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California Public Employees Retirement Systems (CalPERS) Defined Benefit Pension Plan Schedule of Proportiante Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
Proportion of the Net Pension Liability 0.07605% 0.09390% 0.07315% Proportionate Share of the Net Pension Liability $ 1,783,019 3,558,546 $ $ 3,085,709 Covered-Employee Payroll $ 783,017 971,433 $ $ 842,114
Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 27.30% 43.92% 27.29% Plan's proportionate share of the fiduciary net position as a percentage of the Plan's total pension liability 78.19% 74.71% 74.71% Plan's proportionate share of aggregate employer contributions $ 783,017 783,017 $ $ 842,114 Notes to Schedule:
Changes of Assumptions:
Fiscal year ended June 30, 2016:
Amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expenses) to 7.65% (without a reduction for pension plan administrative expense).
Fiscal year ended June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
Fiscal year ended June 30, 2019:
Demographic assumptions and the inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions – December 2017.
Benefit Changes: There were no changes to benefits
(1) The City’s CalPERS Miscellaneous Plan was previously administered and reported as an agent multiple-employer plan, however, because the number of active members in the plan fell below 100, it is now administered as a cost-sharing multiple-employer plan, effective with the reporting for the fiscal year ended June 30, 2019. 54 2020 2019
0.07193% 0.06815%
$ 2,880,341 $ 2,568,468
$ 782,395 $ 921,221
27.16% 35.87%
75.87% 76.84%
$ 782,395 $ 921,221
55 CYPRESS RECREATION AND PARK DISTRICT
Schedule of Change in Net Pension Liability and Related Ratios California Public Employees Retirement Systems (CalPERS) Defined Benefit Pension Plan As of June 30, for the Last Ten Fiscal Years (1)
MEASUREMENT PERIOD 2022 2021 2020 2019
TOTAL PENSION LIABILITY
Service Cost $ 314,040 $ 415,794 $ 554,259 $ 1,158,087
Interest 1,227,448 894,212 1,603,520 3,236,655
Changes of Benefits Terms 866 2,370 1,697 1,901
Difference Between expected and Actual Experience 74,406 (55,075) 332,356 558,285 Changes in Assumptions - 419,594 - (406,546)
Benefit Payments, Including Refunds of employee
Contributions (818,244) (626,654) (1,046,277) (2,060,225) Net Change in Total Pension Liability 948,487 900,270 1,445,555 2,488,157 Total Pension Liability - Beginning 13,372,965 12,472,695 11,027,140 8,538,983 Total Pension Liability - Ending (a) 14,321,452 $ 13,372,965 $ 12,472,695 $ 11,027,140 $
PLAN FIDUCIARY NET POSITION
Contribution - Employer $ 555,507 $ 631,652 $ 766,083 $ 1,422,013 Contribution - Employee 190,123 133,553 244,223 503,065 Net Investment Income 671,575 (876,834) 1,144,802 2,935,110 Benefit Payments, Including Refunds of Employee
Contributions (818,244) (626,654) (1,046,277) (2,060,225) Net Plan to Plan Resources Movement 38,705 (5,343) 37,354 334,394 Administrative Expense (18,909) (7,269) (12,503) (52,805) Net Change in Fiduciary Net Position (827,040) 694,902 1,133,682 3,081,552 Plan Fiduciary Net Position - Beginning 10,287,256 9,592,354 8,458,672 5,377,120 Plan Fiduciary Net Position - Ending (b) 9,460,216 $ 10,287,256 $ 9,592,354 $ 8,458,672 $ Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 4,861,236 $ 3,085,709 $ 2,880,341 $ 2,568,468
66.06% 76.93% 76.91% 76.71%
Covered Payroll $ 844,200 $ 842,114 $ 782,395 $ 921,221 575.84% 366.42% 368.14% 278.81%
Notes to Schedule:
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown. The City’s CalPERS Miscellaneous Plan was previously administered and reported as an agent multiple-employer plan, however, because the number of active members in the plan fell below 100, it is now administered as a cost-sharing multiple-employer plan, effective with the reporting for the fiscal year ended June 30, 2019.
Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.
Benefit Changes: There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the measurement dates. 56 2018 2017 2016 2015
$ 196,966 $ 381,914 $ 88,500 $ 96,100
852,392 1,915,403 448,707 430,059
- - - -
(115,257) 65,115 (22,424) -
- 715,153 (112,169) -
(561,239) (1,138,953) (261,811) (251,083)
1,223,479 1,088,015 140,803 275,076
6,227,489 7,450,968 6,086,686 5,811,610
$ 7,450,968 8,538,983 $ $ 6,227,489 $ 6,086,686
$ 205,970 $ 455,184 $ 89,741 $ 77,311
87,588 228,036 47,623 47,624
982,011 100,413 112,821 761,102
(561,239) (1,138,953) (261,811) (251,083)
- - - -
(12,886) (12,512) (5,714) -
(367,832) 701,444 (17,340) 634,954
5,043,508 4,675,676 5,060,848 4,425,894
$ 4,675,676 5,377,120 $ $ 5,043,508 $ 5,060,848
$ 2,775,292 3,161,863 $ $ 1,183,981 $ 1,025,838
62.97% 62.75% 80.99% 83.15%
$ 642,560 1,032,930 $ $ 588,511 $ 607,040
306.11% 431.91% 201.18% 168.99%
57 California Public Employees Retirement Systems (CalPERS) Defined Benefit Pension Plan 2023 2022 2021 2020 2019
Miscellaneous Plan
Actuarially Determined Contribution $ 329,495 387,084 $ 302,304 $ 273,209 $ $ 238,408 Contribution in Relation to the Actuarially
Determined Contribution (329,495) (387,084) (302,304) (273,209) (238,408) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 783,017 971,433 $ 844,200 $ 842,114 $ $ 782,395 Contributions as a Percentage of Covered
Payroll 39.85% 42.08% 35.81% 32.44% 30.47%
Note to Schedule:
Valuation Date: June 30, 2021
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method/period Level percentage of payroll, closed Asset valuation method Direct rate smoothing
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return
Retirement age
Mortality The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2017 experience study report
All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.
6.90% (net of pension plan investment and administrative expenses, includes inflation)
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.
CYPRESS RECREATION AND PARK DISTRICT
Schedule of Contributions
Last Ten Fiscal Years (1)
58 2018 2017 2016 2015
$ 199,697 $ 205,971 $ 185,768 $ 153,046
(199,697) (205,971) # (185,768) (153,046)
$ - - $ - $ - $
$ 921,221 $ 1,032,930 $ 642,560 $ 588,511
21.68% 19.94% 28.91% 26.01%
59 CYPRESS RECREATION AND PARK DISTRICT
OCERS Retirement Plan - A Cost-Sharing, Multiple-Employer Defined Benefit Pension Plan Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
OCERS:
Proportion of the Net Pension Liability 0.00100% 0.00500% 0.00400% Proportionate Share of the Net Pension Liability $ (103,379) 61,016 $ $ 185,117 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.51% 91.45% 96.03%
Notes to Schedule:
(1) The Cypress Recreation and Park District (the District) withdrew from OCERS in October 2000. At that time, OCERS did not have a policy addressing how the District's liability would be funded, nor was a liability recognized by the District. The District and OCERS entered into a Withdrawing Employer and Continuing Contribution Agreement on October 15, 2018, therefore fiscal year 2018-19 is the first year reporting the OCERS pension liability. 60 2020 2019
0.00500% 0.00700%
$ 262,415 $ 408,781
94.23% 90.81%
61 CYPRESS RECREATION AND PARK DISTRICT
OCERS Retirement Plan - A Cost Sharing, Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
OCERS:
Actuarially Determined Contribution $ 595,600 $ - - $
Contribution in Relation to the Actuarially Determined Contributions - (595,600) - Contribution Deficiency (Excess) $ - - $ $ -
Note to Schedule:
Methods and assumptions used to establish "actuarially determined contribution" rates:
Valuation Date
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization method
Remaining amortization period
Asset valuation method
Investment rate of return
Inflation rate
Real across-the-board salary increase
Projected salary increase to 11.00%
Cost of living adjustments
Other assumptions
Actuarially determined contribution rates are calculated based on the December 31, 2018 valuation.
(1) The Cypress Recreation and Park District (the District) withdrew from OCERS in October 2000. At that time, OCERS did not have a policy addressing how the District's liability would be funded, nor was a liability recognized by the District. The District and OCERS entered into a Withdrawing Employer and Continuing Contribution Agreement on October 15, 2018, therefore fiscal year 2018-19 is the first reporting the OCERS pension liability.
Same as those used in the December 31, 2020 funding actuarial valuation
7.00% net of pension plan investment expense, including inflation The Actuarial Value of Assets is determined by recognizing any difference between the actual and the expected market return over a five-year period. The Valuation Value of Assets is the Actuarial Value of Assets reduced by the value of the non-valuation reserves.
Effective December 31, 2013, the outstanding balance of the UAAL from the December 31, 2012 valuation was combined and
re-amortized over a declining 20-year period. Any changes in UAAL due to actuarial gains or losses or due to changes in assumptions or methods will be amortized over separate 20-year periods. Any changes in UAAL due to plan amendments will be amortized over separate 15 year periods and any change in UAAL due to early retirement incentive programs will be amortized over a separate period of up to 5 years.
Level percentage of payroll for total unfunded actuarial accrued liability
2.75% of retirement income
2.50%
4.00%
62 2020 2019
$ - $ 739,966
- (739,966)
$ - $ -
63 CYPRESS RECREATION AND PARK DISTRICT
Schedule of Changes in the Total OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
Total OPEB Liability
Service cost $ 25,795 $ 24,962 $ 24,299
Interest on the total OPEB liability 19,511 13,791 14,801 Actual and expected experience difference (14,251) (34,865) 12,835 Changes in assumptions (101,308) (91,208) (37,755)
Benefit payments (23,512) (2,730) (14,838)
Net change in total OPEB liability (83,497) (100,318) (658) Total OPEB liability - beginning (2) 542,648 642,966 675,314 Total OPEB liability - ending $ 459,151 $ 542,648 $ 674,656 Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00%
Covered-employee payroll $ 960,668 1,182,033 $ 1,023,903 $ Net OPEB liability as a percentage of covered-employee payroll 38.84% 56.49% 65.89% Notes to Schedule: None
Changes in assumptions: Change in discount rate from 3.54% as of June 30, 2022 to 3.86% as of June 30, 2023. (2) For the fiscal year ended June 30, 2023, the District began using a new actuary. The new actuary used new assumptions and revalued the ending OPEB Liability that is used for fiscal year ended June 30, 2021 and June 30, 2022 beginning OPEB Liabilities.
(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. 64 2020 2019 2018
$ 27,817 $ 22,006 $ 22,868
17,461 24,752 22,987
4 (11,634) ,755 776
111,828 33,594 (24,366)
(29,623) (29,847) (24,684)
55,260 115,849 (2,419)
625,200 680,460 627,619
$ 680,460 796,309 $ 625,200 $
0.00% 0.00% 0.00%
$ 983,633 $ 882,824 $ 1,110,496
80.96% 77.08% 56.30%
65 CYPRESS RECREATION AND PARK DISTRICT
For the Fiscal Year Ended June 30, 2023
Variance with
Final BudgetBudget Amounts Positive
Original Final Actual (Negative)
Budgetary Fund Balance, July 1 $ 12,771,774 12,771,774 $ 12,771,774 $ $ - Revenues:
Taxes 6,218,000 6,218,000 7,080,645 862,645
From other agencies 497,681 497,681 62,665 (435,016)
Charges for services 673,892 832,392 2,890,860 2,058,468 Investment and rental income 371,100 371,100 752,086 380,986 Other revenue - - 21,063 21,063
Total Revenues 7,760,673 7,919,173 10,807,319 2,888,146 Expenditures:
Current:
Recreation 5,915,796 6,080,996 5,260,829 820,167
Contribution to City for infrastructure 401,918 401,918 382,160 19,758 Capital outlay 2,215,000 5,723,587 1,070,103 4,653,484
Debt service (See Note 13) 2,100,861 - 2,100,861 -
Total Expenditures: 8,532,714 14,307,362 8,813,953 5,493,409 Excess of Revenues Over
(Under) Expenditures (772,041) (6,388,189) 1,993,366 8,381,555 Other Financing Uses:
Issuance of Notes Payable (See Note 13) - 1,816,935 758,763 (1,058,172) Transfers out (160,000) (265,243) (253,411) 11,832
Total Other
Financing Uses (160,000) 1,551,692 505,352 (1,046,340)
Net Change in
Fund Balance (932,041) (4,836,497) 2,498,718 7,335,215
Budgetary Fund Balance, June 30 $ 11,839,733 $ 7,935,277 $ 15,270,492 $ 7,335,215 Budgetary Comparison Schedule
General Fund
See Notes to Required Supplementary Information.
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69 CYPRESS RECREATION AND PARK DISTRICT
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Totals
Assets
Current Assets
Cash and cash equivalents $ 686,161 $ 973,353 $ 1,659,514 Other receivables
Accounts - 15,759 15,759
Total Current Assets 686,161 989,112 1,675,273
Noncurrent Assets
Capital assets:
Depreciable, net 407,537 - 407,537
Total Noncurrent Assets 407,537 - 407,537
Total Assets 1,093,698 989,112 2,082,810
Deferred Outflows of Resources
Deferred amounts from pension plans 1,922,491 - 1,922,491 Deferred amounts from OPEB - 51,450 51,450
Total Deferred Outflows of Resources 1,973,941 - 1,973,941 Liabilities
Current Liabilities
Accounts payable and accrued liabilities - 1,222 1,222
Accrued compensated absences - 27,797 27,797
Total Current Liabilities - 29,019 29,019
Noncurrent Liabilities
Accrued compensated absences - 83,390 83,390
Total OPEB liability - 459,151 459,151
Net pension liability 3,619,562 - 3,619,562
Total Noncurrent Liabilities 4,162,103 - 4,162,103
Total Liabilities 4,191,122 - 4,191,122
Deferred Inflows of Resources
Deferred amounts from pension plans - 347,050 347,050
Deferred amounts from OPEB - 94,908 94,908
Total Deferred Inflows of Resources - 441,958 441,958
Net Position
Net investment in capital assets 407,537 - 407,537
Unrestricted 686,161 (1,670,027) (983,866)
Total Net Position $ 1,093,698 $ (1,670,027) $ (576,329) Central
Services
Employees'
Benefit
See Notes to Financial Statements.
70 CYPRESS RECREATION AND PARK DISTRICT
Combining Statement of
Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Totals
Operating Revenues
Charges for services $ 67,400 $ 1,064,674 $ 1,132,074
Total Operating Revenues 67,400 1,064,674 1,132,074
Operating Expenses
Contractual services - 887,599 887,599
Supplies and other services 9,193 250,881 260,074
Depreciation expense 54,868 - 54,868
Total Operating Expenses 64,061 1,138,480 1,202,541
Operating Income (loss) 3,339 (73,806) (70,467)
Income Before Transfers 3,339 (73,806) (70,467)
Transfers in 103,411 150,000 253,411
Changes in Net Position 106,750 76,194 182,944
Net Position at Beginning of Year 986,948 (1,746,221) (759,273) Net Position at End of Year 1,093,698 $ (1,670,027) $ (576,329) $ Central
Services
Employees'
Benefit
See Notes to Financial Statements.
71 CYPRESS RECREATION AND PARK DISTRICT
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Totals
Cash Flows from Operating Activities:
Receipts from user departments $ 1,108,532 67,400 $ $ 1,175,932 Payments to suppliers for goods and services (1,583,414) (9,193) (1,592,607) Net Cash Provided (Used) by Operating Activities (474,882) 58,207 (416,675) Cash Flows from Noncapital
Financing Activities:
Transfers in 150,000 103,411 253,411
Net Cash Provided (Used) by
Non-Capital Financing Activities 103,411 150,000 253,411 Cash Flows from Capital
and Related Financing Activities:
Acquisition of capital assets (178,168) - (178,168)
Net Cash Provided (Used) by
Capital and Related Financing Activities (178,168) - (178,168) Net Increase (Decrease) in Cash
and Cash Equivalents (16,550) (324,882) (341,432)
Cash and Cash Equivalents - Beginning of Year 702,711 1,298,235 2,000,946 Cash and Cash Equivalents - End of year $ 686,161 $ 973,353 $ 1,659,514 Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating income (loss) $ 3,339 $ (73,806) $ (70,467)
Adjustments to Reconcile Operating Income (loss)
Net Cash Provided (used) by Operating Activities:
Depreciation 54,868 - 54,868
(Increase) decrease in other receivables - 42,981 42,981 (Increase) decrease in prepaid expense - 877 877
24,521 - 24,521
(377,074) - (377,074)
Increase (decrease) in accounts payable and acrrued liabilities (2,285) - (2,285) Increase (decrease) in accrued leave payable - (8,943) (8,943) Increase (decrease) in total retiree health benefits - (83,497) (83,497) (30,046) - (30,046)
Increase (decrease) in net pension liability 1,939,922 - 1,939,922 (1,907,532) - (1,907,532)
Total Adjustments 54,868 (401,076) (346,208)
Net Cash Provided (Used) by Operating Activities $ 58,207 $ (474,882) $ (416,675) Increase (decrease) in deferred inflows amounts from pension plans
Increase (decrease) in deferred inflows amounts from retiree health benefits
(Increase) decrease in deferred outflows amounts from pension plans
(Increase) decrease in deferred outflows amounts from retiree health benefits
Central
Services
Employees'
Benefit
See Notes to Financial Statements.
72 1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
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203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
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The Woodlands, TX 77380
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Sacramento, CA 95833
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www.lslcpas.com
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74 CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 7.
FROM: Matt Burton, Director of Finance and Administrative Services DATE: 03/11/2024
SUBJECT: Receive and File the Audit Letter to the District Board for the Fiscal Year Ended June 30, 2023
RECOMMENDATION
Receive and file the Audit Letter from Lance, Soll and Lunghard LLP to the Cypress Recreation and Park District Board of Directors for the Fiscal Year ended June 30, 2023.
SUMMARY
The District's auditors have completed the annual audit and the results of the audit were favorable. In addition to receiving a "clean" audit opinion, the auditors did not encounter any items of concern which need to be reported to the Board of Directors or management.
DISCUSSION
Audit Letter
Auditing standards require auditors to issue an audit letter to communicate any significant findings, disagreements with management, and difficulties performing the audit. This audit letter is issued to the Board of Directors even if no problems are identified.
The attached audit letter was issued by Lance, Soll and Lunghard LLP (LSL) in conjunction with its audit work performed on the Cypress Recreation and Park District for the fiscal year ended June 30, 2023. Accompanying the audit letter is the District’s management representation letter which summarizes management’s responsibilities for providing the information necessary to conduct the audit and prepare the financial statements. LSL did not encounter any significant issues or other matters that need to be communicated to the Board of Directors or management.
Audit Report on Internal Control Matters
Auditing standards also provide guidance to the auditors regarding how internal control-related matters should be communicated to management and the Board of Directors.
During the annual audit, the auditors review and observe the District’s internal controls and During the annual audit, the auditors review and observe the District’s internal controls and operations to determine if there are any deficiencies. If any internal control related matters are noted, an audit report detailing these noted deficiencies would be provided to the Board of Directors.
No deficiencies in the internal control structure, or any other matters deemed to be reportable to the governing board and management, were identified by LSL during the course of their audit. Therefore, no audit report was required to be issued for the fiscal year ended June 30, 2023.
BUDGET IMPACT
The audit letter and audit report on internal control matters (if required) are included as part of the cost of the annual audit and sufficient amounts have been included in the District's budget to pay for the audit.
LEGAL REVIEW
None required.
APPROVED BY: Peter Grant, City Manager
Attachments
Cypress Recreation and Park District Audit Letter for the FYE 6/30/23
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
March 6, 2024
To the Board of Directors
Cypress Recreation and Park District
Cypress, California
We have audited the financial statements of the governmental activities, the major fund, and the aggregate remaining fund information of the Cypress Recreation and Park District, (the “District”)for the year ended June 30, 2023. 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 March 6, 2023. 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. As described in Note 1 to the financial statements, the City changed accounting policies related to subscription-based information technology arrangements by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 96 in fiscal year 2022-2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Revenues, Expenses, and Changes in Net Position. 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 District’s financial statements were:
Management’s estimates of the net pension liability and total other postemployment benefits liability are based on actuarial valuation estimates. We evaluated the methods, assumptions, and data used to develop the actuarial valuation estimates in determining that they are 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. We are pleased to report that no such disagreements arose during the course of our audit.
To the Board of Directors
Cypress Recreation and Park District
Cypress, 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 March 6, 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 District’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 District’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 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 statements 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.
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 2023-2024
GASB Statement No. 99, Omnibus 2022.
To the Board of Directors
Cypress Recreation and Park District
Cypress, California
Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.
Future Projects
Comprehensive Project, Financial Reporting Model.
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.
Pre-Agenda Research Activities, Subsequent Events.
Restriction on Use
This information is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 8.
FROM: Matt Burton, Director of Finance and Administrative Services DATE: 03/11/2024
SUBJECT: Receive and File the Report on the City's Appropriations Limit for the Fiscal Year Ended June 30, 2023
RECOMMENDATION
Receive and file the attached Independent Accountants’ Report on Agreed-Upon Procedures Applied to the City's Appropriations Limit Worksheet for the Fiscal Year ended June 30, 2023.
DISCUSSION
All governments in California are required to have specific review procedures performed by independent accountants on the annual appropriation limit. Attached is a copy of the Independent Accountants’ Report of Agreed-Upon Procedures Applied to the Appropriations Limit Worksheet for the fiscal year ended June 30, 2023, prepared by the City's independent accountants, Lance, Soll and Lunghard LLP (LSL). LSL did not note any exceptions during the course of performing the agreed-upon procedures.
Under Article XIIIB of the California Constitution, appropriations limitations are based on the City's 1978-79 actual appropriations adjusted annually by a formula utilizing the percentage growth in California Per Capita Income and either the growth in the City's or the County's population.
The City used the population growth in the County of Orange to calculate the FY 2022-23 appropriation limitation of $95,519,320. The total appropriations subject to the limitation for FY 2022-23 were $30,943,507, which was $64,575,813 (68%) below the calculated appropriation limit.
BUDGET IMPACT
The review of the appropriation limit is included in the overall cost of the City’s annual audit and sufficient amounts are budgeted to pay for the audit.
LEGAL REVIEW
None required.
APPROVED BY: Peter Grant, City Manager
Attachments
Independent Accountants' Report on the City's Appropriation Limit
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
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 Cypress, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Cypress, California (the City), for the year ended June 30, 2023. These procedures, which were agreed to by the City 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 in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City’s management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
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 agreed 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 Big Bear Lake, California
We were not engaged to and did not perform an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.
This report is intended solely for the use of the City of Cypress, California and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited.
Brea, California
May 22, 2023
CITY OF CYPRESS, CALIFORNIA
FISCAL YEAR 2022-2023
APPROPRIATIONS LIMIT CALCULATION
A. 2021-2022 APPROPRIATIONS LIMIT: $ 89,018,615
B. 2022-2023 CHANGE IN PER CAPITA PERSONAL
INCOME: 7.55%
C. 2022-2023 CHANGE IN POPULATION: -0.23%
D. RATIO OF CHANGE (1.0755 X 0.9977): x 1.07302635
E. 2022-2023 APPROPRIATIONS LIMIT: $ 95,519,320
($89,018,615 x 1.07302635)
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 9.
FROM: Matt Burton, Director of Finance and Administrative Services DATE: 03/11/2024
SUBJECT: Receive and File the Independent Accountants’ Report on the Cypress Recreation and Park District’s Appropriations Limit for the Fiscal Year Ended June 30, 2023
RECOMMENDATION
Receive and file the attached Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheet for the Fiscal Year ended June 30, 2023.
DISCUSSION
All governments within California are required to have specific review procedures performed by independent accountants on the calculated annual appropriation limit. Attached is a copy of the Independent Accountants’ Report of Agreed-Upon Procedures Applied to the Cypress Recreation and Park District’s (District’s) Appropriations Limit Worksheet for the fiscal year ended June 30, 2023, prepared by the District's independent accountants, Lance, Soll and Lunghard LLP (LSL). LSL did not note any exceptions during the course of performing the agreed-upon procedures.
Under Article XIIIB of the California Constitution, appropriations limitations are based on the District's 1978-79 actual appropriations adjusted annually by a formula utilizing the percentage growth in California Per Capita Income and either the growth in the City's or the County's population.
The District used the population growth in the County of Orange to calculate the FY 2022-23 appropriations limit of $10,628,051. The total appropriations subject to the limitation for FY 2022-23 were $6,281,470, which was $4,346,581 (40.9%) below the calculated appropriation limit.
BUDGET IMPACT
The review of the appropriations limit is included in the overall cost of the District’s annual audit and sufficient amounts are available in the District's General Fund budget to pay for the audit.
LEGAL REVIEW
None required.
APPROVED BY: Peter Grant, City Manager
Attachments
Independent Accountants' Report on the CRPD's Appropriation Limit
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Board of Directors
Cypress Recreation and Park District
City of Cypress, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the Cypress Recreation and Park District, for the year ended June 30, 2023. These procedures are the responsibility of the Cypress Recreation and Park District, which were agreed to by the Cypress Recreation and Park District 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 Cypress Recreation and Park District in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The Cypress Recreation and Park District's management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).
The Cypress Recreation and Park District 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 of the City of Cypress, Ex Officio Governing Board of Directors of the Cypress Recreation and Park District. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Board of Directors.
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.
To the Board of Directors
Cypress Recreation and Park District
City of Cypress, California
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 of the City of Cypress, Ex Officio Governing Board of Directors of the Cypress Recreation and Park District for the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were engaged by the Cypress Recreation and Park District 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 Cypress Recreation and Park District 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 Board of Directors and management of the Cypress Recreation and Park District and is not intended to be, and should not be, used by anyone other than these specified parties.
Brea, California
May 22, 2023
CYPRESS RECREATION AND PARK DISTRICT
2022-2023
APPROPRIATIONS LIMIT CALCULATION
A. 2021-2022 APPROPRIATIONS LIMIT: $ 9,904,744
B. 2022-2023 CHANGE IN CALIFORNIA PER
CAPITA PERSONAL INCOME: 7.55%
C. 2022-2023 CHANGE IN POPULATION: -0.23%
D. RATIO OF CHANGE (1.0755 X 0.9977): x 1.07302635
E. 2022-2023 APPROPRIATIONS LIMIT: $ 10,628,051
($9,904,744 X 1.07302635)
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 10.
FROM: Jeff Draper, Director of Recreation and Community Services DATE: 03/11/2024
SUBJECT: Public Hearing to Amend Section 17-72 of Chapter 17 of the Municipal Code Regarding Park Regulations
RECOMMENDATION
1. Conduct a public hearing to take testimony on amending Section 17-72 of Chapter 17 of the Municipal Code regarding park regulations; and
2. Approve the first reading, by title only, of an Ordinance amending Section 17-72 of Chapter 17 of the Municipal Code regarding park regulations and find the action exempt from the California Environmental Quality Act.
DISCUSSION
The City Council and Recreation and Community Services strategic plans include objectives to review and recommend updated park regulations. Municipal Code Section 17-72 establishes regulations to protect park areas and recreational facilities for the enjoyment, convenience, and safety of park visitors.
Two updates to Section 17-72 of the Municipal Code have been made since 2005 and include:
May 2021 – Ordinance prohibiting unauthorized camping and storage of personal property in public areas.
January 2022 – Ordinance to include synthetic turf regulations for athletic fields.
Staff, the Recreation and Community Services Commission, and the City Attorney’s office reviewed the existing park regulations and developed a number of recommended updates to the Municipal Code. The recommendations comply with state law and include the prohibition of the following:
Smoking or use of tobacco and/or cannabis products within twenty-five (25) feet of a playground, tot lot sandbox, or recreational area specifically designed for use by children, and within 250 feet of a youth sports event.
Holding any organized exercise or athletic activity with ten (10) or more persons without obtaining a permit.
Engage in any activity that would unreasonably damage the park, recreation facility, or related amenities beyond normal wear and tear.
Drive or operate an e-bike or other motorized vehicle within a park or recreation facility, except on surfaces maintained and open for vehicular travel.
The recommended updates also include modifications to clarify current language with respect to advertising materials, the use of drones, public nudity, disposal of prohibited trash, harassment of animals, and vehicles with powered motors.
Unless otherwise noted, Municipal Code violations are subject to penalties including a $100 fine for the first violation, $200 fine for the second violation, and a $500 fine for the third and each subsequent violation occurring within one year of the first infraction.
The recommended Municipal Code updates ensure park regulations are up-to-date, comply with State law, and continue to protect park and recreation facilities. The public hearing notice for this item was posted on February 28, 2024. Any comments received prior to the agenda being released are attached.
BUDGET IMPACT
None.
LEGAL REVIEW
This ordinance was reviewed and approved by the City Attorney.
APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALIFORNIA, AND ACTING AS EX-OFFICIO BOARD OF DIRECTORS OF THE CYPRESS RECREATION AND PARK DISTRICT, AMENDING SECTION 17-72 OF
THE CYPRESS MUNICIPAL CODE RELATING TO PARK REGULATIONS AND
FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the City Council of the City of Cypress, also acting as the ex-officio Board of Directors for the Cypress Recreation and Park District, desires to update the City’s park regulations; and
WHEREAS, park regulations protect park areas and recreation facilities for the enjoyment, convenience, and safety of park visitors; and WHEREAS, on March 11, 2024, the City Council held a duly noticed public hearing and considered public testimony and evidence on this Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the above Recitals are true and correct and are incorporated herein as findings of the City Council.
SECTION 2. Section 17-72 (Park Regulations) of Chapter 17 of the Cypress Municipal Code is hereby amended as follows (strikethrough represents deleted language while underline represents added language):
17-72. Park Regulations
For the purposes of this section, the following terms shall have the meanings set forth herein:
1. Park means any public park or portion thereof, including a body of water, a publicly owned recreation or playground area, or any building or recreation facility thereon, including parking lot areas adjacent thereto, within the city which is owned and maintained by the city and/or the Cypress Recreation and Park District as a public park whether or not such has been formally dedicated to such purpose.
2. Recreation facility means any building or structure which is located on public property, including parking lot areas adjacent thereto, and available for use by the public for recreation purposes which is owned and maintained by the city and/or the Cypress Recreation and Park District.
It shall be unlawful for any person within the limits of any park or other recreation facility (as those terms are defined in subsection (v) below) owned and operated by the city and/or the Cypress Recreation and Park District to:
(a) Lead or let loose any animal except:
1. Dogs on a leash or cats, which are under the immediate control of the custodian of the same; or
2. Small pets which are held by a custodian at all times.
The provisions of this section shall not apply to any city/district-sanctioned program, activity, or event which makes an exception to this subsection. (b) Distribute any handbill or circular on or within any city park or recreation facility, or pPost or affix to any city/district park or recreation facility property, any bills, notice, paper or advertising device or matter of any kind. The distribution of fliers at any city/district sanctioned event shall be conducted only at the times and locations determined by the city/district.
(c) Camp or lodge overnight. No person shall erect tents, shacks, or any other temporary shelter for the purpose of overnight camping in violation of Section 17-4, nor shall any person leave in a park after closing hours any movable structure or vehicle that could be used for such purpose in violation of Section 17-4. The provisions of this section shall not apply when in connection with a city/district-sanctioned event. (d) Construct or erect any building or structure of whatever kind, whether permanent or temporary in character, without permit from the city/district for such purpose. (e) Enter, remain within, or loiter in or upon any park or recreation facility during the hours such park or facility is deemed closed by posted signs except to attend a city/district sanctioned event or pursuant to an authorization issued by the city/district and then only in such park area or recreation facility area as designated by the city/district. This section shall not be enforced against persons experiencing homelessness persons for sitting, lying, or sleeping on any park or recreation facility if the City determines such enforcement would be inconsistent with any applicable state or federal law or regulation. when no alternative shelter is available in accordance with the holding in Martin v. City of Boise (9th Cir. 2018) 902 F.3d 1031, and only during the timeframe that the case of Martin v. City of Boise (9th Cir. 2018) 902 F.3d 1031, is applicable law within the jurisdiction of the Ninth Circuit unless the procedures in Section 17-4(e)(2) are followed.
(f) Engage in any disorderly conduct. Disorderly conduct includes, but is not limited to:
1. To engage in rRiotous, threatening or indecent conduct, or using abusive, threatening, or profane language
2. Any other violation of any section of the Penal Code section of the State of California regarding disorderly conduct
(g) Consume, distribute, or be in the possession of any alcoholic beverage except pursuant to an authorization issued by the city/district. (h) Smoke or use tobacco and/or cannabis products within 25 feet of a playground, tot lot sandbox, or recreational area specifically designed for use by children, and within 250 feet of a youth sports event, which includes any practice, game, or related activity at which athletes up to 18 years of age are present.
(hi) Possess, transport, purchase, sell, giveing away, or consume or ingest any nonprescription narcotics or illegal drugs.
(ij) Hold any organized or sponsored event, service, sporting event, concert, exercise, parade or exhibition consisting of at which more than twenty-five (25) or more persons are expected to attend without first obtaining a permit for such event from the city/district.
(k) Hold any organized exercise or athletic activity, practice, competition, camp, or tournament consisting of ten (10) or more persons without first obtaining a permit for such athletic activity from the city/district.
(l) Engage in any activity of any size that would unreasonably damage the park, recreation facility, or related amenities beyond normal wear and tear. (jm) Light or maintain any fire except in designated picnic stoves, barbecues, fire pits or other area provided for such purposes.
(kn) Operate battery or fuel-powered model or miniature helicopters or airplanes, drones, rockets or missiles of any type except in areas designated by the city/district for such purposes.
(lo) Play, practice or in any way engage in the game of golf except at times and places designated by the city/district for such purposes.
(mp) To pPractice, carry on, conduct or solicit for any trade, occupation, business or profession of whatsoever kind or character without permission of the city/district.
Nothing in the Ssubsection is intended to prevent any person from expressing freedoms protected by the First Amendment.
(nq) Dig or remove any soil, rock, stone, tree, shrub or plant, down-timber or other wood materials, or make any excavation by tool, equipment, blasting, or other means, except in designated sandboxes of the city/district. No materials, substances or objects shall be placed in the sandbox sand.
(or) Willfully mark, deface, disfigure, injure, tamper with, displace or remove, any building, bridge, table, bench, fireplace, railing, paving, water line or other public utility, sign, notice or placard, monument, post, or other structure or equipment. (ps) Install, use or operate a loudspeaker or any sound-amplifying equipment for the purpose of giving instruction, direction, talks, lectures, or of transmitting music to any persons in any park except under permit issued by the city and when operated in accordance with the terms of such permit. No person shall play any radio, tape recorder or other electronic sound-producing device, including those inside vehicles, at such a volume so as to be audible at a distance of 150 feet or more. (qt) For any female to expose the areola(s) of her breast(s), except while breastfeeding an infant, or for any person, male or female, to expose his or her genitalia or buttocks.
The provisions of this section shall not apply to persons four (4) years of age or younger. For any person over the age of four years old to appear, bathe, sunbathe, walk or be on any public park, playground, or on any other public land, or on any private property open to public view from any playground, park, public place, or public right-ofway in such a manner as to knowingly and intentionally expose his or her genitals, pubic hair, perineum, anal region or pubic hair region, or expose the nipples and/or areola of the female breast except as necessary while engaging in breastfeeding. (ru) Throw, discard or dispose of any garbage or refuse upon the ground or in any place other than a garbage can or other receptacle maintained for such purpose. Large construction trash, waste, household furniture, grease, cooking oil or motor oil may not be disposed of in any garbage can or receptacle in a city park or recreation facility. (sv) Molest, harass, injure or kill any animal. For the purposes of this section, harass is defined as an intentional act that disrupts an animal’s normal behavior patterns, which includes but is not limited to, breeding, feeding or sheltering. (tw) Drive or otherwise operate an e-bike or other motorized vehicle within a park or recreation facility, except upon surfaces other than those maintained and open to the public for purposes of vehicular travel. No person shall ride or propel a bicycle, scooter, skateboard, or roller skates, or other motorized vehicle outside of areas designated for such use. The provisions of this section shall not apply to any city/district-sanctioned program, activity, or event which makes an exception to this subsection. (ux) Swim, fish in, bathe in, wade in, release pet animals in or pollute the water of any fountain, pond, lake, stream, reservoir or other area not designated for such purposes except by permission of the city/district.
(v) For the purposes of this section, the following terms shall have the meanings set forth herein:
1. Park means any public park or portion thereof, including a body of water, a publicly owned recreation or playground area, or any building or recreation facility thereon, including parking lot areas adjacent thereto, within the city which is owned and maintained by the city and/or the Cypress Recreation and Park District as a public park whether or not such has been formally dedicated to such purpose.
2. Recreation facility means any building or structure which is located on public property and available for use by the public for recreation purposes which is owned and maintained by the city and/or the Cypress Recreation and Park District. (wy) 1. No owner or other person having the charge, custody or control of any dog(s) shall permit, either willfully or through failure to exercise due care, any such dog(s) to defecate and to allow any such feces to remain in any park or recreation facility, as those terms are defined in subsection (v) above.
2. Any person having charge, custody or control of any dog(s), in a park or recreational facility, shall have in possession a suitable disposable bag or container for the purpose of complying with the requirements of this section.
3. For purposes of this subsection, a “suitable disposable bag or container” shall not be considered to be an article of clothing.
4. The provisions of this section shall not apply to blind persons being accompanied by a trained guide dog service animal.
5. Any person violating any of the provisions of subsections (wy)1., 2., or 3. shall be deemed guilty of an infraction and upon conviction thereof shall be punished by a fine not to exceed onetwo hundred and fifty dollars ($100.00250.00). (xz) Lead, possess, consume, use the following equipment, or carry out any activity likely to do damage on synthetic turf athletic fields:
1. Pets or other animals.
2. Food, gum, seeds, tobacco products, or any other substances that can stain.
3. Drinks other than water in non-breakable containers.
4. Metal cleats, plastic cleats longer than one inch, or footwear containing mud or debris.
5. Equipment with sharp or narrow legs or posts including but not limited to flags, shade structures, tents, stakes, and umbrellas.
6. Vehicles of any kind including but not limited to automobiles, bicycles, scooters, skateboards, RC cars, planes, drones, or other vehicles that use fuel with powered motors.
7. Any person violating any of the provisions of subsection (xz) of this section shall be deemed guilty of an infraction and upon conviction thereof shall be punished by a fine not to exceed five hundred dollars ($500.00) or plus the cost to clean or repair any damage caused, whichever is greater.
SECTION 3. CEQA. This Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) because: (1) it does not constitute a “project” under CEQA Guidelines Section 15378(b)(2) in that it constitutes general policy and procedure making; (2) it does not constitute a “project” under CEQA Guidelines Section 15378(b)(5) in that it has no potential for resulting in physical change to the environment, either directly or indirectly, and (3) in the alternative, it is exempt from CEQA pursuant to CEQA Guidelines Section 15060(c)(2), since the activity will not result in direct or reasonably foreseeable indirect physical change in the environment, and Section 15061(b)(3), since it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment, because the Ordinance is limited to amending park regulations within the City/District. No new construction is proposed.
SECTION 4. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. The City Council of the City of Cypress declares that it would have adopted all the provisions of this Ordinance that remain valid if any provisions of this Ordinance are declared invalid or unconstitutional.
SECTION 5. Effective date. This Ordinance shall become effective thirty (30) days from its adoption.
SECTION 6. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cypress, and acting as ex-officio Board of Directors of the Cypress Recreation and Park District at a regular meeting held on the ___ day of ________________, 2024.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of said City Council held on the ___ day of ________________, 2024, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 11.
FROM: Fred Galante, City Attorney
DATE: 03/11/2024
SUBJECT: Conduct a Public Hearing, Approve the Second Reading and Adopt an Ordinance Adding Article XII, Sections 2-135 through 2-138 to Chapter 2 of the Municipal Code Establishing a By-District Election System
RECOMMENDATION
1. Conduct a public hearing to take testimony; and
2. Approve the second reading and adopt an Ordinance adding Article XII, Sections 2-135 through 2-138 to Chapter 2 of the Municipal Code establishing a by-district election system and adoption of an exemption from CEQA.
DISCUSSION
On January 10, 2024, the City Council adopted Resolution No. 6953 initiating the process to transition from an at-large election system to a by-district election system. This will create five districts, with each district having a single City Council representative who must reside within that district.
The first step in the transition process was two public hearings to solicit testimony on the composition of City Council districts. Those public hearings were January 22 and January 29.
The public provided testimony about the Cypress' communities of interest and other local factors that were considered while drafting district boundaries. The second phase of the transition process was two public hearings to obtain public testimony on draft maps and election sequences. Those public hearings were February 12 and February 26.
At its February 26 meeting, the City Council approved the first reading of an Ordinance establishing the by-district election system, selecting a five-district map, and selecting an election sequence. The process undertaken by the City Council to select the by-district map was conducted in accordance with Elections Code section 10010, the Brown Act, and the Settlement Agreement with the plaintiffs. Specifically, the City Council selected a by-district map that combined features of two maps that were duly published and provided to the public.
All relevant demographic information and data for each of the five districts of the approved by-district map was duly made available to the public at least seven days before the February 26 meeting, and the City Council appropriately deliberated and provided specific direction on the by-district map approved on first reading of the Ordinance.
Following the City Council's February 26 approval of the by-district map and election sequence and in accordance Section 1.2 of the Settlement Agreement, representatives of the City and plaintiffs in the legal action initiated by Malini Nagpal, Kathryn Shapiro and Southwest Voter Registration Education Project met and conferred to discuss the approved by-district map and election sequence. At the conclusion of the meet and confer process, the attorney for the plaintiffs confirmed that the plaintiffs accepted the by-district map and election sequence approved by the City Council.
It is recommended the City Council conduct a public hearing and approve the second reading and adopt the attached Ordinance.
BUDGET IMPACT
None.
LEGAL REVIEW
This report was reviewed by the City Attorney's office.
APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance
Exhibit A - Map 146
01004.0001/947348.1 1
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS ADDING ARTICLE XII, SECTIONS 2-135 THROUGH 2-138 TO
CHAPTER 2 OF THE CYPRESS MUNICIPAL CODE ESTABLISHING A
BY-DISTRICT ELECTION SYSTEM AND ADOPTION OF AN
EXEMPTION FROM CEQA
Summary: This ordinance establishes a by-district election system for City Council elections.
WHEREAS, members of the City Council of the City of Cypress ("City") are currently elected in "at-large" elections, in which each Council Member is elected by the registered voters of the entire City; and
WHEREAS, on January 8, 2024, City entered into a settlement agreement with Southwest Voter Registration Education Project, Kathryn Shapiro, and Malini Nagpal of the complaint alleging that the City's at-large electoralsystem violatesthe California Voting Rights Act ("CVRA"); and
WHEREAS, California Government Code Section 34886 permits the legislative body of a city to adopt an ordinance to change its method of election from an "at-large" system to a "by-district" system in which each council member is elected only by the voters in the district in which the candidate resides; and WHEREAS, under the provisions of California Elections Code Section 10010, a city that changes the method of electing council members from an at-large election system to a by-district method of election requires five public hearings, which includes at least two public hearings prior to the release and consideration of any draft voting district maps, and two public hearings following the release of draft voting district maps; and
WHEREAS, on January 10, 2024, the City Council adopted Resolution No. 6953 declaring its intention to transition from an “at-large” election system to a “by-district” election system in conformance with the CVRA and establishing the timeframe for doing so; and
WHEREAS, the City retained the services of a qualified demographer to provide a detailed analysis of the City's current demographics and to prepare draft maps that divide the City into voting districts in a manner consistent with the intent and purpose of the CVRA and all other applicable laws; and
01004.0001/947348.1 2
WHEREAS, as required by California Elections Code Section 10010, the City Council held public hearings at the regular and special City Council meetings on January 22 and 29, 2024, to consider input from the public on the composition of City Council districts; and
WHEREAS, the City Council considered all oral and written information, testimony, and comments received during the public review process. All draft maps were published at least seven days before the public hearing at which they were discussed; and WHEREAS, at a public hearing on February 26, 2024, the City Council agreed to sequence elections such that elections for Districts 3 and 4 would occur at the November 2024 municipal election, and every four years thereafter, and elections for Districts 1, 2, and 5 would occur at the November 2026 municipal election, and every four years thereafter; and
WHEREAS, at a public hearing on March 11, 2024, the City Council voted to proceed with a final map, identified as Map 146; and
WHEREAS, the purpose of this Ordinance is to enact, pursuant to California Government Code Section 34886 and in furtherance of the purposes of the CVRA, an ordinance providing for the election of members of the City Council of the City of Cypress by district in single-member districts as reflected in Exhibit “A” to this Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Code Amendment. Chapter 2 of the Cypress Municipal Code is hereby amended by adding Article XII to the existing Chapter to read as follows:
“Chapter 2 Administration
Article XII City Council Elections.
Section 2-135 - Declaration of purpose.
Section 2-136 - City council districts established.
Section 2-137 - Election of members of the city council by district.
Section 2-138 - Commencement of election by district.
Section 2-135 - Declaration of purpose.
The City Council of the City of Cypress hereby declares that the change of method of electing members of this council hereby enacted is being made in furtherance of the California Voting Rights Act of 2001.
Section 2-136 - City Council Districts Established.
01004.0001/947348.1 3
Five city council districts (“districts”) are hereby established in the City Cypress. The boundaries of each district shall be as described on the map attached to Ordinance No. __________ as Exhibit “A”.
A. The districts specified above shall continue in effect until they are amended or repealed in accordance with law. Should the law be changed in a manner which would allow the city council to utilize a structure other than voting districts, the city council may revisit its voting system to determine which voting system is best suited for the city.
B. Districts shall be adjusted following each decennial federal census, as required by the Elections Code and other applicable law.
Section 2-136 - Election of members of the city council by district.
A. Following the effective date of this ordinance and upon the commencement of “by-district” elections in the order established in Section 2-138 of this Code, members of the city council shall be elected “by district” as defined in California Government Code Section 34871 or any successor statute.
B. Registered voters signing nomination papers or voting for a member of the city council shall be residents of the geographical area making up the district from which the member is to be elected.
C. Except as provided in subsection D, below, each council member elected by district must reside in that district and be a registered voter in that district, and any candidate for city council must reside in, and be a registered voter in, the district in which they seek election at the time nomination papers are issued, pursuant to Government Code Section 34882 and Elections Code Section 10227. Termination of residency in a district by a council member shall create an immediate vacancy for that district unless a substitute residence within the district is established within thirty days after that termination of residency.
D. An at-large council membershall continue in office until the expiration of the full term to which they were elected or appointed and until their successor is qualified. If vacancies in council member offices elected atlarge occur before expiration of the full term thereof, such vacancies shall be filled pursuant to California Government Code Section 36512.
E. Upon expiration of the full term of each council member elected at-large, that council member's successor shall be elected on a by-district basis in 01004.0001/947348.1 4
the districts established in Section 2-136 and as provided in Section 2- 138.
Section 2-138 - Election of members of the city council by district. Commencing with the general municipal election in November of 2024 and thereafter, the voters in districts 3 and 4 shall elect members of the city council by district for full four (4) year terms. At the general municipal election in 2026 and thereafter, the voters in districts 1, 2 and 5 shall elect members of the city council by district for full four (4) year terms.” Section 2. Technical Adjustments. If necessary to facilitate the implementation of this Ordinance, the City Clerk is authorized to make technical adjustments to the district boundaries that do not substantively affect the populations in the districts, the eligibility of candidates, or the residence of elected officials within any district. The City Clerk shall consult with the City Manager and City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts.
Section 3. CEQA. The City Council finds that the proposed amendments to the Cypress Municipal Code are exempt from the requirements of the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Section 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
Section 5. This Ordinance shall become effective on the thirty-first (31st) day after its passage and adoption, and within fifteen (15) days after its final passage and the City Clerk shall cause it to be posted and published and circulated in the City in the manner required by law and shall cause a copy of this Ordinance and its certification, together with proof of publication, to be entered in the Book of Ordinances of the City.
PASSED AND ADOPTED this 11th day of March, 2024.
_______________________________
MAYOR OF THE CITY OF CYPRESS
01004.0001/947348.1 5
ATTEST:
__________________________________
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, Alisha Farnell, City Clerk of the City of Cypress, California, do hereby certify that the foregoing Ordinance No. _____ was duly passed and adopted by the City Council of the City of Cypress at the regular meeting thereof, held on the 11th day of March, 2024, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
________________________________
CITY CLERK OF THE CITY OF CYPRESS
4 5
1 3
2 Sorrento
Tanglewood
Cypress Village
Ovation at Flora
D
e
n
ni St
V
alle
y
Vie
w
St
Katella Ave
Cerritos Ave
W
alk
er St
Orange Ave
S
K
n
ott A
v
e
Blo
o
mfield
Ave
Orangewood Ave
M
o
o
d
y
St
H
old
er St
Lincoln Ave
Cres Ave
Gr ni dla
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St
City of Cypress - Districting 2024
Map prepared by National Demographics Corp. Feb 26, 2024 Draft 146
©2021 CALIPER
Sequence of Election:
2024 - Districts 3 & 4
2026 - Districts 1, 2, & 5
Draft 146
District 1
Total Pop 10,301
Deviation from ideal 254
% Deviation 2.53%
% Hisp 22%
% NH White 31%
% NH Black 5%
% Asian-American 38%
Total 5,919
% Hisp 18%
% NH White 44%
% NH Black 7%
% Asian/Pac.Isl. 28%
Total 5,918
% Latino est. 23%
% Spanish-Surnamed 23%
% Asian-Surnamed 18%
% Filipino-Surnamed 3%
% NH White est. 47%
% NH Black 8%
Total 3,024
% Latino est. 19%
% Spanish-Surnamed 17%
% Asian-Surnamed 17%
% Filipino-Surnamed 3%
% NH White est. 53%
% NH Black 9%
Total 4,975
% Latino est. 20%
% Spanish-Surnamed 20%
% Asian-Surnamed 16%
% Filipino-Surnamed 3%
% NH White est. 58%
% NH Black est. 5%
ACS Pop. Est. Total 9,509
age0-19 28%
age20-60 52%
age60plus 20%
immigrants 35%
naturalized 58%
english 57%
spanish 9%
asian-lang 26%
other lang 8%
Language Fluency Speaks Eng. "Less than Very Well" 15%
hs-grad 41%
bachelor 35%
graduatedegree 17%
Child in Household child-under18 47%
Pct of Pop. Age 16+ employed 62%
income 0-25k 9%
income 25-50k 13%
income 50-75k 10%
income 75-200k 52%
income 200k-plus 16%
single family 72%
multi-family 28%
rented 44%
owned 56%
Total population data from the California adjustment to the 2020 Decennial Census.
Surname-based Voter Registration and Turnout data from the California Statewide Database.
Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2017-2021 American Community Survey and Special Tabulation 5-year data.
2 9,780
-267
-2.66%
30%
21%
4%
41%
5,704
28%
32%
3%
36%
4,996
30%
30%
18%
4%
42%
5%
2,313
25%
23%
17%
4%
48%
5%
3,806
30%
30%
17%
4%
42%
8%
9,675
28%
53%
19%
32%
58%
44%
19%
29%
9%
24%
46%
30%
12%
34%
64%
19%
16%
14%
45%
7%
57%
43%
54%
46%
3 9,509
-538
-5.35%
16%
29%
3%
49%
6,772
13%
33%
2%
51%
6,071
18%
18%
26%
2%
52%
3%
3,451
15%
13%
23%
2%
57%
3%
5,319
16%
16%
25%
2%
52%
6%
10,164
25%
55%
20%
41%
71%
51%
7%
37%
4%
16%
34%
35%
25%
39%
67%
8%
11%
8%
49%
24%
80%
20%
25%
75%
4 10,403
356
3.54%
20%
39%
3%
35%
7,360
21%
49%
2%
25%
6,748
16%
16%
19%
2%
60%
3%
4,021
14%
13%
16%
2%
65%
3%
5,729
16%
16%
15%
2%
65%
2%
10,954
28%
50%
23%
24%
62%
63%
13%
19%
5%
13%
45%
26%
19%
41%
62%
7%
8%
13%
61%
12%
95%
5%
17%
83%
5 10,242
195
1.94%
18%
42%
2%
35%
7,254
14%
54%
2%
29%
7,130
17%
17%
18%
3%
61%
1%
4,337
14%
13%
16%
2%
66%
2%
6,342
17%
17%
17%
3%
62%
2%
9,682
22%
52%
27%
21%
76%
70%
8%
17%
5%
11%
45%
31%
18%
30%
64%
5%
9%
10%
55%
21%
97%
3%
13%
87%
Total
50,235
894
8.90%
21%
33%
4%
39%
33,010
18%
43%
3%
34%
30,863
20%
20%
20%
3%
53%
4%
17,146
17%
15%
18%
2%
59%
4%
26,171
19%
19%
18%
3%
57%
4%
49,985
26%
52%
22%
30%
64%
57%
11%
26%
6%
16%
42%
31%
18%
38%
64%
9%
11%
11%
52%
16%
80%
20%
30%
70%
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Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2022)
Voter Turnout
(Nov 2022)
Voter Turnout
(Nov 2020)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats