report on a timely basis was made possible by the dedicated service of Monica Lo, Deputy Director of Administrative Services, Ana Conrique, Senior Accountant and the entire staff of the Administrative Services Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.
We also would like to thank our independent auditing firm, Lance, Soll & Lunghard, LLP for their expertise and advice in the preparation of this year’s financial report.
In closing, without the leadership and support of the City Council of the City of Brea, preparation of this report would not have been possible.
Sincerely,
____________________
Kristin Griffith
Interim City Manager
viii
City Council
Christine Marick
Mayor
Marty Simonoff
Council Member
Steve Vargas
Council Member
ElecőäàgùƈÚĆÁě
Treasurer Denise Eby
AdministrÁőĆve Personnel
City Manager Bill Gallardo
Deputy City Manager/
Community Development Director
Jason Killebrew
Deputy City Manager/
Administrative Services Director
Kristin Griffith
Chief of Police Adam Hawley
City Clerk Lillian Harris-Neal
Community Services Director Carrie Hernandez
Fire Chief Mark Terrill
Public Works Director Michael Ho
City Attorney Terence Boga
Blair Stewart
Mayor Pro Tem
Cecilia Hupp
Council Member
ix
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Brea
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Brea, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brea, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and Members of the City Council
City of Brea, California
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 generally accepted auditing standards and Government Auditing Standards 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 generally accepted auditing standards and Government Auditing Standards, 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 for the general fund and major special revenue funds, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required 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 To the Honorable Mayor and Members of the City Council City of Brea, California
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 accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s 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
December 20, 2024
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Brea’s Annual Comprehensive Financial Report (ACFR) presents management’s discussion and analysis of the City’s financial performance during the fiscal year that ended on June 30, 2024. This analysis should be read in conjunction with the Transmittal Letter at the front of this report and the accompanying Basic Financial Statements.
FINANCIAL HIGHLIGHTS
Long-Term Economic Resource (Government-wide) Focus – Economic resources are differentiated from financial resources in that the economic measurement focus measures changes in net position as soon as the event occurs regardless of the timing of related cash flows. Therefore, this measurement focus includes both current spendable resources and fixed non-spendable assets, and long-term claims against these assets. The resulting net position utilizing this measurement focus provides one measure of the City’s overall long-term financial condition.
• The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the most recent fiscal year resulting in a net position of $344.4 million. • The City’s total net position decreased overall by $15.9 million, of which $21.0 million is related to a decrease in governmental activities, while $5.1 million is related to an increase in business-type activities. The decrease in net position is primarily related to pension expense as discussed further in this document. Of the $5.1 million increase in business-type activities, $2.6 million is related to the Water Utility fund revenues exceeding expenses, $1.4 million is related to the Sewer Utility fund revenues exceeding expenses and $1.2 million relating to activities in Non-major Enterprise Funds.
• The City’s noncurrent liabilities of $240,4 million primarily includes $166,6 million in net pension liabilities, $22 million in other post-employment (OPEB) liabilities and $51.9 million of outstanding bonded debt, leases, subscription IT liabilities, compensated absences and claims. Total capital assets, net of depreciation, represents $355.9 million of the $545.3 million in total assets. A significant portion of the capital assets have been funded through bond financing from the former Brea Redevelopment Agency.
Short-Term Financial Resource (Fund) Focus – The financial resources focus measures inflows of current spendable assets. The resulting net difference between current financial assets and current financial liabilities, otherwise known as fund balance (or net working capital in the private sector), is to measure the City’s ability to finance activities in the near term.
• At the close of the current fiscal year, the City’s Governmental Funds reported a combined ending fund balance of $100 million, an increase of $1.9 million, which is largely due to an overall increase in investment income for fiscal year ended June 30, 2024. Of the total combined fund balance of $100 million for governmental funds, $58.3 million was restricted, $13 million was assigned, $1.5 million committed and $27.1 million was unassigned.
• The General Fund reported an increase of $1.9 million primarily due to an increase in investment income resulting in a total ending fund balance of $55 million. Of the total ending fund balance, $13 million was assigned, $12.3 million was restricted, $1.5 million was committed and $28.1 million was unassigned. The unassigned balance is available for future appropriations.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements. The Management’s Discussion and Analysis is intended to be an introduction to the Basic Financial Statements. Required supplementary information is included in addition to the basic financial statements. 4 BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements – The Government-wide Financial Statements are intended to provide a “Big Picture” view of the City as a whole using accounting methods similar to those used by private sector companies. The statement of net position includes all of the City’s assets (including non-spendable assets like streets and roads) and any deferred outflows, liabilities (including long-term liabilities that may be paid over twenty or more years) and any deferred inflows of resources. All of the current year revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.
Government-wide Financial Statements report the City’s net position and how they have changed.
Net position – the difference between the City’s assets and deferred outflows of resources vs. its liabilities and deferred inflows of resources– is one way to measure the City’s financial health, or position. Over time, increases or decreases in the City’s net position are an indicator of whether its financial health is improving or deteriorating, respectively. To assess the overall health of the City, one should also consider additional non-financial factors such as changes in the City’s property tax base and the condition of the City’s roads.
The City’s Government-wide Financial Statements are divided into two categories:
1. Governmental Activities – This statement depicts the extent to which programs are self-supporting and the net amount provided by property taxes and other general revenues. Most of the City’s basic services are included in this category, such as public safety, community development, community services, public works, and general administration. Taxes and charges for services finance most of these activities.
2. Business-type Activities – The City’s business enterprises include water utility, sewer utility, urban runoff, sanitation, information technology external support to public agencies and golf course activities. The City charges fees to customers to recover the cost of providing these services.
Fund Financial Statements – Funds are accounting devices that the City uses to track and control resources intended for specific purposes. The Fund Financial Statements provide more detailed information about the City’s most significant funds (major funds) but not the City as a whole. Some funds are required by State and Federal law or by bond covenants. Other funds are utilized simply to control and manage resources intended for particular purposes.
The City utilizes three broad categories of funds:
Governmental Funds – Governmental Funds are used to account for essentially the same functions reported as Government Activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements utilize the financial resources measurement focus and thus concentrate on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Consequently, the Governmental Fund Financial Statements provide a detailed short-term view that helps a reader determine whether there are more or fewer financial resources that can be spent in the near future to finance City programs.
Proprietary Funds – Services for which the City charges customers a fee is generally reported in Proprietary Funds (Enterprise Funds and Internal Service Funds). Like the Government-wide Financial Statements, these funds provide both long and short-term financial information utilizing the economic resources measurement focus. The City’s Enterprise Funds (urban runoff, water, utility, sewer utility, sanitation, information technology external support to public agencies and golf course activities) are individual funds represented in the combined presentation of Business-type Activities in the Government-wide Financial Statements. The individual fund presentation provides more detailed information about each business segment, its operating statements, and statements of cash flow.
The City also uses Internal Service Funds that are utilized to report and allocate the cost of certain centrally managed and operated activities (risk management, equipment replacement, and building occupancy). Because the Internal Service Funds primarily serve the government, they are reported with Governmental Activities rather than the Business-type Activities in the Government-wide Financial Statements.
Fiduciary Funds – The City utilizes Fiduciary Funds to account for assets held by the City in a trustee capacity, or as an agent for other governmental entities, private organizations, or individuals. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. 5 These activities are excluded from the City’s Government-wide Financial Statements because the City cannot use these assets to finance its operations.
Notes to the Financial Statements – The financial statements also include the Notes to the Financial Statements that provide important narrative details about the information contained in the financial statements. Information contained in the Notes to the Basic Financial Statements is critical to a reader’s full understanding of the Government-wide and Fund Financial Statements.
Supplementary Information – In addition to the required elements of the Basic Financial Statements, we have also included a Supplementary Information section, which includes budgetary and combining schedules that provide additional details about the City’s non-major Governmental Funds, Enterprise Funds, Internal Service Funds, and Fiduciary Funds.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole. Our analysis focuses on the net position (Table 1) and changes in net position and changes in net position (Table 2) of the City’s governmental activities. The government-wide statements also include the City’s water and sewer activities as business-type activities.
Net Position – Net position may serve over time as a useful indicator of a government’s financial position. The City’s combined net position for the year ended June 30, 2024 was $344.4 million of which $313.2 million was the net investment in capital assets such as construction in progress, equipment, buildings and infrastructure. Of the remaining total, $57.4 million was restricted to specific law, contracts or other agreements such as affordable housing, public safety, capital projects and debt service. The remaining $26 million deficit was unrestricted. 6 Net Investment of Capital Assets – The largest component of the $545.3 million in total assets is the City’s investment in capital assets (e.g., land, buildings, infrastructure, and equipment), representing $356 million or 65.3% of total assets.
Noncurrent Liabilities –Of the $240.4 million in long-term (non-current) liabilities, $51.9 million represents outstanding bonded debt, leases, subscriptions, compensated absences, and claims payable, $166.6 million represents net pension liability, and $22 million represents the City’s total OPEB liability. During the fiscal year ended June 30, 2024, noncurrent liabilities increased $7.8 million. This increase includes an 8.9% rise in net pension liabilities, a 2.9% decrease in OPEB liability, and a 2.4% decrease related to principal payments on bonds, leases, SBITA, claims and compensated absences. Please refer to Notes 9 through 12 to the basic financial statements for additional information.
2024 2023 2024 2023 2024 2023
Current and other assets $ 111,866 $ 106,206 $ 29,925 $ 25,127 $ 141,791 131,333 Capital assets 217,462 211,095 138,415 138,329 355,877 349,424 Noncurrent assets 30,761 31,285 17,189 17,463 47,950 48,748 Total assets 360,089 348,586 185,529 180,919 545,618 529,505 Deferred charge on refunding - - 1,003 907 1,003 907
Deferred pension/OPEB related items 75,278 99,539 2,846 3,233 78,124 102,772 Total Deferred Outflows of Resources 75,278 99,539 3,753 4,236 79,031 103,775 Noncurrent liabilities 186,553 177,046 51,982 53,721 238,535 230,767 Other liabilities 17,108 16,379 7,367 7,216 24,475 23,595 Total liabilities 203,661 193,425 59,349 60,937 263,010 254,362 Deferred Pension/OPEB/Lease related 16,121 17,688 800 870 16,921 18,558 Total Deferred Inflows of Resources 16,121 17,688 800 870 16,921 18,558 Net Investment in Capital Assets 214,585 208,081 98,595 96,874 313,180 304,955 Restricted 54,760 45,252 2,684 2,213 57,444 47,465
Unrestricted (53,760) (16,321) 27,854 24,261 (25,906) 7,940 Total net position $ 215,585 $ 237,012 $ 129,133 123,348$ $ 344,718 360,360$ (in thousands)
June 30, 2024
Net Position
Table 1
Governmental Activities Business-Type Activities Total Activities 7 The following table indicates the changes in net position for governmental and business-type activities:
The City’s total revenues for the fiscal year ended June 30, 2024 were $130.2 million. Of the City’s total revenues, $43 million (33%) were derived from fees charged for services, and $62.5 million (48%) were received in taxes.
Overall, revenues for the fiscal year ended June 30, 2024 increased by $7.7 million, a 6.3% increase from the prior year.
• Charges for services increased $3.6 million, primarily due to the recent cost recovery from the enterprise funds, such as water and sewer utility user fees.
2024 2023 2024 2023 2024 2023
Revenues:
Program Revenues:
Charges for services 7,983 $ 6,686 $ 34,968 $ 32,624$ $ 42,951 $ 39,310 Operating grants and contributions 6,906 10,788 145 11 7,051 10,799 Capital grants and contributions 3,864 1,815 - - 3,864 1,815 General Revenues:
Taxes:
Property taxes 24,080 27,008 - - 24,080 27,008
Sales taxes 27,128 28,812 - - 27,128 28,812
Transient occupancy taxes 2,617 2,230 - - 2,617 2,230
Franchise taxes 3,149 2,833 - - 3,149 2,833
Other taxes 5,570 1,475 - - 5,570 1,475
Unrestricted grants and contributions 2,906 - - - 2,906 - Use of money and property 5,113 3,911 1,132 237 6,245 4,148 Other 4,398 3,735 - - 4,398 3,735
Gain on sale of capital asset 183 274 52 69 235 343
Total Revenues 93,897 89,567 36,297 32,941 130,194 122,508 Expenses:
General government 13,215 9,467 - - 13,215 9,467
Public safety 72,585 45,981 - - 72,585 45,981
Community development 10,402 2,889 - - 10,402 2,889
Community services 9,701 10,309 - - 9,701 10,309
Public works 10,200 16,514 - - 10,200 16,514
Interest on long-term debt 96 27 - - 96 27
Water utility - 17,759 - 16,848 17,759 16,848
Sewer utility - 2,668 - 2,646 2,668 2,646
Urban runoff - 790 - 621 790 621
Sanitation - 4,256 - 4,008 4,256 4,008
Information Technology External Support - 1,097 - 953 1,097 953 Golf Course - 3,765 - 3,579 3,765 3,579
Total Expenses 116,199 85,187 30,335 28,655 146,534 113,842 Change in net position before transfers (22,302) 4,380 5,962 4,286 (16,340) 8,666 Transfers 1,725 875 (1, (875) 725) - -
Change in net position (21,427) 6,105 5,087 2,561 (16,340) 8,666 Net position at beginning of year, as
restated 237,012 230,907 124,046 120,787 361,058 351,694 Net position at end of year $ 215,585 $ 237,012 129,133$ 123,348$ 344,718$ $ 360,360 Governmental Activities
Business-Type
Activities Total Activities
Table 2
Changes in Net Position
Fiscal Year Ended June 30, 2024
(in thousands)
8 • Operating grants and contributions decreased $3.7 million, partly due to the final receipt in the amount of $5.2 million of the City’s share of the American Rescue Plan Act (ARPA) received in the prior fiscal year. • Total taxes increased $185,178 mainly attributable to franchise and transient occupancy taxes. • Use of money and property increased $2.1 million (1.7%) mainly due to the increase in investment income as a result of favorable market rates.
• The City’s total expenses were $146.1 million, comprising of $72.1 million (49.3%) for public safety, $10.4 million (7%) for public works, $9.6 million (6.6%) for community services and $30.3 million (20.8%) for business-type activities. Total expenses increased $32.3 million from the prior year. Of the total increase, $26.1 million was attributable to increased expenses for public safety. Please refer to Note 10 to the financial statements and the required supplementary information for additional information on the City’s pension expense.
Brea is a full-service city providing residents, businesses and visitors with the following functional services:
General Government is comprised of two departments (City Council/City Manager and Administrative Services) providing general governance, executive management, legal services, communication and marketing, human resources, records management, information technology, accounting, budget, treasury, utility billing, purchasing and reprographics.
Public Safety is comprised of two departments (Police Services and Fire Services) providing general law enforcement, public safety dispatch, fire suppression, fire prevention, paramedic services and emergency preparedness.
Community Development is comprised of two divisions (Planning & Building Services and Economic Development Services) providing planning, zoning and building services, redevelopment services, economic development and housing services.
Community Services is overseen by one department and includes recreation, arts and human services, and the community center.
Public Works is overseen by one department and includes engineering and construction of public facilities, parks, streets and related infrastructure, traffic engineering as well as the maintenance of all public facilities, parks, streets and related infrastructure.
Business-type activities is comprised of two departments (Public Works and Administrative Services) providing five activities to residential and business customers (urban runoff, water utility, sewer utility, sanitation services, information technology external support to public agencies and golf course activities).
Governmental Activities – Table 3 presents the cost of each of the City’s five largest programs – general government, public safety, community development, community services and public works. Each programs’ net cost (total cost less revenues generated by the activities) is also presented below. The net cost shows the extent to which the City’s general taxes support each of the City’s programs. 9 The net cost of services indicates that the overall cost of government is more than the revenues generated to support it. See the Statement of Activities for further detail on program revenues and general revenues.
Overall program expenses have increased from prior year by $30.6 million and an increase in net cost of services by $31.1 million due to the significant increase in pension expense as previously discussed. Please refer to Note 10 to the financial statements and the required supplementary information for additional information on the City’s pension expense.
2024 2023 2024 2023
General government $ 13,126 9,467$ $ 11,243 $ 6,960
Public safety 72,064 45,981 68,959 39,439
Community development 10,417 2,889 5,335 2,041
Community services 10,309 9,619 6,264 7,606
Public works 10,484 16,514 5,156 9,826
Totals $ 115,710 85,160$ $ 96,957 $ 65,872
Table 3
(in thousands)
Governmental Activities
Program
Expenses
Net Cost (revenue)
of Services
10 Table 5
Governmental Activities
Fiscal Year Ended June 30, 2024
Major Governmental Activities in the current fiscal year included the following:
Revenues
• The City’s total governmental activities included program and general revenues of $93.9 million. Charges for services was $8 million (8.5%), both operating and capital grants and contributions were $13.7 million (14.6%), taxes were $62.5 million (66.6%) and other revenues were $9.7 million (10.3%). • Of the $94.8 million in total governmental revenues and transfers, 22.9% represents program revenues (both charges for services and contributions), 66% represents taxes and 11.1% represents other.
Expenses
• In the current year, expenses for all Governmental Activities totaled $115.8 million. Of this amount, 11.3% was spent on general government, 62.2% on public safety (including both police and fire), 9.0% on community development, 8.3% on community services, and 9.1% on public works.
Business-type Activities – Business-type Activities increased the City’s net position by $5.1 million, primarily due to the changes in the net position of the water utility, sewer utility, urban runoff, sanitation, information technology external support to public agencies and golf course activities. These activities are financed mainly by fees charged to external parties for goods and services.
11 Table 6
Program Expense & Revenue – Business-type Activities
Fiscal Year Ended June 30, 2024
(in millions)
Business-type Activities in the current fiscal year included the following:
The Water Utility experienced an increase in net position of $2.6 million. This increase was primarily due to operating income of $4.7 million, offset by $870,408 in non-operating expenses. Of the $16.1 million in water related expenses, 46.0% was for the purchase of water, 19% was for maintenance and other operating expenses, 18.1% was related to depreciation expense, and (16.9%) for personnel costs. Water rates were adjusted in June 2023, with subsequent CPI increases, to fund ongoing operations, recapture the bond coverage ratio, and provide funding for planned capital improvements to the water utility system.
The Sewer Utility had an increase in net position of $1.4 million. The increase in net position was primarily due to operating income of $1.2 million which was mainly due to increased rates.
The Urban Runoff had a decrease in net position of $187,505. Operating expenses, which included maintenance and operation costs of $322,172 and personnel costs of $462,409, totaled $784,581, depreciation expense totaled $1,750, while revenues totaled $598,826.
The Sanitation Utility had an increase in net position of $80,402. The increase in net position was due to revenues and transfers of $4.3 million exceeding operating expenses of $4.2 million.
The Information Technology External Support had an increase in net position of $26,659, primarily due to an increase in contract services.
The Golf Course had an increase in net position of $1.3 million. The increase in net position was primarily due to operating income and intertest of $5 million over operating expenses of $3.7 million.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to highlight available financial resources and to ensure and demonstrate compliance with finance-related legal requirements. 12 Governmental Funds – Utilizing the financial resources measurement focus, the City’s Governmental Funds provide information on near-term inflows and outflows, and balances of spendable resources. This information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of June 30, 2024, the City’s governmental funds reported a total combined ending fund balance of $100 million, an increase of $1.9 million from the prior year. Approximately 58.3% of the City’s governmental funds ending fund balances, or $58.3 million was restricted fund balance and is legally restricted by external parties. The remaining $41.7 million is committed, assigned and unassigned fund balance, which is available for spending at the government’s discretion. Please refer to Note 13 to financial statements for additional details on fund balance classifications.
The General Fund ended the fiscal year with a fund balance of $55 million, which is a net increase of $1.9 million, which is mainly due to increase in investment income. The General Fund’s unassigned fund balance of $28.1 million is available for future appropriations.
The Affordable Housing Fund ended the fiscal year with a fund balance of $3.9 million, all of which is restricted for affordable housing activities.
The Low and Moderate Income Housing Asset Fund ended the fiscal year with a fund balance of $19.6 million all of which is restricted for low and moderate income housing activities.
The City’s Capital Projects Fund ended the fiscal year with a fund balance of $6 million, a decrease of $200,738.
This decrease was primarily due to expenditures on capital projects and improvements. The $6 million fund balance is restricted for future capital projects.
Proprietary Funds – The City’s Proprietary Funds (Enterprise and Internal Service Funds) presented in the Fund Financial Statements section basically provide the same type of information in the Government-wide Financial Statements, but include individual segment information.
The Water Utility Fund ended the fiscal year with a net position of $92.7 million, an increase of $2.6 million from the prior year. The increase in net position was primarily due to revenues over expenditures of $2.6 million. Of the $92.7 million in net position, $69 million is net investment in capital assets, $2.7 million is restricted for debt service and $21 million is unrestricted. Amounts have been allocated or encumbered for capital projects currently under construction. Please refer to the Capital Asset Table 7 below for additional discussion.
The Sewer Utility Fund ended the fiscal year with $24.6 million in net position, an increase of $1.4 million. The increase in net position was primarily due the increase in charges for services. Of the $24.6 million in net position $19.5 million is net investment in capital assets and $5.1 million is unrestricted. Amounts have been allocated or encumbered for capital projects currently under construction. Please refer to the Capital Asset Table 7 below for additional discussion.
GENERAL FUND BUDGETARY HIGHLIGHTS
Variances to Original Budget
Differences between the General Fund original budget revenues and the final amended budget were decreased by $251,931 and are briefly summarized as follows:
• Overall decrease in taxes of $883,658 were primarily due the reduction in sales tax revenue projections as a result of lower sales receipt for transportation and general retail business sectors. This reduction also includes a correction of prior misallocation that also attributed to the reduced sales tax receipts. • Overall increase in intergovernmental revenues of $493,808 were related to additional grants received during the year. Of the total, $282,677 were revenues received from in-county Olinda landfill host fees received from the County of Orange.
• Rental income of $137,919 was increased for additional revenue as a result of a new agreement with Brea Olinda Unified School District (BOUSD) for leased space at the Brea Civic & Cultural Center. 13 Differences between the General Fund original budget expenditures for other financing sources (uses) and the final amended budget were increased by $4,936,015 and was mainly attributed to funding various equipment and capital improvement projects including the purchase of three (3) ambulance vehicles and equipment for the new in-house Ambulance Services Program in the Fire Services Department.
Variances with Final Budget
Differences between the General Fund final budget revenues and actual resources were $129,135 more than anticipated. The major variance was attributed to taxes being lower than projected and investment income being higher than anticipated.
Differences between the General Fund final budget expenditures and actual expenditures were $671,948 more than anticipated. The variance is primarily attributed to salary and benefit savings as well as continuation of projects including the General Plan Update effort and the new in-house Ambulance Services Program in the Fire Services Department.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for governmental and business-type activities as of June 30, 2024, amounts to $355.9 million (net of accumulated depreciation and amortization). This investment includes a broad range of capital assets such as land, structures and improvements, furniture, machinery and equipment, park facilities, roads, sidewalks, water system, storm drains, sound walls, and bridges. The total net increase (including additions and deletions) of $6.4 represents a 1.8% increase from the previous fiscal year.
Construction-in-progress (CIP) had a net increase of $10.5 million for Governmental Activities due to various capital improvement projects that have started this year. CIP for Business-Type Activities decreased $5.5 million as various projects have been completed and have been placed into service as noted above. The increase of $6.4 million for governmental activities was due to the addition of $10.5 million of various projects to CIP and remaining reduction due to accumulated depreciation to various pavement, traffic and street improvement projects. The $86,328 increase in Business-Type Activities is due to continuous water infrastructure improvement projects that are ongoing throughout the City.
Additional information on the City’s capital assets can be found in Note 8 to the basic financial statements. 2024 2023 2024 2023 2024 2023
Land 62,093 $ 62,093$ $ 11,629 11,629$ 73,722$ 73,722$
Water rights - - 32,375 32,375 32,375 32,375
Structures and improvements 59,795 61,776 4,086 4,145 63,881 65,921 Equipment 6,929 7,358 371 283 7,300 7,641
Infrastructure 65,333 66,894 85,172 79,575 150,505 146,469 Construction in progress 23,081 12,590 4,775 10,322 27,856 22,912 Right-to-use assets 231 384 7 - 238 384
Totals $ 217,462 $ 211,095 $ 138,415 $ 138,329 $ 355,877 $ 349,424 Total
Table 7
Fiscal Year Ended June 30, 2024
Capital Assets (net of depreciation and amortization)
(in thousands)
Governmental
Activities
Business-Type
Activities
14 Long-Term Debt
At the end of the current fiscal year, the City had total long-term debt outstanding for bonds, leases of $50.6 million for all governmental and business-type activities.
Additional information on the City’s long-term debt can be found in Note 9 to financial statements.
FACTORS AFFECTING NEXT YEAR’S BUDGET
The Fiscal Year 2023-25 biennial General Fund budgeted revenues are $75.0 million for fiscal year 2024-25 and budgeted expenditures are $72.9 million.
A brief summary of the factors considered when preparing year two of the Fiscal Year 2023-25 budget are summarized as follows:
• Sales tax represents the single largest source of General Fund revenue, budgeted at $26.6 million and represents 35 percent of the City’s General Fund budget. Sales tax projections are assumed to decline in major business segments including General Retail, Transportation and Food Products based upon sales through the holiday quarter ending December 2023. Sales tax projections also take into consideration reduced sales tax revenue as a result of a major business moving outside of City limits. The cumulative decline in sales tax revenues is projected to be significant in FY 2024-25. Staff continues to monitor sales tax receipts and provide routine updates to management and City Council as more information becomes available. It is also important to note that these projections do not include any increased sales tax revenue as a result of development activity currently underway including the Brea Mall Mixed Use Project. As development projects get closer to completion, sales tax projections will be updated to reflect conservative revenue estimates. • General Fund property taxes are also projected to increase as more information becomes available regarding development projects. Currently property taxes represent 20.6 percent of the City’s General Fund budget. This is a 4.5 percent increase in comparison to FY 2023-24 actuals. • The FY 2024-25 General Fund Operating Budget also takes into consideration the recent negotiation with the County of Orange regarding the Olinda Landfill Host Fee revenue with a projected one-time amount of $6.5 million to the City’s General Fund. This one-time funding will be used to fund the Arovista Park Modernization Project (CIP 7978) in lieu of using General Fund revenues over expenditures from prior fiscal year that was previously appropriated by City Council on March 19, 2024.
The current budget expands service levels to the community and represents a 10.7 percent increase in budgeted expenditures in FY 2024-25 in comparison to FY 2023-24 actuals.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the City’s Administrative Services Department, 1 Civic Center Circle, Brea, California 92821, at (714) 990-7676. 2024 2023 2024 2023 2024 2023
Lease revenue bonds 2,220 $ 2,220$ -$ -$ 2,220$ 2,220$
Water revenue bonds - 37,675 - 39,205 37,675 39,205
Totals $ 2,220 2,220$ $ 37,675 39,205$ 39,895$ $ 41,425 Business-Type
Activities Total
Table 8
Fiscal Year Ended June 30, 2024
(in thousands)
Governmental
Activities
Bonds and Leases
15 %DVLF)LQDQFLDO6WDWHPHQWV
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CITY OF BREA, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 97,595,177 $ 25,707,445 $ 123,302,622 Receivables (net of uncollectibles):
Accounts 4,176,081 3,527,978 7,704,059
Taxes 273,228 - 273,228
Accrued interest 3,788,797 - 3,788,797
Due from other governments 5,413,465 168,983 5,582,448
Notes and loans 16,209,848 - 16,209,848
Leases - 5,359,646 5,359,646
Internal balances (432,420) 432,420 -
Restricted assets:
Cash and investments 9,190,563 967,000 10,157,563
Cash and investments with fiscal agent 1,152 2,266,810 2,267,962 Land held for resale - 800,000 800,000
Prepaid items - 33,977 33,977
Capital assets (not being depreciated/amortized) 85,174,200 48,779,153 133,953,353 Capital assets (net of accumulated depreciation/amortization) 89,636,284 132,288,257 221,924,541 Equity in California Domestic Water Company 13,955,007 - 13,955,007 Total assets 185,224,343 360,088,708 545,313,051
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 907,806 - 907,806
Pension-related 72,246,192 2,390,587 74,636,779
OPEB-related 455,279 3,032,185 3,487,464
Total deferred outflows of resources 75,278,377 3,753,672 79,032,049
LIABILITIES
Accounts payable 4,450,784 4,305,530 8,756,314
Due to other governments - 1,414,872 1,414,872
Accrued liabilities 120,712 1,813,146 1,933,858
Accrued interest 650,031 27,079 677,110
Deposits payable 289,413 418,095 707,508
Unearned revenue - 9,129,216 9,129,216
Noncurrent liabilities:
Due within one year: bonds, notes, leases, SBITA, claims, and compensated absences 4,154,310 1,856,702 6,011,012
Current OPEB liability 1,266,000 - 1,266,000
Due in more than one year:
Net pension liability 156,856,171 9,691,084 166,547,255 Total OPEB liability 17,578,426 3,106,785 20,685,211
Bonds, notes, leases, SBITA, claims, and
compensated absences 6,698,082 39,183,973 45,882,055
Total liabilities 59,349,484 203,660,927 263,010,411
DEFERRED INFLOWS OF RESOURCES
Pension-related 65,653 4,416,975 4,482,628
OPEB-related 734,546 6,513,452 7,247,998
Lease-related - 5,190,959 5,190,959
Total deferred inflows of resources 16,121,386 800,199 16,921,585
NET POSITION
Net investment in capital assets 98,594,995 214,584,554 313,179,549 Restricted:
General government 9,520,804 - 9,520,804
Public safety 6,892,163 - 6,892,163
Community development 32,685,660 - 32,685,660
Public works - 5,661,733 5,661,733
Debt service 2,683,786 - 2,683,786
Unrestricted (53,760,142) 27,549,551 (26,210,591)
Total net position $ 128,828,332 215,584,772 $ 344,413,104 $ June 30, 2024
Primary Government
See Notes to Financial Statements.
16 CITY OF BREA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government $ 13,215,066 $ 758,043 $ 1,125,498 $ - Public safety 72,585,447 690,935 2,413,872 -
Community Development 10,401,804 3,296,657 1,599,115 185,256 Community services 9,701,427 2,911,229 443,965 -
Public works 10,200,064 326,692 1,323,262 3,678,409
Interest on long-term debt 95,744 - - -
Total governmental activities 116,199,552 7,983,556 6,905,712 3,863,665 Business-type activities:
Water utility 17,670,941 20,862,952 - -
Sewer utility 2,531,646 3,795,600 - -
Urban runoff 722,543 573,854 - -
Sanitation 4,153,979 3,794,989 145,260 -
Information technology 1,097,096 1,064,274 - -
Golf course 3,765,271 4,876,038 - -
Total business-type activities 29,941,476 34,967,707 145,260 - Total primary government $ 146,141,028 $ 42,951,263 $ 7,050,972 $ 3,863,665 General revenues and transfers:
General revenues:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Rental income
Use of money and property
Other
Gain on sale of capital asset
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See Notes to Financial Statements.
17 Governmental Business-Type
Activities Activities Total
$ - (11,331,525) $ $ (11,331,525)
- (69,480,640) (69,480,640)
- (5,320,776) (5,320,776)
- (6,346,233) (6,346,233)
- (4,871,701) (4,871,701)
- (95,744) (95,744)
- (97,446,619) ( 97,446,619)
3,192,011 - 3,192,011
1,263,954 - 1,263,954
(148,689) - (148,689)
(213,730) - (213,730)
(32,822) - (32,822)
1,110,767 - 1,110,767
5, - 171,491 5,171,491
5, (97,446,619) (92, 171,491 275,128)
- 24,080,019 24,080,019
- 27,128,012 27,128,012
- 2,616,587 2,616,587
- 3,149,045 3,149,045
- 5,570,495 5,570,495
- 2,906,180 2,906,180
5,112,695 1,131,751 6,244,446
- 4,397,869 4,397,869
183,149 52,493 235,642
875,245 (875,245) -
76,019,296 76,328,295 308,999
5, (21,427,323) (15, 480,490 946,833)
237,012,095 123,347,842 360,359,937
$ 128,828,332 215,584,772 $ 344,413,104 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
18 THIS PAGE INTENTIONALLY LEFT BLANK
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Balance Sheet
Governmental Funds
June 30, 2024
General
ASSETS
Cash and investments $ 9,824,021 42,239,623 $ 4,956,193 $ $ 10,353,052 Receivables (net of allowance for uncollectible):
Accounts 3,312,439 - 7,067 -
Taxes 244,640 - - -
Interest 717,270 3,071,527 - -
Notes and loans 104,000 - 14,692,388 -
Leases 5,359,646 - - -
Due from other funds - 915,777 - -
Prepaid items - 29,357 - -
Land held for resale - - 800,000 -
Due from other governments - 3,372,785 - 859,212
Restricted assets:
Cash and investments 9,190,563 - - -
Cash and investments with fiscal agent 1,152 - - -
Total assets $ 65,383,252 $ 9,928,021 $ 23,527,175 $ 11,212,264
LIABILITIES
Accounts payable $ - 1,118,865 $ $ 21,242 $ 2,783,735
Accrued liabilities - 1,690,232 4,401 4,325
Unearned revenues 6,028,492 - - 1,565,544
Deposits payable - 417,178 917 -
Due to other governments - 1,412 - -
Due to other funds - - - -
Total liabilities 3,227,687 6,028,492 26,560 4,353,604
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases - 5,190,959 - -
Unavailable revenues - 2,003,093 3,919,541 848,507
Total deferred inflows of resources 7,194,052 - 3,919,541 848,507
FUND BALANCES (DEFICITS)
Nonspendable - 29,357 - -
Restricted 3,899,529 12,329,512 19,581,074 6,010,153
Committed - 1,540,335 - -
Assigned - 13,010,810 - -
Unassigned - 28,051,499 - -
Total fund balances (deficits) 54,961,513 3,899,529 19,581,074 6,010,153 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 65,383,252 $ 9,928,021 $ 23,527,175 $ 11,212,264 Special Revenue Funds
Capital
Projects Fund
Affordable
Housing
Housing
Successor
Capital
Improvements
See Notes to Financial Statements.
20 CITY OF BREA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Interest
Notes and loans
Leases
Due from other funds
Prepaid items
Land held for resale
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Non-major Governmental
Funds Funds
$ 85,082,094 17,709,205 $
- 3,319,506
28,588 273,228
- 3,788,797
1,413,460 16,209,848
- 5,359,646
- 915,777
- 29,357
- 800,000
1,181,468 5,413,465
- 9,190,563
- 1,152
$ 130,383,433 20,332,721 $
$ 4,058,841 134,999 $
23,995 1,722,953
1,535,180 9,129,216
- 418,095
1,413,460 1,414,872
915,777 915,777
17,659,754 4,023,411
5,190,959 -
725,688 7,496,829
12,687,788 725,688
29,357 -
16,489,968 58,310,236
- 1,540,335
- 13,010,810
(906,346) 27,145,153
100,035,891 15,583,622
$ 130,383,433 20,332,721 $
See Notes to Financial Statements.
21 THIS PAGE INTENTIONALLY LEFT BLANK
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds $ 100,035,891
210,096,977
Deferred outflows-pension related 70,551,570 $
Deferred outflows-OPEB related 2,736,518
Deferred inflows-pension related (4,370,437)
Deferred inflows-OPEB related (6,034,436)
Total deferred outflows and inflows related to postemployment benefits 62,883,215 Long-term receivables 7,496,829
Total other long-term assets 7,496,829
8,005,810
Lease revenue bonds (2,220,000)
Leases and SBITA payable (177,441)
Compensated absences (3,024,352)
Accrued interest payable on long-term debt (27,079)
Net pension liability (149,986,429)
Net OPEB liability (17,034,413)
Total long-term liabilities (172,469,714)
Bond premiums (464,236)
Total premiums, discounts, and deferred items (464,236) Net position of governmental activities $ 215,584,772
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities.
CITY OF BREA, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.
See Notes to Financial Statements.
22 CITY OF BREA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
Formerly
Non-major Fund
General
REVENUES
Taxes $ - 53,979,543 $ - $ $ -
Licenses and permits - 287,697 - -
Intergovernmental - 10,171,867 - 2,677,737
Charges for services - 3,898,624 - 283,772
Investment income, net 362,622 3,073,878 206,617 351,416 Fines and forfeitures - 325,010 - -
Rental income - 2,906,180 - -
Other revenues 195,052 2,738,884 17,015 28,711
Total revenues 77,381,683 557,674 223,632 3,341,636
EXPENDITURES
Current:
General government 8,600,765 13,267 8,907 (100,450)
Public safety 46,272,277 - - -
Community services 9,488,694 - - -
Community development 3,010,068 21,082 740,868 -
Public works 6,860,689 - - 2,909
Capital outlay - 1,087,593 - 9,385,261
Debt service: - - - -
Principal 156,186 - - -
Interest and fiscal charges 91,456 - - -
Total expenditures 75,567,728 34,349 749,775 9,287,720
Excess (deficiency) of revenues
over (under) expenditures 1,813,955 523,325 (526,143) (5,946,084)
OTHER FINANCING SOURCES (USES)
Transfers in - 1,283,072 - 5,745,346
Transfers out - (1,200,463) - -
Proceeds from sale of capital assets - 7,853 - -
Total other financing sources (uses) 90,462 - - 5,745,346 Net change in fund balances 1,904,417 523,325 (526,143) (200,738) Fund balances-beginning - 53,057,096 20,107,217 6,210,891 Restatement - Change in Reporting Entity 3,376,204 - - - Fund balances (deficit)-beginning, as restated 3,376,204 53,057,096 20,107,217 6,210,891 Fund balances (deficit)-ending $ 54,961,513 $ 3,899,529 $ 19,581,074 $ 6,010,153 Special Revenue Funds
Capital
Projects Fund
Affordable
Housing
Housing
Successor
Capital
Improvements
See Notes to Financial Statements.
23 CITY OF BREA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income, net
Fines and forfeitures
Rental income
Other revenues
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community services
Community development
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement - Change in Reporting Entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
Total Total
Non-major Governmental
Funds Funds
$ 56,973,663 2,994,120 $
- 287,697
3,786,001 16,635,605
- 4,182,396
610,414 4,604,947
22,525 347,535
- 2,906,180
2,662,977 5,642,639
91,580,662 10,076,037
189,226 8,711,715
842,134 47,114,411
- 9,488,694
176,809 3,948,827
2,775,733 9,639,331
1,660,550 12,133,404
- 156,186
- 91,456
91,284,024 5,644,452
296,638 4,431,585
7,088,846 60,428
(4,291,600) (5,492,063)
3,200 11,053
(4,227,972) 1,607,836
1,904,474 203,613
98,131,417 18,756,213
(3,376,204) -
15,380,009 98,131,417
$ 100,035,891 15,583,622 $
See Notes to Financial Statements.
24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: $ 1,904,474 Capital outlay $ 12,159,208
Depreciation/amortization expense (7,817,755)
Total adjustment 4,341,453
Earned but unavailable grant revenues 1,625,425
Total adjustment 1,625,425
Subscriptions issued (15,816)
Amortization of bond premiums and discounts (4,288)
Principal payments 141,221
Total adjustment 121,117
(169,887)
Compensated absences (294,285)
Changes in pension liabilities and related deferred outflows and inflows of resources (29,971,911) Changes in OPEB liabilities and related deferred outflows and inflows of resources 1,016,291 Total adjustment (29,249,905)
Change in net position of governmental activities $ (21,427,323) Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF BREA, CALIFORNIA
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
See Notes to Financial Statements.
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26 CITY OF BREA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Non-major Total
Enterprise Enterprise Internal
Funds Funds Service Funds
ASSETS
Current assets:
Cash and investments $ 13,576,430 $ 6,453,521 $ 5,677,494 $ 25,707,445 $ 12,513,083 Receivables (net of uncollectibles):
Accounts receivable, net 3,082,207 454,975 638,899 4,176,081 208,472 Due from other governments - - 168,983 168,983 -
Prepaid expenses - - - - 4,620
Restricted:
Restricted cash and investments 485,532 177,757 303,711 967,000 - Restricted cash and investments with fiscal agent 2,266,810 - 2,266,810 - - Total current assets 7,086,253 19,410,979 6,789,087 33,286,319 12,726,175 Noncurrent:
Capital assets, net of depreciation and amortization 108,792,571 19,504,889 10,117,977 138,415,437 7,365,480 Equity in California Domestic Water Company 13,955,007 - - 13,955,007 - Total noncurrent assets 19,504,889 122,747,578 10,117,977 152,370,444 7,365,480 Total assets 142,158,557 26,591,142 16,907,064 185,656,763 20,091,655
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 907,806 - 907,806 -
Deferred pension related items 437,313 1,174,285 778,989 2,390,587 1,694,622 Deferred OPEB related items 78,331 215,884 161,064 455,279 295,667 Total deferred outflows of resources 2,297,975 515,644 940,053 3,753,672 1,990,289
LIABILITIES
Current liabilities:
Accounts payable 3,449,284 28,776 972,724 4,450,784 246,689 Accrued liabilities 57,986 24,542 38,184 120,712 90,193 Accrued interest 650,031 - - 650,031 -
Deposits payable 289,413 - 289,413 - -
Claims and judgments, due within one year - - - - 1,639,804 Compensated absences, due within one year 120,164 44,348 69,809 234,321 89,496 Bonds, notes, leases, and SBITAs, due within one year 1,615,000 - 7,381 1,622,381 24,083 Total current liabilities 97,666 6,181,878 1,088,098 7,367,642 2,090,265 Noncurrent liabilities:
Claims and judgments, due in more than one year - - - - 3,183,148 Compensated absences, due in more than one year 40,054 14,782 23,270 78,106 29,832 Bonds, notes, leases, and SBITAs, due in more than one year 39,1 - 05,867 - 39,105,867 - Net pension liability 4,760,376 1,772,800 3,157,908 9,691,084 6,869,742 Total OPEB liability 1,273,341 456,657 1,376,787 3,106,785 1,810,013 Total noncurrent liabilities 2,244,239 45,179,638 4,557,965 51,981,842 11,892,735 Total liabilities 51,361,516 2,341,905 5,646,063 59,349,484 13,983,000
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 12,010 32,249 21,394 65,653 46,538 Deferred OPEB related items 130,693 339,549 264,304 734,546 479,016 Total deferred inflows of resources 371,798 142,703 285,698 800,199 525,554
NET POSITION
Net investment in capital assets 19,504,889 68,979,510 10,110,596 98,594,995 7,341,397 Restricted for debt service - 2,683,786 - 2,683,786 -
Unrestricted 5,117,289 21,059,922 1,804,760 27,981,971 231,993 Total net position $ 92,723,218 $ 24,622,178 $ 11,915,356 129,260,752 $ 7,573,390 Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time (432,420) Net position of business-type activities $ 128,828,332
Business-Type Activities
Water Utility Sewer Utility
See Notes to Financial Statements.
27 CITY OF BREA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Non-major Total
Enterprise Enterprise Internal
Funds Funds Service Funds
OPERATING REVENUES
Charges for services $ 20,390,301 $ 3,785,638 $ 10,203,782 $ 34,379,721 $ 11,677,017 Connection fees 146,396 5,055 151,451 - -
Fines and forfeitures 235,597 - 80,169 315,766 -
Other revenues 4,907 90,658 25,204 120,769 159,959
Total operating revenues 20,862,952 3,795,600 10,309,155 34,967,707 11,836,976
OPERATING EXPENSES
Personnel services 2,731,071 911,314 1,925,424 5,567,809 4,367,939 Maintenance and operations 3,073,219 1,180,915 7,865,521 12,119,655 5,355,440 Cost of purchased water 7,416,167 - 7,416,167 - -
Claims and judgments - - - - 987,809
Depreciation/Amortization 2,919,335 549,671 90,051 3,559,057 988,267 Total operating expenses 16,139,792 2,641,900 9,880,996 28,662,688 11,699,455 Operating income (loss) 4,723,160 1,153,700 428,159 6,305,019 137,521
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues - - 145,260 145,260 -
Interest income 621,601 270,814 239,336 1,131,751 507,748 Interest expense (1,187,428) - (1,187,428) - -
Change in equity of California Domestic
Water Company (357,074) - (357,074) - -
Gains on disposal of capital assets - 52,493 - 52,493 172,096 Total nonoperating revenues (expenses) (870,408) 270,814 384,596 (214,998) 679,844 Income (loss) before capital contributions and transfers 3,852,7 1,424,514 52 812,755 6,090,021 817,365 Transfers in 804 - 375,252 376,056 135,815
Transfers out (1,251,301) - (1,251,301) - (857,353)
Change in net position 2,601,451 1,425,318 1,188,007 5,214,776 95,827 Net position-beginning 90,121,767 23,196,860 10,727,349 7,477,563 Net position-ending $ 92,723,218 $ 24,622,178 $ 11,915,356 $ 7,573,390 Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds 265,714 Changes in net position of business-type activities $ 5,480,490 Business-Type Activities
Water Utility Sewer Utility
See Notes to Financial Statements.
28 CITY OF BREA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Non-major
Enterprise Internal
Funds Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 20,582,909 $ 3,742,394 $ 10,275,895 $ 34,601,198 $ 11,719,454 Payments to suppliers and service providers (10,532,914) (1,177,632) (7,811,196) (19,521,742) (6,424,184) Payments to employees for salaries and benefits (2,477,455) (935,005) (1,716,135) (5,128,595) (5,236,970) Net cash provided by (used for)
operating activities 7,572,540 1,629,757 748,564 9,950,861 58,300
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 804 - 375,252 376,056 135,815 Transfers to other funds (1,251,301) - (1,251,301) - (857,353) Operating grants and contributions - - 109,413 109,413 - Net cash provided by (used for)
noncapital financing activities (1,251,301) 804 484,665 (765,832) (721,538)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (3,079,109) (532,807) (18,610) (3,630,526) (3,026,680) Principal paid on capital debt (1,530,000) - (7,477) (1,537,477) (15,785) Interest paid on capital debt (1,333,505) - (1,333,505) - - Proceeds from sales of assets - 52,493 - 52,493 215,736 Net cash provided by (used for)
capital and related financing activities (5,890,121) (532,807) (26,087) (6,449,015) (2,826,729)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 621,601 270,814 239,335 1,131,750 484,823 Net cash provided by (used for)
investing activities 621,601 270,814 239,335 1,131,750 484,823 Net increase (decrease) in
cash and cash equivalents 1,052,719 1,368,568 1,446,477 3,867,764 (3,005,144) Cash and cash equivalents-beginning 15,276,053 5,262,710 4,534,728 25,073,491 15,518,227 Cash and cash equivalents-ending $ 16,328,772 $ 6,631,278 $ 5,981,205 $ 28,941,255 $ 12,513,083 Business-Type Activities
Water Utility Sewer Utility
See Notes to Financial Statements.
29 CITY OF BREA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Non-major
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
Water Utility Sewer Utility
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments $ 13,576,430 $ 6,453,521 $ 5,677,494 $ 25,707,445 $ 12,513,083 Restricted cash and investments 485,532 177,757 303,711 967,000 - Cash with fiscal agent 2,266,810 - 2,266,810 - -
Total cash and cash equivalents $ 16,328,772 $ 6,631,278 $ 5,981,205 $ 28,941,255 $ 12,513,083
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ 4,723,160 $ 1,153,700 $ 428,159 $ 6,305,019 $ 137,521 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 2,919,335 549,671 90,051 3,559,057 988,267 (Increase) decrease in accounts receivable (321,048) (53,206) (33,260) (407,514) (117,522) (Increase) decrease in prepaid items - - - - (4,620)
Increase (decrease) in accounts payable (43,528) 3,283 54,325 14,080 (76,315) Increase (decrease) in accrued liabilities 8,905 6,660 10,070 25,635 13,805 Increase (decrease) in deposits payable 41,005 - - 41,005 - Increase (decrease) in compensated absences 2,159 107 13,473 15,739 (2,508,649) Increase (decrease) in claims and judgments - - - - 1,639,804 Increase (decrease) in net pension liability 296,014 (8,835) 218,575 505,754 70,605 Increase (decrease) in net OPEB liability (53,462) (21,623) (32,829) (107,914) (84,596) Total adjustments 2,849,380 476,057 320,405 3,645,842 (79,221) Net cash provided by (used for)
operating activities $ 1,629,757 7,572,540 $ 748,564 $ 9,950,861 $ 58,300 $ See Notes to Financial Statements.
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Purpose
Trust Fund
Successor
Agency of the Custodial
Former RDA Funds
ASSETS
Cash and investments $ 739,514 $ 12,917,331
Receivables:
Accounts - 56,888
Property taxes - 7,691
Accrued interest 4,201 -
Due from other governments 426,000 46,080
Restricted assets:
Cash and investments with fiscal agent 12,114,244 671,666 Total assets 13,699,656 13,283,959
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 2,556,841 -
Total deferred outflows of resources 2,556,841 -
LIABILITIES
Accounts payable - 713,191
Accrued liabilities - 552,122
Accrued interest 1,269,628 -
Long-term liabilities:
Due in one year 10,339,534 -
Due in more than one year 78,325,885 -
Total liabilities 1,265,313 89,935,047
NET POSITION
Restricted for:
Individuals, organizations, and other governments (74,094,247) 12,434,343 Total net position $ 12,434,343 (74,094,247) $
CITY OF BREA, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See Notes to Financial Statements.
32 Private
Purpose
Trust Fund
Successor
Agency of the Custodial
Former RDA Funds
ADDITIONS
Contributions:
Taxes and special assessments 13,486,940 $ $ 977,894
Employee or Member Contributions - 1,691,377
Interest and changes in fair value of investments 335,111 760,078 Miscellaneous - 542,818
Total additions 3,972,167 13,822,051
DEDUCTIONS
Administrative expenses - 4,936,654
Contractual services 11,723 -
Interest expense 2,939,340 360,984
Principal payments - 520,000
Total deductions 5,817,638 2,951,063
Net increase (decrease) in fiduciary net position 10,870,988 (1,845,471) Net position-beginning (84,965,235) 14,279,814
Net position-ending $ 12,434,343 (74,094,247) $
CITY OF BREA, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See Notes to Financial Statements.
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CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Brea, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies of the City of Brea are described below.
A. Description of the Reporting Entity
The City of Brea was incorporated on February 23, 1917, under the general laws of the State of California. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, cultural recreation, public improvements, planning and zoning, and general administrative services.
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governments.
As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Brea and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization, or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of its relationship with the City are such that its exclusion would cause the City's financial statements to be misleading or incomplete.
Based upon the above criteria, the component units of the City are the Brea Public Financing Authority, the Brea Community Benefit Financing Authority and the Midbury Assessment Authority.
Since City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations, so data from these units is combined therein. A brief description of each component unit follows:
Brea Public Financing Authority
The Brea Public Financing Authority (“Authority”) was created by a joint exercise of powers agreement between the City of Brea and the former Redevelopment Agency of the City of Brea on November 17, 1987. In April 1988, the Brea-Olinda Unified School District became an associate member of the Authority. The purpose of the Brea Public Financing Authority is to provide, through the issuance of debt, financing necessary for various capital improvements. The Brea Public Financing Authority is administered by the Board who are the members of the City Council and the Mayor. The Brea Public Financing Authority's primary source of income is installment sale and lease payments received from the City, which will be used to meet the debt service requirements on debt issues. The Brea Public Financing Authority does not have taxing power. Separate financial statements are not prepared for the Brea Public Financing Authority. The activities of the Brea Public Financing Authority are accounted for in the Water Utility Fund.
Brea Community Benefit Financing Authority
The Brea Community Benefit Financing Authority was created by a joint exercise of powers agreement between the City of Brea and the Industrial Development Authority of the City of Brea on July 22, 2014. The purpose of the Brea Community Benefit Financing Authority is to provide, though the issuance of debt, financing for various capital improvements. The Brea Community Benefit Financing Authority is administered by the Board who are the 34 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) members of the City Council and the Mayor. The Brea Community Benefit Financing Authority’s primary source of income is installment sale payments from the City, which will be used to meet the debt service requirements on debt issues. Separate financial statements are not prepared for the Brea Community Benefit Financing Authority.
Midbury Assessment Authority
The Midbury Assessment Authority (“Authority”) was created by a joint exercise of powers agreement between the City of Brea, Los Angeles County, and Orange County on May 18, 1999. The purpose of the authority is to provide a means for each party to the agreement to contribute money to street improvement projects, to form an assessment district and to levy an assessment to finance the balance of the projects. The Authority is administered by the Board who are the members of the City Council and the Mayor. The Authority’s primary source of income is from new assessments that result in additional taxes. Separate financial statements are not prepared for the Midbury Assessment Authority. There were no activities recorded for the Midbury Assessment Authority during the fiscal year as the project has been completed and is in the dissolution process.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Fiduciary activities of the City are not included in these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
The fund financial statements provide information about the government’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, with the exception of sales tax revenues and certain revenues related to refuse revenue sharing which are considered available if collected 35 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) within 90 days of year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses 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. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The City’s fiduciary funds consist of custodial funds and a private purpose trust fund. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Private purpose trust funds and custodial funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City. The General Fund is used to account for all resources not required to be accounted for in another fund.
• The Affordable Housing fund is used to account for revenues received and expenditures made for the development of low to moderate income housing. The primary source of revenue is fees collected from developers.
• The Housing Successor Fund accounts for the housing assets as a result of the dissolution of the former Brea Redevelopment Agency. Resources generated from these assets are to be used for low to moderate income housing purposes. The primary sources of revenue are from loan repayments generated from the use of the former Brea Redevelopment Agency’s Low and Moderate Income Housing Funds. • The Capital Improvements Capital Projects Fund accounts for the costs of constructing street improvements, parks and other public improvements not normally included within the other Capital Projects Funds. Financing is provided by federal, state and county grant revenues and interfund transfers from the General Fund and special revenue funds.
The City reports the following major proprietary funds:
• The Water Utility Fund accounts for the City’s water utility operations, which are financed and operated in a manner similar to a private enterprise. The cost (expenses, including depreciation) of providing these services to the users on a continuing basis is financed or recovered primarily through user charges. • The Sewer Utility Fund accounts for the operations of the City’s sewer distribution lines, which are operated in a manner similar to a private enterprise. The costs (expenses, including depreciation) of providing these services to the users on a continuing basis are financed or recovered primarily through user charges.
Additionally, the City reports the following fund types:
• Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. 36 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). • Internal Service Funds account for financial transactions related to repairs, replacement, and maintenance of City-owned buildings and vehicles and to account for the City's self-insurance programs and operations of the internal information technology services program. These services are provided to other departments or agencies of the City on a cost reimbursement basis.
• Custodial Funds account for assets held by the City in a custodial capacity as a trustee or as an agent. These assets include deposits from assessment district’s property owners.
Private-Purpose Trust Fund accounts for the assets, deferred outflows or resources, and liabilities of the former redevelopment agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s proprietary funds' function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Residual net position balances in internal service funds are allocated back to the governmental and enterprise funds that they originally charged.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the enterprise funds and of the internal service funds are charges to customers for sales and services. Operating expenses for proprietary funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position Cash and Investments Cash includes demand deposits, certificates of deposits and savings account balances. The California Government Code and the City of Brea's investment policy permit the City of Brea to invest in various instruments and pools. Investments are reported in the accompanying balance sheet at fair value, except for investments that are reported at cost because they are not transferable, and they have terms that are not affected by changes in market interest rates.
The City reports its investments at fair value in the balance sheet. Interest earnings, realized gains and losses and, changes in the fair value of investments are recognized as revenue from the use of money and property in the operating statement. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are reported at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
The City pools cash and investments of all funds except for assets held by fiscal agents. 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.
37 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The City applies GASB Statement No. 72, Fair Value Measurements and Application for determining fair value measurements, applying fair value to investments, and disclosures related to the fair value hierarchy. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair value: 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.
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near its maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Brea. Cash equivalents have an original maturity date of three months or less from the date of purchase. For financial statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash.
Restricted Cash and Investments
Certain proceeds of debt issues, as well as certain resources set aside for its repayment, are classified as restricted assets on the balance sheet because its use is limited by applicable bond covenants.
Additionally, the City has established the PARS Post-Employment Benefits Trust as a tax-exempt trust within the meaning of Section 115 of the IRS Code to accumulate resources to “stabilize” the amount of its General Fund resources that it will need to meet future contributions requirements to California Public Employees’ Retirement system (CalPERS). The balances and activities of the Trust are irrevocably dedicated to funding future obligations to CalPERS. The assets will benefit the City through reduced future cash flow demands on the City’s General fund resources, and continue to be assets of the City. These amounts are reflected as restricted cash and investments in the General fund.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
The amounts recorded as a receivable due from other governments include sales taxes, property taxes and grant revenues collected or provided by federal, state, county and city governments and unremitted to the City as of June 30, 2024. The County of Orange assesses, bills, and collects property taxes for the City.
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the government-wide, fund financial statements and the business-type activities via the consumption method.
38 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Land Held for Resale
The former Brea Redevelopment Agency acquired land that was primarily used to develop blighted properties.
However, the land was transferred to the City. The City records these parcels as land held for resale in its financial statements. The property is being carried at cost or, if lower, the estimated net realizable value upon entering into an agreement to sell the property. The City disposed of all these parcels as required by the Dissolution Act. The City as the Housing Successor to the Brea Redevelopment Agency (Housing Successor) acquired one of these parcels from the Successor Agency.
Capital Assets
Capital assets, which include property, plant, equipment, right to use leased assets, right to use subscription assets, intangible assets, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets and infrastructure are defined by the City as assets with an initial, individual cost of more than $10,000 and $100,000 respectively and an estimated useful life in excess of four years. Except for right to use lease assets, such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
Right to use leased assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight-line method.
Right to use subscription IT assets are recognized at the subscription commencement date and represent the City's right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies from 3 to 5 years.
The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment of the primary government and its component units are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings and improvements 40 - 50
Computers 4 - 5
Equipment 4 - 10
Improvements 10 - 50
Infrastructure 40 - 50
Software 5 - 10
Vehicles 4 - 10
Asset
39 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The City classifies certain water rights as intangible assets with an indefinite useful life as there are no legal, contractual, or other factors that limit the benefits associated with the water rights.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category. One is deferred charges on refunding reported in the governmentwide statement of net position and the proprietary funds statement of net position. Deferred charges on refunding results from the difference in the carrying value of refunded debt and its reacquisition price at the time of refunding. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
The other items are deferred pension and OPEB related items reported in the government-wide statement of net position and the proprietary funds statement of net position.
In addition to liabilities, the balance sheet or statement of net position reports a separate section for deferred inflows of resources. 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 reports four items as deferred inflows of resources. First, unavailable revenues arise only under a modified accrual basis of accounting, and accordingly, is reported only in the governmental funds balance sheet. These amounts reflect resources that have been earned but not received within the period of availability. Therefore, this does not provide an available financial resource in the current period, and the recognition is deferred until these criteria have been met, as unavailable revenues. The second and third items are deferred pension and OPEB related items reported in the government-wide statement of net position and the proprietary funds statements of net position. The fourth item is related to deferred inflows related to lease receivables. The revenues associated with the deferred inflows of resources are recognized systematically over the term of the lease.
Compensated Absences
It is the City’s policy for employees to accumulate earned but unused vacation and sick benefits. Permanent City employees earn from 10 to 20 vacation days a year, depending upon their length of employment, and 12 sick days a year. Employees may carry forward unused sick leave indefinitely. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. Any unused sick leave is forfeited; converted to CalPERS service credits; or for certain employees, transferred to a retiree health savings accounts upon termination of employment. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Long-Term Obligations
In the government-wide financial statements, proprietary fund financial statements, and in the fiduciary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, proprietary fund type statement of net position, or the statement of fiduciary net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City.
40 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Subscription liabilities represent the City's obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt service expenditures including principal and interest payments are reported as expenditures.
Claims and Judgments
The City records a liability for litigation, judgments and claims when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the Internal Service Funds that account for the City's self-insurance activities.
Other Postemployment Benefits (OPEB)
OPEB expense, deferred outflows/inflows of resources related to OPEB, and an implied subsidy payment were used to measure the total OPEB liability. The City does not provide any cash subsidy towards the benefit, and there are no assets accumulated in a trust for the plan. The General Fund is used to liquidate the governmental fund OPEB liability.
Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by CalPERS. 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. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website. The General Fund is used to liquidate the governmental fund net pension liability.
Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable Fund Balance – This amount indicates the portion of funds balances which cannot be spent because they are either not in spendable form such as prepaid items, inventories, land held for resale or loans/notes receivable, or legally or contractually required to be maintained intact, such as the principal portion of an endowment. Only the General Fund may report nonspendable fund balance for long-term interfund receivables and land held for resale.
Restricted Fund Balance – This amount indicates the portion of fund balances which has been restricted in one of two ways a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation.
Long-term interfund receivables and land held for resale in governmental funds other than the General Fund are included within restricted fund balance.
Committed Fund Balance – This amount indicates the portion of fund balances which can only be used for specific purposes pursuant to a formal resolution of the City Council. 41 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assigned Fund Balance – This amount indicates the portion of fund balances which is constrained by the City’s intent to be used for specific purpose, but is neither restricted nor committed. The Administrative Services Director is authorized to determine and define the amount of assigned fund balances, which was established by City Council through resolution.
Unassigned Fund Balance – This includes the excess residual amounts in the General Fund and the residual deficit of all other governmental funds which have not been restricted, committed, or assigned to specific purposes.
The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the adoption of another resolution.
City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’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.
Net Position
In the governmental-wide and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. As of June 30, 2024, $57,444,146 of net position is restricted by enabling legislation.
Unrestricted Net Position – This amount is the remaining net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” 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 and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
E. Property Taxes
Property tax revenue is recognized on the modified accrual basis that is, in the fiscal year for which the taxes have been levied, providing they become available. Available means when due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of Orange collects property taxes for the City. Tax liens attach annually on the first day in January the preceding fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the 42 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31.
F. Use of Estimates
The preparation of 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
G. Effect of New Accounting Standards
During the fiscal year ended June 30, 2024, the City implemented the following Governmental Accounting Standards Board (GASB) standards:
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections. The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.
H. Accounting Standards Effective in Future Years
The GASB has issued pronouncements that have an effective date subsequent to June 30, 2024, which may impact future financial presentations. The following statements are currently being evaluated by the City’s management.
GASB Statement No. 101 – Compensated Absences.
GASB Statement No. 102 – Certain Risk Disclosures.
GASB Statement No. 103 – Financial Reporting Model Improvements.
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances or Net Position
The following individual non-major funds have a deficit at June 30, 2024:
For the Community Development Block Grant special revenue fund, the City expects to eliminate these deficits with anticipated future revenues from grants and program income. The deficit in the Organized Retail Theft special revenue fund is due to timing of the collection of revenues. For the Information Technology internal service fund and Information Technology External Support and Sanitation enterprise funds, the deficits are the result of pension and OPEB liabilities, which will be eliminated through future charges.
Deficit Fund Balances:
Community Development Block Grant Special Revenue Fund 156,125 $ Organized Retail Theft Special Revenue Fund 750,221
Deficit Net Position:
Sanitation Enterprise Fund 232,697
Information Technology External Support Enterprise Fund 1,767,35 6 Information Technology Internal Service Fund 1,679,771
43 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) At June 30, 2024, the Successor Agency of the Former RDA Private-purpose Trust Fund had a deficit net position amount of $74,094,247. The deficit balance will be eliminated with future property tax revenue.
NOTE 3: CASH AND INVESTMENTS
As of June 30, 2024, cash and investments are classified in the accompanying financial statements as follows:
The City of Brea maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.
A. Deposits
The carrying amount of the City’s cash deposits was $6,039,503 at June 30, 2024. Bank balances were $7,633,992 at that date. The $1,594,489 difference represents outstanding checks and other reconciling items. As of June 30, 2024, the City’s deposits with financial institutions were covered by FDIC up to $250,000, and the remaining amounts of $7,383,992 were collateralized as described below.
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure a City’s deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.
Statement of
Net Position
Statement of
Fiduciary
Net Position Total
Cash and investments 123,302,622 $ 13,656,845 $ 136,959,467 $ Restricted assets:
Cash and investments 10,157,563 12,785,910 22,943,473
Cash and investments with fiscal agents 2,267,962 - 2,267,962 Total cash and investments 135,728,147 $ 26,442,755 $ 162,170,902 $ Cash and investments as of June 30, 2024, consist of the following:
Cash on hand $ 11,029
Deposits with financial institutions 6,039,503
Total cash 6,050,532
Investments 128,909,077
Restricted cash and investments 12,138,069
Cash and investments with fiscal agents 15,073,224
Total investments 156,120,370
Total cash and investments $ 162,170,902
44 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
B. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy Funds of the City, other than bond proceeds and cash deposits held in restricted accounts, may be invested in any instrument allowable under current legislation of the State of California (Government Code Section 53600 et sec.) so long as the investment is appropriate and consistent with the City’s investment policy. The following investments are authorized:
Provisions of Government Code Section 53601 are to be adhered to at all times. Additionally, the City will use the guidelines established by the joint committee of the California Municipal Treasurers Association and the California Society of Municipal Finance Officers as the basis for investing in government investment pools.
For purposes of complying with legal investment limitations, the percentage referenced above refers to the maturity value of the portfolio at the time of purchase.
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a 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.
Investments in State Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. Each City may invest up to $75,000,000. The fair value of the position in the investment pool is the same as the value of the pool shares. The balance available for withdrawal on demand is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated and not registered with the Securities and Exchange Commission (SEC).
Credit Ratings
Maximum
Maturity
Maximum
Percentage
Amount
of Portfolio
Maximum
Investment in
One Issuer
N/A 5 years No limit No Limit
U.S. Government Sponsored Enterprise Securities* N/A 5 years No limit No Limit N/A 180 days 40% 30%
A-1/A 270 days 25% 10%
N/A 1 year No limit No Limit
N/A 5 years 30% No Limit
N/A 5 years 30% No Limit
N/A N/A No limit No Limit
A 5 years 30% No Limit
AAA 5 years 20% 10%
N/A N/A LAIF limit No Limit
N/A N/A No limit No Limit
AA 5 years 10% No Limit
AA 5 years 15% 5%
**State and County investment pools together cannot exceed 60% of the maturity value of the portfolio at the time of purchase, and no more than 40% of the maturity value at the time of purchase can be deposited in any one particular pool. *Maximum of 5% in callable bonds issued by such agencies California Local Agency Investment Fund**
County of Orange Investment Fund (County Pool)**
Passbook Savings Accounts/Interest Bearing Investment
Asset Backed Securities
Supranationals
Repurchase Agreements
Certificates of Deposit
Negotiable Certificates of Deposit
Medium Term Corporate Notes
Bank Money Market Accounts
Authorized Investment Type
U.S. Treasury Obligations (Bills, Notes ad Bonds)
Banker's Acceptances
Commercial Paper
45 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Restricted Cash & Investments
The City has established a Section 115 Trust to accumulate resources for future contributions to CalPERS. As of June 30, 2024, the City reported $10,157,563 in restricted cash and investments. As of June 30, 2024, the City had $9,190,563 of restricted cash and investments reported in the general fund and $967,000 held in the business-type funds in a Section 115 Trust restricted for future pension contributions. In January 2016 and amended August 2021, the City adopted an investment policy for the Section 115, which authorized the following investments:
• Debt obligations of the U.S. Government, its agencies, and Government Sponsored Enterprises • Mortgage-Backed Securities
• Asset Backed Securities
• Collateralized Mortgage Obligations
• Commercial Mortgage-Backed Securities
• Corporate debt securities issued by the U.S. or foreign entities including, but not limited to, limited partnerships, equipment trust certificates and enhanced equipment trust certificates The portfolio will maintain a minimum weighted average quality of A- at all times. Individual securities shall have a minimum quality rating of Baa3 by Moody’s or BBB- by Standard & Poor’s (S&P).
C. Risk Disclosures
Disclosures Relating to 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 below 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.
46 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Certain investments in corporate notes that are currently rated A- were originally rated A or better upon the original purchase of the investments. The investment ratings were subsequent downgraded; however, the City has chosen to retain the investments to maturity.
Custodial Credit Risk
The 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 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 to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City uses a third-party investment manager to manage its investments and has authority from City Council to execute purchases and sales of investments according to the parameters in its investment policy without the approval of management. Investments are held by another third-party custodian designated by the City.
Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain types of investments with any one issuer. Investments in any one issuer that represents 5% or more of the total City’s investments are as follows:
Minimum
Legal Rating Not Rated AAA/A-1 AA+ AA- AA
N/A $ 31,983,617 - $ $ - $ - $ -
U.S. Government Sponsored Enterprise Securities N/A 26,872,524 - - - - A- 423,081 6,545,279 - 3,591,800
AAA - 547,672 - - -
AA 5,401,498 - - - -
N/A 22,240,915 - - - -
AA 2,674,600 - - - -
U.S. Government Sponsored Enterprise Securities N/A 2,499,318 - - - - Corporate Bonds BBB- 194,836 262,554 60,880 - 18,552
Money Market Mutual Funds N/A 8,078,511 - - - -
Money Market Mutual Funds N/A 15,073,223 - - - -
Total $ 48,086,803 $ 68,165,546 $ 6,606,159 - $ $ 3,610,352 Minimum
Legal Rating A+ A A- BBB+/BBB Total
N/A $ - $ 15,347,140 - $ $ 47,330,757 - $
U.S. Government Sponsored Enterprise Securities N/A - - - 26,872,524 - A 8,483,037 3,196,418 1,601,496 23,841,111 -
AAA - - - 547,672 -
AA - - - 5,401,498 -
N/A - - - 22,240,915 -
AA - - - 2,674,600 -
U.S. Government Sponsored Enterprise Securities N/A - - - 2,499,318 - Corporate Bonds BBB- 87,355 175,592 181,485 481,389 1,462,643 Foreign Issues 18,118 49,624 29,856 97,598
Money Market Mutual Funds N/A - - - 8,078,511 -
Money Market Mutual Funds N/A - - - 15,073,223 -
Total $ 8,570,392 $ 3,390,128 $ 17,179,745 $ 511,245 $ 156,120,370 Restricted Cash and Investments - Section 115 Trust
Restricted Cash and Investments with Fiscal Agents
Investment Type
U.S. Treasury Obligations
Corporate Notes
Asset Backed Securities
Restricted Cash and Investments with Fiscal Agents
California Local Agency Investment Fund
Supranationals
Restricted Cash and Investments - Section 115 Trust
Money Market Mutual Funds
Asset Backed Securities
California Local Agency Investment Fund
Supranationals
Investment Type
U.S. Treasury Obligations
Corporate Notes
Money Market Mutual Funds
Investment Type Amount
% of Total
Investments
Federal Home Loan Bank US Government Sponsored Enterprise $ 8,101,526 6.82% Federal Home Loan Mortgage Corporation US Government Sponsored Enterprise 6,120,763 5.15% U.S. Treasury Obligation U.S. Treasury Obligation 48,293,741 40.65% Issuer
47 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that at least 25% of the City’s portfolio will mature in one year or less. The only allowable exception to these maturity limits will be the investment for the bond proceeds for the Reserve Fund and/or the Section 115 trust.
As of June 30, 2024, the City had the following investments and original maturities:
Fair Value Measurement and Application
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.
When quoted prices in active market are available, investments are classified within Level 1. For investments classified within Level 2, the City’s custodians generally use asset market prices derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, broker-dealer quotes and matrix pricing. The City does not have any investments classified with Level 3. Deposits and withdrawals in money market mutual funds and governmental investment pools, such as LAIF are made on the basis of $1, but are recorded on an amortized cost basis which approximates fair value. Accordingly, the fair value measurement of these types of investments is based on an uncategorized input not defined as a Level 1, Level 2, or Level 3 input. 12 months
or less 12 to 24 months 25 to 60 months
More than
60 months Total
Investments held by City:
U.S. Treasury Obligations 17,293,760 $ 4, $ 25, 843,681 $ - 193,316 $ 47, $ 330,757 U.S. Government Sponsored Enterprise
Securities 7,553,827 6, 12, 641,390 - 677,307 26, 872,524 Corporate Bonds 801,253 4, 18, 330,346 - 709,512 23, 841,111 Money Market Mutual Funds 547,672 - - - 547,672
Asset Backed Securities - 4, 742,031 - 659,467 5, 401,498 California Local Agency Investment Fund 22,240,915 - - - 22, 240,915 Supranationals - 2, - 674,600 - 2, 674,600
Restricted Cash and Investments- Section 115 Trust:
U.S. Government Sponsored Enterprise Securities - 30,380 391,109 2, 2, 077,829 499,318 Corporate Bonds 34,933 169,342 497,894 760,474 1,462,643 Foreign Issues - - 18,118 79,480 97,598
Money Market Mutual Funds 8,078,511 - - 8, - 078,511
Restricted Cash and Investments with Fiscal Agents:
Money Market Mutual Funds 15,073,223 - - 15, - 073,223
$ 71,624,094 $ 19,792,499 $ 61,785,994 $ 2,917,783 $ 156,120,370 Investment Maturities (in Years)
Investment Type
48 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
The City has the following recurring fair value measurements as of June 30, 2024:
NOTE 4: CALIFORNIA DOMESTIC WATER COMPANY (CDWC)
The City purchases 94.8% of its water for the Water Utility fund operations through the California Domestic Water Company (CDWC). CDWC is a private mutual water company, organized as a not-for-profit under Section Code 501(c)(12), which provides water primarily to wholesale customers in east Whittier, La Habra and Brea.
CDWC has a wholly owned subsidiary, Cadway Inc. (Cadway), which owns and leases certain water rights to CDWC. Both CDWC and Cadway participate in the Pellissier Co-Tenancy. Cadway is treated as a C Corporation for federal and state tax purposes.
Separately prepared consolidated financial statements of CDWC include both CDWC and Cadway, Inc., and may be obtained from the City.
The CDWC Rules and Regulations for Water Service (CDWC Rules and Regulations), which are adopted by the CDWC Board of Directors and last updated on June 7, 2019, describe how CDWC administers, processes and provides water service including sections outlining provisions for the ownership and entitlements of common Stock and Class A Preferred Stock shares. Additionally, this document outlines the provisions under which CDWC will deliver water based on shareholders ownership of prescriptive pumping rights in the Main San Gabriel Basin as well as excess water.
The City holds 1,502.72 acre feet of water rights in the Main San Gabriel Basin which are capitalized at cost, and reported as “water rights” within capital assets. Each year, these water rights are temporarily leased to CDWC in order for CDWC to deliver water to the City based on its ownership. For the year ended June 30, 2024, based on the limits set by the Main San Gabriel Basin Water Master, the City was able to purchase .758977 acre feet of water per acre foot of water rights owned, or 1,140.53 acre feet at a cost of $311,006.
The City also holds 687.85 shares of Class A preferred stock which are reported at cost as “water rights” within capital assets. During December 2011, the City was issued 664.14 shares of preferred stock for $8,141,812 to secure the City’s claim to the 664.10 acre feet of water rights from CDWC. During May 2013, the City was issued another 23.75 shares of preferred stock for $302,592 to secure the City’s claim to another 23.75 acre feet of water rights from CDWC. This resulted in a total of 687.85 shares of preferred stock for a total of $8,444,404 used to secure an equal amount of water delivered pursuant to water rights. There is an immaterial difference of
0.04 shares between the City’s records and CDWC records.
Totals
Investments not
Subject to
Hierarcy 1 2 3
U.S. Treasury Obligations 47,330,757 $ - $ - $ 47,330,757 $ $ - U.S. Government Sponsored Enterprise Securities
Securities 26,872,524 - 26,872,524 - -
Corporate Bonds 23,841,111 - 23,841,111 - -
Money Market Mutual Funds 547,672 547,672 - - -
Asset Backed Securities 5,401,498 - 5,401,498 - -
California Local Agency Investment Fund 22,240,915 22,240,915 - - - Supranationals 2,674,600 - 2,674,600 - -
Restricted Cash and Investments- Section 115 Trust:
U.S. Government Sponsored Enterprise Securities 2,499,318 - 2,499,318 - - Corporate Bonds 1,462,643 - 1,462,643 - -
Foreign issues 97,598 - - 97,598 -
Money Market Mutual Funds 8,078,511 8,078,511 - - -
Restricted Cash and Investments with Fiscal Agents:
Money Market Mutual Funds 15,073,223 15,073,223 - - -
$ 156,120,370 $ 45,940,321 $ - $ 110,180,049 $ -
Investment Type
Level
49 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 4: CALIFORNIA DOMESTIC WATER COMPANY (CDWC)(CONTINUED) As a preferred stock shareholder in CDWC, the City is entitled to a certain number of acre feet of water based on the number of preferred stock shares owned and the operating safe yield in the basin. This water is purchased at the same cost as water purchased using water rights owned by the City. For the current fiscal year, the City was entitled to purchase .758977 acre feet of water per acre foot of water rights owned, or 522.06 acre feet at the common stock entitlement rate for a total cost of $142,358.
In November 2022, the City purchased an additional 112 shares of CDWC common stock for $15,250 per share for a total cost of $1,708,000 to increase the City’s rights to access water.
As of June 30, 2024, the City holds 2,320.50 shares of Common Stock in the CDWC. The City values its common stock holdings using the equity method of investment as the City holds approximately 27.86% of the total shares outstanding. The City reported a decrease of $357,074 as the change in equity for the year ended June 30, 2024.
As a common stock shareholder in CDWC, the City is entitled to purchase a certain amount of water based on the number of common stock shares owned. For the year ended June 30, 2024, the City was entitled to purchase
1.45 acre feet of water per common stock share owned or 3,364.73 acre feet at the common stock entitlement rate, for a total cost of $1,319,109.
Additionally, the City leased 196.50 shares of common stock from other shareholders during the fiscal year. This entitled the City to purchase an additional 284.93 acre feet at the common stock entitlement rate for a total cost of $106,870 for a combined total of $1,403,813 at the common stock entitlement rate.
During the year ended June 30, 2024, the City also purchased 2,861.96 acre feet for $3,372,242 from CDWC in excess of its entitlement. Other amounts paid to CDWC for the year ended June 30, 2024, including annual common stock assessments and readiness-to-serve charges totaled $1,130,488.
During the year ended June 30, 2024, the City paid $6,386,907 to CDWC for purchases of water during the year.
NOTE 5: NOTES, LOANS, AND DEFERRED LOANS RECEIVABLE
Notes and loans receivable consist of rehabilitation loans made from Community Development Block Grant (“CDBG”) and HOME grant funds to low income individuals that need assistance in rehabilitating their homes or mobile homes to meet current code standards. Amounts are due from the proceeds only upon the sale or transfer of the property. Loans made to mobile home owners are forgiven if the owner lives in the property 5 years or more. Repayments received by the City from homeowners are remitted to the County. Thus, the City has offset the notes and loans receivable balance with a liability due to other governments on the accompanying balance sheet. Additionally, the Affordable Housing Trust reports home buyer assistance loans to low and moderate income individuals to assist in purchasing a home. Homebuyer assistance loans repayment begins 5 years after the loan was originated, and is repaid over a 30 year period. Notes and loans receivable from each of these funds are comprised of the following at June 30, 2024:
The City (through the former redevelopment agency) has made long term loans to various developers and organizations to stimulate low and moderate income housing projects and to low and moderate income individuals to rehabilitate their homes to meet current code standards or to assist them in purchasing a home.
Some assistance given gave the City rights to receive “silent seconds” on property when sold to a low and moderate income individual. These “silent seconds” gave the City the right to a portion of the proceeds from the sale of the property. Collection terms of these loans vary and range from 5 years to 55 years. The majority of loans made to developers will be repaid from residual receipts and from monies earned on the property once they are built. Home buyer assistance loans begin repayment after 5 years and will be repaid over a 30-year period.
CDBG $ 1,395,219
HOME Grant Funds 18,241
Affordable Housing Trust 104,000
Total notes and loans receivable 1,517,460 $
50 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 5: NOTES, LOANS, AND DEFERRED LOANS RECEIVABLE (CONTINUED) For the remainder of loans and notes receivable, the City has classified fund balance as “restricted” indicating that these resources are not current available resources.
The outstanding balance of these notes and loans are reported in the Housing Successor Fund and are comprised of the following at June 30, 2024:
NOTE 6: LEASES RECEIVABLES
As of year-end June 30, 2024, the City had entered into various lease agreements as the lessor where it had leased its land and buildings, ranging from two years to 75 years. As of June 30, 2024, the outstanding leases receivable total $5,359,646. These leases require the various lessees to make periodic payments to the City, and range in interest rates from 0.466% to 2.583%. The offsetting entry to the leases receivable is a deferred inflows and the value of the deferred inflows at June 30, 2024 is $5,190,959. The City will be systematically recognizing revenue over the terms of the lease, and in the current fiscal year, the City recognized $203,367 in lease principal and $137,599 in interest. The City recognized $257,060 in lease revenue during the fiscal year.
Home Buyer Assistance Loans $ 3,305,853
Rehabilitation Loans 92,959
Developer/Organization Loans:
Acacia Apartments 1,265,743
Birch Hills Affordable Apartments 4,750,000
Bonterra Apartments 1,001,019
Imperial Apartments 2,853,000
La Habra Housing 597,814
South Walnut Bugalows 826,000
Total notes and loans receivable in the Housing Successor Fund $ 14,692,388 Fiscal Year Principal Payments Interest Payments Total Payments 2025 123,934 $ $ 135,031 $ 258,965
2026 113,673 132,736 246,409
2027 117,415 130,393 247,808
2028 96,082 128,044 224,126
2029 73,646 126,086 199,732
2030 - 2034 398,061 600,599 998,660
2035 - 2039 452,744 545,916 998,660
2040 - 2044 514,939 483,721 998,660
2045 - 2049 585,678 412,982 998,660
2050 - 2054 666,134 332,526 998,660
2055 - 2059 750,991 241,269 992,260
2060 - 2064 827,862 138,265 966,127
2065 - 2069 444,174 55,826 500,000
2070 - 2072 194,313 5,689 200,002
$ 5,359,646 $ 3,469,083 $ 8,828,729
51 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7: INTERFUND RECEIVABLES, PAYABLES, ADVANCES AND TRANSFERS The composition of interfund balances as of June 30, 2024, is as follows:
The balances due among the General Fund and Non-major Governmental Funds for $915,777 were related to Community Development Block Grant Fund (CDBG) and Organized Retail Theft Fund having negative cash and represents a short-term cash flow borrowing between the General Fund and the Non-Major Governmental Funds.
A. Transfers In/Out from Other Funds
1. The General Fund transferred $633,396 to the Capital Improvement Fund for various capital improvement program projects.
2. The General Fund transferred $56,000 to the Non-Major Governmental Funds for capital improvement projects.
3. The General Fund transferred $135,815 to the Internal Service Funds for equipment and vehicle maintenance.
4. The General Fund transferred $375,252 to the Non-Major Enterprise Funds to maintain Sanitation Fund’s capital reserve.
5. The Water Utility Fund transferred $1,251,301 to the Capital Improvements Fund for capital improvement projects.
6. The Internal Service Funds transferred $833,072 to the General Fund, $19,049 to the Capital Improvements funds and $4,248 to the Non-Major Governmental Funds related to various capital improvement projects.
7. The Non-Major Governmental Funds transferred $450,000 to the General Fund for the street maintenance program.
8. Non-Major Governmental Funds transferred $3,861,600 to the Capital Improvements Fund for various capital improvement program projects.
Due From
Other Funds
Due to Other Funds General Fund
Non-Major Governmental Funds 915,777 $
Total 915,777 $
General Fund
Capital
Improvement
Fund
Non-Major
Governmental
Funds
Internal Service
Funds Sewer Fund
Non-Major
Enterprise
Funds Total
General Fund - $ 633,396 $ 56,000 $ 135,815 $ - $ 375,252 $ 1,200,463 $ Water Utility Fund - 1,251,301 - - - - 1,251,301
Internal Service Funds 833,072 19,049 4,428 - 804 - 857,353 Non-Major Governmental Funds 450,000 3,841,600 - - - - 4,291,600 Total 1,283,072 $ 5,745,346 $ 60,428 $ 135,815 $ 804 $ 375,252 $ 7,600,717 $ Transfers Out
Transfers In
52 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: CAPITAL ASSETS
Summary of changes in capital assets for the year ended June 30, 2024 is as follows:
Governmental Activities:
Beginning
Balance Transfers Additions Disposals
Ending
Balance
Capital assets, not being depreciated/amortized
$ - 62,092,796 $ - $ - $ 62,092,796 $
(1,480,482) 12,590,124 11,971,762 - 23,081,404
Total capital assets, not depreciated 74,682,920 (1,480,482) 11,971,762 - 85,174,200 Capital assets, being depreciated
Structures and improvements 124,162,920 - 327,501 - 124,490,421 Equipment 23,105,506 - 1,379,023 (1,201,133) 23,283,396 Infrastructure 159,323,186 1,480,482 1,474,821 - 162,278,489 Total capital assets being depreciated 306,591,612 1,480,482 3,181,345 (1,201,133) 310,052,306 Less Accumulated Depreciation for
Structures and improvements (62,386,601) - (2,308,063) - (64,694,664) Equipment (15,746,981) - (1,757,704) 1,150,135 (16,354,550) Infrastructure (92,429,321) - (4,515,854) - (96,945,175) Total accumulated depreciation (170,562,903) - (8,581,621) 1,150,135 (177,994,389) Right-to-use assets
Equipment 166,630 - (29,664) - 136,966
Subscription IT asset 331,103 - 32,781 (20,218) 343,666 Total capital assets being depreciated 497,733 - 32,781 (49,882) 480,632 Less Accumulated Amortization for
Equipment (31,142) (38,450) - (69,592) -
Subscription IT asset (82,770) (118,148) - 20,218 (180,700) Total accumulated amortization (113,912) (156,598) - 20,218 (250,292) Total capital assets, being depreciated/amortized, net 136,412,530 1,480,482 (5,524,093) (80,662) 132,288,257 Governmental Activities capital assets, net $ 211,095,450 $ 6,447,669 - $ $ (80,662) $ 217,462,457 Capital assets, not depreciated
$ 11,628,748 $ - $ - $ 11,628,748 - $
Water rights - fee title 23,931,020 - - 23,931,020 -
Water rights - preferred stock 8,444,404 - - 8,444,404 - 10,322,166 (7,223,214) 1,676,029 4,774,981 -
Total capital assets, not depreciated 54,326,338 (7,223,214) 1,676,029 48,779,153 - Capital assets, being depreciated
Structures and improvements 4,651,539 - - 4,651,539 -
Equipment 770,764 154,220 - 924,984 -
Infrastructure 150,533,602 7,223,214 1,800,277 159,557,093 - Subscription IT asset - - 14,859 - 14,859
Total capital assets being depreciated 155,955,905 7,223,214 1,969,356 165,148,475 - Less Accumulated Depreciation for
Structures and improvements (506,737) (59,208) - (565,945) - Equipment (487,645) (66,683) - (554,328) -
Infrastructure (70,958,752) (3,425,778) - (74,384,530) - Subscription IT asset - - (7,388) - (7,388)
Total accumulated depreciation (71,953,134) (3,559,057) - (75,512,191) - Total capital assets being depreciated, net 84,002,771 7,223,214 (1,589,701) 89,636,284 - Business-Type Activities capital assets, net $ 138,329,109 $ 86,328 - $ $ 138,415,437 - $ Land
Construction in Progress
Land
Construction in Progress
Business-Type Activities:
53 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: CAPITAL ASSETS (CONTINUED)
The City has a total $32,375,424 in water rights. As described in Note 4, $8,444,404 of the water rights are held as Class A Preferred stock in California Domestic Water Company. The remaining $23,931,020 of water rights are held in the name of the City. Combined, the rights held by the City allow the City to purchase 1,662.59 acre feet of water annually at a set rate of $272.69 per acre foot. Refer to Note 4 for further details of transactions with California Domestic Water Company.
Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
NOTE 9: LONG-TERM DEBT
A. Governmental Activities Long-Term Liabilities
A summary of changes in governmental activities long-term liabilities for the year ended June 30, 2024, is noted below:
Governmental Activities:
City
General Government 373,569 $
Public Safety 660,853
Community Services 492,486
Public Works 6,223,044
Total City 7,749,952
Internal Service
Information Technology 180,157
Vehicle Maintenance 671,747
Building Occupancy 136,363
Total Internal Service 988,267
Total Governmental Activities 8,738,219 $
Business-Type Activities:
Water Utility 2,919,335 $
Sewer Utility 549,671
Urban Runoff 1,750
Information Technology 7,388
Golf 80,913
Total Business-Type Activities 3,559,057 $
Beginning
Balance Additions Deletions Ending Balance
Due Within
One Year
$ 2,220,000 $ - $ - 2, $ $ - 220,000
107,618 - (38,080) 69,538 24,760
227,239 30,781 (133,891) 124,129 124,129
2,833,187 3,785,196 (3,466,846) 3,151,537 2,365,617
5,708,005 931,402 (1,816,455) 4,822,952 1,639,804
Totals $ 11,096,049 $ 4,747,379 $ (5,455,272) 10,388,156 $ 4,154,310 464,236
$ 10,852,392
Unamortized Bond Premium
2021 Refunding Lease Revenue Bonds
Lease Revenue Bonds
Claims and Judgements
Compensated Absences
Subscription IT Liabilities
Leases
54 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9: LONG-TERM LIABILITIES (CONTINUED)
2021 Refunding Lease Revenue Bonds
In July 2021, the Brea Public Financing Authority issued the 2021 Refunding Lease Revenue Bonds in the amount of $2,220,000. The proceeds were used to refund the outstanding principal balance of the 2010 Lease Revenue Bonds and pay costs of issuance of the 2021 bonds. The bonds bear an interest rate of 4% and mature April 1, 2036. Installment payments are due annually beginning April 1, 2028, ranging from $105,000 to $455,000.
The Bonds are payable from lease payments made by the City for the leasing of certain real property pursuant to the lease agreement dated July 1, 2021.
The debt service schedule of the 2021 Refunding Lease Revenue Bonds are as follows:
1. Leases
As of year-end June 30, 2024, the City has entered into various lease agreements as the lessee for the use of various pieces of equipment, for terms of five years. As of June 30, 2024, the value of the lease liability outstanding is $69,538. The city is required to make monthly fixed payments, and these leases have interest rates ranging from 0.727% to 3.305%.
The future principal and interest lease payments as of June 30, 2024, were as follows:
2. Subscription Liabilities
Prior to the fiscal year ended June 30, 2024, the City had six active SBITA contracts. The City is required to make principal and interest payments ranging from $13,000 to $86,816 through June 2025. The subscription liability was valued using discount rates between 2.194% - 2.796% based on the City’s incremental borrowing rate at the inception of the subscriptions.
Year Ending
June 30, Principal Interest Total
2025 - $ 88,800 $ 88,800 $
2026 - 88,800 88,800
2027 - 88,800 88,800
2028 335,000 88,800 423,800
2029 370,000 75,400 445,400
2030-2034 1,210,000 169,800 1,379,800
2035-2036 305,000 18,600 323,600
Total $ 2,220,000 $ 619,000 $ 2,839,000
Year Ending
June 30, Principal Interest Total
2025 24,760 $ 1,760 $ $ 26,520
2026 17,456 1,161 18,617
2027 18,018 599 18,617
2028 9,304 90 9,394
Total $ 69,538 $ 3,610 $ 73,148
55 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9: LONG-TERM LIABILITIES (CONTINUED)
Remaining principal and interest payments on subscriptions are as follows:
B. Business-Type Activities Long – Term Liabilities
A summary of changes in business-type activities long-term debt for the year ended June 30, 2024 is noted below:
3. Water Revenue Bonds
2014 Water Revenue Refunding Bonds
In August 2014, the Brea Community Benefit Financing Authority issued $18,555,000 of 2014 Water Revenue Bonds. The proceeds were used to repay interfund loans made by the City of Brea to its Water Utility Fund from other available funds for the purchase of water rights completed in May 2014 for the benefit of the City’s water system. Proceeds were also used to pay cost of issuance expenses.
The bonds consisted of $9,440,000 serial bonds maturing in the years 2015 to 2034, payable July 1 in annual installments of $255,000 to $700,000 and bear interest at 3.25% to 5.00%. Bonds maturing July 1, 2039, in the amount of $4,005,000 are term bonds and bear interest at 5.00%. Bonds maturing July 1, 2044, in the amount of $5,110,000 are term bonds and bear interest at 5.00%. The 2014 Water Revenue Bonds were partially refunded by the 2020 Water Revenue Refunding Bonds. The outstanding balance at June 30, 2024, was $445,000. 2019 Water Revenue Refunding Bonds
In August 2019, the City of Brea issued $23,475,000 of 2019 Water Revenue Refunding Bonds with interest rates ranging from 3.0% to 4.0%. The proceeds from the bonds were used to current refund all of the remaining outstanding 2009 Water Revenue Bonds and advance refund 2010 Series B Water Revenue Bonds. Interest on the Water Revenue Refunding Bonds is payable semi-annually on July 1 and January 1 of each year until 2039.
Principal matures annually on July 1. The outstanding balance at June 30, 2024, was $20,075,000.
Year Ending
June 30, Principal Interest Total
2025 124,129 $ 3,045 $ 127,174 $
Total 124,129 $ 3,045 $ 127,174 $
Beginning
Balance Additions Deletions Ending Balance
Due Within
One Year
$ 865,000 $ - $ (420,000) 445,000 $ $ 445,000
20,965,000 - (890,000) 20,075,000 950,000
- 17,375,000 (220, 17, 000) 155,000 220,000
Subscription IT Liabilities - 14,859 (7,478) 7,381 7,381 296,688 270,886 (255,148) 312,426 234,321
Totals $ 39,501,688 $ 285,745 $ (1,792,626) 37,994,807 $ 1,856,702 3,045,867
$ 41,040,674
Unamortized Bond Premium
2019 Water Revenue Bonds
2020 Water Revenue Bonds
Water Revenue Bonds
2014 Water Revenue Bonds
Compensated Absences
56 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9: LONG-TERM LIABILITIES (CONTINUED)
2020 Water Revenue Refunding Bonds
In October 2020, the City of Brea issued $17,960,000 of 2020 Water Revenue Refunding Bonds with interest rates ranging from 0.391%% to 3.212%. The proceeds from the bonds were used to current refund a portion of the remaining outstanding 2014 Water Revenue Bonds. Interest on the Water Revenue Refunding Bonds is payable semi-annually on July 1 and January 1 of each year until 2044. Principal matures annually on July 1 in amounts ranging from $220,000 to $1,090,000. The net proceeds of $17,864,812 (including an underwriter’s discount of $95,188) were deposited in an irrevocable trust with an escrow agent to provide funds to refund the 2014 bonds in full and to provide funds for the future debt service payment on the 2014 bonds. As a result, the 2014 bonds are partially defeased, and the liability for those bonds has been removed from the statement of net position. The outstanding balance at June 30, 2024 was $17,155,000.
Water Revenue Bonds Debt Coverage Requirement
The City has covenanted that gross revenues (including interest revenue and connection fees), less operation and maintenance costs as defined in the bond document, shall be at least 1.25 times the sum of all debt service on all parity obligations. Gross revenues for the year ended June 30, 2024, were $20,862,952. Operation and maintenance costs for the year ended June 30, 2024, were $13,220,457, excluding depreciation. Total debt service for the fiscal year ended was $2,879,292. This resulted in a debt coverage ratio of 5.83 for the year ended June 30, 2024.
4. Pledged Revenues
Future net revenues of the Water Utility Fund for each year’s debt service payment are pledged until the extinguishment of the debt in 2044 and are not available for other uses. Remaining principal and interest payments on this debt as of June 30, 2024 was $49,830,473.
The debt service schedules of these Water Revenue Bonds are as follows:
C. Compensated Absences
The Governmental Activities’ liability, at June 30, 2024, will be paid in future years from the General Fund, Vehicle Maintenance Fund, and Building Occupancy Fund in amounts of $3,024,352, $48,499, and $70,829, respectively. The Business-Type Activities’ liability at June 30, 2024 will be paid in future years from the enterprise funds. Total compensated absences at June 30, 2024, were $312,426.
Year Ending
June 30, Principal Interest Total
2025 1,615,000 $ 1,264,292 $ $ 2,879,292
2026 1,700,000 1,199,946 2,899,946
2027 1,770,000 1,139,925 2,909,925
2028 1,850,000 1,074,515 2,924,515
2029 1,930,000 1,003,629 2,933,629
2030-2034 10,805,000 3,901,907 14,706,907
2035-2039 10,945,000 1,957,845 12,902,845
2040-2044 5,970,000 595,909 6,565,909
2045-2049 1,090,000 17,505 1,107,505
Total 37,675,000 $ $ 12,155,473 $ 49,830,473
57 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9: LONG-TERM LIABILITIES (CONTINUED)
D. Debt Without Government Commitment Assessment District Bonds The special assessment bonds are secured by valid assessment liens upon certain lands within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying general purpose financial statements. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the full faith and credit nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders.
In November 2017, the City of Brea issued on behalf of the Community Facilities District No. 2008-2 (Brea Plaza Area Public Improvements) $8,555,000 aggregate principal of 2017 Special Tax Refunding Bonds to advance refund in full the Community Facilities District No. 2008-2 (Brea Plaza Area Public Improvements) 2009 Special Tax Bonds. The bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from the proceeds of an annual special tax levied on property within the District. The bonds mature from 2018 to 2039, with remaining annual installments ranging from $255,000 to $575,000. The remaining interest rates on the bonds range from 2.000% to 4.000%. The outstanding balance at June 30, 2024, was $7,025,000.
In August 2019, the Brea Public Financing Authority issued Local Agency Revenue Refunding Bonds, Series 2019, in the amount of $6,820,000, for and on behalf of the City of Brea Community Facilities District No. 1997-1 (Olinda Heights Public Improvements). The purpose of the bonds is to acquire two series of bonds: (i) $2,505,000 aggregate principal amount to be issued by the City of Brea for the Communities Facilities District No. 1997-1; and (ii) $4,315,000 aggregate principal amount 2019 Special Tax Refunding Bonds to be issued by the Brea Olinda Unified School District for the Brea Olinda Unified School District Community Facilities District No. 95-1 (Olinda Heights). A portion of the proceeds was for a current refunding of the 2005 Series A Local Agency Revenue Bonds. The bonds mature from 2020 to 2035, with remaining annual installments ranging from $215,000 to $680,000 per year. The interest rates on the bonds range from 4.000% to 5.000%. The outstanding balance at June 30, 2024 was $4,820,000.
NOTE 10: DEFINED BENEFIT PENSION PLAN
A. CalPERS Safety and Miscellaneous Employees’ Plans
The City contributes to the pension plans offered by the California Public Employees Retirement System (PERS).
The City’s employees participate in separate cost-sharing Safety (police and fire) and Miscellaneous (agent- multiple employer) defined benefit pension plans. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS’ annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814.
B. 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 or 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 10 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.
58 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Miscellaneous Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:
C. Employees Covered
At the June 30, 2022 valuation, the following employees were covered by the benefit terms of the Miscellaneous Plan:
D. 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. Funding contributions for both plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
The employer contributions to the Miscellaneous Plan during the year ended June 30, 2024 was $4,223,828.
Tier 1* Tier 2 PEPRA (Tier 3)
Hire Date Prior to
September 17, 1999
September 17, 1999 to
December 31, 2012 and
Non-PEPRA hired on or
after January 1, 2013
January 1, 2013
and after
Benefit Formula 2.0% @ 55 2.0% @ 55 2.0% @ 62
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments Monthly for life Monthly for life Monthly for life Retirement Age Minimum 50 years Minimum 50 years Minimum 52 years Monthly Benefits, as a % of
eligible Compensation
Required Employee Contribution Rates 7.080% 7.080% 6.250% Required Employer Contribution Rates 9.710% 9.710% 6.326% *Closed to new entrants
Miscellaneous Plan
1.000% - 2.500%
52 years - 67+ years
respectively
1.426% - 2.418%
50 years - 63 years
respectively
1.426% - 2.418%
50 years - 63 years
respectively
Miscellaneous Plan
Inactive employees or beneficiaries currently receiving benefits 341 Inactive employees entitled to but not yet receiving benefits 294 Active Employees 179
814
59 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
E. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The Miscellaneous Plan’s total pension liability in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of 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 real rates of return by asset class are as follows:
These geometric rates of return net of administrative expenses are summarized in the following table:
Miscellaneous
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.50%
Salaty Increases Varies by Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.0% Net of Pension Plan Investment Includes Inflation Mortality Table** Derived using CalPERS' Membership Data for all Funds **The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
Asset Class
New Strategic
Allocation Real Retun (1), (2)
Global Equity - Cap Weighted 30.00% 4.54%
Global Equity - Non-Cap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
(1) An Expected Inflation of 2.30% used for this period. (2) Figures are based on the 2022 Asset Liability Management study. 60 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
F. 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 employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 6.90% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained at CalPERS’ website.
G. Changes in the Net Pension Liability
H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1% point lower (5.90%) or 1% point higher (7.90%) than the current rate:
Detailed information about the Miscellaneous Plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2022 (measurement date) 168,309,448 $ 123,383,442 $ 44,926,006 $ Changes in the year:
Service Cost 2,570,196 - 2,570,196
Interest on the total pension liability 11,511,001 - 11,511,001 Changes of Benefit terms 238,052 - 238,052
Differences between expected and
actual experience 1,787,357 - 1,787,357
Contribution - employer - 4,957,441 (4,957,441)
Contribution - employee - 1,058,108 (1,058,108)
Net investment income - 7,733,265 (7,733,265)
Benefit payments, including refunds
of employee contributions (9,587,727) (9,587,727) -
Administrative expense - (90,730) 90,730
Net changes 6,518,879 4,070,357 2,448,522
Balance at June 30, 2023 (measurement date) 174,828,327 $ $ 127,453,799 $ 47,374,528 Miscellaneous
Increase (Decrease)
1% Decrease (5.90%)
Current Discount
Rate (6.90%) 1% Increase (7.90%)
Miscellaneous Plan's Net Pension Liability 69,743,807 $ 47,374,528 $ 28,840,833 $ 61 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
I. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense of $8,185,610 for the Miscellaneous Plan. As of June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources are amortized in pension expense for the year the gain or loss occurs, except for contributions subsequent to the measurement period of $4,223,828 for the Miscellaneous Plan, which will be recognized as a reduction of the net pension liability during the fiscal year ending June 30, 2025. The amortization period differs depending on the source of the gain or loss.
Differences between projected and actual investment earnings are amortized on a 5-year straight-line basis and all other amounts are amortized over the average expected remaining service lives of all members that are provided with benefits. As of the June 30, 2023 measurement date, the expected average remaining service lifetime is
2.2 years for the Miscellaneous Plan. Deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Beginning in the measurement period ended June 30, 2021, the City’s Safety Plan was converted from an agent multiple-employer defined benefit plan to the cost-sharing defined benefit plan.
Miscellaneous Plan
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Contributions made after the measurement date $ 4,223,828 $ - Differences between expected and actual experience 974,922 320,933 Changes in assumptions 831,572 -
Net difference between projected and actual earnings
on pension plan investments 5,655,976 -
Miscellaneous Plan Total $ 11,686,298 $ 320,933
Miscellaneous Plan
Fiscal Year Ending
June 30,
Deferred
Outflows/(Inflows)
of Resources
2025 $ 2,286,937
2026 678,910
2027 4,046,543
2028 129,147
Total $ 7,141,537
62 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Safety Plan's provisions and benefits in effect at June 30, 2024, are summarized as follows:
J. 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. Funding contributions for both plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
The employer contributions to the Safety Plan during the year ended June 30, 2024 was $11,850,759.
K. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, based on the measurement date of June 30, 2023, the City reported a net pension liability of $119,172,727 for its proportionate share of the PERF C Cost Sharing Plan.
The City's net pension liability is measured as the proportionate share of net pension liability. The net pension liability is measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023. The City's proportion of the net pension liability based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the PERF C Cost Sharing Plan measured as of June 30, 2023 and 2024 was 1.63994% and 1.59430%, respectively.
Tier 1* Tier 2* Tier 3 PEPRA (Tier 4)
Hire Date Prior to
June 30, 1984
On June 30, 1984
and prior to
September 17, 2011
September 17, 2011 to
December 31, 2012 and
Non-PEPRA hired on or
after June 1, 2013
January 1, 2013
and after
Benefit Formula 3.0% @ 50 3.0% @ 50 2.0% @ 50 2.7% @ 57 Benefit Vesting Schedule 5 years service 5 years service 5 years service 5 years service Benefit Payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement Age Minimum 50 years Minimum 50 years Minimum 50 years Minimum 50 years Monthly Benefits, as a % of
Eligible Compensation
Required Employee Contribution Rates 8.99% 8.99% 8.99% 13.75% Required Employer Contribution Rates 22.77% 22.77% 22.77% 17.97% *Closed to new entrants
3.00% 3.00% 2.00% - 2.70% 2.00% - 2.70%
Safety Plan
63 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
For the year ended June 30, 2024, the City recognized pension expense of $39,308,171 for the Safety Plan. As of June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources are amortized in pension expense for the year the gain or loss occurs, except for contributions subsequent to the measurement period of $11,850,759, which will be recognized as a reduction of the net pension liability during the fiscal year ending June 30, 2025. The amortization period differs depending on the source of the gain or loss. Differences between projected and actual investment earnings are amortized on a 5-year straight-line basis and all other amounts are amortized over the average expected remaining service lives of all members that are provided with benefits. As of the June 30, 2023 measurement date, the expected average remaining service lifetime is 3.8 years for the Safety Plan. Deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Safety Plan
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Contributions made after the measurement date 11,850,759 $ - $ Changes of assumptions 6,955,080 -
Differences between expected and actual experience 8,749,475 749,048 Changes in employer's proportion 16,713,362 1,717,186
Differences between employer's contributions and
proportionate share of contributions 2,373,049 1,695,461 Net difference between projected and actual
investments earnings 16,308,756 -
Safety Plan Total $ 62,950,481 $ 4,161,695
Safety Plan
Fiscal Year Ending
June 30,
Deferred
Outflows/(Inflows)
of Resources
2025 $ 26,191,540
2026 6,691,901
2027 13,599,378
2028 455,208
Total $ 46,938,027
64 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
L. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The Safety Plan’s total pension liability in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Changes of assumptions – Noted no changes.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of 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 real rates of return by asset class are as follows:
Safety
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salaty Increases Varies by Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment Includes Inflation Mortality Table** Derived using CalPERS' Membership Data for all Funds **The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
Asset Class
New Strategic
Allocation Real Retun (1), (2)
Global Equity - Cap Weighted 30.00% 4.54%
Global Equity - Non-Cap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
(1) An Expected Inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study. 65 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLAN (CONTINUED)
M. 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 employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, Safety Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.
To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Safety Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 6.90% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained at CalPERS’ website.
N. 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 for the Safety Plan, calculated using the discount rate of 6.90%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 - percentage point lower or 1 - percentage point higher than the current rate:
O. Summary of Miscellaneous Plan and Safety Plan Amounts NOTE 11: OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
In addition to providing pension benefits, the City provides medical insurance for certain employees after they separate from the City, through a single-employer defined benefit plan (Plan) as provided under the City’s contractual agreements with members from each bargaining unit. Members who retire from the City on or after attaining the age of 50 with at least five years of service are eligible for these benefits. A separate annual financial report is not issued. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
B. Benefits Provided
The City funds retiree healthcare benefits on a pay-as-you-go basis, paying a maximum of $350 per month for each retirees’ benefits from City funds as they are due with no pre-funding for future years. The City recognizes expenditures for its share of the annual premiums as these benefits become due. 1% Decrease (5.90%)
Current Discount
Rate (6.90%) 1% Increase (7.90%)
City's proportionate share of the net
pension liability $ 163,043,761 $ 119,172,727 $ 83,305,034 Net Pension
Liability
Deferred Outflows
of Resources
Deferred Inflows
of Resources Expenses
Miscellaneous 47,374,528 $ 11, $ 686,298 $ 8, 320,934 $ 185,610 Safety Plan 119,172,727 62, 950,481 4,161,694 39,308,171 Total $ 166,547,255 $ 74,636,779 $ 4,482,628 $ 47,493,781 66 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
C. Employees Covered by Benefit Terms
D. Total OPEB Liability
The City’s total OPEB liability of $21,951,211 was measured as of June 30, 2023, and was determined by an actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions and Other Inputs – The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement:
E. Changes of Assumptions
For the June 30, 2023 measurement date, the discount rate was changed from 3.54% to 3.65%.
Active Employees 294
Inactive employees or beneficiaries currently receiving benefits 236 Inactive employees entitled to but not yet receiving benefits 100 Total 630
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 3.65%
Inflation 2.50%
Payroll Growth 2.75%
Mortality (1)
Healthcare Trend Rate
Non-Medicare - 8.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
PEMHCA 3.50% annually
Participation at Retirement
Actives: 60%
Retirees: 100% if covered, 5% re-elect at age 65 if waved and under 65
(1) Mortality projected fully generational with Scale MP-2021. 67 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
F. Change in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (2.65%) or 1 percentage-point higher (4.65%) than the current discount rate:
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
G. OPEB Expense and Deferred Outflow/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $490,466. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Total OPEB
Liability
Balance at June 30, 2023 24,806,583 $
Changes in the year:
Service Cost 723,690
Interest 881,363
Actual vs. expected experience (1,632,463)
Changes in assumptions (1,561,914)
Benefit payments, including refunds of employee contributions (1 ,266,048) Net Changes (2,855,372)
Balance at June 30, 2024 21,951,211 $
1% Decrease (2.65%)
Discount Rate
(3.65%) 1% Increase (4.65%)
Total OPEB Liability 24,645,361 $ 21, $ 19, 951,211 $ 723,844 1% Decrease
(2.65%)
Healthcare Cost
Trend Rate 1% Increase (4.65%)
Total OPEB Liability 20,864,815 $ 21, $ 23, 951,211 $ 804,534 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Amount paid by the employer from OPEB as the benefits come due subsequent to the measurement date 1,699,267 $ - $
Changes in assumptions 1,788,197 5,118,322
Differences between actual and expected experience 2, - 129,676 Total $ 3,487,464 $ 7,247,998
68 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
The $1,699,267 reported as deferred outflows of resources related to benefits paid subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense on the next page as follows:
NOTE 12: SELF-INSURANCE PROGRAM
The City is a member of the California Insurance Pool Authority (CIPA). CIPA, a consortium of 14 cities in Los Angeles County and Orange County, California, was established to pool resources, share risks, purchase excess insurance and to share costs for professional risk management and claims administration.
At June 30, 2024, the City was self-insured for workers' compensation up to $400,000 per occurrence and general liability and auto liability insurance up to $350,000 per occurrence. The coverage for general and auto liability extends to $20,000,000 per occurrence with a $20,000,000 annual pooled aggregate. Member agencies may be assessed the difference between funds available and the $20,000,000 annual pooled aggregate in proportion to its annual premium. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.
At June 30, 2024, $4,822,952 has been accrued for general liability and workers' compensation claims in the Risk Management Internal Service Fund. These amounts represent estimates of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends and information. While the ultimate amount of losses incurred through June 30, 2024, is dependent on future developments, based upon information from the City Attorney, the City's claims administrators and others involved with the administration of the programs, City management believes the accrual is adequate to cover such losses.
During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage.
Changes in the claims liability amounted to the following for the years ended June 30:
Year Ended
June 30, Amortization
2025 (929,096) $
2026 (777,855)
2027 (1,518,980)
2028 (1,308,189)
2029 (726,030)
Thereafter (199,651)
Total (5,459,801) $
Claims and Judgements at June 30, 2022 $ 5,287,092
Claims Payments (1,804,924)
Claims Incurred and Changes in Estimates 2,225,837
Claims and Judgements at June 30, 2023 5,708,005
Claims Payments (1,816,455)
Claims Incurred and Changes in Estimates 931,402
Claims and Judgements at June 30, 2024 $ 4,822,952
69 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 13: FUND BALANCE CLASSIFICATION
Fund balances in the governmental funds as of June 30, 2024, have been classified as follows:
Capital
Projects Fund
General Fund
Affordable
Housing
Housing
Successor
Capital
Improvements
Non-Major
Governmental
Funds Total
Nonspendable
Prepaid Items 29,357 $ - $ - $ - $ - $ 29,357 $
Total Nonspendable 29,357 - - - - 29,357
Restricted
Prop 172 1,060,311 - - - - 1,060,311
COPS 128,047 - - - - 128,047
Lighting and Maintenance Districts 548,701 - - - - 548,701 Low and Moderate Income Housing Asset - 3,899,529 19,581,074 - - 19,581,074 Gas Tax - - - - 5,160,434 5,160,434
Narcotic Enforcement Asset Seizure - - - 483,261 - 483,261 Air Quality Improvement - - - 213,100 - 213,100
Park Development - - - 2,355,387 - 2,355,387
Measure M - - - 2,982,674 - 2,982,674
Blackstone CFD - - - 2,477,197 - 2,477,197
La Floresta CFD - - - 544,774 - 544,774
Taylor-Morrison CFD - - - 131,073 - 131,073
Central Park Village CFD - - - 206,609 - 206,609
National Opioid Settlement - - - 98,238 - 98,238
Capital and Mitigation Improvement - - - 1,484,231 - 1,484,231 Storm Drain - - - 352,990 - 352,990
Capital Projects - - 6,010,153 - 6,010,153 -
Pension Stabilization 10,592,453 - - - 10,592,453 -
Total Restricted 12,329,512 3,899,529 19,581,074 6,010,153 16,489,968 58,310,236 Committed
General Plan Maintenance Fee 1,524,080 - - - 1,524,080 - Brea War Memorial 16,255 - - - 16,255 -
Total Committed 1,540,335 - - - 1,540,335 -
Assigned to
Community Benefit and Economic Development - 7,012,994 - - - 7,012,994 OPEB Fund 537,771 - - - - 537,771
Community Center 1,053,819 - - - - 1,053,819
Capital Asset Replacement 4,406,226 - - - - 4,406,226
Total Assigned 13,010,810 - - - - 13,010,810
Unassigned
General Fund 28,051,499 - - - - 28,051,499
Non-Major Governmental Funds (Deficit) - - - - (906,346) (906,346) Total Unassigned 28,051,499 - - - (906,346) 27,145,153
Total 54,961,513 $ 3,899,529 $ 19,581,074 $ 6,010,153 $ 15,583,622 $ 100,035,891 $ Special Revenue Funds
70 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 14: CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS The following material construction and other significant commitments existed at June 30, 2024:
NOTE 15: CONTINGENCIES
The City is a defendant in several pending lawsuits of a nature common to many similar jurisdictions. City management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial position of the City.
The City incurs various costs under federal and state grant reimbursement programs and records the related revenue and receivables for grant claims. Such grant claims are subject to final audit by federal and state agencies.
NOTE 16: JOINTLY GOVERNED ORGANIZATIONS
Orange County City Managers Association (OCCMA)
The City is a member of the Orange County City Managers Association (OCCMA). OCCMA is an organization that provides a platform for City Managers to learn best practices, collaborate and share ideas. The City was appointed to serve as Treasurer and assumed administrative responsibilities of OCCMA. Therefore, OCCMA activities are reported as a custodial fund of the City. For the fiscal year ended June 30, 2024, the City received $2,835 for assisting with Treasury functions.
North Orange County Public Safety Collaboration (NOC)
The City is a member of the North Orange County Public Safety Collaborative (NOC), along with 11 other cities.
The NOC was established was established to spend state funds in accordance with Assembly Bill (AB) 97, an act of the State Legislature to address youth violence prevention and intervention in K-12 schools; promote and enhance the successful reentry of offenders into the community and to address homeless outreach and intervention efforts. Beginning July 1, 2022, the City was appointed as the fiscal agent for the $8,000,000 grant to continue the NOC efforts through June 30, 2026, of which, the City receives $800,000 for grant administration during the grant period.
Contract
Amount
Expenditures to
date as of
June 30, 2024
Remaining
Commitments
Capital Improvements Fund:
57 Freeway & Lambert Road $ 11,026,341 $ 3,854,779 $ 7,171,562 Country Hills Pavement and water 7,537,127 6,959,491 577,636 Pleasant Hill Water Improvements 2,127,994 2,127,972 22 South Brea Water Main Replacement 2,302,409 2,302,408 1 Booster Station No. 2 & 3 17,263 16,441 822
Valencia Reservoir Repainting 1,814,522 468 1,814,054
Booster Pump Enclosure & Restroom 328,947 282,993 45,954 Citywide Sewer Improvements 343,130 140,971 202,159
Emergency Message Signage 654,876 20,758 634,118
Tracks Expansion Study 6,619,931 319,211 6,300,720
Arovista Park Modernization 23,766,602 3,919,764 19,846,838 Total $ 56,539,142 $ 19,945,256 $ 36,593,886
Project Name
71 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 16: JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Integrated Law and Justice Agency of Orange County (ILJAOC) The City is a member of the Integrated Law and Justice Agency of Orange County (ILJAOC), along with 24 other cities and local law enforcement agencies. The purpose of ILJAOC is to facilitate and share criminal justice information and data among the member agencies. The Agency has a twelve-member Board of Directors. The City was appointed to serve as Treasurer/Controller and assumed administrative responsibilities of ILJAOC.
Therefore, the activities of ILJAOC are reported as a custodial fund of the City. During the year ended June 30, 2024, ILJAOC paid $61,508 to the City for its share of operating and replacement costs. The City paid $16,482 in membership fees to ILJAOC. Separately prepared financial statements for ILJAOC are available on the City’s website.
NOTE 17: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On August 25, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2011-085.
Each year, the successor agency is allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full, and all assets have been liquidated.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City.
A. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and Investments $ 739,514
Cash and Investments with Fiscal Agents 12,114,244
$ 12,853,758
72 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 17: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY (CONTINUED) B. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2024, follows:
1. Tax Allocation Bonds
2003 Tax Allocation Bonds
In July 2003, the former Brea Redevelopment Agency issued $120,497,866 principal amount of 2003 Redevelopment Project AB Tax Allocation Bonds. The proceeds were used to: 1) current refund the Brea Redevelopment Agency 1993 Tax Allocation Refunding Bonds, 2) pay the costs of additional redevelopment activities with respect to Project Area AB, 3) pay the cost of a reserve fund security instrument, and 4) pay costs of issuance related to the bonds.
Bonds in the years 2014 to 2026 are current interest bonds payable with no annual installments, while bonds maturing in the years 2028 to 2030 are capital appreciation bonds payable August 1 in annual installments of $2,151,714 to $1,801,707. Bonds maturing in the years 2027, 2031 and 2032, in the amount of $16,475,000 are term bonds.
The current interest bonds bear interest at 4.450% due February 1 and August 1, of each year. The term bonds bear interest at 4.45% and are due August 1, 2032. The capital appreciation bonds have a face value of $22,640,000. By its nature, there are no regular interest payments associated with capital appreciation bonds. The "interest" on the debt results from the difference between the amounts paid by the investors when the debt was issued and the significantly larger value at maturity. The $22,640,000 of face value capital appreciation bonds were initially recorded at the amount of proceeds received, $5,987,866. Each year, the outstanding balance is increased for the accretion of interest associated with the bonds.
A financial guaranty insurance policy has been issued and, accordingly, no cash reserve balance is required. Bond payments are secured by a first pledge on all of the tax revenues on parity with the 2013 and 2017 bonds.
In November 2017, the Successor Agency issued 2017 Tax Allocation Refunding Bonds, Series A of which a portion of the proceeds was used to redeem the term bonds portion of the outstanding balance of the 2003 Tax Allocation Bonds. Upon issuance of the 2017 A Bonds, a portion of the sale proceeds was transferred to the 2003 Escrow fund. On the redemption date, moneys deposited in the escrow fund were used to pay the redemption price for the refunded bonds totaling $16,475,000. As a result, except for the capital appreciation bonds, the liability for the term bonds has been removed. The outstanding balance of the capital appreciation bonds at June 30, 2024, was $17,125,412.
Beginning
Balance Additions Repayments
Ending
Balance
Due Within
One Year
Tax Allocation Bonds
2003 Tax Allocation Bonds 16,272,313 $ 853,099 $ - $ 17,125,412 $ - $ 2013 Tax Allocation Bonds 27,915,000 - (7,150,000) 20,765,000 6,610,000 2016 Tax Allocation Bonds Series A 4,360,000 - (1,055,000) 3,305,000 1,085,000 2016 Tax Allocation Bonds Series B 645,000 - (155,000) 490,000 160,000 2017 Tax Allocation Bonds Series A 35,104,618 - (1,515,000) 33,589,618 734,534 2017 Tax Allocation Bonds Series B 10,955,000 - (845,000) 10,110,000 1,750,000 Subtotal 95,251,931 $ 853,099 $ (10,720,000) $ 85,385,030 10,339,534 $ Unamortized Bond Discounts and Premiums 3,280,389
Total $ 88,665,419
73 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 17: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY (CONTINUED) 2013 Tax Allocation Refunding Bonds
In December 2013, the Successor Agency to the Brea Redevelopment Agency issued its $96,620,000 Successor Agency to the Brea Redevelopment Agency Redevelopment Project AB 2013 Tax Allocation Refunding Bonds to refund the outstanding balance of the Brea Redevelopment Agency 2001 Tax Allocation Refunding Bonds, Series A in the amount of $36,205,000 and to refund the current interest bonds and term bonds outstanding of the 2003 Tax Allocation Bonds in the amount of $68,390,000. Upon issuance of the 2013 Bonds, a portion of the sale proceeds of the 2013 Bonds was transferred to the 2001A Escrow Fund and to the 2003 Escrow Fund. On the Redemption Date, moneys deposited in the Escrow Funds were used to pay the redemption price for the Refunded Bonds.
Bonds maturing in the years 2014 to 2026 are payable on August 1, of each year with remaining principal retirements ranging from $1,500,000 to $7,150,000. The remaining interest rates on the bonds is between 3.50% to 5.00%.
A financial guaranty insurance policy has been issued and, accordingly, no cash reserve balance is required. Bond payments are secured by a first pledge on all tax revenues on parity with the 2003 and 2017 Tax Allocation Bonds. The outstanding balance at June 30, 2024, was $20,765,000. 2016 Tax Allocation Refunding Bonds, Series A and B
In November 2016, the Successor Agency to the Brea Redevelopment Agency issued its 2016 Tax Exempt Tax Allocation Refunding Bonds, Series A and 2016 Taxable Tax Allocation Refunding Bonds, Series B in the amount of $10,425,000 and $1,540,000 respectively. The proceeds of the bonds were used to currently refund the Public Financing Authority’s outstanding 2008 Tax Exempt Tax Allocation Revenue Bonds, Series A in the amount of $12,260,000 and to advance refund the outstanding 2008 Tax Allocation Revenue Bonds, Series B in the amount of $1,450,000.
The Series A Serial Bonds totaling $10,425,000 have remaining principal repayments ranging from $1,055,000 to $1,120,000 with interest rates ranging from 2.00% to 4.00%. The outstanding balance at June 30, 2024 was $3,305,000.
The Series B Serial Bonds totaling $1,540,000 have remaining principal repayment ranging from $155,000 to $165,000 with interest rates ranging from 1.25% to 4.00%. The outstanding balance at June 30, 2024 was $490,000.
A financial guaranty insurance policy has been issued and, accordingly, no cash reserve balance is required. 2017 Tax Allocation Refunding Bonds, Series A and B
In November 2017, the Successor Agency to the to the Brea Redevelopment Agency issued its 2017 Tax Exempt Tax Allocation Refunding Bonds, Series A and 2017 Taxable Tax Allocation Refunding Bonds, Series B in the amount of $32,838,802 and $13,070,000 respectively. The proceeds of the bonds were used to currently refund the term bonds portion of the former Brea Redevelopment Agency 2003 Tax Allocation Bonds in the amount of $16,475,000 and to advance refund the former Brea Redevelopment Agency’s outstanding 2011 Tax Exempt Tax Allocation Bonds, Series A in the amount of $27,019,865 and 2011 Taxable Tax Allocation Bonds, Series B in the amount of $9,940,000.
The Series A Serial Bonds totaling $19,315,000 have principal repayments ranging from $50,000 to $6,665,000 with interest rates at 5.000% for all bonds.
74 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 17: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY (CONTINUED) The Series A Convertible Capital Appreciation Bonds have a face value of $16,080,000. By its nature, there are no regular interest payments associated with capital appreciation bonds. The “interest” on the debt results from the difference between the amounts paid by the investors when the debt was issued and the significantly larger value at maturity. The $16,080,000 of face value capital appreciation bonds were initially recorded at the amount of proceeds received, $13,523,802. Each year, the outstanding balance is increased for the accretion of interest associated with the bonds.
The outstanding balance of the Series A Bonds at June 30, 2024 was $33,589,618.
The Series B Serial Bonds totaling $9,330,000 have principal repayments ranging from $385,000 to $1,795,000 with interest rates ranging from 1.500% to 3.000%.
The Series B Term Bonds totaling $3,740,000 have payments due in 2032 for $2,665,000 with interest at 3.375% and in 2036 for $1,075,000 with interest at 3.625%.
The outstanding balance of the Series B Bonds at June 30, 2024 was $10,110,000.
A financial guaranty insurance policy has been issued and, accordingly, no cash reserve balance is required.
Bond payments are secured by a first pledge on all tax revenues on parity with the 2003 and 2013 bonds.
The debt service schedules of these Tax Allocation Bonds are as follows:
2. Pledged Revenues – Tax Allocation Bonds
The Successor Agency pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill X1 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.
Total principal and interest remaining on the debt is $107,761,427, with annual debt service requirements indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $13,486,940 and the debt service obligation was $13,659,340.
Year Ending
June 30, Principal Interest Total
2025 $ 10,339,534 $ 2,850,427 $ 13,191,986
2026 10,795,000 2,392,281 13,189,307
2027 9,890,000 1,988,538 11,880,565
2028 8,100,000 1,037,688 9,139,716
2029 8,139,290 3,331,878 11,473,197
2030-2034 29,803,646 9,800,549 39,604,195
2035-2039 8,317,560 975,036 9,292,596
Total $ 85,385,030 $ 22,376,397 $ 107,761,427
75 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 17: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY (CONTINUED)
3. Non-Commitment Multifamily Housing Revenue Bonds
In July 2010, the Agency, on behalf of Tonner Hills Housing Partners, LP (the “Borrower”), was authorized to issue $5,858,319 and $7,741,681 Brea Redevelopment Agency Multifamily Housing Revenue Bonds (Tonner Hills Apartment Homes) 2010 Series A-1 and A-2, respectively, for the purpose of providing funding necessary for the acquisition, construction and equipping of a 94-unit multifamily rental housing project in the City. The Agency and the Borrower also entered into a non-interest bearing loan agreement in amount of $1,200,000. These bonds are not the obligations of the Agency and will be paid solely from future rent revenue. The outstanding balance is determined when a construction draw requisition is submitted to the bank for payment, limited up to the authorized amounts for each of the series. Currently, the bonds are only paying interest to bondholders for debt service payments. When the bonds are converted, then the Borrower will pay principal and interest per bond conversion.
The outstanding balance at June 30, 2024, was $3,233,991 for Series A-1.
C. Insurance
The Successor Agency of the former Redevelopment Agency is covered under the insurance policy of the City of Brea at June 30, 2024.
D. Deficit Net Position
As of June 30, 2024, the Agency had a deficit net position of $74,094,247. This will be reduced with future receipt of distributions from the Redevelopment Property Tax Trust Fund from the County.
NOTE 18: PRIOR PERIOD ADJUSTMENTS
The Affordable Housing Fund was previously reported as a nonmajor governmental fund during the prior fiscal year. Due to a significant increase in assets of the fund during the year, it met the requirements of being presented as a Major Fund, in accordance with GASB Statement No. 34, during the fiscal year ended June 30, 2024. The effects of that change to or within the financial reporting entity are shown in the table below.
June 30, 2023 Changes to or
As Previously within the June 30, 2023
Reported Reporting Entity As Restated
Governmental funds
Major funds
General fund 53,057,096 $ - $ 53,057,096 $
Affordable Housing - 3,376,204 3,376,204
Low/Mod Income Housing Asset 20,107,217 - 20,107,217
Capital Improvement 6,210,891 - 6,210,891
Nonmajor funds 18,756,213 (3,376,204) 15,380,009
Total governmental funds 98,131,417 $ - $ 98,131,417 $
76 CITY OF BREA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 19: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 20, 2024, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024, that required recognition or disclosure in these financial statements.
77 5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ
CITY OF BREA, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2024 2023 2022 2021
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost $ 2,507,756 2,570,196 $ 2,292,411 $ $ 2,377,727 Interest on total pension liability 11,062,559 11,511,001 10,893,584 10,517,185 Changes of benefit terms - 238,052 - -
Changes of assumptions 4,989,438 - - -
Difference between expected and actual experience (1,925,595) 1,787,357 230,181 (2,276,288) Benefit payments, including refunds of employee
contributions (9,587,727) (8,667,849) (8,108,945) (7,527,291) Net change in total pension liability 6,518,879 7,966,309 5,307,231 3,091,333 Total pension liability-beginning 160,343,139 168,309,448 155,035,908 151,944,575 Total pension liability-ending (a) 174,828,327 168,309,448 160,343,139 155,035,908
PLAN FIDUCIARY NET POSITION
Contributions-employer 4,491,118 4,957,441 4,297,066 3,946,996 Contributions-employee 1,028,136 1,058,108 1,029,029 1,078,029 Net investment income (10,262,883) 7,733,265 25,693,669 5,601,590 Benefit payments, including refunds of employee
contributions (9,587,727) (8,667,849) (8,108,945) (7,527,291) Net plan to plan resource movement - - - -
Administrative expense (90,730) (85,268) (113,962) (156,681) Other miscellaneous income/(expense) - - - -
Net change in fiduciary net position 4,070,357 (13,496,746) 22,796,857 2,942,643 Plan fiduciary net position-beginning 136,880,188 123,383,442 114,083,331 111,140,688 Plan fiduciary net position-ending (b) 127,453,799 123,383,442 136,880,188 114,083,331 Net pension liability/(asset) (a) - (b) $ 47,374,528 $ 44,926,006 $ 23,462,951 $ 40,952,577 Plan fiduciary net position as a percentage of the
total pension liability 72.90% 73.31% 85.37% 73.59%
Covered payroll $ 12,313,380 15,436,610 $ 15,083,837 $ $ 15,618,412 Plan net pension liability/(asset) as a percentage of
covered payroll 306.90% 364.86% 155.55% 262.21%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Changes of Assumptions : There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
78 2020 2019 2018 2017 2016 2015
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 $ 2,331,399 $ 2,447,787 $ 2,355,806 $ 2,046,427 $ 2,062,984 $ 2,192,940 10,290,427 9,781,021 9,338,038 9,044,787 8,692,445 8,386,263 - - - - - -
(670,255) - 7,763,702 - (2,142,611) -
1,588,377 1,347,129 (972,574) (950,961) (1,784,268) -
(6,867,189) (6,401,688) (6,040,591) (5,294,666) (5,086,167) (4,468,721) 6,503,994 7,343,014 12,444,381 4,845,587 1,742,383 6,110,482 144,601,561 138,097,567 125,653,186 120,807,599 119,065,216 112,954,734 144,601,561 151,944,575 138,097,567 125,653,186 120,807,599 119,065,216 3,351,489 2,943,356 2,810,705 2,403,298 2,132,083 1,969,185 1,063,078 1,141,012 1,135,787 1,071,389 1,087,960 1,140,919 6,920,527 8,532,272 10,371,791 510,663 2,130,803 14,101,824 (6,867,189) (6,401,688) (6,040,591) (5,294,666) (5,086,167) (4,468,721) 8 - ,966 (68,950) - - -
(76,178) (157,356) (137,174) (57,456) (106,071) -
248 (298,822) - - - -
5,767,740 4,391,975 8,071,568 (1,366,772) 158,608 12,743,207 106,748,713 100,980,973 92,909,405 94,276,177 94,117,569 81,374,362 106,748,713 111,140,688 100,980,973 92,909,405 94,276,177 94,117,569 $ 37,852,848 40,803,887 $ 37,116,594 $ 32,743,781 $ 26,531,422 $ 24,947,647 $
73.15% 73.82% 73.12% 73.94% 78.04% 79.05%
$ 15,187,853 $ 15,773,914 $ 16,716,903 $ 15,474,119 $ 15,043,603 $ 14,843,300 268.66% 239.97% 222.03% 211.60% 176.36% 168.07%
79 CITY OF BREA, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years 1, 2
2021 2020 2019 2018
Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017
TOTAL PENSION LIABILITY
Service cost $ 3,263,982 3,203,351 $ 3,257,422 $ $ 3,216,910 Interest on total pension liability 18,359,943 18,915,355 17,527,382 16,994,058 Changes of assumptions - - (743,259) 14,075,011
Difference between expected and actual experience 3,599,666 (31,244) (224,664) (2,374,086) Benefit payments, including refunds of employee
contributions (14,387,531) (13,201,232) (12,285,824) (11,322,632) Net change in total pension liability 7,699,931 12,022,359 7,531,057 20,589,261 Total pension liability-beginning 258,151,383 270,173,742 250,620,326 230,031,065 Total pension liability-ending (a) 277,873,673 270,173,742 258,151,383 250,620,326
PLAN FIDUCIARY NET POSITION
Contributions-employer 6,943,831 7,928,182 6,122,219 5,562,362 Contributions-employee 1,090,070 1,219,554 1,117,627 1,103,737 Net investment income 11,226,191 8,890,536 13,829,770 16,755,962 Benefit payments, including refunds of employee
contributions (14,387,531) (13,201,232) (12,285,824) (11,322,632) Net plan to plan resource movement - - (9,613) 68,950
Administrative expense (122,130) (249,637) (254,161) (223,176) Other miscellaneous income/(expense) 399 - (482,656) -
Net change in fiduciary net position 3,401,104 5,937,129 8,037,362 11,945,203 Plan fiduciary net position-beginning 171,141,277 177,078,406 163,103,915 151,158,712 Plan fiduciary net position-ending (b) 180,479,510 177,078,406 171,141,277 163,103,915 Net pension liability/(asset) (a) - (b) $ 97,394,163 $ 93,095,336 $ 87,010,106 $ 87,516,411 Plan fiduciary net position as a percentage of the
total pension liability 65.0% 65.5% 66.3% 65.1%
Covered payroll $ 11,724,815 11,736,459 $ 11,688,892 $ $ 10,703,998 Plan net pension liability/(asset) as a percentage of
covered payroll 829.84% 794.00% 744.38% 817.60%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation. 2 Fiscal year 2022, the City's safety plan was transferred to the CalPERs Cost-Sharing Safety Plan.
Benefit Changes : The figures above do not include any liability impact that may have resulted from plan changes that occurred after the June 30, 2018, valuation date. This applies to voluntary benefit changes as well as any other offers of Two Years' Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions : In fiscal year 2019, the inflation rate and experience studies were updated. In fiscal year 2017, the discount rate was reduced from 7.65 % to 7.15 %. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65%. In 2018, the inflation rate changed from 2.75% to 2.5%. 80 2017 2016 2015
6/30/2016 6/30/2015 6/30/2014
$ 2,745,588 $ 2,865,433 $ 3,080,297
16,654,242 16,223,231 15,749,580
(3,994,113) - -
(2,403,349) (2,307,435) -
(11,396,941) (10,585,623) (10,108,174)
5,599,540 2,201,493 8,721,703
224,431,525 222,230,032 213,508,329
224,431,525 230,031,065 222,230,032
4,627,179 3,591,767 3,655,839
973,955 1,084,088 1,024,137
746,473 3,517,885 24,058,889
(11,396,941) (10,585,623) (10,108,174)
- - -
(95,259) (175,877) -
- - -
(2,567,760) (5,144,593) 18,630,691
156,303,305 158,871,065 140,240,374
156,303,305 151,158,712 158,871,065
$ 68,128,220 78,872,353 $ 63,358,967 $
65.7% 69.6% 71.5%
$ 10,168,516 $ 9,980,447 $ 9,919,059
775.65% 682.62% 638.76%
81 CITY OF BREA, CALIFORNIA
Schedules of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years 2
Proportionate Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2024 1.5943% $ 119,172,727 $ 13,841,154 861.0% 0.0%
2023 1.6399% 112,689,685 14,012,786 804.2% 71.36%
2022 2.1028% 73,798,584 11,367,662 649.2% 63.06%
Notes to Schedule of Proportionate Share of the Net Pension Liability:
2 Fiscal year 2022 was the first year of the City's cost-sharing safety plan. 1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.
Safety Plan
Benefit Changes : None
Changes of Assumptions : None
82 CITY OF BREA, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Contribution as a
Fiscal Year Actuarially Actual Contribution % of Covered/ Ending Determined Employer Deficiency Covered Covered
June 30, Contribution Contributions (Excess) Payroll Payroll 2024 $ 4,223,828 $ 4,223,828 $ - $ 14,464,071 29.2%
2023 4,086,520 4,086,520 - 12,712,806 32.1%
2022 3,707,509 3,707,509 - 12,313,380 30.1%
2021 3,578,109 3,578,109 - 15,083,837 23.7%
2020 3,228,649 3,228,649 - 15,618,412 20.7%
2019 2,802,915 2,802,915 - 15,187,853 18.5%
2018 2,433,536 2,433,536 - 15,773,914 15.4%
2017 2,279,397 2,279,397 - 16,716,903 13.6%
2016 2,403,298 2,403,298 - 15,474,119 15.5%
2015 2,132,083 2,132,083 - 15,043,603 14.2%
2024 $ 11,850,759 $ 11,850,759 $ - $ 16,388,159 72.3%
2023 11,215,589 11,215,589 - 13,841,154 81.0%
2022 10,200,946 10,200,946 - 14,012,786 72.8%
2021 9,453,973 9,453,973 - 11,367,662 83.2%
2020 8,657,724 8,657,724 - 11,736,459 73.8%
2019 7,500,416 7,500,416 - 11,724,815 64.0%
2018 6,573,125 6,573,125 - 11,688,892 56.2%
2017 5,863,082 5,863,082 - 10,703,998 54.8%
2016 4,627,179 4,627,179 - 10,168,516 45.5%
2015 3,591,767 3,591,767 - 9,980,447 36.0%
Notes to schedule:
Miscellaneous and Safety Plans
Actuarial cost method
Amortization method
Asset valuation method Fair value
Inflation 2.50%
Salary increases
Payroll growth 2.75%
Investment rate of return
Retirement age
Miscellaneous Agent, Multiple-Employer Pension Plan
Safety , Multiple-Employer Pension Plan
7.00%, net of pension plan investment and administrative expenses, includes inflation.
Varies by Entry Age and Service
Level Percent of Payroll
Entry Age Normal Cost Method
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 83 CITY OF BREA, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2024 2023 2022 2021
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL OPEB LIABILITY
Service cost $ 723,690 $ 1,123,147 994,959 $ $ 787,934
Interest on total pension liability 881,363 679,725 638,376 884,296 Changes of assumptions (4,765,135) (1,561,914) (1, 005,114) 4,760,345 Difference between expected and actual experience - (1,632,463) (628,511) - Benefit payments, including refunds of employee
contributions (1,266,048) (1,242,198) (1,244,546) (1,308,694) Net change in total OPEB liability (4,373,998) (2,855,372) (1, 075,299) 5,123,881 Total OPEB liability-beginning 24,806,583 29,180,581 30,255,880 25,131,999 Total OPEB liability-ending (a) $ 21,951,211 $ 24,806,583 $ 29,180,581 $ 30,255,880 Covered-employee payroll $ 27,929,541 $ 27,218,064 $ 26,326,166 $ 27,571,820 Plan OPEB liability as a percentage of
covered-employee payroll 78.59% 91.14% 110.84% 109.73%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown.
Funding policy : The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust.
Benefit Changes : None
Changes of Assumptions : None
84 2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
$ 849,287 $ 882,455 $ 1,020,496
1,000,101 936,624 801,573
976,091 (908,163) (2,488,279)
- (2,073,628) -
(1,225,956) (1,170,100) (1,146,800)
(474,105) (259,184) (1,813,010)
25,606,104 25,865,288 27,678,298
$ 25,131,999 $ 25,606,104 $ 25,865,288
$ 27,001,678 $ 27,465,185 $ 33,837,681
93.08% 93.23% 76.44%
85 CITY OF BREA, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2024 $ 1,699,267 $ 1,699,267 $ - $ 27,929,541 6.1%
2023 1,266,048 1,266,048 - 27,218,064 4.7%
2022 1,247,940 1,247,940 - 26,326,166 4.7%
2021 1,249,898 1,249,898 - 27,571,820 4.5%
2020 1,314,118 1,314,118 - 27,001,678 4.9%
2019 1,230,660 1,230,660 - 27,465,185 4.5%
2018 1,176,100 1,176,100 - 33,837,681 3.5%
Notes to Schedule: None.
Methods and assumptions used to determine contributions:
Discount Rate
General Inflation 2.50% annually
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2021 *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2024 were from the June 30, 2023 actuarial valuation.
3.65% at June 30, 2023 (Bond Buyer 20-Bond Index), 3.54% at June 30, 2022 (Bond Buyer 20-Bond Index)
Single Employer OPEB Plan
1 Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 86 CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 55,120,128 56,003,786 $ 53,979,543 $ $ (1,140,585) Licenses and permits 482,186 482,186 287,697 (194,489)
Intergovernmental 10,096,649 9,602,841 10,171,867 75,218 Charges for services 4,461,235 4,461,235 3,898,624 (562,611) Investment income, net 1,114,294 1,114,294 3,073,878 1,959,584 Fines and forfeitures 427,280 427,280 325,010 (102,270) Rental income 2,950,376 2,812,457 2,906,180 (44,196)
Other revenues 2,600,400 2,600,400 2,738,884 138,484
Total revenues 77,504,479 77,252,548 77,381,683 129,135
EXPENDITURES
Current:
General government
City management 3,510,259 3,510,259 3,321,454 188,805
Administrative services 5,248,371 5,248,371 5,279,311 (30,940) Public Safety
Police 27,626,925 27,626,925 28,771,989 (1,145,064)
Fire 16,769,830 16,769,830 17,500,288 (730,458)
Community development 4,510,198 4,510,198 3,010,068 1,500,130 Community services 8,865,084 8,865,084 9,488,694 (623,610) Public works 7,623,213 7,623,213 6,860,689 762,524
Capital outlay 653,100 653,100 1,087,593 (434,493)
Debt service:
Principal retirement - - 156,186 (156,186)
Interest expense and fiscal charges 88,800 88,800 91,456 (2,656) Total expenditures 74,895,780 74,895,780 75,567,728 (671,948) Excess (deficiency) of revenues
over (under) expenditures 2,608,699 2,356,768 1,813,955 (542,813)
OTHER FINANCING SOURCES (USES)
Transfers in 1,283,072 450,000 1,283,072 -
Transfers out (16,674,013) (1,220,815) (1,200,463) 15,473,550 Proceeds from sale of capital assets 8,659 8,659 7,853 (806) Total other financing sources (uses) (762,156) (15,382,282) 90,462 15,472,744 Net change in fund balances $ 1,846,543 $ (13,025,514) 1,904,417 $ 14,929,931 Fund balances-beginning 53,057,096
Fund balances (deficit)-ending $ 54,961,513
87 CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Affordable Housing Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 6,028,491 - $ - $ $ (6,028,491)
Investment income, net 69,400 69,400 362,622 293,222
Other revenues 122,954 122,954 195,052 72,098
Total revenues 192,354 6,220,845 557,674 (5,663,171)
EXPENDITURES
Current:
General government 3,600 3,600 13,267 (9,667)
Community development 27,432 27,432 21,082 6,350
Total expenditures 31,032 31,032 34,349 (3,317)
Net change in fund balances $ 161,322 $ 6,189,813 523,325 $ (5,666,488) Fund balances-beginning 3,376,204
Fund balances (deficit)-ending $ 3,899,529
88 CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Successor
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ 107,000 107,000 $ 206,617 $ $ 99,617 Other revenues 41,900 41,900 17,015 (24,885)
Total revenues 148,900 148,900 223,632 74,732
EXPENDITURES
Current:
General government 6,200 6,200 8,907 (2,707)
Community development 312,859 312,859 740,868 (428,009) Total expenditures 319,059 319,059 749,775 (430,716)
Net change in fund balances $ (170,159) $ (170,159) (526,143) $ (355,984) Fund balances-beginning 20,107,217
Fund balances (deficit)-ending $ 19,581,074
89 CITY OF BREA, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
NOTE 1: BUDGETARY INFORMATION
General Budget Policies
The City adheres to the following procedures in establishing the budgetary data reflected in its financial statements:
1. The City adopted biennial budget covering the annual periods from July 1, 2023 through June 30, 2024 and July 1, 2024 through June 30, 2025.
2. In May of the budget cycle, the City Manager submits to the City Council a proposed financial plan with a biennial operating budget for the upcoming fiscal years commencing July 1. The operating budget includes proposed expenditures and the sources of financing.
3. Public hearings are conducted at City Council meetings to obtain taxpayer comments.
4. On or before July 1 of each odd year, the financial plan for the two fiscal years is adopted by Council action.
5. The City Manager is authorized to transfer funds appropriated with respect to those classifications designated as other services and material and supplies within the same fund. The City Manager may transfer appropriated funds from any classification within other expenditure categories to the capital outlay classification within the same fund only; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Activities of the General Fund, Special Revenue Funds and Capital Projects Funds are included in the biennial budget. As an additional internal control mechanism, project-length financial plans are adopted for the Capital Improvement Program.
6. Formal budgetary integration is employed as a management control device during the two fiscal years for the governmental funds.
7. Legally adopted biennial budgets for all governmental funds are established on a basis consistent with generally accepted accounting principles (GAAP). For the current fiscal year, the HOME Program special revenue fund had not adopted budget.
NOTE 2: EXCESS OF EXPENDITURES OVER APPROPRIATION
For purposes of evaluating legal compliance at the budgetary level of control (that is, the level at which expenditures cannot legally exceed the appropriated amount), control is established at the department level within the General Fund and at the fund level for total expenditures and transfers out for all other budgeted funds. 90 CITY OF BREA, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
NOTE 2: EXCESS OF EXPENDITURES OVER APPROPRIATION (CONTINUED) Excess of expenditures over appropriations per activity is as follows:
Fund Final Budget Expenditures Excess
Major Funds
General Fund
Administrative services $ 5,248,371 $ 5,279,311 $ (30,940) Police 27,626,925 28,771,989 (1,145,064)
Fire 16,769,830 17,500,288 (730,458)
Community services 8,865,084 9,488,694 (623,610)
Debt service:
Principal retirement 156,186 - (156,186)
Interest expense and fiscal charges 88,800 91,456 (2,656) Capital Outlay 653,100 1,087,593 (434,493)
Affordable Housing Fund
General government 3,600 13,267 (9,667)
Low and Moderate Income Housing Asset Fund
General government 6,200 8,907 (2,707)
Community development 312,859 740,868 (428,009)
91 THIS PAGE INTENTIONALLY LEFT BLANK
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92 THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Improvements Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 14,139,685 - $ 2,677,737 $ $ (11,461,948) Charges for services 1,113,566 1,113,566 283,772 (829,794) Investment income, net 50,790 50,790 351,416 300,626
Other revenues 69,408 16,600 28,711 (40,697)
Total revenues 1,180,956 15,373,449 3,341,636 (12,031,813)
EXPENDITURES
Current:
General government 11,055,075 11,053,154 (100,450) 11,153,604 Public works 2,535,284 2,365,750 2,909 2,362,841
Capital outlay - - 9,385,261 (9,385,261)
Total expenditures 13,590,359 13,418,904 9,287,720 4,131,184 Excess (deficiency) of revenues
over (under) expenditures (12,409,403) 1,954,545 (5,946,084) (7,900,629)
OTHER FINANCING SOURCES (USES)
Transfers in 47,477,750 13,116,150 5,745,346 (41,732,404) Transfers out (505,000) (505,000) - 505,000
Total other financing sources (uses) 12,611,150 46,972,750 5,745,346 (41,227,404) Net change in fund balances $ 201,747 $ 48,927,295 (200,738) $ (49,128,033) Fund balances (deficit)-beginning 6,210,891
Fund balances (deficit)-ending $ 6,010,153
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95 CITY OF BREA, CALIFORNIA
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
ASSETS
Cash and investments $ 483,262 4,945,783 $ 213,101 $ $ 2,355,386 Receivables (net of allowance for uncollectible):
Taxes - - - -
Notes and loans - - - -
Due from other governments - 214,651 16,211 -
Total assets 5,160,434 483,262 229,312 2,355,386
LIABILITIES
Accounts payable - - - -
Accrued liabilities - - - -
Unearned revenues - - - -
Due to other governments - - - -
Due to other funds - - - -
Total liabilities - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 16,211 -
Total deferred inflows of resources - - 16,211 -
FUND BALANCES (DEFICITS)
Restricted 483,262 5,160,434 213,101 2,355,386
Unassigned - - - -
Total fund balances (deficits) 5,160,434 483,262 213,101 2,355,386 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 5,160,434 $ 483,262 $ 229,312 $ 2,355,386 Gas Tax Fund
Narcotics
Enforcement
Asset Seizure
Air Quality
Improvment
Park
Development
Special Revenue Funds
96 CITY OF BREA, CALIFORNIA
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Taxes
Notes and loans
Due from other governments
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
$ - 2,763,704 $ - $ $ 2,479,124
- - - 18,717
1,395,219 - 18,241 -
22,160 218,969 - -
1,417,379 2,982,673 18,241 2,497,841
- - - 13,022
- - - 7,622
- - - -
1,395,219 - 18,241 -
178,285 - - -
1,573,504 - 18,241 20,644
- - - -
- - - -
- 2,982,673 - 2,477,197
(156,125) - - -
(156,125) 2,982,673 - 2,477,197
$ 1,417,379 2,982,673 $ 18,241 $ 2,497,841 $
Special Revenue Funds
Community
Development
Block Grant
HOME
Program
Blackstone
Measure M CFD
97 CITY OF BREA, CALIFORNIA
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Taxes
Notes and loans
Due from other governments
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$ 131,571 542,148 $ 207,409 $ $ 1,541,654
- 9,305 566 -
- - - -
- - - -
131,571 551,453 207,975 1,541,654
- 115 - 109,133
498 6,563 1,367 5,101
- - - 1,427,420
- - - -
- - - -
498 6,678 1,367 1,541,654
- - - -
- - - -
131,073 544,775 206,608 -
- - - -
131,073 544,775 206,608 -
$ 131,571 551,453 $ 207,975 $ 1,541,654 $
Special Revenue Funds
La Floresta
CFD
Taylor -
Morrison CFD
Central Park
Village CFD
Development
Fund
98 CITY OF BREA, CALIFORNIA
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Taxes
Notes and loans
Due from other governments
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
$ - 208,842 $ 1,484,231 $ $ 352,990
- - - -
- - - -
709,477 - - -
709,477 208,842 1,484,231 352,990
12,729 - - -
- 2,844 - -
- 107,760 - -
- - - -
737,492 - - -
750,221 110,604 - -
709,477 - - -
709,477 - - -
- 98,238 1,484,231 352,990
(750,221) - - -
(750,221) 98,238 1,484,231 352,990
$ 709,477 208,842 $ 1,484,231 $ 352,990 $
Special Revenue Funds Capital Projects Funds
Storm Drain
Capital and
Mitigation
Improvement
National
Opioid
Settlement
Organized
Retail Theft
99 CITY OF BREA, CALIFORNIA
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Taxes
Notes and loans
Due from other governments
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Non-major
Funds
$ 17,709,205
28,588
1,413,460
1,181,468
20,332,721
134,999
23,995
1,535,180
1,413,460
915,777
4,023,411
725,688
725,688
16,489,968
(906,346)
15,583,622
$ 20,332,721
100
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CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental - 2,540,385 48,602 -
Investment income, net 19,107 191,633 8,433 90,891
Fines and forfeitures - 22,525 - -
Other revenues - - - -
Total revenues 2,732,018 41,632 57,035 90,891
EXPENDITURES
Current:
General government 8,298 32,820 361 4,120
Public safety - - 13,947 -
Community development - - - -
Public works - - - -
Capital outlay - - - -
Total expenditures 8,298 32,820 14,308 4,120
Excess (deficiency) of revenues
over (under) expenditures 2,723,720 8,812 42,727 86,771
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (1,561,469) - (80,985)
Proceeds from sale of capital assets - 3,200 - -
Total other financing sources (uses) (1,561,469) 3,200 - (80,985) Net change in fund balances 1,162,251 12,012 42,727 5,786 Fund balances-beginning 471,250 3,998,183 170,374 2,349,600 Restatement - Change in Reporting Entity - - - -
Fund balances (deficit)-beginning, as restated 471,250 3,998,183 170,374 2,349,600 Fund balances (deficit)-ending $ 5,160,434 $ 483,262 $ 213,101 $ 2,355,386 Special Revenue Funds
Gas Tax Fund
Narcotics
Enforcement
Asset Seizure
Air Quality
Improvment
Park
Development
101
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Intergovernmental
Investment income, net
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement - Change in Reporting Entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
(Continued)
$ - 1,372,884 $ - $ $ 878,298
169,045 - - -
- 101,514 - 90,294
- - - -
28,599 - - -
197,644 1,474,398 - 968,592
- 4,198 - 4,486
- - - 374,758
176,809 - - -
- 9,384 - 258,419
- - - -
176,809 13,582 - 637,663
20,835 1,460,816 - 330,929
- - - 1,815
- (240,728) - -
- - - -
(240,728) - - 1,815
20,835 1,220,088 - 332,744
(176,960) 1,762,585 - 2,144,453
- - - -
(176,960) 1,762,585 - 2,144,453
$ (156,125) 2,982,673 $ - $ 2,477,197 $
Special Revenue Funds
Measure M
Community
Development
Block Grant
HOME
Program
Blackstone
CFD
102
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Intergovernmental
Investment income, net
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement - Change in Reporting Entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
$ 5 546,650 $ 3,062 $ 143,226 $ -
- - - -
5 19,831 ,001 7,722 -
- - - -
- - - 2,484,809
58,063 566,481 150,948 2,484,809
793 213 350 -
3 347,850 0,107 75,472 -
- - - -
- 23,121 - 2,484,809
- - - -
30,320 371,764 75,822 2,484,809
27,743 194,717 75,126 -
2,125 133 355 -
- - - -
- - - -
133 2,125 355 -
27,876 196,842 75,481 -
347,933 103,197 131,127 -
- - - -
347,933 103,197 131,127 -
$ 131,073 544,775 $ 206,608 $ - $
Special Revenue Funds
La Floresta
CFD
Taylor -
Morrison CFD
Central Park
Village CFD
Development
Fund
103
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Intergovernmental
Investment income, net
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement - Change in Reporting Entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
(Continued)
Capital
Projects Fund
Formerly
Non-major Fund
$ - - $ - $ $ -
1,027,969 - - -
( 8,072 27,330) - 81,695
- - - -
- 149,569 - -
1,000,639 157,641 - 81,695
6 58,658 9,943 - 4,380
- - - -
- - - -
- - - -
1,660,550 - - -
58,658 1,730,493 - 4,380
98,983 (729,854) - 77,315
- - - 56,000
( - 20,367) - (2,388,051)
- - - -
(20,367) - - (2,332,051)
98,983 (750,221) (2,254,736) -
(745) - 3,376,204 3,738,967
- - (3,376,204) -
(745) - - 3,738,967
$ 98,238 $ (750,221) $ 1,484,231 - $
Special Revenue Funds
National
Opioid
Settlement
Organized
Retail Theft
Affordable
Housing Fund
Capital and
Mitigation
Improvement
104
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Intergovernmental
Investment income, net
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement - Change in Reporting Entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
Capital
Projects Fund
Total
Non-major
Funds
$ - $ 2,994,120
- 3,786,001
13,551 610,414
- 22,525
- 2,662,977
10,076,037 13,551
606 189,226
- 842,134
- 176,809
- 2,775,733
- 1,660,550
5,644,452 606
4,431,585 12,945
- 60,428
- (4,291,600)
- 3,200
(4,227,972) -
203,613 12,945
340,045 18,756,213
- (3,376,204)
340,045 15,380,009
$ 15,583,622 352,990 $
Storm Drain
105
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 2,519,725 2,519,725 $ 2,540,385 $ $ 20,660 Investment income, net 46,384 46,384 191,633 145,249
Total revenues 2,566,109 2,566,109 2,732,018 165,909
EXPENDITURES
Current:
General government 3,700 3,700 8,298 (4,598)
Total expenditures 3,700 3,700 8,298 (4,598)
Excess (deficiency) of revenues
over (under) expenditures 2,562,409 2,562,409 2,723,720 161,311
OTHER FINANCING SOURCES (USES)
Transfers out (1,720,000) (1,720,000) (1,561,469) 158,531 Total other financing sources (uses) (1,720,000) (1,720,000) (1,561,469) 158,531 Net change in fund balances $ 842,409 $ 842,409 1,162,251 $ 319,842 Fund balances-beginning 3,998,183
Fund balances (deficit)-ending $ 5,160,434
106
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Narcotics Enforcement Asset Seizure
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ 4,500 4,500 $ 19,107 $ $ 14,607 Fines and forfeitures 22,525 5,000 22,525 -
Total revenues 9,500 27,025 41,632 14,607
EXPENDITURES
Current:
General government 101,550 101,550 32,820 68,730
Total expenditures 101,550 101,550 32,820 68,730
Excess (deficiency) of revenues
over (under) expenditures (92,050) (74,525) 8,812 83,337
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 3,200 3,200
Total other financing sources (uses) - - 3,200 3,200
Net change in fund balances $ (92,050) $ (74,525) 12,012 $ 86,537 Fund balances-beginning 471,250
Fund balances (deficit)-ending $ 483,262
107
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Air Quality Improvement
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 56,000 56,000 $ 48,602 $ $ (7,398)
Investment income, net 1,000 1,000 8,433 7,433
Total revenues 57,000 57,000 57,035 35
EXPENDITURES
Current:
General government 500 500 361 139
Public safety - - 13,947 (13,947)
Total expenditures 500 500 14,308 (13,808)
Net change in fund balances 56,500 $ 56,500 $ 42,727 (13,773) $ Fund balances-beginning 170,374
Fund balances (deficit)-ending $ 213,101
108
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Development
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ 6,570 6,570 $ 90,891 $ $ 84,321 Total revenues 6,570 6,570 90,891 84,321
EXPENDITURES
Current:
General government 2,700 2,700 4,120 (1,420)
Total expenditures 2,700 2,700 4,120 (1,420)
Excess (deficiency) of revenues
over (under) expenditures 3,870 3,870 86,771 82,901
OTHER FINANCING SOURCES (USES)
Transfers out - - (80,985) (80,985)
Total other financing sources (uses) - - (80,985) (80,985) Net change in fund balances $ 3,870 $ 3,870 5,786 $ 1,916 Fund balances-beginning 2,349,600
Fund balances (deficit)-ending $ 2,355,386
109
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 1,424,335 1,424,335 $ 1,372,884 $ $ (51,451)
Investment income, net 24,110 24,110 101,514 77,404
Total revenues 1,448,445 1,448,445 1,474,398 25,953
EXPENDITURES
Current:
General government 1,650 1,650 4,198 (2,548)
Public works 82,821 82,821 9,384 73,437
Total expenditures 84,471 84,471 13,582 70,889
Excess (deficiency) of revenues
over (under) expenditures 1,363,974 1,363,974 1,460,816 96,842
OTHER FINANCING SOURCES (USES)
Transfers out (1,026,150) (1,026,150) (240,728) 785,422 Total other financing sources (uses) (1,026,150) (1,026,150) (240,728) 785,422 Net change in fund balances $ 337,824 $ 337,824 1,220,088 $ 882,264 Fund balances-beginning 1,762,585
Fund balances (deficit)-ending $ 2,982,673
110
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Development Block Grant Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 190,000 190,000 $ 169,045 $ $ (20,955) Other revenues - - 28,599 28,599
Total revenues 190,000 190,000 197,644 7,644
EXPENDITURES
Current:
Community development 190,000 190,000 176,809 13,191
Total expenditures 190,000 190,000 176,809 13,191
Net change in fund balances $ - $ - 20,835 $ 20,835
Fund balances-beginning (176,960)
Fund balances (deficit)-ending $ (156,125)
111
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Blackstone CFD Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 878,615 878,615 $ 878,298 $ $ (317)
Investment income, net 30,000 30,000 90,294 60,294
Total revenues 908,615 908,615 968,592 59,977
EXPENDITURES
Current:
General government 1,810 1,810 4,486 (2,676)
Public safety 450,749 450,749 374,758 75,991
Public works 443,862 443,862 258,419 185,443
Total expenditures 896,421 896,421 637,663 258,758
Excess (deficiency) of revenues
over (under) expenditures 12,194 12,194 330,929 318,735
OTHER FINANCING SOURCES (USES)
Transfers in 1,815 - 1,815 -
Total other financing sources (uses) - 1,815 1,815 -
Net change in fund balances 12,194 $ 14,009 $ 332,744 318,735 $ Fund balances-beginning 2,144,453
Fund balances (deficit)-ending $ 2,477,197
112
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual La Floresta CFD Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 538,356 538,356 $ 546,650 $ $ 8,294
Investment income, net 8,400 8,400 19,831 11,431
Total revenues 546,756 546,756 566,481 19,725
EXPENDITURES
Current:
General government 2,130 2,130 793 1,337
Public safety 433,898 433,898 347,850 86,048
Public works 47,643 47,643 23,121 24,522
Total expenditures 483,671 483,671 371,764 111,907
Excess (deficiency) of revenues
over (under) expenditures 63,085 63,085 194,717 131,632
OTHER FINANCING SOURCES (USES)
Transfers in 2,125 - 2,125 -
Total other financing sources (uses) - 2,125 2,125 -
Net change in fund balances 63,085 $ 65,210 $ 196,842 131,632 $ Fund balances (deficit)-beginning 347,933
Fund balances (deficit)-ending $ 544,775
113
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Taylor - Morrison CFD Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 53,220 53,220 $ 53,062 $ $ (158)
Investment income, net 2,240 2,240 5,001 2,761
Total revenues 55,460 55,460 58,063 2,603
EXPENDITURES
Current:
General government 160 160 213 (53)
Public safety 35,215 35,215 30,107 5,108
Total expenditures 35,375 35,375 30,320 5,055
Excess (deficiency) of revenues
over (under) expenditures 20,085 20,085 27,743 7,658
OTHER FINANCING SOURCES (USES)
Transfers in 133 - 133 -
Total other financing sources (uses) - 133 133 -
Net change in fund balances 20,085 $ 20,218 $ 27,876 7,658 $ Fund balances-beginning 103,197
Fund balances (deficit)-ending $ 131,073
114
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Central Park Village CFD Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 142,975 142,975 $ 143,226 $ $ 251
Investment income, net 3,000 3,000 7,722 4,722
Total revenues 145,975 145,975 150,948 4,973
EXPENDITURES
Current:
General government 180 180 350 (170)
Public safety 88,412 88,412 75,472 12,940
Total expenditures 88,592 88,592 75,822 12,770
Excess (deficiency) of revenues
over (under) expenditures 57,383 57,383 75,126 17,743
OTHER FINANCING SOURCES (USES)
Transfers in 355 - 355 -
Total other financing sources (uses) - 355 355 -
Net change in fund balances 57,383 $ 57,738 $ 75,481 17,743 $ Fund balances-beginning 131,127
Fund balances (deficit)-ending $ 206,608
115
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Other revenues $ - - $ 2,484,809 $ $ 2,484,809
Total revenues - 2,484,809 - 2,484,809
EXPENDITURES
Current:
Public works 403,037 403,037 2,484,809 (2,081,772)
Total expenditures 403,037 403,037 2,484,809 (2,081,772) Net change in fund balances $ (403,037) $ (403,037) 403,037 - $ Fund balances-beginning -
Fund balances (deficit)-ending $ -
116
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual National Opioid Settlement Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ - - $ 8,072 $ $ 8,072
Other revenues 159,145 - 149,569 (9,576)
Total revenues 159,145 - 157,641 (1,504)
EXPENDITURES
Current:
General government - - 58,658 (58,658)
Total expenditures - - 58,658 (58,658)
Excess (deficiency) of revenues
over (under) expenditures 159,145 - 98,983 (60,162)
Net change in fund balances $ 159,145 - $ 98,983 $ (60,162) Fund balances-beginning (745)
Fund balances (deficit)-ending $ 98,238
117
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Organized Retail Theft Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 4,241,002 - $ 1,027,969 $ $ (3,213,033) Investment income, net - - (27,330) (27,330)
Total revenues 4,241,002 - 1,000,639 (3,240,363)
EXPENDITURES
Current:
General government - - 69,943 (69,943)
Capital outlay - - 1,660,550 (1,660,550)
Total expenditures - 1,730,493 - (1,730,493)
Excess (deficiency) of revenues
over (under) expenditures 4,241,002 - (729,854) (4,970,856)
OTHER FINANCING SOURCES (USES)
Transfers out - - (20,367) (20,367)
Total other financing sources (uses) - - (20,367) (20,367) Net change in fund balances $ 4,241,002 - $ (750,221) $ (4,991,223) Fund balances-beginning -
Fund balances (deficit)-ending $ (750,221)
118
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital and Mitigation Improvement Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ 20,200 20,200 $ 81,695 $ $ 61,495 Total revenues 20,200 20,200 81,695 61,495
EXPENDITURES
Current:
General government 4,100 4,100 4,380 (280)
Total expenditures 4,100 4,100 4,380 (280)
Excess (deficiency) of revenues
over (under) expenditures 16,100 16,100 77,315 61,215
OTHER FINANCING SOURCES (USES)
Transfers in 56,000 56,000 56,000 -
Transfers out - - (2,388,051) (2,388,051)
Total other financing sources (uses) 56,000 56,000 (2,332,051) (2,388,051) Net change in fund balances 72,100 $ 72,100 $ (2,254,736) (2,326,836) $ Fund balances-beginning 3,738,967
Fund balances (deficit)-ending $ 1,484,231
119
CITY OF BREA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Storm Drain Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income, net $ 7,000 7,000 $ 13,551 $ $ 6,551 Total revenues 7,000 7,000 13,551 6,551
EXPENDITURES
Current:
General government 400 400 606 (206)
Total expenditures 400 400 606 (206)
Net change in fund balances $ 6,600 $ 6,600 12,945 $ 6,345 Fund balances-beginning 340,045
Fund balances (deficit)-ending $ 352,990
120
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CITY OF BREA, CALIFORNIA
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2024
Total Nonmajor
Enterprise
Funds
ASSETS
Current assets:
Cash and investments $ 587,682 $ 526,698 $ 361,037 $ 4,202,077 $ 5,677,494 Receivables (net of uncollectibles):
Accounts receivable, net 62,921 575,978 - - 638,899
Due from other governments - - - 168,983 168,983
Restricted: - - - -
Restricted cash and investments 22,347 - - 281,364 303,711 Total current assets 672,950 1,102,676 811,384 4,202,077 6,789,087 Noncurrent:
Capital assets, net of depreciation and amortization 121,008 - 7,471 9,989,498 10,117,977 Total noncurrent assets 121,008 - 7,471 9,989,498 10,117,977 Total assets 793,958 1,102,676 818,855 14,191,575 16,907,064
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 126,231 217,891 429,627 5,240 778,989 Deferred OPEB related items 33,457 9,499 - 118,108 161,064 Total deferred outflows of resources 135,730 251,348 547,735 5,240 940,053
LIABILITIES
Current liabilities:
Accounts payable 14,613 370,460 3,110 584,541 972,724
Accrued liabilities 6,314 11,725 19,785 360 38,184
Compensated absences, due within one year - 14,064 55,745 - 69,809 Subscription liability, due within one year - - 7,381 - 7,381 Total current liabilities 396,249 20,927 86,021 584,901 1,088,098 Noncurrent liabilities:
Compensated absences, due in more than one year - 4,688 18,582 - 23,270 Pension Liability 511,724 883,298 1,741,645 21,241 3,157,908 Other Post Employment Benefits (OPEB) Liability 48,220 237,349 1,091,218 - 1,376,787 Total noncurrent liabilities 559,944 1,125,335 2,851,445 21,241 4,557,965 Total liabilities 580,871 1,521,584 2,937,466 606,142 5,646,063
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 5,984 3,467 11,799 144 21,394 Deferred OPEB related items 59,153 20,470 - 184,681 264,304 Total deferred inflows of resources 65,137 23,937 144 196,480 285,698
NET POSITION
Net investment in capital assets 121,008 - 9,989,498 90 10,110,596 Unrestricted 203,872 (232,697) (1,767,446) 3,601,031 1,804,760 Total net position $ 324,880 $ (232,697) $ (1,767,356) $ 13,590,529 $ 11,915,356 Urban Runoff Sanitation
Information
Technology
External
Support Golf Course
122
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Non-Major Enterprise Funds
For the Year Ended June 30, 2024
Total Nonmajor
Enterprise
Funds
OPERATING REVENUES
Charges for services $ 563,867 $ 3,699,603 $ 1,064,274 $ 4,876,038 $ 10,203,782 Fines and forfeitures 70,386 9,783 - - 80,169
Other revenues 25,000 204 - - 25,204
Total operating revenues 573,854 3,794,989 1,064,274 4,876,038 10,309,155
OPERATING EXPENSES
Personnel services 462,409 580,280 852,598 30,137 1,925,424 Maintenance and operations 322,172 3,662,365 228,900 3,652,084 7,865,521 Depreciation/Amortization - 1,750 7,388 80,913 90,051
Total operating expenses 786,331 4,242,645 1,088,886 3,763,134 9,880,996 Operating income (loss) ( (212,477) (24,612) 447,656) 1,112,904 428,159
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues 145,260 - - - 145,260
Interest income 7,546 24,972 51,271 155,547 239,336
Total nonoperating revenues (expenses) 152,806 24,972 51,271 155,547 384,596 Income (loss) before transfers ( (187,505) 26,659 294,850) 1,268,451 812,755 Transfers in 375,252 - - - 375,252
Change in net position 80,402 (187,505) 26,659 1,268,451 1,188,007 Net position-beginning 512,385 (313,099) (1,794,015) 12,322,078 10,727,349 Net position-ending $ 324,880 $ (232,697) $ (1,767,356) $ 13,590,529 $ 11,915,356 Urban Runoff Sanitation
Information
Technology
External
Support Golf Course
123
CITY OF BREA, CALIFORNIA
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2024
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 569,721 $ 3,765,862 $ 1,064,274 $ 4,876,038 $ 10,275,895 Payments to suppliers and service providers (3,659,482) (310,023) (226,926) (3,614,765) (7,811,196) Payments to employees for salaries and benefits (504,079) (368,403) (817,108) ( 26,545) (1,716,135) Net cash provided by (used for)
operating activities (397,699) (108,705) 20,240 1,234,728 748,564
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - 375,252 - 375,252
Operating grants and contributions - (47,218) 156,631 - 109,413 Net cash provided by (used for)
noncapital financing activities - (47,218) 531,883 - 484,665
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets - (521) - ( 18,089) (18,610) Principal paid on capital debt - - (7,477) - (7,477)
Net cash provided by (used for)
capital and related financing activities - (521) (7,477) ( 18,089) (26,087)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 7,546 24,972 51,270 155,547 239,335 Net cash provided by (used for)
investing activities 7,546 24,972 51,270 155,547 239,335 Net increase (decrease) in
cash and cash equivalents (84,254) 16,815 141,730 1,372,186 1,446,477 Cash and cash equivalents-beginning 694,283 384,968 2,829,891 625,586 4,534,728 Cash and cash equivalents-ending $ 610,029 $ 526,698 $ 642,401 $ 4,202,077 $ 5,981,205
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments $ 587,682 $ 526,698 $ 4,202,077 361,037 $ $ 5,677,494 Restricted cash and investments - 22,347 - 281,364 303,711 Total cash and cash equivalents $ 610,029 $ 526,698 $ 642,401 $ 4,202,077 $ 5,981,205
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ (447,656) (212,477) $ (24,612) $ 1,112,904 $ $ 428,159 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 1,750 - 7,388 80,913 90,051 (Increase) decrease in accounts receivable (4,133) (29 - ,127) - (33,260) Increase (decrease) in accounts payable 12,149 2,883 1,974 37,319 54,325 Increase (decrease) in accrued liabilities 2,174 4,217 3,437 242 10,070 Increase (decrease) in compensated absences - 7,441 6,032 - 13,473 Increase (decrease) in net pension liability 97,047 73,122 45,056 3,350 218,575 Increase (decrease) in net OPEB liability (5,215) ( (19,035) 8,579) - (32,829) Total adjustments 103,772 49,957 44,852 121,824 $ 320,405 Net cash provided by (used for)
operating activities $ (397,699) (108,705) $ 20,240 $ 1,234,728 $ 748,564 $ Business-Type Activities
Urban Runoff Sanitation
Information
Technology
External
Support Golf Course
124
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CITY OF BREA, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Total Internal
Service
Funds
ASSETS
Current assets:
Cash and investments $ 7,460,784 $ 1,398,307 $ 2,392,900 $ 1,261,092 $ 12,513,083 Receivables (net of uncollectibles):
Accounts 95,166 - - 113,306 208,472
Prepaid items - 4,620 - - 4,620
Total current assets 1,402,927 7,555,950 2,506,206 1,261,092 12,726,175 Noncurrent:
Capital assets, net of depreciation and amortization 435,468 - 6,099,417 830,595 7,365,480 Total noncurrent assets 435,468 - 6,099,417 830,595 7,365,480 Total assets 1,838,395 7,555,950 8,605,623 2,091,687 20,091,655
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 770,592 180,761 437,339 305,930 1,694,622 OPEB-related 163,142 22,243 49,008 61,274 295,667
Total deferred outflows of resources 933,734 203,004 498,613 354,938 1,990,289
LIABILITIES
Current liabilities:
Accounts payable 8,768 20,026 46,315 171,580 246,689
Accrued liabilities 8,303 36,434 17,756 27,700 90,193
Claims and judgments, due within one year 1,639,804 - - - 1,639,804 Compensated absences, due within one year - - 36,374 53,122 89,496 Subscription liability, due within one year - 24,083 - - 24,083 Total current liabilities 80,543 1,656,875 252,402 100,445 2,090,265 Noncurrent liabilities:
Claims and judgments, due in more than one year 3,183,148 - - - 3,183,148 Compensated absences, due in more than one year - - 12,125 17,707 29,832 Net pension liability 732,777 3,123,864 1,240,196 1,772,905 6,869,742 Total OPEB liability 108,851 1,012,539 374,873 313,750 1,810,013 Total noncurrent liabilities 4,136,403 4,024,776 1,566,071 2,165,485 11,892,735 Total liabilities 4,216,946 5,681,651 1,666,516 2,417,887 13,983,000
DEFERRED INFLOWS OF RESOURCES
Pension-related 21,162 4,964 8,402 12,010 46,538
OPEB-related 213,792 32,778 99,356 133,090 479,016
Total deferred inflows of resources 234,954 37,742 145,100 107,758 525,554
NET POSITION
Net investment in capital assets 411,385 - 6,099,417 830,595 7,341,397 Unrestricted (2, 2,039,561 1,086,870 091,156) (803,282) 231,993 Total net position $ 2,039,561 $ (1,679,771) $ 7,186,287 $ 27,313 $ 7,573,390 Risk
Management
Information
Technology
Vehicle
Replacement
Building
Occupancy
126
CITY OF BREA, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024
Total Internal
Service
Funds
OPERATING REVENUES
Charges for services $ 2,486,832 3,430,449 $ 2,990,376 $ 2,769,360 $ $ 11,677,017 Other revenues - 58,767 95,368 5,824 159,959
Total operating revenues 2,486,832 3,489,216 3, 2,775,184 085,744 11,836,976
OPERATING EXPENSES
Personnel services 535,332 2,913,628 918,979 - 4,367,939 Maintenance and operation 1,031,160 1,911,753 1,959,833 452,694 5,355,440 Claims and judgments 987,809 - - - 987,809
Depreciation/Amortization - 180,157 136,363 671,747 988,267 Total operating expenses 4,124,945 3,434,894 1, 3,015,175 124,441 11,699,455 Operating income (loss) (1,638,113) 54,322 1, ( 961,303 239,991) 137,521
NONOPERATING REVENUES (EXPENSES)
Interest income 319,816 52,186 85,449 50,297 507,748
Gain (loss) on disposal of capital assets - - - 172,096 172,096 Total nonoperating revenues (expenses) 319,816 52,186 257,545 50,297 679,844 Income (loss) before transfers 374,138 (1,585,927) 2,218,848 (189,694) 817,365 Transfers in - - 135,815 - 135,815
Transfers out - (837,500) - ( 19,853) (857,353)
Change in net position (1,450,112) (463,362) 2, ( 218,848 209,547) 95,827 Net position-beginning (229,659) 2,502,923 4, 236,860 967,439 7,477,563 Net position-ending $ 2,039,561 $ (1,679,771) $ 7,186,287 $ 27,313 $ 7,573,390 Risk
Management
Information
Technology
Vehicle
Replacement
Building
Occupancy
127
CITY OF BREA, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 2,486,832 3,462,087 $ 2,995,351 $ 2,775,184 $ $ 11,719,454 Payments to suppliers and service providers (1,076,842) (2,904,135) (494,466) (1,948,741) (6,424,184) Payments to employees for salaries and benefits (1,459,466) (1,263,835) (1,568,753) (944, 916) (5,236,970) Net cash provided by (used for)
operating activities (49 (705,883) ,476) ( 932,132 118,473) 58,300
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - 135,815 - 135,815
Transfers to other funds - (837,500) - ( 19,853) (857,353) Net cash provided by (used for)
noncapital financing activities (837,500) - 135,815 ( 19,853) (721,538)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (40 - (2,957,667) ,264) ( 28,749) (3,026,680) Principal paid on capital debt (15 - - ,785) - (15,785) Proceeds from sales of assets 32,080 - - 183,656 215,736 Net cash provided by (used for)
capital and related financing activities (23 - (2,774,011) ,969) ( 28,749) (2,826,729)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 319,816 29,262 85,449 50,296 484,823 Net cash provided by (used for)
investing activities 319,816 29,262 85,449 50,296 484,823 Net increase (decrease) in
cash and cash equivalents 91,632 (1,223,567) (1,756,430) (116, 779) (3,005,144) Cash and cash equivalents-beginning 1,306,675 8,684,351 4, 1,377,871 149,330 15,518,227 Cash and cash equivalents-ending $ 7,460,784 $ 1,398,307 $ 2,392,900 $ 1,261,092 $ 12,513,083
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ (1,638,113) 54,322 $ 1,961,303 $ (239,991) $ $ 137,521 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense - 180,157 671,747 136,363 988,267 (Increase) decrease in accounts receivable (27,129) - (90,393) - (117,522) (Increase) decrease in prepaid items - ( - 4,620) - (4,620) Increase (decrease) in accounts payable (4,573) (41 (41,772) ,062) 11,092 (76,315) Increase (decrease) in accrued liabilities (1,666) 3,447 3,566 8,458 13,805 Increase (decrease) in compensated absences (2,524,857) - 8,900 7,308 (2,508,649) Increase (decrease) in claims and judgments 1,639,804 - - - 1,639,804 Increase (decrease) in pension and related items 166,521 1,489,955 (1,565,536) ( 20,335) 70,605 Increase (decrease) in OPEB and related items (8,305) (39 (15,683) ,240) ( 21,368) (84,596) Total adjustments 1,588,637 (760,205) (1,029,171) 121,518 (79,221) Net cash provided by (used for)
operating activities $ ( (705,883) $ 49,476) $ ( 932,132 $ 58,300 118,473) $ Risk
Management
Information
Technology
Vehicle
Replacement
Building
Occupancy
128
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129
ASSETS
Cash and investments $ 585,260 $ 517,937 $ 1,935 $ 417,425 Receivables:
Accounts - - - -
Taxes - - - 7,691
Due from other governments - - - -
Restricted assets:
Cash and investments with fiscal agent - 671,570 - 96
Total assets 585,260 1,189,507 1,935 425,212
LIABILITIES
Accounts payable 42 30 - -
Accrued liabilities 653 544,586 - 1,148
Total liabilities 544,616 695 - 1,148
NET POSITION
Restricted for:
Individuals, organizations, and other governments 40,644 1,188,812 1,935 424,064 Total net position $ 40,644 $ 1,188,812 $ 1,935 $ 424,064 Brea Plaza Downtown Olinda Heights
CITY OF BREA, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Hillside Open
Space
Education
Coalition
130
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Due from other governments
Restricted assets:
Cash and investments with fiscal agent
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Total liabilities
NET POSITION
Restricted for:
Individuals, organizations, and other governments
Total net position
CITY OF BREA, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Total
Custodial
Funds
$ 4,755,274 6,605,897 $ 33,603 $ $ 12,917,331
55,388 - 1,500 56,888
- - - 7,691
46,080 - - 46,080
- - - 671,666
4,856,742 6,605,897 35,103 13,699,656
201,218 510,244 1,657 713,191
- 5,735 - 552,122
201,218 515,979 1,657 1,265,313
4,655,524 6,089,918 33,446 12,434,343
$ 4,655,524 6,089,918 $ 33,446 $ 12,434,343 $
NOC ILJAOC OCCMA
131
CITY OF BREA, CALIFORNIA
Combining Statement of Changes in
Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
ADDITIONS
Contributions:
Property taxes $ 566,956 - $ $ - $ 410,938
Employee or member contributions - - - 11,371
Interest and changes in fair value of investments 22,470 80,671 (171) - Miscellaneous - - - -
Total additions 22,470 647,627 (171) 422,309
DEDUCTIONS
Administrative 33,235 1,335 150 52,752
Interest expense 278,359 - - 82,625
Principal 255,000 - - 265,000
Total deductions 566,594 1,335 150 400,377
Net increase (decrease) in fiduciary net position 21,135 81,033 (321) 21,932 Net position-beginning 1,107,779 19,509 2,256 402,132
Net position-ending $ 40,644 $ 1,188,812 $ 1,935 $ 424,064 Hillside Open
Space
Education
Coalition Brea Plaza Downtown
Olinda
Heights
132
CITY OF BREA, CALIFORNIA
Combining Statement of Changes in
Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
ADDITIONS
Contributions:
Property taxes
Employee or member contributions
Interest and changes in fair value of investments
Miscellaneous
Total additions
DEDUCTIONS
Administrative
Interest expense
Principal
Total deductions
Net increase (decrease) in fiduciary net position
Net position-beginning
Net position-ending
Total
Custodial
Funds
$ - - $ - $ $ 977,894
1,416,565 227,341 36,100 1,691,377
262,424 393,337 1,347 760,078
491,784 - 51,034 542,818
2,170,773 620,678 88,481 3,972,167
2,190,605 2,560,296 98,281 4,936,654
- - - 360,984
- - - 520,000
2,190,605 2,560,296 98,281 5,817,638
(19,832) (1,939,618) (9,800) (1,845,471)
4,675,356 8,029,536 43,246 14,279,814
$ 4,655,524 6,089,918 $ 33,446 $ 12,434,343 $
NOC ILJAOC OCCMA
133
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134
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CITY OF BREA, CALIFORNIA
Net Position by ComponentLast Ten Fiscal Years(Accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2022-23 2023-24 Governmental Activities Net investment in capital assets 158,976,819 $ 165,493,107 $ 170,548,467 $ 204,322,724 $ 202,990,193 $ 215,840,370 $ 207,378,698 $ 208,081,095 $ 313,179,549 $ Restricted 56,883,753 54,629,374 52,867,078 52,729,420 44,544,588 59,862,606 54,214,155 45,252,026 57,444,146 Unrestricted (64,027,907) (58,217,717) (57,154,376) (76,701,929) (69,878,160) (91,248,810) (79,365,186) (16,320,573) (26,223,348)Total governmental activities net position 151,832,665 $ 161,904,764 $ 166,261,169 $ 180,350,215 $ 177,656,621 $ 184,454,166 $ 182,227,667 $ 237,012,548 $ 344,400,347 $ Business-type Activities Net investment of capital assets 33,367,826 $ 33,174,074 $ 42,091,695 $ 58,347,144 $ 55,408,764 $ 61,114,088 $ 27,842,597 $ 96,873,414 $ 98,594,995 $ Restricted 6,203,193 6,165,829 5,641,012 5,657,518 5,843,171 2,132,985 2,285,353 2,213,477 2,683,786 Unrestricted 8,603,346 12,637,920 14,392,925 15,322,371 26,097,664 29,126,601 77,820,553 24,260,951 27,853,957Total business-type activities net position 48,174,365 $ 51,977,823 $ 62,125,632 $ 79,327,033 $ 87,349,599 $ 92,373,674 $ 107,948,503 $ 123,347,842 $ 129,132,738 $ Primary Government Net investment of capital assets 192,344,645 $ 198,667,181 $ 212,640,162 $ 262,669,868 $ 258,398,957 $ 276,954,458 $ 235,221,295 $ 304,954,509 $ 411,774,544 $ Restricted 63,086,946 60,795,203 58,508,090 58,386,938 50,387,759 61,995,591 56,499,508 47,465,503 60,127,932 Unrestricted (55,424,561) (45,579,797) (42,761,451) (61,379,558) (43,780,496) (62,122,209) (1,544,633) 7,940,378 1,630,609Total primary government net position 200,007,030 $ 213,882,587 $ 228,386,801 $ 259,677,248 $ 265,006,220 $ 276,827,840 $ 290,176,170 $ 360,360,390 $ 473,533,085 $ 135
CITY OF BREA, CALIFORNIA
Changes in Net PositionLast Ten Fiscal Years(Accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Expenses:Governmental activities:
General government 7,569,787 $ 7,297,652 $ 7,758,276 $ 6,679,825 $ 7,546,630 $ 8,738,602 $ 7,987,050 $ 4,209,806 $ 9,466,893 $ 13,139,192 $ Public safety 32,409,727 31,372,155 33,938,469 40,137,072 41,777,845 45,285,893 42,671,837 2,479,739 45,981,340 72,063,948Community Development 2,836,727 3,010,978 3,403,082 3,784,020 3,410,346 3,905,234 3,368,772 707,641 2,888,919 10,416,452 Community services 7,441,012 7,267,829 7,598,666 8,054,662 8,442,748 9,077,264 7,202,383 5,187,919 10,309,313 9,618,850Public Works 12,367,078 13,544,061 16,306,542 18,324,571 16,207,579 4,222,899 14,390,950 9,072,608 16,514,002 10,484,395Interest on long-term debt 435,772 435,207 414,974 380,159 78,066 349,806 161,293 282,769 27,156 95,744 Total governmental activities expenses 63,060,103 62,927,882 69,420,009 77,360,309 77,463,214 71,579,698 75,782,285 21,940,482 85,187,623 115,818,581Business-type activities:
Urban run-off 388,493 415,328 376,623 396,030 422,699 356,600 388,559 247,623 620,593 789,601 Water utility 15,752,822 14,085,433 14,882,443 17,306,036 18,136,961 17,197,843 19,767,041 16,082,429 16,847,646 17,758,721Sewer utility 1,575,738 1,590,905 1,630,319 1,896,662 2,623,606 2,086,307 1,997,061 547,069 2,645,816 2,668,193Sanitation 2,910,840 2,937,684 3,045,308 3,283,613 3,450,228 3,638,796 3,667,210 1,603,331 4,008,519 4,256,254Information Technology External Support 1,240,462 1,312,899 1,724,116 1,790,154 1,656,765 1,599,359 1,024,382 (279,366) 952,912 1,097,151Golf Course - - - - - - 2,884,293 3,925,036 3,579,244 3,765,284 Total business-type activities expenses 21,868,355 20,342,249 21,658,809 24,672,495 26,290,259 24,878,905 29,728,546 22,126,122 28,654,730 30,335,204Total primary government expenses 84,928,458 $ 83,270,131 $ 91,078,818 $ 102,032,804 $ 103,753,473 $ 96,458,603 $ 105,510,831 $ 44,066,604 $ 113,842,353 $ 146,153,785 $ Program Revenues:Governmental activities:
Charges for services:
General government 1,663,401 $ 1,765,913 $ 1,605,816 $ 1,403,754 $ 1,137,478 $ 2,117,359 $ 1,296,032 $ 1,235,741 $ 514,792 $ 758,043 $ Public safety 1,376,553 1,282,646 1,297,025 1,689,176 1,392,205 996,068 777,596 846,870 729,739 690,935Community Development 998,141 1,577,964 2,151,955 4,619,615 1,048,258 1,530,959 1,058,408 756,751 595,142 3,296,657Community services 5,640,412 3,021,505 2,818,718 3,023,144 3,117,696 1,353,397 1,088,410 1,668,359 2,103,722 2,911,229Public Works 1,706,630 1,257,168 1,610,889 506,348 237,689 1,684,711 197,022 3,088,349 2,742,326 326,692 Operating contributions and grants 3,238,366 3,399,311 2,632,718 3,964,816 5,210,335 6,814,195 12,230,204 5,445,862 10,787,980 6,905,712Capital contributions and grants 3,908,617 2,336,984 5,668,485 43,192,575 4,959,143 6,319,418 3,239,077 2,792,309 1,814,783 3,863,665 Total governmental activities program revenues 18,532,120 14,641,491 17,785,606 58,399,428 17,102,804 20,816,107 19,886,749 15,834,241 19,288,484 18,752,933Business-type activities:
Charges for services:
Leases 384,523 402,205 412,086 418,426 444,857 455,330 457,378 476,329 495,320 573,854 Water utility 18,242,242 16,520,362 20,098,490 22,885,107 21,870,826 21,483,133 23,635,320 23,134,358 20,359,095 20,862,952Sewer utility 2,141,422 2,236,813 2,322,756 2,239,774 2,593,670 2,496,874 2,496,871 2,608,205 3,029,057 3,795,600Sanitation 3,431,013 3,531,648 3,584,153 3,727,950 2,969,334 3,198,072 3,349,980 3,418,855 3,367,310 3,794,989Information Technology External Support 1,532,097 1,807,305 1,959,634 1,695,050 1,380,895 1,000,093 1,051,148 880,372 1,006,864 1,064,274Golf Course - - - - - - 4,311,445 4,386,528 4,366,573 4,876,038 Operating contributions and grants - 11,371 525,165 501,959 501,990 11,371 22,888 127,648 11,288 145,260Capital contributions and grants 1,521,000 - - 14,285,715 2,705,537 - - - - - Total business-type activities program revenues 27,252,297 24,509,704 28,902,284 45,753,981 32,467,109 28,644,873 35,325,030 35,032,295 32,635,507 35,112,967 Primary government program revenues 45,784,417 $ 39,151,195 $ 46,687,890 $ 104,153,409 $ 49,569,913 $ 49,460,980 $ 55,211,779 $ 50,866,536 $ 51,923,991 $ 53,865,900 $ 136
CITY OF BREA, CALIFORNIA
Changes in Net PositionLast Ten Fiscal Years(Accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Net (Expense)/Revenue:Governmental activities (44,527,983) $ (48,286,391) $ (51,634,403) $ (18,960,881) $ (60,360,410) $ (50,763,591) $ (55,895,536) $ (6,106,241) $ (65,899,139) $ (97,065,648) $ Business-type activities 5,383,942 4,167,455 7,243,475 21,081,486 6,176,850 3,765,968 5,596,484 12,906,173 3,980,777 4,777,763Total primary government net expense (39,144,041) $ (44,118,936) $ (44,390,928) $ 2,120,605 $ (54,183,560) $ (46,997,623) $ (50,299,052) $ 6,799,932 $ (61,918,362) $ (92,287,885) $ General Revenues and Other Changes in Net Position:Governmental activities:
Taxes
Property taxes 14,627,073 $ 16,656,050 $ 17,887,984 $ 19,357,620 $ 20,667,280 $ 22,029,810 $ 24,060,158 $ 24,423,764 $ 27,008,433 $ 24,080,019 $ Transient occupancy taxes 1,591,839 1,605,590 1,716,180 1,786,589 1,805,609 1,352,527 1,050,303 1,777,438 2,230,007 2,616,587Sales taxes 20,572,655 21,611,873 21,200,598 19,235,559 23,319,589 21,495,924 21,479,210 24,098,002 28,812,030 27,128,012Franchise taxes 1,625,872 1,589,950 1,680,293 1,594,432 2,550,523 2,485,834 2,372,747 2,621,096 2,833,149 3,149,045Business licenses taxes 1,035,220 1,101,915 1,078,509 1,107,537 1,110,975 1,036,931 994,727 1,090,315 1,145,905 - Other taxes 977,074 797,475 392,075 579,840 484,664 430,231 441,622 651,010 329,456 5,570,495 Motor vehicle in lieu 69,978 72,551 75,398 79,899 79,772 78,478 107,321 110,178 110,277 - Unresricted grants and contributions - - - - - - - - - 2,906,180 Use of money and property 686,757 1,602,076 1,110,886 1,482,370 3,840,130 4,087,504 3,467,362 (3,486,383) 3,911,184 5,112,695Gain on sale of assets 31,396 83,139 (1,731) 23,639 108,661 68,909 168,580 26,322 274,083 183,149 Other 1,713,163 3,891,552 9,725,201 3,686,032 4,215,913 4,242,750 4,252,757 4,554,597 3,624,522 4,397,869 Extraordinary gain on dissolution of Redevelopment Agency1 (944,392) - - - - - - - - -Transfers 1,525,979 1,590,527 1,125,415 450,000 (516,300) 252,238 (4,639) (745,061) 1,725,246 875,245 Total governmental activities 43,512,614 50,602,698 55,990,808 49,383,517 57,666,816 57,561,136 58,390,148 55,121,278 72,004,292 76,019,296Business-type activities:
Use of money and property 151,348 303,514 (23,077) (25,014) 1,240,123 1,491,758 120,888 (941,040) 236,871 1,131,751 Gain on sale of assets - - - - - 18,587 67,962 45,416 68,656 52,493Other 580,062 401,566 250,269 44,024 89,293 - 82,890 82,671 - - Transfers (1,525,979) (1,590,527) (1,125,415) (450,000) 516,300 (252,238) 4,639 745,061 (1,725,246) (875,245) Total business-type activities (794,569) (885,447) (898,223) (430,990) 1,845,716 1,258,107 276,379 (67,892) (1,419,719) 308,999Total primary government 42,718,045 $ 49,717,251 $ 55,092,585 $ 48,952,527 $ 59,512,532 $ 58,819,243 $ 58,666,527 $ 55,053,386 $ 70,584,573 $ 76,328,295 $ Change in Net Position:Governmental activities (1,015,369) $ 2,316,307 $ 4,356,405 $ 30,422,636 $ (2,693,594) $ 6,797,545 $ 2,494,629 $ 49,015,037 $ 6,105,153 $ (21,046,352) $ Business-type activities 4,589,373 3,282,008 6,345,252 20,650,496 8,022,566 5,024,075 5,872,863 12,838,281 2,561,058 5,086,762Total primary government 3,574,004 $ 5,598,315 $ 10,701,657 $ 51,073,132 $ 5,328,972 $ 11,821,620 $ 8,367,492 $ 61,853,318 $ 8,666,211 $ (15,959,590) $ 1Rededevlopment Agencies in California.
During the fiscal year ended June 30, 2012, the assets, liabilities and fund balances of the Brea Redevelopment Agency were transferred to the Successor Agency on February 1, 2012, as a result of the dissolution of 137
CITY OF BREA, CALIFORNIA
Fund Balances - Governmental FundsLast Ten Fiscal Years(Modified accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Fund Nonspendable 856,591 $ 615,605 $ 412,659 $ 139,562 $ 8,826 $ 2,485 $ 14,960 $ 591 $ 60 $ 29,357 $ Restricted 1,392,800 7,448,016 8,201,746 8,112,011 8,661,782 8,883,451 11,337,663 9,743,633 10,634,967 12,329,512 Committed 8,616,218 9,091,623 - 867,841 980,101 1,353,559 1,388,993 1,382,302 1,443,668 1,540,335 Assigned 573,064 590,815 11,316,072 12,270,563 12,777,708 11,807,691 11,914,029 12,010,304 11,633,475 13,010,810 Unassigned 23,586,834 19,154,869 14,077,609 14,703,360 21,203,689 19,891,467 29,410,655 25,265,822 29,344,926 28,051,499 Total general fund 35,025,507 $ 36,900,928 $ 34,008,086 $ 36,093,337 $ 43,632,106 $ 41,938,653 $ 54,066,300 $ 48,402,652 $ 53,057,096 $ 54,961,513 $ All Other Governmental Funds Nonspendable 18,067,123 $ - $ - $ - $ - $ - $ - $ 1,000 $ - $ - $ Restricted 28,721,740 47,181,358 44,665,332 44,617,410 43,625,108 50,392,782 46,045,148 33,150,403 45,252,026 16,489,968 Assigned - - - - - - - 12,010,304 - -
Unassigned (78,497) (79,171) (19,272) (9,653) (27,156) (98,401) (152,390) (206,320) (177,705) (906,346) Total all other governmental funds 46,710,366 $ 47,102,187 $ 44,646,060 $ 44,607,757 $ 43,597,952 $ 50,294,381 $ 45,892,758 $ 44,955,387 $ 45,074,321 $ 15,583,622 $ 138
CITY OF BREA, CALIFORNIA
Changes in Fund Balances - Governmental FundsLast Ten Fiscal Years(Modified accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenues:Taxes 37,453,770 $ 40,526,309 $ 40,215,974 $ 41,074,462 $ 47,100,463 $ 45,845,391 $ 47,267,539 $ 51,499,865 $ 59,116,813 $ 56,973,663 $ Licenses and permits 645,054 782,250 870,940 584,841 606,355 823,019 451,865 350,510 393,659 287,697Intergovernmental 7,992,057 10,535,171 9,506,268 24,323,998 15,360,014 19,156,439 18,725,429 12,999,812 17,052,662 16,635,605Contributions 497,304 2,080 535 105,514 102,886 - - - - - Charges for services 8,125,141 5,451,452 6,188,947 8,008,055 3,953,235 6,239,512 2,225,756 3,691,879 3,652,877 4,182,396 Use of money and property 2,379,065 2,778,480 2,542,341 1,914,998 4,445,507 4,154,607 3,282,919 (3,333,344) 3,857,495 4,604,947Fines and forfeitures 842,001 790,247 597,476 824,358 892,120 405,841 550,471 635,774 330,578 347,535Rental Income - - - - - - - - - 2,906,180Other revenues 3,025,883 2,852,006 5,462,816 3,660,707 3,424,423 4,422,384 4,241,978 5,823,553 4,919,924 5,642,639Total revenues 60,960,275 63,717,995 65,385,297 80,496,933 75,885,003 81,047,193 76,745,957 71,668,049 89,324,008 91,580,662Expenditures:General Government 5,635,476 5,751,038 5,645,218 5,365,030 5,867,534 7,132,329 5,384,946 7,769,057 9,143,355 8,711,715Public Safety 31,340,804 33,095,380 34,377,568 35,511,682 36,294,416 38,848,662 39,623,318 41,750,889 44,212,147 47,114,411Community Development 2,853,942 3,191,325 3,470,595 3,469,989 3,040,469 3,394,609 3,186,707 3,139,570 2,873,049 3,948,827Community Services 6,750,909 7,048,955 7,395,363 7,284,303 7,540,687 7,584,500 6,607,980 8,269,116 9,612,938 9,488,694Public Works 5,200,858 5,456,277 5,778,004 5,390,103 5,377,987 6,880,759 6,229,636 9,081,410 9,795,758 9,639,331Capital Outlay 8,129,441 9,372,430 14,808,389 21,198,635 9,524,720 8,631,178 11,090,335 6,417,881 6,346,656 12,133,404Debt service:
Principal retirement 370,000 618,132 410,411 435,389 465,458 2,595,619 295,873 330,152 118,266 156,186 Interest and fiscal charges 416,792 420,772 397,243 383,551 368,468 351,681 197,523 162,385 92,968 91,456 Transfer to Successor Agency - - - - - - 1,391,670 - - - Total expenditures 60,698,222 64,954,309 72,282,791 79,038,682 68,479,739 75,419,337 74,007,988 76,920,460 82,195,137 91,284,024 Excess (deficiency) of revenues
over (under) expenditures 262,053 (1,236,314) (6,897,494) 1,458,251 7,405,264 5,627,856 2,737,969 (5,252,411) 7,128,871 296,638 Other Financing Sources (Uses):Transfers in 6,507,993 4,378,333 10,082,394 5,791,699 3,143,969 4,799,670 9,563,936 4,877,737 6,064,027 7,088,846Transfers out (4,956,467) (2,826,881) (8,533,869) (5,203,002) (4,020,269) (5,424,295) (9,568,575) (5,745,798) (8,576,526) (5,492,063)Sale of capital assets - - - - - - 11,601 10,240 9,331 11,053Leases - 1,952,104 - - - - - - - - Long-term debt issued - - - - - - - 2,220,000 147,675 -Refunded debt redeemed - - - - - - - (2,760,000) - -Bond premium - - - - - - - 530,190 - -Cost of issuance - - - - - - - (145,663) - -Total other financing sources (uses) 1,551,526 3,503,556 1,548,525 588,697 (876,300) (624,625) 6,962 (1,013,294) (2,355,493) 1,607,836 Net change in fund balances 1,813,579 $ 2,267,242 $ (5,348,969) $ 2,046,948 $ 6,528,964 $ 5,003,231 $ 2,744,931 $ (6,265,705) $ 4,773,378 $ 1,904,474 $ Debt service as a percentage of noncapital expenditures 1.41% 1.87% 1.41% 1.42% 1.41% 4.43% 0.78% 0.70% 0.28% 0.31% 139
CITY OF BREA, CALIFORNIA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Total
Year Taxable Total
Ended Residential Commercial Industrial Other Assessed Direct June 30 Property Property Property Property 1 Value 2 Tax Rate 2015 4,377,268,712 $ 1,580,151,775 $ 1,167,513,932 $ 826,734,462 $ 7,951,668,881 $ 0.17402 2016 4,945,219,822 1,670,210,797 1,168,849,914 740,725,273 8, 525,005,806 0.17402 2017 5,359,064,633 1,725,644,969 1,264,334,778 775,342,859 9, 124,387,239 0.17402 2018 5,598,174,721 1,844,339,813 1,437,177,754 774,675,165 9, 654,367,453 0.17402 2019 6,016,606,483 1,998,943,577 1,491,711,794 757,185,866 10,264,447,720 0.17402 2020 6,407,150,882 2,063,879,311 1,630,616,856 797,206,400 10,898,853,449 0.17402 2021 6,659,815,739 2,179,834,530 1,705,370,536 777,646,078 11,322,666,883 0.17402 2022 6,920,919,399 2,292,085,820 1,786,413,204 824,597,074 11,824,015,497 0.17402 2023 7,456,222,358 2,432,549,009 1,851,067,772 768,105,605 12,507,944,744 0.17402 2024 7,880,816,288 2,599,313,424 2,006,621,432 756,746,690 13,243,497,834 0.17402 1 Other property includes recreational, institutional, vacant, and miscellaneous property. 2 Tax-exempt property is excluded from the total taxable assessed value.
NOTE:
Sources: HdL Coren & Cone; Orange County Assessor
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 140
CITY OF BREA, CALIFORNIA
Direct and Overlapping Property Tax RatesLast Ten Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 City Direct Rates:
City of Brea 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ 0.12902 $ City of Brea Paramedics Tax1 0.04500 0.04500 0.04500 0.04500 0.04500 0.04500 0.04500 0.04500 0.04500 0.04500 Total City Direct Rate 0.17402 0.17402 0.17402 0.17402 0.17402 0.17402 0.17402 0.17402 0.17402 0.17402 Overlapping Rates:
Brea-Olinda Unified School District General Fund 0.43990 0.43990 0.43990 0.43990 0.43990 0.43990 0.43990 0.43990 0.43990 0.43990 Brea-Olinda Unified School District Bonds 0.02528 0.02292 0.02298 0.02325 0.02370 0.02291 0.02489 0.02376 0.02412 0.02198 NOC Community College General Fund 0.06660 0.06660 0.06660 0.06660 0.06660 0.06660 0.06660 0.06660 0.06660 0.06660 NOC Community College Bonds 0.01704 0.01704 0.01704 0.01704 0.01704 0.01704 0.01704 0.01704 0.01704 0.01704Educational Revenue Augmentation Fund 0.18260 0.18260 0.18260 0.18260 0.18260 0.18260 0.18260 0.18260 0.18260 0.18260Orange County Department of Education 0.03910 0.03910 0.03910 0.03910 0.03910 0.03910 0.03910 0.03910 0.03910 0.03910Orange County Flood Control District 0.01888 0.01888 0.01888 0.01888 0.01888 0.01888 0.01888 0.01888 0.01888 0.01888Orange County General Fund 0.05890 0.05890 0.05890 0.05890 0.05890 0.05890 0.05890 0.05890 0.05890 0.05890Orange County Harbors, Beaches & Parks 0.01459 0.01459 0.01459 0.01459 0.01459 0.01459 0.01459 0.01459 0.01459 0.01459Orange County Library District 0.01592 0.01592 0.01592 0.01592 0.01592 0.01592 0.01592 0.01592 0.01592 0.01592Orange County Sanitation District Two Operating 0.03080 0.03080 0.03080 0.03080 0.03080 0.03080 0.03080 0.03080 0.03080 0.03080Orange County Transportation Authority 0.00268 0.00268 0.00268 0.00268 0.00268 0.00268 0.00268 0.00268 0.00268 0.00268Orange County Vector Control 0.00107 0.00107 0.00107 0.00107 0.00107 0.00107 0.00107 0.00107 0.00107 0.00107Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Total Direct Rate 1.09088 $ 1.08852 $ 1.08858 $ 1.08885 $ 1.08930 $ 1.08851 $ 1.09049 $ 1.08936 $ 1.08972 $ 1.08758 $ 1 The City of Brea Paramedic Tax rate is per $100 of assessed value.NOTE:LeasesSource: HdL Coren & Cone, Orange County Assessor Combined Tax RollsIn 1978, California voters passed Proposition 13 which sets the proerty 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 bonded debt and property tax overrides.
The Redevelopment Agency tax rate is not presented above in that property within the project area is subject to a tax rate of 1.0495%, which includes the Proposition 13 property tax rate of 1.00% and the applicable voter approved debt.
141
CITY OF BREA, CALIFORNIA
Principal Property Taxpayers
Current Year and Nine Years Ago
###
Taxable Taxable
Assessed Assessed
Taxpayer Value Rank Value Rank
Retail Property Trust $ 273,078,552 1 2.03% $ 232,504,316 1 2.87% Olen Pointe Brea LLC 186,092,610 2 1.38% 98,388,324 6 1.21% RAR2 200 North Puente LLC 184,424,553 3 1.37% 106,254,205 3 1.31% Amazon Com Services, LLC 168,370,544 4 1.25%
Avalon Brea Place, LLC 139,757,085 5 1.04%
USCMF Joule La Floresta LLC 112,541,689 6 0.84%
Beckman Coulter Inc. 109,834,211 7 0.82% 173,483,711 2 2.14% FW CA-Brea Marketplace LLC 107,657,695 8 0.80% 101,402,625 5 1.25% Brea Place II LLC 99,599,163 9 0.74%
Brea Union Plaza II LLC 98,054,651 10 0.73% 72,781,191 7 0.90% ICE Holdings LLC 51,838,329 9 0.64%
Mercury Casualty Co 50,975,457 10 0.63%
New Albertson's Inc. 52,606,706 8 0.65%
CRE Brea Valencia LLC 103,885,264 4 1.28%
$ 1,479,410,753 11.00% 1,044,120,128 $ 12.88%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Sources: HdL Coren & Cone, County of Orange Assessor's Office Total City Taxable Total City Taxable
Assessed Value Assessed Value
Fiscal Year Fiscal Year
2023-24 2014-15
Percentage of Percentage of
142
CITY OF BREA, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2015 $ 14,720,458 $ 14,481,121 98.37 $ 145,952 $ 14,627,073 99.37 2016 16,669,635 16,489,408 98.92 166,642 16,656,050 99.92 2017 17,274,771 16,771,004 97.08 172,238 16,943,242 98.08 2018 19,516,778 19,193,847 98.35 163,773 19,357,620 99.18 2019 20,815,715 20,526,862 98.61 140,418 20,667,280 99.29 2020 22,223,439 21,836,049 98.26 193,761 22,029,810 99.13 2021 24,227,814 23,892,502 98.62 167,656 24,060,158 99.31 2022 24,790,572 24,686,602 99.58 262,838 24,423,764 98.52 2023 27,345,697 27,238,873 99.61 230,440 27,008,433 98.77 2024 28,514,526 28,404,904 99.62 5,634,170 22,770,734 79.86 NOTE:
Source: County of Orange Auditor Controller's Office
Collected within the
Fiscal Year of the Levy Total Collections to Date
The amounts presented include property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. 143
CITY OF BREA, CALIFORNIA
Taxable Sales by CategoryLast Ten Fiscal YearsCategory 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Department Stores 3,020,454 $ 2,959,079 $ 2,827,804 $ 2,576,479 $ 2,496,605 $ 2,024,839 $ 1,963,194 $ 2,350,485 $ 2,381,399 $ 2,309,138 $ Restaurant 2,159,263 2,258,542 2,305,596 2,512,626 2,441,525 2,129,793 1,981,935 2,741,013 2,933,868 2,959,395Light Industry 2,049,527 2,171,917 2,158,761 2,000,878 2,162,541 2,220,495 2,431,072 2,720,925 3,404,263 3,589,712Building Materials-Wholesale 1,799,592 2,051,748 2,116,119 2,071,993 2,251,101 2,264,618 2,176,465 2,455,321 3,234,000 2,861,400Apparel Stores 1,732,123 1,696,435 1,676,921 1,589,063 1,608,941 1,298,914 1,118,845 1,503,442 1,423,355 1,357,597Miscellaneous Retail 1,779,009 1,652,697 1,558,413 1,575,008 1,430,115 1,160,807 1,222,469 1,561,652 1,523,628 1,468,295Furniture/Appliance 801,114 763,158 810,168 976,083 1,071,240 895,046 685,518 936,838 1,169,919 969,780Service Stations 844,593 712,761 674,913 705,984 740,148 603,696 494,880 797,492 775,577 756,625Food Markets 358,917 469,420 488,165 437,616 421,421 430,868 528,657 480,219 497,257 419,766Building Materials-Retail 446,278 470,340 472,178 500,971 430,202 396,907 527,090 512,632 516,627 511,815Heavy Industry 356,465 408,035 359,099 674,914 745,514 633,444 726,287 615,256 676,688 693,842Auto Sales-New 315,306 288,732 441,956 534,567 2,522,614 2,173,665 1,340,847 2,291,054 2,567,695 1,455,489Other 1,805,690 1,922,933 1,927,869 1,680,294 1,800,006 5,262,832 6,281,952 5,131,673 7,707,754 5,802,497Total 17,468,331 $ 17,825,797 $ 17,817,962 $ 17,836,476 $ 20,121,973 $ 21,495,924 $ 21,479,211 $ 24,098,002 $ 28,812,030 $ 25,155,351 $ NOTE: Totals do not include portion of State and County pool as well as the impact of the State Triple Flip.Source: MuniServices until 2019. Beginning in 2020 Avenu Insights & Analytics Company 144
CITY OF BREA, CALIFORNIA
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Activities
Fiscal Year Lease Total Water Total Percentage
Ended Revenue Subscription Governmental Revenue Primary of Personal Debt June 30 Bonds Leases 2 IT Activities Bonds1 Government Income 3 Per Capita 3 2015 $ 2,760,000 $ 3,652,690 $ - $ 6,412,690 $ 52,890,000 $ 59,302,690 2.48% 1,369 2016 2,760,000 4,833,071 - 7,593,071 53,325,495 60,918,566 2.41% 1,394 2017 2,760,000 4,261,876 - 7,021,876 50,150,000 57,171,876 2.08% 1,293 2018 2,760,000 3,658,172 - 6,418,172 49,110,000 55,528,172 1.89% 1,237 2019 2,760,000 3,192,714 - 5,952,714 48,010,000 53,962,714 1.71% 1,183 2020 2,760,000 597,095 - 3,357,095 46,042,678 49,399,773 1.51% 1,083 2021 2,760,000 301,222 - 3,061,222 46,054,015 49,115,237 1.46% 1,088 2022 2,220,000 27,080 - 2,247,080 44,195,517 46,442,597 1.22% 991 2023 2,220,000 107,618 227,239 2,327,618 42,459,196 44,786,814 1.11% 929 2024 2,220,000 69,568 124,129 2,289,568 40,720,867 43,010,435 1.01% 901 revenue bonds.
NOTE: Details regarding the outstanding debt can be found in the notes of the financial statements. 1 For the fiscal year ended June 30, 2015, the Brea Community Benefit Financing Authority issued over $18 million of water 3 See the Schedule of Demographic and Economic Statistics for personal income and population data.
Governmental Activities
2 For the fiscal year ended June 30, 2016, the City of Brea entered into a lease purchase agreement for $1,952,104. 145
CITY OF BREA, CALIFORNIA
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Lease Percentage of
Ended Revenue Restricted for Net Assessed Value Per
June 30 Bonds Debt Service Bonded Debt of Property 1 Capita 2 2015 $ 2,760,000 $ 264,636 $ 2,495,364 0.03% 58
2016 2,760,000 269,453 2,490,547 0.03% 57
2017 2,760,000 265,707 2,494,293 0.03% 57
2018 2,760,000 265,506 2,494,494 0.03% 56
2019 2,760,000 270,863 2,489,137 0.02% 55
2020 2,760,000 269,853 2,490,147 0.02% 55
2021 2,760,000 262,772 2,497,228 0.02% 55
2022 2,220,000 2,220,000 - 0.02% 47
2023 2,220,000 2,220,000 - 0.02% 48
2024 2,220,000 2,220,000 - 0.02% 47
1 See schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. 2 Population data can be found in schedule of Demographic and Economic Statistics.
NOTE: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 146
CITY OF BREA, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
as of June 30, 2024
City Assessed Valuation: $ 13,242,466,483
Estimated Estimated Share
Percentage Debt of Overlapping
Applicable 1 Outstanding Debt
Overlapping Debt Repaid with Property Taxes:
Metropolitan Water District 0.342 18,210,000 $ $ 62,278 North Orange County Joint Community College District 7.734 291,560,678 22,549,303 Brea-Olinda Unified School District 97.061 4,344,682 4,216,992 Placentia-Yorba Linda Unified School District 1.207 197,150,879 2,379,611 Rowland Unified School District 0.164 197,865,036 324,499 Fullerton Joint Union High School District 1.942 177,700,000 3,450,934 Fullerton School District 0.006 13,190,000 791
La Habra City School District 11.003 33,373,052 3,672,037 City of Brea Community Facilities Districts 100 8,545,000 8,545,000 Brea-Olinda Unified School District Community
Facilities District No. 95-1 100 3,300,000 3,300,000
Total overlapping debt repaid with property taxes 945,239,327 48,501,445 Overlapping Other Debt:
Orange County General Fund Obligation 7,574,622
Orange County Board of Education Certificates of Participation 172,516 North Orange Regional Occupation Program Certificates of Participation 583,296 Brea-Olinda Unified School District Certificates of Participation 6,420,585 Placentia-Yorba Linda Unified School District Certificates of 964,393 Participation
Fullerton Joint Union High School District Certificates of Participation 290,135 Fullerton School District Certificates of Participation 145 Total overlapping general fund debt 16,005,692 2
Total overlapping debt 64,507,137
148,889
148,889
Leases
Total City of Brea Direct Debt
Combined total direct and overlapping debt $ 64,656,026 3 1 2
3 NOTE:
Source: California Municipal Statistics, Inc.
City of Brea Direct Debt:
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds.
Percentage of overlapping agency's assessed valuation located within the boundaries of the city.
Percentage of overlapping agency's assessed valuation located within the boundaries of the City.
Previously classified Orange County Sanitation District certificates of participation have been reclassified as district Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Brea. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Previously classified Orange County Sanitation District certificates of participation have been reclassified as district revenue supported issues and are no longer included as a general fund debt in the debt statement.
147
CITY OF BREA, CALIFORNIA
Legal Debt Margin InformationLast Ten Fiscal Years
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Assessed value 8,026,908,085 $ 8,532,576,967 $ 9,116,002,399 $ 9,660,027,845 $ 10,286,668,026 $ 10,859,937,204 $ 11,344,344,046 $ 11,934,362,924 $ 12,518,201,034 $ 13,242,466,483 $ Debt limit: 3.75% of assessed value 301,009,053 $ 319,971,636 $ 341,850,090 $ 362,251,044 $ 385,750,051 $ 407,247,645 $ 425,412,902 $ 447,538,610 $ 469,432,539 $ 496,592,493 $ Legal debt margin 496,592,493 $
NOTE:Under state finance law, the City of Brea's outstanding general obligation debt should not exceed 3.75 percent of total assessed property value.By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. 148
CITY OF BREA, CALIFORNIA
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year Less: Net
Ended Gross Operating Available
June 30 Revenues 1 Expenses 2 Revenue Principal Interest 3 Coverage 2015 $ 17,803,755 $ 10,685,147 $ 7,118,608 $ 1,015,000 $ 2,351,374 2.11 2016 16,489,077 9,162,038 7,327,039 1,315,000 2,348,737 2.00 2017 19,194,816 9,865,661 9,329,155 1,425,000 2,381,873 2.45 2018 22,692,925 11,972,562 10,720,363 1,040,000 2,361,556 3.15 2019 21,492,916 12,636,817 8,856,099 1,100,000 2,286,421 2.62 2020 21,445,311 13,006,772 8,438,539 1,165,000 1,668,816 2.98 2021 23,512,550 15,881,851 7,630,699 865,000 1,545,361 3.17 2022 22,939,213 9,797,841 13,141,372 1,732,749 2,519,136 3.09 2023 20,261,496 13,811,626 6,449,870 1,470,000 1,392,479 2.25 2024 20,716,556 14,254,001 6,462,555 1,530,000 1,187,428 2.38 1 2
3 Water Revenue Bonds
Debt Service
Gross revenues exclude connection fees.
Operating expenses do not include interest or depreciation.
Interest expense is net of the Build America Bonds interest refund credits.
NOTE: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 149
CITY OF BREA, CALIFORNIA
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Personal Per Capita
Ended Income Personal Unemployment
June 30 Population 1 (in thousands) Income 2 Rate 3
2015 43,328 $ 2,387,199 $ 55,096 3.9%
2016 43,710 2,524,209 57,749 3.4%
2017 44,214 2,744,407 62,071 3.1%
2018 44,890 2,935,806 65,400 3.0%
2019 45,606 3,159,036 69,268 2.8%
2020 45,629 3,272,101 71,711 13.6%
2021 45,137 3,368,033 74,618 6.5%
2022 46,872 3,798,226 81,034 2.8%
2023 48,184 4,025,918 83,553 3.6%
2024 47,725 4,242,609 88,897 4.1%
Sources:
1 City Community Development, Planning Division
2 Per capita income for Orange County; U.S. Department of Commerce, Bureau of Economic Analysis 3 State of California Employment Development Department - Labor Market Information Division 150
CITY OF BREA, CALIFORNIA
Principal Employers
Current Fiscal Year and Nine Years Ago
Percent of Percent of
Total City Total City
Employer Employees Rank Employment 1 Employees Rank Employment Albertson's, Inc. 1 4.94% 520 1,156 6 3.10%
Beckman Coulter, Inc.2 2 3.58% 1,200 837 3 5.48%
Brea Olinda Unified School District 3 2.63% 678 615 5 2.37% Nationwide (formerly Veterinary Pet Ins.) 2 4 1.97% 460 460 7 2.10% Service Champions Plumbing, HVAC2 5 1.74% 406
Bristol Industries2 6 1.73% 400 405 9 1.83%
Nordstrom Department Store2 7 1.65% 419 385 8 1.91%
24 Hour Fitness, USA, LLC2 8 0.86% 201
Acosta Sales & Marketing2 9 0.70% 163
The Olive Garden Italian Restaurant2 10 0.52% 122
Mercury Insurance Group 2 1,500 6.85%
Kirkhill - TA Company 4 4.20% 920
Peterson Brothers Construction3 10 300 1.37%
Bank of America3 1 6.85% 1,500
Total 4,750 20.32% 7,897 36.06%
1 Based upon the Employment Development Department's Labor Force estimate of 23,400 in 2023 out of a total population of 47,725.
2 Used prior year employee count.
3 No longer in the City of Brea.
4 HDL Companies
Source: Calls to businesses.
Fiscal Fiscal
Year Year
2023-24 2014-15
151
CITY OF BREA, CALIFORNIA
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government 60 59 59 54 50 48 46 45 46 48
Public Safety 158 159 158 157 156 155 156 157 161 162
Community Development 21 23 21 22 19 19 21 22 23 22
Community Services 55 56 52 54 55 67 67 53 63 65
Public Works 45 47 42 49 47 47 47 48 50 54
Water Utility 17 15 17 16 18 17 17 17 19 19
Sewer Utility 6 6 6 6 5 5 5 5 6 6
Sanitation 2 4 2 3 2 1 1 1 1 2
External Information Technology 10 12 10 11 8 7 6 4 4 4 Total 374 381 372 360 366 366 367 352 373 382
Source: City of Brea Adopted Budget and Supplements to the Adopted Budget. 152
CITY OF BREA, CALIFORNIA
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:
Police
Calls dispatched 23,026 24,359 26,027 25,185 28,510 27,973 27,845 27,996 26,241 27,516 Crime reports 4,490 4,798 4,881 4,888 4,798 4,011 3,961 4,191 3,954 4,063 Moving citations 3,426 2,483 2,409 2,799 2,801 1,559 3,158 1,183 936 799 Parking citations 10,057 10,528 10,467 10,591 9,331 3,267 1,632 2,714 2,862 2,870 Water
Number of customer accounts 12,951 13,153 13,224 13,338 13,428 13,449 13,474 13,467 13,408 13,474 Average daily consumption (millions of gallons) 10 8 8 9 8 8 9 9 8 8 Water samples taken 732 686 780 824 783 821 821 821 821 821 Community Development
Permits issued 2,072 1,561 2,170 2,045 2,002 1,756 1,276 1,528 1,708 1,362 Inspections conducted 7,997 6,903 6,833 7,611 8,697 9,753 5,383 7,127 7,223 5,780 Public Works
Square feet of graffiti removal 3,609 4,545 6,950 7,074 5,310 8,100 6,542 12,135 4,088 1,684 Streetsweeping miles 20,128 20,333 21,060 21,476 17,300 11,373 10,613 9,759 10,999 11,425 Trees pruned per year 3,408 3,275 2,830 2,158 2,745 1,838 1,879 1,693 2,713 2,850 Traffic signal intersections maintained 1 53 52 56 56 53 53 54 54 54 54 Infrastructure improv. projects administered 8 10 8 6 8 9 8 - 6 3 Culture and Recreation
Gallery promotions and mailings 18,500 14,800 14,800 14,800 14,800 7,400 5,995 - - 2,050 Gallery attendance 10,042 12,807 10,175 7,700 7,000 6,740 1,790 2,854 7,244 5,105 Theatre annual program brochures mailed 26,258 34,670 31,853 10,200 21,906 16,086 28,177 - 32,424 27,727 Theatre attendance 12,926 50,476 47,832 41,499 34,803 23,861 2,306 6,176 64,620 69,029 General government
Accounts payable warrants issued 7,569 8,599 7,154 6,980 7,026 7,215 6,632 6,092 6,252 6,355 1 Doesn't include five flashing beacons the City maintains 153
CITY OF BREA, CALIFORNIA
Capital Asset Statistics by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:
Highways and streets
Miles of streets 120 121 121 121 126 126 126 126 126 126 Street lights 3,401 3,452 3,452 3,452 3,452 3,452 3,452 3,452 3,452 3,452 Water
Number of water wells 1 1 1 1 1 1 1 1 1 1
Number of reservoirs 7 7 7 7 7 7 7 7 7 7
Miles of lines & mains 197 197 212 212 212 225 225 225 225 225 Sewer
Miles of sanitary sewers 111 112 112 112 114 114 114 114 114 114 Miles of storm drains 26 27 27 27 27 27 27 27 27 27
Culture and Recreation
Number of parks 13 13 13 14 14 14 14 14 14 14
Number of other facilities 7 7 7 7 7 7 7 7 7 7
Source: City of Brea
154
CITY OF BREA, CALIFORNIA
FOR THE YEAR ENDED JUNE 30, 2024 SINGLE AUDIT REPORT
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CITY OF BREA, CALIFORNIA
Single Audit Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Independent Auditors’ 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 ....................................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ..................................................................................................... 3 Schedule of Expenditures of Federal Awards for the
Year Ended June 30, 2024 ............................................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards ................................................................................. 7 Schedule of Findings and Questioned Costs for the
Year Ended June 30, 2024 ............................................................................................................................... 8 Summary Schedule of Prior Year Findings and Questioned Costs for the Year Ended June 30, 2023 ............................................................................................................................. 10 LSLCPAS.COM
INDEPENDENT AUDITORS’ 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
To the Honorable Mayor and Members of the City Council
City of Brea, California
We have audited, in accordance with the 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, the business-type activities, each major fund, and the aggregate remaining fund information of City of Brea, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 20, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. 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 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 were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether 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.
To the Honorable Mayor and Members of the City Council
City of Brea, California
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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
December 20, 2024
2 LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Brea, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Brea, California (the “City”)’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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 generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
3 To the Honorable Mayor and Members of the City Council City of Brea, California
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. x Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose. 4 To the Honorable Mayor and Members of the City Council City of Brea, California
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 20, 2024, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Irvine, California
December 20, 2024
5 CITY OF BREA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
Federal
Assistance Listing Pass-Through Entity Total Federal
Number Identifying Number Expenditures
U.S. Department of Housing & Urban Development
Pass through County of Orange
CDBG - Entitlement Grants Cluster
COVID-19: Community Development Block Grants/Entitlement Grants 14.218 L3UNGNMK6BT8 $ 99,859 Community Development Block Grants/Entitlement Grants 14.218 L3UNGNMK6BT8 145,616 Subtotal - Assistance Listing #14.218 245,475
Total CDBG - Entitlement Grants Cluster 245,475
Total Dept of Housing & Urban Development 245,475
U.S. Department of Transportation
Department of Transportation Direct Programs:
Highway Safety Cluster
State and Community Highway Safety 20.600 N/A 11,760
Subtotal State and Community Highway Safety program 11,760 Total Highway Safety Cluster 11,760
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 N/A 24,220 Subtotal Minimum Penalties for Repeat Offendeers for Driving While Intoxicated 24,220 Total U.S. Department of Transportation 35,980
U.S. Department of Justice
Department of Justice Direct Programs:
State and Local Overtime (SLOT) Program 16.000 N/A 26,952 Equitable Sharing 16.922 N/A 8,297
Total U.S. Department of Justice 35,249
U.S. Department of Treasury
Department of Treasury Direct Programs:
Equitable Sharing 21.016 N/A 14,228
COVID-19 Coronavirus State and Local Fiscal Recovery Funds* 21.027 N/A 347,516 Pass through County of Orange:
COVID-19 Coronavirus State and Local Fiscal Recovery Funds* 21.027 21-23-0002-HR 625,000 Total Department of Treasury Programs 986,744
U.S. Department of Homeland Security, Federal Emergency Management Agency Pass through California Governor's Office of Emergency Services Hazard Mitigation Grant Program 97.039 PS4RBZRWY7U5 47,568 Total U.S. Department of Homeland Security 47,568
U.S. Department of Agriculture
Pass through California Governor's Office of Emergency Services Cooperative Forestry Assistance
and Cleanup Cooperative Agreements 10.664 PS4RBZRWY7U5 86,621 Total U.S. Department of Agriculture 86,621
U.S. Department of Health & Human Services
Department of Health & Human Services Direct Programs:
Special Programs for the Aging, Title III, Part C, Nutrition Services 93.044 N/A 30,711 Total Department of Transportation Programs 30,711
Total Expenditures of Federal Awards $ 1,468,348
* Major Program
1 There were no federal awards expended in the form of noncash assistance and insurance in effect during the year. 2 The amount provided to subrecipients during the year was $0.
Grantor/Program or Cluster Title
Federal Grantor/Pass-Through
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 6 CITY OF BREA, CALIFORNIA
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS
A. Scope of Presentation
The accompanying schedule presents only the expenditures incurred by the City of Brea, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.
B. Basis of Accounting
The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
7 CITY OF BREA, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued: Unmodified Opinion
Internal control over financial reporting:
x Material weaknesses identified? yes X no
x Significant deficiencies identified? yes X none reported Noncompliance material to financial
statements noted? yes X no
Federal Awards
Internal control over major programs:
x Material weaknesses identified? yes X no
x Significant deficiencies identified? yes X none reported Type of auditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform
Guidance)? yes X no
Identification of major programs:
Assistance Listing Number(s) Name of Federal Program or Cluster
21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish
between type A and type B program $750,000
Auditee qualified as low-risk auditee? yes X no
8 CITY OF BREA, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
SECTION II - FINANCIAL STATEMENT FINDINGS
No matters were reported.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
9 CITY OF BREA, CALIFORNIA
Summary Schedule of Prior Year Findings and Questioned Costs For the Year Ended June 30, 2023
SECTION II - FINANCIAL STATEMENT FINDINGS
No matters were reported.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
10 1611 E. Fourth Street, Suite 200
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Brea, CA 92821
(714) 672-0022
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www.lslcpas.com
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Brea, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Brea, California, for the year ended June 30, 2024. These procedures are the responsibility of the City, which were agreed to by the City of Brea and the League of California Cities (as presented in the publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City of Brea in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of Brea management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of recomputing the Appropriations Limit Worksheet No. 6 (or other alternative computation). 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 performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) 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 of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
To the Honorable Mayor and Members of the City Council
City of Brea, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation). 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 of the City Council and management of the City of Brea and is not intended to be, and should not be, used by anyone other than these specified parties.
Brea, California
July 26, 2024
CITY OF BREA
2023-2024
APPROPRIATIONS LIMIT CALCULATION
A. 2022-2023 APPROPRIATIONS LIMIT: $ 122,256,170
B. 2023-2024 CHANGE IN PER CAPITA PERSONAL
INCOME: 4.44%
C. 2023-2024 CHANGE IN POPULATION: 2.63%
D. RATIO OF CHANGE (1.0444 x 1.0263) x 1.071867
E. 2023-2024 APPROPRIATIONS LIMIT: $ 131,042,354
($122,256,170 x 1.071867)
LSLCPAS.COM
December 20, 2024
To the Honorable Mayor and Members of the City Council
City of Brea, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brea, (the “City”) for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 28, 2024. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during 2023-2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s 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 significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management’s estimates of the net pension and other postemployment benefits liabilities are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension and other postemployment benefits liabilities in determining that it is reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
To the Honorable Mayor and Members of the City Council
City of Brea, California
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 20, 2024.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
To the Honorable Mayor and Members of the City Council
City of Brea, California
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:
Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.
GASB Statement No. 102, Certain Risk Disclosures.
Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.
Future Projects
Comprehensive Project, Revenue and Expense Recognition.
Major Project, Going Concern Uncertainties and Severe Financial Stress.
Major Project, Infrastructure Assets.
Practice Issue, Classification of Nonfinancial Assets.
Practice Issue, Risks and Uncertainties Disclosures.
Practice Issue, Subsequent Events.
Restriction on Use
This information 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.
Very truly yours,
Lance, Soll & Lunghard, LLP
City of Brea
City Council Regular Meeting Communication
B. Camping / Property Storage Ordinances Update
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
ADMINISTRATIVE ITEMS Item: 3B.
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Introduce Ordinance No. 1253 "An Ordinance of the City Council of the City of Brea amending the Brea City Code to Update Camping and Property Storage Regulations and Approving a CEQA Exemption Determination" by title only and waive further reading.
BACKGROUND/DISCUSSION
On January 14, 2025, City Council held a Study Session to discuss and provide direction on an update of camping and property storage ordinances to provide additional tools for protecting public access to public and private facilities. Proposed Ordinance No. 1253 will enact the City Code amendments proposed by staff at the Study Session with modifications requested by City Council.
COMMISSION/COMMITTEE RECOMMENDATION
Ordinance No. 1253 will amend Chapter 8.44 of the City Code to strengthen restrictions on camping and property storage in order to further promote the public health, safety, and welfare.
FISCAL IMPACT/SUMMARY
Adoption of the Ordinance is not expected to have a budget impact.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Terence Boga, City Attorney
Concurrence: Adam Hawley, Chief of Police
Attachments
exhibit a (ord).pdf
exhibit b (city code excerpts).pdf
exhibit c (redline).pdf
__________, 2025
ORD. ____
3065636.1 1
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BREA
AMENDING THE BREA CITY CODE TO UPDATE CAMPING AND
PROPERTY STORAGE REGULATIONS AND APPROVING A CEQA
EXEMPTION DETERMINATION
THE CITY COUNCIL OF THE CITY OF BREA DOES ORDAIN AS FOLLOWS:
A. RECITALS:
(i) On October 4, 2016, the City Council adopted Ordinance No. 1185 to add Chapter 8.44 to the City Code to regulate storage of personal property in public areas. (ii) On October 6, 2020, the City Council adopted Ordinance no. 1217 to amend Chapter 8.44 of the City Code by establishing new restrictions on camping in public areas.
(iii) The purposes of Chapter 8.44 of the City Code are to maintain public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly-owned or controlled property in a clean, sanitary, safe and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in Brea.
(iv) On June 28, 2024, the U.S. Supreme Court issued its decision in the case of City of Grants Pass v. Johnson [144 S.Ct. 2202] reestablishing the potential for criminal penalties to be imposed on conduct related to unlawful encampments on public property.
(v) The City Council desire to further promote the purposes of Chapter 8.44 __________, 2025
ORD. ____
3065636.1 2
of the City Code by establishing additional camping and property storage regulations.
B. ORDINANCE:
SECTION 1. Declaration. The facts set forth in the Recitals, Part A of this Ordinance, are true and correct.
SECTION 2. Code Amendment. Section 8.44.020 (Definitions) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by revising the “Public Area” definition to read as follows:
“PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. ‘Public Area’ includes places owned or controlled by the County of Orange or another government entity. ‘Public Area’ shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.”
SECTION 3. Code Amendment. Section 8.44.050 (Notice Prior To Impoundment) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by revising subparagraph C to read as follows:
__________, 2025
ORD. ____
3065636.1 3
“C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than twentyfour (24) hours after the notice is left.” SECTION 4. Code Amendment. Section 8.44.135 (Camping In Public Areas Prohibited) of Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended to read as follows:
“8.44.135 PROHIBITED CAMPING.
A. Public Areas. No person shall camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp in, on, or underground of any public area except as permitted by paragraph (C)(1).
B. Private Property. No landowner or occupant of private property shall willfully allow, authorize, or permit another person to camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp on such private property except as permitted by paragraph (C)(2) or as mandated by law. This prohibition is applicable to all private property including parking lots of large markets and retail sales warehouse stores.
C. Exceptions. This section shall not apply to the following:
1. Camping in a public area at a park, recreational facility, or trail pursuant to authorization from the City.
__________, 2025
ORD. ____
3065636.1 4
2. Camping on private property in the rear or side yard of a residential structure with the consent of the landowner or occupant as long as all of the following criteria are satisfied: (i) the camping facility is separated from the street by a fence, hedge, or other permanent obstruction; (ii) the camping facility is not visible from public right-of-way; and (iii) the camping does not occur for a period longer than 48 consecutive hours in a 30-day period.”
SECTION 5. Code Amendment. Chapter 8.44 (Storage of Personal Property and Camping in Public Areas) of Title 8 (Health, Safety, and Welfare) of Part I (Municipal Code) of the Brea City Code is amended by adding a new Section 8.44.136 to read as follows:
“8.44.136 UNLAWFUL OBSTRUCTIONS.
A. No person shall obstruct access to or maintenance of public equipment or a public facility by loitering, sitting, lying, or sleeping on public property.
B. No person shall obstruct access to or maintenance of public equipment or a public facility by abandoning, storing, using, maintaining, or placing personal property on public property.
C. No person shall obstruct access to or maintenance of a school or playground by loitering, sitting, lying, or sleeping on public property.
D. No person shall obstruct access to or maintenance of a school or playground by abandoning, storing, using, maintaining, or placing personal property on public property.
E. No person shall sleep, lie down, or sit on any moveable chair, bucket, crate, cooler, or similar personal property in a public area other than as part of a lawful __________, 2025
ORD. ____
3065636.1 5
event taking place along a public area.
F. No person shall sleep or lie down on or under a public transit/bus bench or a bench, table, playground equipment, or similar fixture or structure in a public park.
G. No person shall obstruct access to a private facility by loitering, sitting, lying, or sleeping on public property.
H. No person shall obstruct access to a private facility by abandoning, storing, using, maintaining, or placing personal property on public property.” SECTION 6. CEQA. The City Council finds and determines that adoption of this Ordinance is exempt from California Environmental Quality Act (“CEQA”) review pursuant to statutory and categorical exemptions including those set forth at California Code of Regulations Title 14, Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3).
SECTION 7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 8. The City Clerk shall certify to the adoption of this Ordinance.
APPROVED AND ADOPTED this __ day of __________, 2025.
________________________________
Blair Stewart, Mayor
__________, 2025
ORD. ____
3065636.1 6
ATTEST: _____________________________
Lillian Harris-Neal, City Clerk
__________, 2025
ORD. ____
3065636.1 7
I, Lillian Harris-Neal, City Clerk of the City of Brea, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Brea held on the ___ day of ___________, 2025, and was finally passed at a regular meeting of the City Council of the City of Brea held on the ____ day of ___________, 2025, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
DATED: _______________, 2025
________________________________
Lillian Harris-Neal, City Clerk
§ 8.32.050 OBSTRUCTING ENTRANCE TO PLACES OF PUBLIC ASSEMBLAGE.
It shall be unlawful for any person to loiter or to stand or sit in or at the entrance of any church, hall, theater or place of public assemblage so as in any manner to obstruct such entrance. ('61 Code, § 15.8) (Ord. 156, passed - - )
CHAPTER 8.44: STORAGE OF PERSONAL PROPERTY AND CAMPING
IN PUBLIC AREAS
Section
8.44.010 Purpose and intent
8.44.020 Definitions
8.44.030 Storage of personal property in public areas prohibited
8.44.040 Chief of Police to receive stored personal property
8.44.050 Notice prior to impoundment
8.44.060 Notice upon impoundment
8.44.070 Holding and disposal of stored personal property
8.44.080 Owner may claim personal property
8.44.090 Unclaimed personal property to be used by city or sold at auctionnotice
8.44.100 Conduct of auction
8.44.110 Proceeds to be deposited in general fund
8.44.120 Unsalable and unusable personal property
8.44.130 Dangerous or perishable personal property; evidence
8.44.135 Camping in public areas prohibited
8.44.140 Provisions not applicable
8.44.150 Violations, penalties and enforcement
§ 8.44.010 PURPOSE AND INTENT.
The public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly owned or controlled property within the city should be readily accessible and available to residents, businesses, and the public at large for their intended purposes. The use of these public areas for the storage of personal property or camping interferes with the rights of others to use and enjoy these public areas as they are intended. Such activity can constitute a public health and safety hazard which adversely impacts public offices, facilities, and services, as well as neighborhoods and commercial areas. The purposes of this chapter are to maintain these public areas within the city in a clean, sanitary, safe, and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that these public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in the city. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public property.
(Ord. 1185, passed 10-4-16; Am. Ord. 1217, passed 10-6-20) § 8.44.020 DEFINITIONS.
Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter.
ABANDONED PERSONAL PROPERTY. Personal property as to which it reasonably appears that the owner surrenders, relinquishes or disclaims all right, title, claim and possession, with intention of not reclaiming it or resuming its ownership, possession or enjoyment.
ALLEY. Shall have the meaning set forth in § 110 of the California Vehicle Code.
CAMP. To pitch or occupy camp facilities; to use camp paraphernalia.
CAMP FACILITIES. Shall include, but not be limited to, tents, huts or temporary shelters.
CAMPING PARAPHERNALIA. Shall include, but not be limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city provided cooking facilities and similar equipment.
CHIEF OF POLICE. The Chief of Police of the City of Brea, or his or her designee.
CITY CLERK. The City Clerk of the City of Brea, or his or her designee.
CITY MANAGER. The City Manager of the City of Brea, and shall include his or her designee.
COMMUNITY SERVICES DIRECTOR. The Community Services Director of the City of Brea, or his or her designee.
PARK. Shall have the same meaning as defined in § 12.00.020 of this Code.
PERSONAL PROPERTY. Tangible personal belongings or possessions, which shall include any movable or tangible thing that is subject to ownership; property or chattels that can be seen, weighed, measured, felt, or touched, including, but not limited to, furniture, appliances, camping equipment or paraphernalia, money, books, and “shopping carts” or “carts” as defined in this section.
POLICE DEPARTMENT. The Brea Police Department.
PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. “Public Area” shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.
SHOPPING CARTS or CARTS. Shall have the meaning set forth in Business and Professions Code § 22435.
STORE, STORED or STORAGE. To place or put aside personal property in a public area or accumulate it for use when needed; to place personal
property in a public area for safekeeping; and/or to leave personal property unattended in a public area.
STREET. Shall have the meaning set forth in § 590 of the California Vehicle Code.
UNCLAIMED PERSONAL PROPERTY. Personal property that has been turned in to the Chief of Police pursuant to § 8.44.040 and/or impounded pursuant to § 8.44.050, and that has not been claimed within a period of ninety (90) days by its owner. (Ord. 1185, passed 10-4-16; Am. Ord. 1217, passed 10-6-20) § 8.44.030 STORAGE OF PERSONAL PROPERTY IN PUBLIC AREAS PROHIBITED.
It shall be unlawful and a public nuisance for any person to store personal property in any public area, except as otherwise approved by the Chief of Police, the Community Services Director or by resolution of the City Council. Personal property stored in public areas in violation of this section shall be impounded pursuant to §§ 8.44.040 through 8.44.150 of this chapter. (Ord. 1185, passed 10-4-16)
§ 8.44.040 CHIEF OF POLICE TO RECEIVE STORED PERSONAL PROPERTY.
The Chief of Police is authorized to impound personal property pursuant to the provisions of §§
8.44.040 through 8.44.150 of this chapter, and shall make provisions for the receipt and safekeeping of personal property coming into his or her possession pursuant to this chapter. A receipt shall be issued to the person delivering such personal property, unless the personal property was found in the course of employment by an employee of the city. The Chief of Police shall notify the owner of the personal property, in writing, if his or her identity is reasonably ascertainable, or, if the identity of the owner is not reasonably ascertainable, cause a written notice to be left in a prominent place at or near where the personal property was located prior to removal, for any personal property impounded pursuant to § 8.44.030, advising that the Chief of Police is in possession of the personal property and the location where it may be claimed.
(Ord. 1185, passed 10-4-16)
§ 8.44.050 NOTICE PRIOR TO IMPOUNDMENT.
A. Stored personal property may be impounded without notice if there is a reasonable belief that it is abandoned, presents an immediate threat to public health or safety, is evidence of a crime, is evidence in a criminal investigation, or is contraband.
B. The city may erect signs in any public area or areas conspicuously stating that any personal property stored in those areas is subject to immediate impoundment. Those signs shall serve to provide the prior notice otherwise required by § 8.44.050C. Personal property unlawfully stored where any such sign has been posted may be immediately impounded.
C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than forty-eight (48) hours after the notice is left. (Ord. 1185, passed 10-4-16)
§ 8.44.060 NOTICE UPON IMPOUNDMENT.
If, after any notice required by § 8.44.050 is given, personal property remains unlawfully stored in any public area, that personal property may be impounded. The person impounding the personal property shall leave a notice in a conspicuous place at or near where the personal property was located prior to being impounded, advising where the personal property is being kept and when and where it may be claimed by its owner.
(Ord. 1185, passed 10-4-16)
§ 8.44.070 HOLDING AND DISPOSAL OF STORED PERSONAL PROPERTY.
Personal property coming into possession of the Chief of Police pursuant to this chapter shall be deposited in a safe place for a period of at least ninety (90) days. If the personal property consists of money, it shall be deposited with the City’s Director of Finance for a period of not less than ninety (90) days, unless sooner claimed by its owner. In the event the personal property or money is not claimed within ninety (90) days, it shall be deemed to be abandoned personal property, subject to disposition as provided in this chapter.
(Ord. 1185, passed 10-4-16)
§ 8.44.080 OWNER MAY CLAIM PERSONAL PROPERTY.
During the time that any personal property is held by the city, it may be delivered or paid to its owner as follows:
A. The personal property shall be delivered upon proof of ownership satisfactory to the Chief of Police after ten (10) days’ notice by mail to any other person(s) who have asserted a claim of ownership at any address given by such person(s).
B. If the personal property consists of money, it shall be paid to the owner upon written order from the Chief of Police to the Director of Finance. The Chief of Police shall make such order upon the same proof of ownership and with the same notice as prescribed in the case of personal property.
C. If ownership cannot be determined to the satisfaction of the Chief of Police, he or she may refuse to deliver the personal property or refuse to order the payment of such money to anyone until ordered to do so by a court of competent jurisdiction.
(Ord. 1185, passed 10-4-16)
§ 8.44.090 UNCLAIMED PERSONAL PROPERTY TO BE USED BY CITY OR SOLD AT AUCTIONNOTICE.
A. Upon expiration of the ninety (90)-day period, any personal property received by the city and not delivered to the owner may be appropriated for the use of the city upon order of the City Manager on his or her finding that the personal property is needed for a public use, and any personal property not appropriated for city use may be sold at public auction to the highest bidder or, if determined to be of de minimus or no apparent monetary value, such property may be disposed of in any lawful manner.
B. All unclaimed money received by the Chief of Police, and not delivered to the owner during the ninety (90)-day period, shall thereafter be deposited in the general fund.
C. Notice of the sale at auction of unclaimed personal property shall be given by the City Clerk at the direction of the Chief of Police at least five (5) days before the time fixed therefor by publication at least once in a newspaper of general circulation.
(Ord. 1185, passed 10-4-16)
§ 8.44.100 CONDUCT OF AUCTION.
An auction for the sale of unclaimed personal property shall be conducted by the Chief of Police. (Ord. 1185, passed 10-4-16)
§ 8.44.110 PROCEEDS TO BE DEPOSITED IN GENERAL FUND.
After any auction for unclaimed personal property is completed, the proceeds of the auction shall be delivered to the Director of Finance for deposit in the general fund. (Ord. 1185, passed 10-4-16)
§ 8.44.120 UNSALABLE AND UNUSABLE PERSONAL PROPERTY.
Any personal property advertised and offered for sale but not sold and not suitable for appropriation for the use of the city shall be deemed to be of no value and shall be disposed of in such manner as the City Manager deems appropriate.
(Ord. 1185, passed 10-4-16)
§ 8.44.130 DANGEROUS OR PERISHABLE PERSONAL PROPERTY; EVIDENCE.
Subject to the provisions of § 8.44.140 below, any personal property coming into the possession of the Chief of Police may be disposed of immediately and without notice, in a manner that the Chief of Police determines to be in the public interest and otherwise as provided by law, when such personal property is perishable, contraband, evidence of a crime, evidence in a criminal investigation, or is reasonably believed to constitute an immediate threat to the public health or safety. (Ord. 1185, passed 10-4-16)
§ 8.44.135 CAMPING IN PUBLIC AREAS PROHIBITED.
(A) No person shall camp, occupy camp facilities, or use camp paraphernalia in any public area. (B) This section shall not apply to camping at a park, recreational facility, or trail pursuant to written consent of the Community Services Department in accordance with §§ 12.00.050(A)(14) and
12.00.070.
(C) This section shall be enforced in accordance with the protocols set forth in the city’s settlement agreement in the U.S. District Court case of Orange County Catholic Worker et al. v. Orange County et al. (Case No. 8:18-cv-00155 DOC (JDE)).
(Ord. 1217, passed 10-6-20)
§ 8.44.140 PROVISIONS NOT APPLICABLE.
A. The provisions of §§ 8.44.040 through 8.44.110 shall not apply to real property, or personal property or money that is subject to confiscation pursuant to state or federal law; or to personal property that constitutes evidence of a crime, evidence in an ongoing criminal investigation and/or civil proceeding pursuant to state or federal law. The provisions of this chapter shall not apply to any motor vehicle. Personal property found or saved on private property shall be subject to the provisions of §
8.32.070 of this code.
B. The provisions/of this chapter shall not apply to abandoned personal property, which shall be disposed of forthwith.
C. “Shopping carts” or “carts” shall be subject to release to the owners and operators of businesses which provide shopping carts for the convenience of their customers or abatement and/or disposal thereof as may be permitted by law.
D. Notwithstanding the regulations set forth in this chapter, the City Manager and/or Chief of Police are hereby authorized to promulgate additional rules and policies for the implementation of this chapter in a manner consistent with state and federal law. (Ord. 1185, passed 10-4-16)
§ 8.44.150 VIOLATIONS, PENALTIES AND ENFORCEMENT.
Notwithstanding any other provision in this code, each violation of the provisions of this chapter may be enforced as follows:
A. A violation of this chapter may be punishable alternatively as a misdemeanor or an infraction at the discretion of the City Attorney or City Prosecutor. The penalty for an infraction and/or misdemeanor shall be as set forth in Chapter 1.04 of this code.
B. A violation of any of the provisions of this chapter hereby adopted shall constitute a nuisance and may be abated by the city through civil process by means of restraining order, preliminary or permanent injunction or in any other manner provided by law for the abatement of such nuisances. (Ord. 1185, passed 10-4-16)
§ 12.00.050 PROHIBITED CONDUCT GENERALLY.
A. Within any park or recreational facility, or upon any trail, it shall be unlawful for any person to do any of the following:
1. Throw or cause to be launched rocks, stones or any other object or projectile, with intent to cause serious injury to any person or animal, or damage to property.
2. Make any fire or utilize a lit barbecue, except at places designated by a sign, or by the provision of a fire ring or barbeque equipment, for such purpose. No person starting or maintaining a fire or barbecue shall leave the area where the fire/barbecue is located without first completely extinguishing such fire or barbecue such that no embers exist and no other combustion is occurring.
3. Conduct or cause to be conducted any business. For purposes of this subsection, the term BUSINESS shall mean the sale or purchase, or solicitation or offer to sell or purchase, for any form of consideration, any goods, product, thing of value, or service, or the delivery of any goods, product or thing of value, or provision of any service, following the sale thereof, whether such sale occurred on or off city property. Prohibited BUSINESS includes providing lessons or instruction for any form of compensation, regardless of where payment is made. This subsection shall not apply to any cityoperated or permitted (by written permit) activity.
4. Climb upon any wall, fence, shelter, seat, building, structure, tree, shrub, device or other equipment, excepting play equipment posted or otherwise designated by the city for such use.
5. Bring, land, or cause to descend or alight any aircraft, balloon, toy plane, parachute or other instrumentality, machine or apparatus for human aviation or flight, without written permission of the Community Services or Maintenance Services Department, or City Manager, excluding any emergency personnel, i.e., helicopter, from this provision.
6. Damage, deface, alter, injure, destroy, paint, graffiti, tamper with, or remove any equipment, pathway, building, facility, tree, wood, bush, turf, flower, plant, grass, soil, rock, or any tangible thing or part of any park, trail or recreational facility.
7. Frighten, molest, chase, tease, injure, kill or remove any animal. This subsection shall not apply to any city, county, state or federal government employee whose official duty includes control of animals, while such employee is engaged in such duty.
8. Place, pile, deposit, leave or cause to be deposited any building material, soil, solid waste, refuse, hazardous material, or any other thing or material, except as permitted by the Maintenance Services Department or the Community Services Department, or in an area or receptacle posted or designated by the Maintenance Services Department for such purpose.
9. Swim, bathe, wade in or pollute the waters of any water feature not posted for such use, including but not limited to, any flood control channel, fountain, stream, lake, marsh or fishpond.
10. Operate any remote-controlled vehicle (including model cars) or motorized and self-propelled flying vehicles (including model airplanes and drones), except in areas posted for such use.
11. Operate inflatable “bounce houses” and/or generators of any kind. This subsection shall not apply to official city functions.
12. Feed or cause to be fed any wild animals, including but not limited to, opossums, skunks, raccoons, and squirrels, ducks, geese, pigeons, or other wild animals or fowl, except where specifically allowed as part of a city-sponsored or permitted event.
13. Play or engage in the game of golf, or to hit any golf ball with a golf club, in any area not posted or otherwise specifically designated for such activity.
14. To camp or stay overnight without possessing written consent of the Community Services Department.
15. Leave garbage, cans, bottles, papers or other refuse other than in trash receptacles.
16. Bring garbage or refuse from outside the limits of the park, trail or recreational facility, and deposit the same in garbage cans or receptacles at a city park, trail or recreational facility.
17. Change into bathing clothes from street clothes or from street clothes to bathing clothes, except in a locker room, bath house or other structure posted or otherwise designated for such use.
18. Assemble, collect, gather together in or upon, or occupy, any walk, passageway or pathway, or any other place designated or posted for travel of persons, in any manner to prevent or obstruct any person's free passage thereon or use thereof.
19. Fire, discharge or carry any dangerous weapon. As used in this subsection, the term DANGEROUS WEAPON includes, but is not limited to, any paintball gun, bow and arrow, slingshot, or any other type of device, other than a firearm, capable of propelling a projectile and causing injury, and not otherwise prohibited from being possessed in a park, recreational facility or on any trail, by any other chapter of this code, or any state or federal law. Violations of any other chapter of this code, or state or federal law, pertaining to the possession or discharge of any firearm or other dangerous weapon, shall be prosecuted under such chapter, or state or federal law.
20. Urinate or defecate except in urinals and/or toilets within a restroom open to the public.
21. Smoke any cigarette or cigar within twenty-five (25) feet of any playground or tot lot area, or leave or deposit any cigarette or cigar butt outside of a trash receptacle.
B. Any person who commits any of the acts set forth in this section shall be subject to punishment as provided in this chapter and/or ejection by a Police Officer.
C. Nothing in this section or chapter shall be deemed to authorize any conduct otherwise prohibited by any other provision of this code.
(Ord. 1109, passed 12-4-07; Am. Ord. 1240, passed 6-20-23) Penalty, see §§ 1.04.010 and 1.04.030 § 12.00.080 USE OF RESTROOMS AND WASHROOMS.
It is unlawful for any person to use any public restroom for the purpose of bathing oneself or any other individual, or any animal, or to change clothes.
(Ord. 1109, passed 12-4-07; Am. Ord. 1240, passed 6-20-23) Penalty, see §§ 1.04.010 and 1.04.030 § 12.04.040 OBSTRUCTING PASSAGE AND ANNOYING PERSONS ON STREETS, ETC.
It shall be unlawful for any person to loiter, stand or sit in or upon any public highway, alley, sidewalk or crosswalk so as to in any manner hinder or obstruct the free passage therein or thereon of persons or vehicles passing or attempting to pass along the same, or so as to in any manner annoy or molest persons passing along the same.
('61 Code, § 20.7) (Ord. 156, passed - - )
BREA CITY CODE CHAPTER 8.44 UPDATE
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Text to be added shown in italics
Text to be deleted shown in strike-through
CHAPTER 8.44:STORAGE OF PERSONAL PROPERTY AND CAMPING IN PUBLIC AREAS
§ 8.44.010 PURPOSE AND INTENT.
The public parks, public streets and alleys, public parking lots, public rights-of-way, parkways, public sidewalks, recreational areas, and other publicly owned or controlled property within the city should be readily accessible and available to residents, businesses, and the public at large for their intended purposes. The use of these public areas for the storage of personal property or camping interferes with the rights of others to use and enjoy these public areas as they are intended. Such activity can constitute a public health and safety hazard which adversely impacts public offices, facilities, and services, as well as neighborhoods and commercial areas. The purposes of this chapter are to maintain these public areas within the city in a clean, sanitary, safe, and accessible condition; to adequately protect the health, safety, environment, and general welfare of the community; and to ensure that these public areas are used for their intended purposes and remain accessible to all citizens, businesses, and visitors in the city. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public property. § 8.44.020 DEFINITIONS.
Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter.
ABANDONED PERSONAL PROPERTY. Personal property as to which it reasonably appears that the owner surrenders, relinquishes or disclaims all right, title, claim and possession, with intention of not reclaiming it or resuming its ownership, possession or enjoyment.
ALLEY. Shall have the meaning set forth in § 110 of the California Vehicle Code.
CAMP. To pitch or occupy camp facilities; to use camp paraphernalia.
CAMP FACILITIES. Shall include, but not be limited to, tents, huts or temporary shelters.
CAMPING PARAPHERNALIA. Shall include, but not be limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city provided cooking facilities and similar equipment.
CHIEF OF POLICE. The Chief of Police of the City of Brea, or his or her designee.
CITY CLERK. The City Clerk of the City of Brea, or his or her designee. - 2 of 7 - 3061872.6
CITY MANAGER. The City Manager of the City of Brea, and shall include his or her designee.
COMMUNITY SERVICES DIRECTOR. The Community Services Director of the City of Brea, or his or her designee.
PARK. Shall have the same meaning as defined in § 12.00.020 of this Code.
PERSONAL PROPERTY. Tangible personal belongings or possessions, which shall include any movable or tangible thing that is subject to ownership; property or chattels that can be seen, weighed, measured, felt, or touched, including, but not limited to, furniture, appliances, camping equipment or paraphernalia, money, books, and “shopping carts” or “carts” as defined in this section.
POLICE DEPARTMENT. The Brea Police Department.
PUBLIC AREA. A publicly owned or controlled place, including, but not limited to, any public street, alley, public parking lot, public park, public rights-of-way, public parkway, public sidewalk, public recreational area, public recreational facility, the Brea Civic and Cultural Center and all public areas adjacent thereto, the Brea Library and all public areas adjacent thereto, the Curtis Theater and all public areas adjacent thereto, the Brea Community Center and all public areas adjacent thereto, the Brea Senior Center and all public areas adjacent thereto, and/or any and all other publicly-owned or controlled property in the city. ‘Public Area’ includes places owned or controlled by the County of Orange or another government entity. “Public Area” shall not include any area designated as a public campground pursuant to federal, state or local statute, ordinance or resolution.
SHOPPING CARTS or CARTS. Shall have the meaning set forth in Business and Professions Code § 22435.
STORE, STORED or STORAGE. To place or put aside personal property in a public area or accumulate it for use when needed; to place personal property in a public area for safekeeping; and/or to leave personal property unattended in a public area.
STREET. Shall have the meaning set forth in § 590 of the California Vehicle Code.
UNCLAIMED PERSONAL PROPERTY. Personal property that has been turned in to the Chief of Police pursuant to § 8.44.040 and/or impounded pursuant to § 8.44.050, and that has not been claimed within a period of ninety (90) days by its owner. § 8.44.030 STORAGE OF PERSONAL PROPERTY IN PUBLIC AREAS PROHIBITED.
It shall be unlawful and a public nuisance for any person to store personal property in any public area, except as otherwise approved by the Chief of Police, the Community Services Director or by resolution of the City Council. Personal property stored in public areas in violation of this section shall be impounded pursuant to §§ 8.44.040 through
8.44.150 of this chapter.
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§ 8.44.040 CHIEF OF POLICE TO RECEIVE STORED PERSONAL PROPERTY.
The Chief of Police is authorized to impound personal property pursuant to the provisions of §§ 8.44.040 through 8.44.150 of this chapter, and shall make provisions for the receipt and safekeeping of personal property coming into his or her possession pursuant to this chapter. A receipt shall be issued to the person delivering such personal property, unless the personal property was found in the course of employment by an employee of the city. The Chief of Police shall notify the owner of the personal property, in writing, if his or her identity is reasonably ascertainable, or, if the identity of the owner is not reasonably ascertainable, cause a written notice to be left in a prominent place at or near where the personal property was located prior to removal, for any personal property impounded pursuant to § 8.44.030, advising that the Chief of Police is in possession of the personal property and the location where it may be claimed. § 8.44.050 NOTICE PRIOR TO IMPOUNDMENT.
A. Stored personal property may be impounded without notice if there is a reasonable belief that it is abandoned, presents an immediate threat to public health or safety, is evidence of a crime, is evidence in a criminal investigation, or is contraband.
B. The city may erect signs in any public area or areas conspicuously stating that any personal property stored in those areas is subject to immediate impoundment. Those signs shall serve to provide the prior notice otherwise required by § 8.44.050C. Personal property unlawfully stored where any such sign has been posted may be immediately impounded.
C. If neither subparagraph A. nor subparagraph B. apply, personal property unlawfully stored in public areas shall be impounded only after a notice is left on, or at or near the location of the personal property, advising that the personal property will be impounded if it is not removed. This notice will specify a time when the personal property will be impounded if it is not removed. Such time shall not be less than forty-eight (48) twenty-four (24) hours after the notice is left.
§ 8.44.060 NOTICE UPON IMPOUNDMENT.
If, after any notice required by § 8.44.050 is given, personal property remains unlawfully stored in any public area, that personal property may be impounded. The person impounding the personal property shall leave a notice in a conspicuous place at or near where the personal property was located prior to being impounded, advising where the personal property is being kept and when and where it may be claimed by its owner.
§ 8.44.070 HOLDING AND DISPOSAL OF STORED PERSONAL PROPERTY.
Personal property coming into possession of the Chief of Police pursuant to this chapter shall be deposited in a safe place for a period of at least ninety (90) days. If the personal property consists of money, it shall be deposited with the City’s Director of Finance for a period of not less than ninety (90) days, unless sooner claimed by its owner. - 4 of 7 - 3061872.6
In the event the personal property or money is not claimed within ninety (90) days, it shall be deemed to be abandoned personal property, subject to disposition as provided in this chapter.
§ 8.44.080 OWNER MAY CLAIM PERSONAL PROPERTY.
During the time that any personal property is held by the city, it may be delivered or paid to its owner as follows:
A. The personal property shall be delivered upon proof of ownership satisfactory to the Chief of Police after ten (10) days’ notice by mail to any other person(s) who have asserted a claim of ownership at any address given by such person(s).
B. If the personal property consists of money, it shall be paid to the owner upon written order from the Chief of Police to the Director of Finance. The Chief of Police shall make such order upon the same proof of ownership and with the same notice as prescribed in the case of personal property.
C. If ownership cannot be determined to the satisfaction of the Chief of Police, he or she may refuse to deliver the personal property or refuse to order the payment of such money to anyone until ordered to do so by a court of competent jurisdiction. § 8.44.090 UNCLAIMED PERSONAL PROPERTY TO BE USED BY CITY OR SOLD AT AUCTION-NOTICE.
A. Upon expiration of the ninety (90)-day period, any personal property received by the city and not delivered to the owner may be appropriated for the use of the city upon order of the City Manager on his or her finding that the personal property is needed for a public use, and any personal property not appropriated for city use may be sold at public auction to the highest bidder or, if determined to be of de minimus or no apparent monetary value, such property may be disposed of in any lawful manner.
B. All unclaimed money received by the Chief of Police, and not delivered to the owner during the ninety (90)-day period, shall thereafter be deposited in the general fund.
C. Notice of the sale at auction of unclaimed personal property shall be given by the City Clerk at the direction of the Chief of Police at least five (5) days before the time fixed therefor by publication at least once in a newspaper of general circulation. § 8.44.100 CONDUCT OF AUCTION.
An auction for the sale of unclaimed personal property shall be conducted by the Chief of Police.
§ 8.44.110 PROCEEDS TO BE DEPOSITED IN GENERAL FUND.
After any auction for unclaimed personal property is completed, the proceeds of the auction shall be delivered to the Director of Finance for deposit in the general fund. - 5 of 7 - 3061872.6
§ 8.44.120 UNSALABLE AND UNUSABLE PERSONAL PROPERTY.
Any personal property advertised and offered for sale but not sold and not suitable for appropriation for the use of the city shall be deemed to be of no value and shall be disposed of in such manner as the City Manager deems appropriate. § 8.44.130 DANGEROUS OR PERISHABLE PERSONAL PROPERTY; EVIDENCE.
Subject to the provisions of § 8.44.140 below, any personal property coming into the possession of the Chief of Police may be disposed of immediately and without notice, in a manner that the Chief of Police determines to be in the public interest and otherwise as provided by law, when such personal property is perishable, contraband, evidence of a crime, evidence in a criminal investigation, or is reasonably believed to constitute an immediate threat to the public health or safety.
§ 8.44.135 CAMPING IN PUBLIC AREAS PROHIBITED.
A. Public Areas. No person shall camp, occupy camp facilities, or use camp paraphernalia, or use a vehicle to camp in, on, or underground any public area except as permitted by paragraph (C)(1).
B. Private Property. This section shall not apply to camping at a park, recreational facility, or trail pursuant to written consent of the Community Services Department in accordance with §§ 12.00.050(A)(14) and 12.00.070. No landowner or occupant of private property shall willfully allow, authorize, or permit another person to camp, occupy camp facilities, use camp paraphernalia, or use a vehicle to camp on such private property except as permitted by paragraph (C)(2) or as mandated by law. This prohibition is applicable to all private property including parking lots of large markets and retail sales warehouse stores.
C. Exceptions. This section shall be enforced in accordance with the protocols set forth in the city’s settlement agreement in the U.S. District Court case of Orange County Catholic Worker et al. v. Orange County et al. (Case No. 8:18-cv-00155 DOC (JDE)).
This section shall not apply to the following:
1. Camping in a public area at a park, recreational facility, or trail pursuant to authorization from the City.
2. Camping on private property in the rear or side yard of a residential structure with the consent of the landowner or occupant as long as all of the following criteria are satisfied: (i) the camping facility is separated from the street by a fence, hedge, or other permanent obstruction; (ii) the camping facility is not visible from public right-of-way; and (iii) the camping does not occur for a period longer than 48 consecutive hours in a 30-day period.
§ 8.44.136 UNLAWFUL OBSTRUCTIONS.
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A. No person shall obstruct access to or maintenance of public equipment or a public facility by loitering, sitting, lying, or sleeping on public property.
B. No person shall obstruct access to or maintenance of public equipment or a public facility by abandoning, storing, using, maintaining, or placing personal property on public property.
C. No person shall obstruct access to or maintenance of a school or playground by loitering, sitting, lying, or sleeping on public property.
D. No person shall obstruct access to or maintenance of a school or playground by abandoning, storing, using, maintaining, or placing personal property on public property.
E. No person shall sleep, lie down, or sit on any moveable chair, bucket, crate, cooler, or similar personal property in a public area other than as part of a lawful event taking place along a public area.
F. No person shall sleep or lie down on or under a public transit/bus bench or a bench, table, playground equipment, or similar fixture or structure in a public park.
G. No person shall obstruct access to a private facility by loitering, sitting, lying, or sleeping on public property.
H. No person shall obstruct access to a private facility by abandoning, storing, using, maintaining, or placing personal property on public property. § 8.44.140 PROVISIONS NOT APPLICABLE.
A. The provisions of §§ 8.44.040 through 8.44.110 shall not apply to real property, or personal property or money that is subject to confiscation pursuant to state or federal law; or to personal property that constitutes evidence of a crime, evidence in an ongoing criminal investigation and/or civil proceeding pursuant to state or federal law. The provisions of this chapter shall not apply to any motor vehicle. Personal property found or saved on private property shall be subject to the provisions of § 8.32.070 of this code.
B. The provisions/of this chapter shall not apply to abandoned personal property, which shall be disposed of forthwith.
C. “Shopping carts” or “carts” shall be subject to release to the owners and operators of businesses which provide shopping carts for the convenience of their customers or abatement and/or disposal thereof as may be permitted by law.
D. Notwithstanding the regulations set forth in this chapter, the City Manager and/or Chief of Police are hereby authorized to promulgate additional rules and policies for the implementation of this chapter in a manner consistent with state and federal law. § 8.44.150 VIOLATIONS, PENALTIES AND ENFORCEMENT.
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Notwithstanding any other provision in this code, each violation of the provisions of this chapter may be enforced as follows:
A. A violation of this chapter may be punishable alternatively as a misdemeanor or an infraction at the discretion of the City Attorney or City Prosecutor. The penalty for an infraction and/or misdemeanor shall be as set forth in Chapter 1.04 of this code.
B. A violation of any of the provisions of this chapter hereby adopted shall constitute a nuisance and may be abated by the city through civil process by means of restraining order, preliminary or permanent injunction or in any other manner provided by law for the abatement of such nuisances.
City of Brea
City Council Regular Meeting Communication
A. December 3, 2024 Regular Meeting Minutes
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
CONSENT CALENDAR Item: 4A.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Approve.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Victoria Popescu, Deputy City Clerk
Concurrence: Lillian Harris-Neal, City Clerk
Attachments
12-03-2024 - Draft Minutes.pdf
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City Council Regular Meeting Communication
B. Adopt Resolution No. 2025-01, 2025-02, 2025-03, and 2025-04 to Adopt New and Amended Job Descriptions and Salary Tables for Various Positions Across Multiple Departments, Amend the Position Allocation List for FY 2024/25, and Place the Classifications in the Appropriate Bargaining Units for Representation Purposes.
Meeting
Tuesday, January 21, 2025, 7:00 PM
Agenda Group
CONSENT CALENDAR Item: 4B.
TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager
RECOMMENDATION
Approve the Resolutions: 1) adopting job descriptions and salary tables for the positions of Payroll Supervisor, Principal's (Accounting, Human Resources, Management and Planning), Public Works Utilities Supervisor, Utility Billing Supervisor, Management Assistant, Payroll Technician, Fire Division Chief, Fire Deputy Chief, Deputy Director of Community Development, Deputy Director of Public Works, Public Works Manager, and Public Works Utilities Manager; 2) placing the classifications in the Administrative and Professional Employees’ Association (APEA), the Brea City Employees’ Association (BCEA), The Brea Fire Management Association (BFMA), and the Brea Management Association (BMA) bargaining units respectively for representation purposes including moving the Building Official from APEA to BMA; and 3) amending the City’s Position Allocation List to include these positions in the appropriate Department and/or Division.
BACKGROUND/DISCUSSION
For City Council consideration are four resolutions authorizing the creation of new positions and amending existing positions to effectuate succession planning efforts and promote retention of existing city employees. The goal is to modernize job descriptions and update salary ranges in accordance with market analysis of comparable cities.
Some of these positions are new and others are merely being modernized by updating essential duties and qualifications. In the last couple of years, various city departments have all encountered higher than usual staff turnover of key, front-line and management positions. The turnover was due to a combination of retirements, promotions, general attrition, and post-pandemic impacts on labor force staffing levels. Despite increasing workloads and the urgent need to recruit and replace key vacancies, the departments in conjunction with the Executive team continue to collaborate in order to comprehensively and creatively evaluate strategic ways to appropriately fill positions and also develop succession planning strategies to prepare current staff for future promotional opportunities.
The goal is to fill positions with the most appropriate staff to best serve the community or consider new staffing models to meet operational needs. Seizing this opportunity to align staffing with city-wide goals will ultimately benefit the community and allow us to better align our services in a post-pandemic world where recruiting and retaining qualified staff is a growing challenge. However, a key opportunity is also to allow for promotional opportunities for employees seeking to grow within the organization. This will address recent findings identified by the Brea Forward group, which is a staff-driven initiative designed by employees to problem-solve challenges and help create a more modern workplace. Using input from across the entire organization, this collaborative group works with the Executive team to build a future that represents all City of Brea employees’ interests. Both the Executive team and Brea Forward group have identified the need for succession plans that address the changing environment of public sector employment and the need for retention of highly qualified and motivated employees.
Typically, the staff process for adoption of new classifications is that we bring new positions or amendments to positions to City Council on an as needed basis or after MOU negotiations. Given the significant transition we have experienced over the last couple of years, the Executive team wanted to take a more comprehensive approach to this process and tasked Human Resources Division to work with Directors, Managers and Associations to identify positions that needed modernization of titles and duties as well as identify new classifications that in the future may fill gaps that we have identified as personnel has retired or separated from the organization.
Principal Positions. The City of Brea currently has a journey-level Management Analyst class series that includes a Management Analyst I/II and Senior Management Analyst. These are key positions that usually result in the development of future managers within the organization. In terms of retention and succession planning, these class series lack a higher functioning position that can better prepare staff to take on division level manager positions. We do have principal level positions in other divisions, but not within the analyst ranks. Similarly, we have the same challenges in Human Resources, Accounting and Planning divisions where we have senior level analysts, planners and accountants, but none in the principal level ranks.
At the same time, a need was identified to create a position to bridge the gap between entry-level clerical positions and the first level of the Management Analyst class series. The Police Department also requested a lower level position that could provide outreach to the community. After a thorough analysis of the market, creating the position of Management Assistant meets both of these needs and also allows staff to have a clear career path toward the analyst series.
Staff reviewed all the necessary information and after careful consideration, it was determined the principal classifications should be assigned to APEA and Management Assistant to BCEA.
Deputy Directors Positions. Historically deputy directors have been compensated under an MOU agreement allowing any division manager to be formally assigned additional duties and to be compensated via a Management Incentive Pay program ranging from 5% to 10% at the discretion of the director. This action formally establishes a job description for the remaining two non-safety departments that could opt to have deputy directors. In recent years, CalPERS has questioned the reportability of such compensation arrangements. Therefore, in the recently approved Management MOU, the City and the Brea Management Association agreed to adopt a new classification of deputy director for all non-safety departments. Currently Public Works Department and Community Development Department do not have any staff member assigned to deputy director duties. We have drafted deputy director job descriptions for these departments to be ready in the event they decide to staff positions and have the budget authorization to do so. At this point, only the Community Services and Administrative Services departments have deputy directors.
Fire Division and Fire Deputy Chief Positions. Historically, Fire Division Chiefs and Fire Deputy Chiefs have been compensated under an MOU agreement with BFMA, allowing for any Fire Battalion Chief to be formally assigned additional duties and to be compensated via a Management Incentive Pay program ranging from 10% to 20% at the discretion of the Fire Chief. Similar to deputy directors, in recent years CalPERS has questioned the reportability of such compensation arrangements. Therefore, in the previously approved Fire Management MOU, the City and the Brea Fire Management Association agreed to adopt a new classification of Fire Division Chief and Fire Deputy Chief for the Fire Department. We currently have personnel assigned to these duties and this action would not result in additional costs given that personnel are already assigned to those classifications.
Amend Existing Position Titles and Duties. These are essentially amendments to various existing job descriptions or the merging of one or more positions across the organization. In consultation with departments and associations, we revised the job descriptions and updated the salary ranges to either account for the additional duties assigned to staff members assigned to these positions or to reflect the changing nature of the duties or required certifications.
A labor market analysis and internal review was conducted to determine compensation levels for the proposed classifications listed in the four resolutions. We found several positions in our market requiring knowledge, skills and abilities that would fall slightly "above" and slightly “below” what we are looking for in the various civilian positions for Brea. These salaries are in a range that could be used to set our position "in-between". This fits well with what was anticipated for the positions with this advanced specialization and/or supervisory level and is consistent with our current compensation practices. Therefore, based on available data and current compensation of positions, we recommend setting the salary ranges as listed in the attached exhibits B for all the proposed positions.
Based on the nature of duties outlined in the job descriptions, it is proposed that the City Council assign these positions to where they are currently staffed or where they will be assigned which is within APEA, BCEA, BFMA, or BMA for representation purposes. It is also recommended that City Council approve the recommended compensation plan. The City has consulted with the associations and they agree with the proposed assignment of these positions to their units. Lastly, the City's Master Salary Schedule will also be updated in the near future to add these changes and comply with CalPERS regulations.
In order to implement the proposed changes, it is also required that the Position Allocation List, which authorizes staffing levels, must be amended to include the positions in the appropriate department and/or division.
The approval of these positions will help Brea with our succession planning efforts by grooming employees to be prepared for future advancement and promoting retention within our ranks.
FISCAL IMPACT/SUMMARY
The recommended salary range and benefits for the job descriptions for these new and existing positions would not result in additional costs to the General Fund. There will be no fiscal impact on the General Fund to add the classifications to the position allocation list. Ongoing operating costs for existing positions are already budgeted within the appropriate departmental operating budget for FY 2024-25. City personnel are already staffing the Payroll Supervisor, Public Works Utilities Supervisors, Utility Billing Supervisor, Payroll Technician, Public Works Utilities Manager, and Public Works Manager positions through budget authorization or through an assignment pay clause in the MOU’s. The remaining new positions intended for succession planning could be filled in the future in accordance with budget authorizations.
The ongoing salary and benefit costs associated with any of these positions will need to be programmed in future General Fund budget cycles.
RESPECTFULLY SUBMITTED:
Kristin Griffith, Interim City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager Concurrence: Kristin Griffith, Administrative Services Director Attachments
Resolutions.pdf
Exhibit A - List of all Job Classifications by Association.pdf Exhibit B - List of Salary Tables by Association_.pdf
RESO NO. 2025-
January 21, 2025
RESOLUTION NO. 2025-_______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BREA 1) AMENDING
THE EXISTING CLASSIFICATION PLAN, AS AMENDED, AS ADOPTED FOR CITY
EMPLOYEES, TO INCLUDE THE CLASSIFICATION SPECIFICATIONS AND
SALARY RANGE FOR THE POSITIONS OF PAYROLL SUPERVISOR, PRINCIPAL
ACCOUNTANT, PRINCIPAL HUMAN RESOURCES ANALYST, PRINCIPAL
MANAGEMENT ANALYST, PRINCIPAL PLANNER, PUBLIC WORKS
SUPERVISOR, PUBLIC WORKS UTILITIES SUPERVISOR AND UTILITY BILLING SUPEVISOR; 2) ASSIGNING THE CLASSIFICATIONS TO THE ADMINISTRATIVE AND PROFESSIONAL EMPLOYEES’ ASSOCIATION FOR PURPOSES OF REPRESENTATION AND REMOVE BUILDING OFFICIAL; AND 3) AMENDING THE
POSITION ALLOCATION LIST TO ADD THE POSITIONS WITHIN THE
ADMINISTRATIVE SERVICES, COMMUNITY DEVELOPMENT AND PUBLIC WORKS DEPARTMENTS.
A. Recitals.
(i) Section 2.08 of the Brea Municipal Code provides that the City Council shall prepare, revise and maintain a position classification plan covering all positions within the classified services, including employment standards and qualifications for each classification.
(ii) The Brea Municipal Code provides that the City Council shall approve a plan of compensation directly correlated to the position classification plan and a rate or range of pay for each classification.
(iii) It is necessary, from time to time, to review and adjust the classification and compensation plan to reflect the changing organizational responsibilities of the City and to insure the efficient economical operation of the various City departments.
(iv) In order to most effectively implement and monitor the position classification plan, it is necessary, from time to time, to amend the Position Allocation List RESO NO. 2025-
January 21, 2025
which specifies the actual number and distribution of authorized positions within the City.
B. Resolution.
NOW THEREFORE, it is found, determined and resolved by the City Council of the City of Brea to:
(i) Amend the City’s existing classification plan to include the full-time classification specifications for Payroll Supervisor, Principal Accountant, Principal Human Resources Analyst, Principal Management Analyst, Principal Planner, Public Works Supervisor, Public Works Utilities Supervisor and Utility Billing Supervisor as attached hereto as Exhibit A and incorporated herein by reference.
(ii) Adopt the salary range for Payroll Supervisor, Principal Accountant, Principal Human Resources Analyst, Principal Management Analyst, Principal Planner, Public Works Supervisor, Public Works Utilities Supervisor and Utility Billing Supervisor as attached hereto as Exhibit B and incorporated herein by reference.
(iii) Assign the positions of Payroll Supervisor, Principal Accountant, Principal Human Resources Analyst, Principal Management Analyst, Principal Planner, Public Works Supervisor, Public Works Utilities Supervisor and Utility Billing Supervisor to the Administrative and Professional Employees’ Association for purposes of employee representation and remove Building Official. (iv) Amend the Position Allocation List for FY 2024/25 to add one Payroll Supervisor, one Principal Accountant, one Principal Human Resources Analyst, RESO NO. 2025-
January 21, 2025
one Principal Management Analyst, and one Utility Billing Supervisor to the Administrative Services Department, add one Principal Management Analyst and one Principal Planner position to the Community Development Department, and add two Public Works Supervisor and one Public Works Utilities Supervisor position to the Public Works Department.
APPROVED and ADOPTED THIS 21st day of January 2025.
______________________________
Blair Stewart, Mayor
ATTEST: __________________________
Lillian Harris-Neal, City Clerk
I, Lillian Harris-Neal, City Clerk of the City of Brea, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Brea, held on the 21st of January 2025, and was adopted by the following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAINED: COUNCILMEMBERS:
DATED: ______________________________
_____________________________________
Lillian Harris-Neal, City Clerk
RESO NO. 2025-
January 21, 2025
RESOLUTION NO. 2025-_______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BREA 1) AMENDING
THE EXISTING CLASSIFICATION PLAN, AS AMENDED, AS ADOPTED FOR CITY
EMPLOYEES, TO INCLUDE THE CLASSIFICATION SPECIFICATIONS AND
SALARY RANGE FOR THE POSITIONS OF MANAGEMENT ASSISTANT AND PAYROLL TECHNICIAN; 2) ASSIGNING THE CLASSIFICATIONS TO THE BREA CITY EMPLOYEES’ ASSOCIATION FOR PURPOSES OF REPRESENTATION; AND 3) AMENDING THE POSITION ALLOCATION LIST TO ADD THE POSITIONS
WITHIN THE ADMINISTRATIVE SERVICES, MANAGEMENT SERVICES AND POLICE SERVICES DEPARTMENTS.
A. Recitals.
(i) Section 2.08 of the Brea Municipal Code provides that the City Council shall prepare, revise and maintain a position classification plan covering all positions within the classified services, including employment standards and qualifications for each classification.
(ii) The Brea Municipal Code provides that the City Council shall approve a plan of compensation directly correlated to the position classification plan and a rate or range of pay for each classification.
(iii) It is necessary, from time to time, to review and adjust the classification and compensation plan to reflect the changing organizational responsibilities of the City and to insure the efficient economical operation of the various City departments.
(iv) In order to most effectively implement and monitor the position classification plan, it is necessary, from time to time, to amend the Position Allocation List which specifies the actual number and distribution of authorized positions within the City.
RESO NO. 2025-
January 21, 2025
B. Resolution.
NOW THEREFORE, it is found, determined and resolved by the City Council of the City of Brea to:
(i) Amend the City’s existing classification plan to include the full-time classification specifications for Management Assistant and Payroll Technician as attached hereto as Exhibit A and incorporated herein by reference. (ii) Adopt the salary range for Management Assistant and Payroll Technician as attached hereto as Exhibit B and incorporated herein by reference. (iii) Assign the positions of Management Assistant and Payroll Technician to the Brea City Employees’ Association for purposes of employee representation. (iv) Amend the Position Allocation List for FY 2024/25 to add one Management Assistant and one Payroll Technician to the Administrative Services Department, add one Management Assistant to the Management Services Department and add one Management Assistant to the Police Services Department.
RESO NO. 2025-
January 21, 2025
APPROVED and ADOPTED THIS 21st day of January 2025.
______________________________
Blair Stewart, Mayor
ATTEST: __________________________
Lillian Harris-Neal, City Clerk
I, Lillian Harris-Neal, City Clerk of the City of Brea, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Brea, held on the 21st of January 2025, and was adopted by the following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAINED: COUNCILMEMBERS:
DATED: ______________________________
_____________________________________
Lillian Harris-Neal, City Clerk
RESO NO. 2025-
January 21, 2025
RESOLUTION NO. 2025-_______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BREA 1) AMENDING
THE EXISTING CLASSIFICATION PLAN, AS AMENDED, AS ADOPTED FOR CITY
EMPLOYEES, TO INCLUDE THE CLASSIFICATION SPECIFICATIONS AND
SALARY RANGE FOR THE POSITIONS OF FIRE DEPUTY CHIEF AND FIRE DIVISION CHIEF; 2) ASSIGNING THE CLASSIFICATIONS TO THE BREA FIRE MANAGEMENT ASSOCIATION FOR PURPOSES OF REPRESENTATION; AND 3)
AMENDING THE POSITION ALLOCATION LIST TO ADD THE POSITIONS WITHIN THE FIRE SERVICES DEPARTMENTS.
A. Recitals.
(i) Section 2.08 of the Brea Municipal Code provides that the City Council shall prepare, revise and maintain a position classification plan covering all positions within the classified services, including employment standards and qualifications for each classification.
(ii) The Brea Municipal Code provides that the City Council shall approve a plan of compensation directly correlated to the position classification plan and a rate or range of pay for each classification.
(iii) It is necessary, from time to time, to review and adjust the classification and compensation plan to reflect the changing organizational responsibilities of the City and to insure the efficient economical operation of the various City departments.
(iv) In order to most effectively implement and monitor the position classification plan, it is necessary, from time to time, to amend the Position Allocation List which specifies the actual number and distribution of authorized positions within the City.
RESO NO. 2025-
January 21, 2025
B. Resolution.
NOW THEREFORE, it is found, determined and resolved by the City Council of the City of Brea to:
(i) Amend the City’s existing classification plan to include the full-time classification specifications for Fire Deputy Chief and Fire Division Chief as attached hereto as Exhibit A and incorporated herein by reference.
(ii) Adopt the salary range for Fire Deputy Chief and Fire Division Chief as attached hereto as Exhibit B and incorporated herein by reference. (iii) Assign the positions of Fire Deputy Chief and Fire Division Chief to the Brea Fire Management Association for purposes of employee representation. (iv) Amend the Position Allocation List for FY 2024/25 to add one Fire Deputy Chief and three Fire Division Chief’s to the Fire Services Department.
RESO NO. 2025-
January 21, 2025
APPROVED and ADOPTED THIS 21st day of January 2025.
______________________________
Blair Stewart, Mayor
ATTEST: __________________________
Lillian Harris-Neal, City Clerk
I, Lillian Harris-Neal, City Clerk of the City of Brea, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Brea, held on the 21st of January 2025, and was adopted by the following votes: