012125 AS ACFR FY 2023-24 Annual Comprehensive Financial Report — City Council - Successor Agency

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2024
www.cityoffullerton.com/financialreports

CITY OF FULLERTON, CA
303 W. Commonwealth Ave.

Fullerton, CA 92832
www.cityoffullerton.com/financialreports
303 W. Commonwealth Ave.

Fullerton, CA 92832
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CITY OF FULLERTON

Annual Comprehensive Financial Report

For the Year Ended June 30, 2024

Table of Contents
Page
Number

INTRODUCTORY SECTION

Letter of Transmittal .............................................................................................................................................. i Organization Chart .............................................................................................................................................. vii City Officials ....................................................................................................................................................... viii Certificate of Achievement for Excellence in Financial Reporting ....................................................................... ix

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT .............................................................................................................. 1

MANAGEMENT’S DISCUSSION AND ANALYSIS ............................................................................................. 5

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position ..................................................................................................................... 15

Statement of Activities .......................................................................................................................... 16

Fund Financial Statements:

Balance Sheet – Governmental Funds ................................................................................................ 18

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................................... 21

Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ................................................................................................ 22

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to
the Statement of Activities .................................................................................................................... 25

Statement of Net Position – Proprietary Funds .................................................................................... 26

Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds .......................................................................................................... 28

Statement of Cash Flows – Proprietary Funds ..................................................................................... 30

Statement of Fiduciary Net Position – Fiduciary Funds ....................................................................... 34

Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................... 35

Notes to Basic Financial Statements .......................................................................................................... 37

CITY OF FULLERTON

Annual Comprehensive Financial Report

For the Year Ended June 30, 2024

Table of Contents
Page
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REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedules
General Fund ........................................................................................................................................ 81 Grants Administration Fund .................................................................................................................. 82 American Rescue Plan Act ................................................................................................................... 83

Schedule of Changes in the Net Pension Liability and Related Ratios Miscellaneous Plan .......................................................................................................................... 84 Safety Plan ...................................................................................................................................... 86

Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................................... 88

Schedules of Plan Contributions ................................................................................................................. 90

Notes to Required Supplementary Information ........................................................................................... 91

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 92

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................... 96

Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ..................................................................................................................................... 100 Drainage Capital Outlay ..................................................................................................................... 101 Traffic Safety ....................................................................................................................................... 102 Park Dwelling ...................................................................................................................................... 103 Asset Seizure ...................................................................................................................................... 104 Refuse Collection................................................................................................................................ 105 Air Quality Improvement ..................................................................................................................... 106 Sanitation ............................................................................................................................................ 107 Measure M2 ........................................................................................................................................ 108 Housing ............................................................................................................................................... 109 FTV Cable – PEG Access Fund ......................................................................................................... 110 SB2 / PLHA ......................................................................................................................................... 111

Budgetary Comparison Schedules – Capital Projects Funds Capital Projects ................................................................................................................................... 112

Combining Statement of Net Position – Other Enterprise Funds .. ........................................................... 113

Combining Statement of Revenues, Expenses and Changes
In Net Position – Other Enterprise Funds ................................................................................................. 114

Combining Statement of Cash Flows – Other Enterprise Funds .............................................................. 115

CITY OF FULLERTON

Annual Comprehensive Financial Report

For the Year Ended June 30, 2024

Table of Contents
Page
Number

Combining Statement of Net Position – Internal Service Funds ............................................................... 116

Combining Statement of Revenues, Expenses and Changes
In Net Position – Internal Service Funds ................................................................................................... 120

Combining Statement of Cash Flows – Internal Service Funds ............................................................... 124

Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds………… ....................... 130

Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds .................. 131

Combining Statement of Fiduciary Net Position – Custodial Funds………… ........................................... 132

Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 133

STATISTICAL SECTION

Financial Trends:

Net Position by Component – Last Ten Fiscal Years ............................................................................... 136 Changes in Net Position – Last Ten Fiscal Years .................................................................................... 138 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................ 142 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ......................................... 144

Revenue Capacity:

Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years .................................... 146 Principal Property Tax Payers – Current Year and Nine Years Ago ........................................................ 147 Secured Property Tax Levies and Collections – Last Ten Fiscal Years ................................................... 148

Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................. 149 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ...................................................... 150 Direct and Overlapping Governmental Activities Debt – As of June 30, 2024 ......................................... 151 Legal Debt Margin Information – Last Ten Fiscal Years ........................................................................... 152

Revenue Bond Coverage:
2014 Water Revenue Refunding Bonds – Last Nine Fiscal Years ........................................................... 154 2003 Refunding Certificates of Participation – Last Ten Fiscal Years ...................................................... 154 1998 Refunding Revenue Bonds – Last Ten Fiscal Years ....................................................................... 154 2005 Tax Allocation Revenue Bonds – Last Ten Fiscal Years ................................................................. 155 2005 CRA/ERAF Taxable Revenue Bonds – Last Ten Fiscal Years ...................................................... 155 2006 CRA/ERAF Taxable Revenue Bonds – Last Ten Fiscal Years ...................................................... 155 2010 Tax Allocation Housing Revenue Bonds – Last Ten Fiscal Year .................................................... 156 2010 Lease Revenue Bonds – Series A – Last Ten Fiscal Year ............................................................. 156

Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Fiscal Years .............................................................. 157 Principal Employers – Current Year and Nine Years Ago ......... ............................................................... 159

CITY OF FULLERTON

Annual Comprehensive Financial Report

For the Year Ended June 30, 2024

Table of Contents
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Number

Operating Information:

Full-Time Equivalent City Employees by Function – Last Ten Fiscal Years ............................................ 160 Elementary, High School, and University Enrollment Information – Last Ten Fiscal Years ..................... 162 Operating Indicators by Function – Last Ten Fiscal Years ....................................................................... 164 Capital Asset Statistics by Function – Last Ten Fiscal Years ................................................................... 166

City Manager’s Office
303 West Commonwealth Avenue, Fullerton, California 92832-1775 (714) 738-6310  [email protected]  www.cityoffullerton.com

December 20, 2024

To the Honorable Mayor, City Council, and Citizens of Fullerton Fullerton, California

On behalf of the City of Fullerton, we are pleased to present the Fiscal Year (FY) 2023-24 Annual Comprehensive Financial Report (ACFR). This report serves to verify that all financial data has been prepared in accordance with all compliance requirements of the Governmental Accounting Stan dards Board (GASB), as well as provide an update to City Council and the citizens of Fullerton on the status of the City’s financial position.

The City of Fullerton’s financial statements were audited by Lance, Soll, & Lunghard, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to pr ovide reasonable assurance that the financial statements of the City of Fullerton 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 t he accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

The independent auditor concluded, based upon the audit, that t here was a reasonable basis for rendering an unmodified opinion that the City of Fullerton’s financial statements for the fiscal year ended June 30, 2024, are fairly presented in conformity with generally accepted accounting principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report.

GAAP also requires that management deliver a narrative introduc tion, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). The City of Fullerton’s MD&A immediately follows the report of the independent auditors.

The independent audit of the financ ial statements of the City o f Fullerton is also part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies as required by the Federal Single Audit Act. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Fullerton’s separately issued single audit report.

ECONOMIC CONDITION AND OUTLOOK
Fullerton is in northwestern Orange County, approximately 25 miles southeast of downtown Los Angeles. The City is ideally located for transportation, bounded by 3 major highways, and located 15 miles northwest of John Wayne Airport. Fullerton’s Transportation Center served an average of 3,000 commuters on the Metrolink and Amtrak trains. Encompassing 22.4 squa re miles, the City has a populat ion of 140,311, ranking it the 41 st largest in the
State and the 6th largest in Orange County.

Founded in 1887 and incorporated in 1904, Fullerton operates as a “general law” city governed by a non-partisan, five-member City Council elected to serve staggered four-year terms. As of November 2018, City Council members began to be elected by district within five electoral districts in the city. In April 2022, the Fullerton City Council completed its redistricting process and adopted a new district boundary map, which established a new election sequencing. The City operates as a “Council-Manager” form of go vernment, in which the City Council appoints a City Manager to oversee the day-to-day operations of the City. Services provided by the City include police and fire protection, community & economic development, water and sanitat ion services, construction and maintenance of streets and infrastructure, recreational and cultural services, library services, general governmental support, and a general aviation airport.
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Five-Year Financial Plan
Staff presents a Five-Year Financial Plan or Forecast for the G eneral Fund to the City Council during the annual Budget Adoption process to aid the City Council in decision making for the new fiscal year. The financial planning model incorporates several economic factors such as (but not li mited to): standard revenue inflators for its major revenues of property and sales taxes as well as other revenues, employee growth and CalPERS retirement factors, salary increases from negotiated and approved MOAs, and recession years and inflationary factors along with positive or negative financial trends which allows staff to rep rioritize goals to stay within financial resources (revenues).

The General Fund Five-Year Financial Forecast was presented to the City Council on April 23, 2024, at the FY 2024-25 Budget Study Session. In FY 2024-25, the budget was adopted and General Fund projected to maintain its 17% contingency reserve goal with the use of prior year’s e xcess unassigned reserves. The financial forecast factors in labor increases from approved labor agreements, fund s set aside for the Infrastructure Fund, and a one-time $1.0 million General Fund contribution to the Capital Improvement Projects Fund towards street rehabilitation projects. Beginning in FY 2025-26, due to expend itures outpacing revenues, the City will face significant challenges to meet its 17% reserves’ goal and will struggle to meet its 10% minimum reserves in the years thereafter. The City will continue to explore cost-containment strategies and revenue-generating opportunities to support / generate long-term fiscal sustainability.

Five-Year Capital Improvement Plan (CIP)
The Five-Year Capital Improvement Plan (CIP) is the City’s capital projects planning vehicle for infrastructure improvements throughout the City. The CIP Budget is adopted annually with the adopted budget, and capital projects are appropriated for the current year with a five-year projected funding plan for each project. The CIP identifies anticipated expenditures for infrastructure development with recommended projects and proposed funding sources. The City’s Infrastructure and Natural Resources Advis ory Committee (INRAC) co ntributes to the City’s capital project efforts by reviewing the City’s deferred mainte nance, infrastructure, and street needs and makes recommendations to the City Council. Additionally, the City established a dedicated Infrastructure Fund to address these ongoing challenges.

The General Fund Financial Forecast and CIP financial plans are both utilized as critical financial planning and mid-term, decision-making tools for City Management and City Council. 115 Pension and 115 OPEB Trusts

The City established Pension and OPEB Trusts to set aside funds to be used for specific benefit plan purposes, such as CalPERS contributions and post-employment benefits. In FY 2020-21, $487,000 was transferred into the City’s IRS Section 115 Pension Trust using one-time savings from the Police Department salaries and benefits. In FY 2018-19, $50,000 was transferred into the City’s IRS Section 115 OPEB Trust. The use of a 115 Trust helps the City segregate funds for es sential functions. These funds, as they accumulate, can be utilized to help ease budgetary pressures from spikes in unfunded actuarial liabilities in the future.

Dedicated Infrastructure Fund
In addition, the City Council authorized the establishment of a dedicated Infrastructure Fund, effective in FY 2020-21, to allocate any supplemental or additional revenue from specific tax sources to prioritize local infrastructure improvement. In FY 2023-24, $2.7 million was transferred to the Infrastructure Fund for vital American Disabilities Act improvement projects. It is anticipated that $2 million to $3 million will be allocated to this new fund annually. The Infrastructure Fund will enable the City to set aside funding dedicated for infrastructure to better meet the service needs of the community and support transparency. The fund was adopted as Ordinance No. 3284 and is codified in the Fullerton Municipal Code as Chapter 2.48.380.

iv

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vii

MAYOR MAYOR PRO TEM

NICHOLAS DUNLAP FRED JUNG
DISTRICT 2 DISTRICT 1

COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER

BRUCE WHITAKER SHANA CHARLES AHMAD ZAHRA
DISTRICT 4 DISTRICT 3 DISTRICT 5

CITY MANAGER
ERIC J. LEVITT

POLICE CHIEF LIBRARY DIRECTOR FIRE CHIEF

JONATHAN RADUS JUDY BOOTH ADAM LOESER EDDIE MANFRO

DIRECTOR OF ADMINISTRATIVE SERVICES DIRECTOR OF PUBLIC WORKS

ELLIS CHANG STEPHEN BISE

DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT

SUNAYANA THOMAS

CITY OF FULLERTON

CITY OFFICIALS

ELECTED OFFICALS

EXECUTIVE TEAM

DIRECTOR OF HUMAN RESOURCES
viii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fullerton
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
ix

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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Fullerton, 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 Fullerton, 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 st atements referred to above pres ent 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 State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, 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 an y currently known information that may raise substantial doubt shortly thereafter.

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 is sue 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 a uditing standards and Government Auditing

To the Honorable Mayor and Members of the City Council
City of Fullerton, California

Standards will always detect a material m isstatement 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 au diting standards and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skept icism 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 th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of inter nal 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, and required pe nsion 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 operat ional, 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 assuran ce 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 Fullerton, 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 combini ng and individual fund financial statements and schedules (“supplementary information”) are presented for purpo ses 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 financia l 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 agreement s 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 p erformed 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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4 CITY OF FULLERTON
Management’s Discussion and Analysis

The City of Fullerton offers readers of its financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. The City encourages readers to consider the information presented here in conjunction with additional information furnished in the letter of transmittal.

Financial Highlights

• The City’s total assets and def erred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $626.1 million (net position). • The City’s net position total ed $626.1 million at June 30, 2024, representing an increase of $34.6 million over the previous fiscal year primarily due to in come from water sales, property tax revenue growth, and investment earnings offset by increases in labor an d pension plan expenses. Of the total net position, $682.8 million is the City’s net investment in capita l assets, while $43.9 million is restricted for specific governmental operations, leaving a $100.6 million negative unrestricted balance. • As of the close of the current f iscal year, the City’s governmental funds reported combined ending fund balances of $67.3 million, a decrease of $2.6 million in comparison with the prior year. The decrease is primarily attributable to an increase in salaries and benefits and the cost of goods and services. The General Fund reflects assigned fund balance of $23.0 million, a restric ted fund balance of $1.9 million, a committed fund balance of $3.3 million, a nonspendable balance of $0.4 mi llion, and an unassigned fund balance of $10.1 million, which compares to unassigned fund balance the pr evious year of $10.3 million, for a combined total of $38.7 million, representing an increase of $5.2 millio n over the previous fiscal year. The increase of $5.2 million in fund balance is primarily due to a transfer of $7.0 million from the American Rescue Plan Act Fund for revenue replacement. The $3.2 million increase in assigned fund balance is due to City Council designation to maintain contingency reserves at the city’s goal of a 17% reserve level of general fund expenditures and an additional $1.4 million assigned for street projects. • Long-term debt increased by $5.2 million in fiscal year 2023-2 4 primarily due to an increase in subscription liabilities for the utility billing and cashiering system, and Airport loan from Caltrans. • Capital assets increased by $40.0 million due to the purchase of land and building to support homeless services and various street/road infrastructure projects, and the purchase of vehicles.

Overview of the Financial Statements

This annual report consists of four parts: (1) management’s dis cussion and analysis (this section), (2) the basic financial statements, (3) required supplementary information, and (4) an optional section that presents combining statements for other government funds.

The management’s discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise thre e components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. The annual report also contains other supplementary information in addition to the basic financial statements.

Government-wide financial statements. The government-wide financial st atements are comprised of the Statement of Net Position and the Statement of Activities. These two statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all the City’s assets, deferred outflo ws of resources, liabilities, and deferred inflow o f resources, with the differences reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
5 The Statement of Activities presents information showing how the City’s net position change d during the most recent fiscal year. All changes in net position are reported a s soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental r evenues (governmental activities) from other functions that are intended to recover all or a significant por tion of their costs through user fees and charges (business-type activities). T he governmental activities of the City include general government, public safety, public works, community development, human and leisure services , and refuse collection. The business-type activities of the City include the water utility, sewer enterpr ise operations, airport, par king facilities, Brea Dam recreational facilities, and CNG station.

The government-wide financial statements include the City, Full erton Public Financing Authority, and Housing Authority. Although thes e entities are legally separate, they function for all practical purposes as part of the City and, therefore, have been included as blended componen t units as an integral part of the primary government.

Fund financial statements. The statements focus on current available resources and are or ganized on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on spec ific activities or attaini ng certain objectives in accordance with special regulatio ns, restrictions, or limitatio ns. The funds of the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statem ents. However, unlike the government-wide financial statements, the governmental fund financial statement s focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resourc es available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmen tal funds is narrower than that o f the government-wide financial statements, it is useful to compare the informati on presented for governmental fu nds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing de cisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expendit ures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Information is presented separately in the governmental fund ba lance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund b alances for the General Fund; the Grants Administration Special Revenue Fund; American Rescue Pla n Act (ARPA) Fund, and the City Capital Projects Fund, all of which are considered major funds. The rem aining governmental funds are combined into a single, aggregated presentati on. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.

Proprietary funds. The City of Fullerton maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its airport, water ut ility, sewer enterprise, Brea Dam recreational facility operations
, parking facilities, and Compressed Natural Gas (CNG) station. Internal Service funds are used to report any activities that provide goods or services to other f unds or departments on a cost-reimbursement basis.

The City uses internal service funds to account for its liability insurance, vehicle replacement, workers’ compensation insurance, group insurance, equipment maintenance, information technology, building maintenance services, and facility capital repair. Proprietary funds provide the same type of information as the government-wide financial statem ents, only in more detail. The proprietary fund financial statements provide separate information for the airport, water utility and sewer e nterprise, all of which are considered major funds of the City. Individual fund data fo r the other enterprise funds is provided in the form of combining statements elsewhere in this report.

6 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in government-wi de financial statements because the resources of those funds are not available to support the City’s own program s. The accounting used for fiduciary funds is much like that used for proprietary funds.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information. In addition to the basic financial statements and accompanyin g notes, this report also presents certain required supplementary information concerning the City’s budgetary comparison schedules for the General Fund and each major special revenue fund.

The combining statements referred to earlier in connection with other governmental funds and enterprise funds are presented immediately following the notes to the required supplementary information.

Government-wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Fullerton, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $626.4 million at the close of the most recent fis cal year. The City’s net position increased by $35.0 million from the previous year due to income from water sales, property tax revenue growth, and investment earnings offset by increases in labor and pension plan expenses and the cost of goods and services.

($ in thousands)
2024 2023 2024 2023 2024 2023
Current and other assets 218,438 $ 229,865 $ 101,870 $ 96,669 $ 320,308 $ 326,534 $ Capital assets 535,593 515,201 169,089 149,394 704,681 664,595 Total assets 754,031 745,066 270,959 246,063 1,024,989 991,129 Deferred Outflows 72,896 77,024 5,095 6,741 77,992 83,765 Long-term liabilities 361,342 347,276 30,070 29,063 391,412 376,339 Other liabilities 38,409 57,143 17,161 13,625 55,569 70,768 Total liabilities 399,751 404,419 47,231 42,688 446,982 447,107 Deferred Inflows 18,058 22,594 11,893 13,728 29,951 36,322 Net position:

Net investment in capital assets 519,129 499,394 163,657 143,202 682,787 642,596 Restricted 43,545 45,654 279 286 43,824 45,940
Unrestricted (153,556) (149,971) 52,993 52,900 (100,563) (97,071) Total net position 409,118 $ 395,077 $ 216,929 $ 196,388 $ 626,047 $ 591,465 $ Net Position
Governmental Business-type
activities activities Total

7 ($ in thousands)
2024 2023 2024 2023 2024 2023
Revenues:

Program revenues:

Charges for services 44,962$ 45,011 $ 62,274 $ 59,744 $ 107,235 $ 104,755 $ Operating grants and contributions 36,640 23,760 - - 36,640 23,760 Capital grants and contributions 4,348 6,925 668 339 5,015 7,264 General revenues:

Property taxes 57,095 53,871 124 227 57,219 54,098 Sales taxes 30,508 31,876 - - 30,508 31,876 Franchise taxes 5,716 4,996 - - 5,716 4,996 Other taxes 5,257 5,217 - - 5,257 5,217 Motor vehicle in lieu – unrestricted 178 148 - - 178 148 Use of Money & Property 12,118 6,414 3,296 991 15,413 7,405 Other 4,106 1,797 (359) 110 3,747 1,907 Total revenues 200,927 180,015 66,002 61,411 266,929 241,426 Expenses:

General government 15,603 15,532 - - 15,603 15,532 Public safety 100,595 82,072 - - 100,595 82,072 Public works 30,258 27,870 - - 30,258 27,870 Community development 10,688 7,413 - - 10,688 7,413 Human and leisure 13,399 11,447 - - 13,399 11,447 Refuse collection 15,649 13,504 - - 15,649 13,504 Interest on long-term debt 244 247 - - 244 247 Water utility - - 32,755 29,345 32,755 29,345 Airport - - 4,198 2,125 4,198 2,125 Parking facilities - - 13 76 13 7 6 Brea Dam recreational facilities - - 4,163 3,730 4,163 3,730 Sewer enterprises - - 4,719 5,559 4,719 5,559 CNG - - 62 106 62 106 Total expenses 186,436 158,085 45,910 40,941 232,346 199,026 Excess (Deficiency) of Revenues Over 14,491 21,930 20,092 20,470 34,583 42,400 Transfers (450) 187 450 (187) - -
Change in net position 14,041 22,117 20,541 20,283 34,583 42,400 Net position - beginning 395,077 372,960 196,388 176,105 591,465 549,065 Net position - ending 409,118$ 395,077 $ 216,929$ 196,388$ 626,047$ 591,465$ Governmental Business-type
Total
Chan ges in Net Position
activities activities

Governmental activities. The net position for governmental activities increased by $14.0 million over the prior year. Total revenues reflect an increase of $20.9 million from the prior year. This increase is related to $10.0 million in funding received from the State of California to purchase a property to provide shelter solutions for the homeless population and an increase in property tax revenue growth as property value in the City of Fullerton increased 7.28% from FY 2022-23 due to an increase in prior yea r transfers of ownership and increase in property base year value of 2%, and investment earnings.

Total expenses increased by $28.4 million from the prior year. The increase was primarily attributed to the purchase of property to provide shelter solutions for the homel ess population and increases in negotiated labor bargaining agreements, and an increase in pension plan costs due to a decrease in earnings on pension plan investments.
8 Charges for Services

22.38%
Oper. Grants &
Contributions

18.24%Capital Grants &
Contributions

2.16%
Property Taxes

28.42%
Sales Taxes

15.18%
Franchise Taxes

2.84%
Other Taxes

2.62%
Motor Vehicle in lieu -
Unrestricted

0.09% Use of Money &
Property

6.03% Other

2.04%

REVENUES BY SOURCE -

GOVERNMENTAL ACTIVITIES
FISCAL YEAR 2023-24

0 20,000
40,000
60,000
80,000
100,000
120,000
General
Government
Public
Safety
Public
Works
Community
Development
Human &
Leisure
Refuse
Collection
Interest on
Long-Term
Debt
Dollars in Thousands

EXPENSES & PROGRAM REVENUES -

GOVERNMENTAL ACTIVITIES
FISCAL YEAR 2023-24
Expenses Program Revenues

Business-type activities. The Business-type activities reported an increase in net positi on of $20.6 million. Revenues reflect an increase of $4.6 million, and expenses show an incr ease of $5.0 million. The primary factor for increased revenue is due to increases in wat er sales. Expenses primarily increased for water costs and a $2.2 million settlement agreement from a lawsuit arising from a lease at the Fullerton airport. 9 Charges for Services
- Water

79.50%
Charges for Services
-S e w e r

9.42%
Charges for Services
-A i r p o r t

3.37%
Charges for Services
-B r e a D a m

6.65%
Capital Grants &
Contributions

1.06%

REVENUES BY SOURCE -

BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2023-24

0 10,000
20,000
30,000
40,000
50,000
60,000
Water Utility Airport Sewer Enterprise Brea Dam Other
Dollars in Thousands

EXPENSES & PROGRAM REVENUES -

BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2023-24
Expenses Program Revenues

Financial Analysis of the City’s Funds

As noted earlier, the City of Fullerton uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.

Governmental funds. The focus of the City’s governmental funds is to provide inform ation on near-term inflows, outflows, and balances of spendable resources. Such informatio n is useful in assessing the City’s financing requirements. Unassigned fund balance may serve as a useful me asure of a government’s net resources available for spending at the end of the fiscal year.

As mentioned previously in this discussion, the City’s governmental funds reported combined ending fund balances of $67.3 million, a decrease of $2.6 million in compar ison with the prior year. Of that total, $0.4 million is nonspendable which represents inventory and pre paid costs; $43.3 million represents monies 10 legally restricted by external agencies for debt service and specific programs or projects, $3.3 million is committed to city infrastructure projects, and $23.0 million represents f unds assigned by the City Council for a contingency reserve, street and road improvements, and building permits. Th e remaining balance of negative $(2.6) million is unassigned.

The City reports four major governmental funds:

The General Fund is the chief oper ating fund of the City. At t he end of the current fiscal year, this fund balance totaled $38.7 million. Of that amount, $21.1 million was assig ned to a contingency reserve, which is 17% of total General Fund expenditures. The General Fund’s reserve policy i s to maintain a minimum reserve equal to 10% and strive to reach a level of 17% of total General Fund expend itures each year. The City maintains the 17% General Fund reserve with unassigned fund balance of $10.1 mill ion. Revenues totaled $123.6 million, while expenditures totaled $124.0 million. The increase in fund balan ce was primarily attributed to an $7.0 million transfer from the American Rescue Plan Act Fund for revenue rep lacement and an increase in property tax revenue growth as property value in the City of Fullerton increased 7.28% from FY 2022-23 due to an increase in prior year transfers of ownership and increase in property base year value of 2%, and investment earnings.

The Grants Administration Fund reflected a deficit fund balance of $(1.9) million due to uncollected receivables as of June 30, 2024. This total represents an increase in the defi cit of $0.8 million from the previous fiscal year. The increase is attributed to grant funds available 60 days after t he end of the fiscal year for grant related expenditures. The timing of reimbursable grant monies resulted in the deficit fund balance of $(1.9) million.

The American Rescue Plan Act Fund (ARPA) reflected a fund balan ce of $1.4 million. The purpose of this f und is to account for the federal funds received to address the COV ID-19 public health crisis. The City was awarded $32.7 million and received the first $16.3 million in FY 2020-21 and the remaining $16.4 million in May 2022. $10.2 million is recorded as unearned revenue on the balance sheet pending use for eligible expenditures.

The Capital Projects Fund reported a deficit fund balance of $( 8.4) million, a decrease of $2.6 million from the prior year. The purpose of the fund is for the construction, ac quisition, and/or improvements of the City’s capital assets. Funding for many of the projects comes from grants tha t operate on a reimbursement basis and timing of receipt of the funds can often overlap fiscal years.

Another fifteen non-major governmental funds are combined for r eporting purposes in the government-wide statements and include the Gas Tax; Drainage Capital Outlay; Tr affic Safety; Park Dwelling, Asset Seizure; Refuse Collection; Air Quality Improvement; Sanitation; Measure M 2 ; H o u s i n g ; F T V C a b l e – P E G A c c e s s ; SB2/PLHA, West Coyote Hills Endowment; Opioid Litigation Settlement Fund; and Debt Service Reserve Funds.

Proprietary funds. The City’s proprietary funds provide the same type of informa tion found in the government- wide financial statements, but in more detail. The City’s propr ietary funds contain six enterprise funds: water utility, airport, sewer, parking facilities, CNG station, and Brea Dam recreational facilities. The eight internal service funds are also proprietary funds and include: liability insurance, vehicle replacement, workers’ comp, group insurance, equipment maintenance, information technology, building maintenance, and facility capital repair.

Unrestricted net position of the enterprise funds totaled $45.6 million at the end of the year: $43.0 million for the Water Utility Fund, ($.3) million for the Airport Fund, $3.9 mi llion for the Sewer Fund, ($0.4) million for the Brea Dam Fund, ($0.4) million for Parking Facilities Fund, and ($.1) million for the CNG Fund. The total increase in net position for these enterprise funds was $20.6 million from the prior fiscal year.

Unrestricted net position of the internal service funds totaled $35.1 million at the end of the year: $9.5 million for Liability Insurance Fund, $7.2 m illion for Vehicle Replacement Fund, $15.9 million for Workers’ Comp Fund, $1.4 million for Group Insurance Fund, $2.7 million for Equipment Ma intenance Fund, ($4.2) million for Information Technology Fund, $0.4 million for Building Maintenance Fund, and $2.2 million for Facility Capital Repair Fund.

Fiduciary funds. The City reports three fiduciary funds consisting of three cu stodial funds and two trust funds.

The custodial funds include Collections for Other Governments, Community Facilities District, and Assessment District Funds which account for amounts received for other governments and transactions associated with various Districts. These custodial funds have a net position of $0.1 million. One trust fund Pension (and Other Employee Benefit) Trust Fund includes the OPEB Trust Fund, which accounts for the 11 post-employment benefits, net position of $0.08 million. The Su ccessor Agency Trust Fund accounts for all transactions associated with the Successor Agency to the Redeve lopment Agency and has a net position of $31.3 million. The Other Trust Fund is for reimbursements for t he Frontier parking structure costs, net position of $5.8 million.

General Fund Budgetary Highlights

The General Fund ended the fiscal year with a fund balance of $ 38.7 million, reflecting an increase of $5.2 million from the prior year. Total revenues increased by $3.0 million, and expenditures increased by $9.6 million over the prior year. The increase in revenue in c omparison to the prior year is due to an increase in property tax growth. Expenditure increases were primarily due to the City Council approved labor agreements for Public Safety bargaining units, filling positions, and high inflation costs for goods and services.

Capital Asset and Debt Administration

Capital assets. The City’s investment in capital assets for its governmental an d business type activities as of June 30, 2024, totaled $704.7 million (net of accumulated depre ciation), an increase of $40.0 million due to the purchase of property for a shelter for the homeless population, park improvements, purchase of new vehicles, and street infrastructure projects . Additional information on the C ity’s capital assets can be found in Note 6 of the Notes to the Financial Statements.

($ in thousands)
2024 2023 2024 2023 2024 2023
Land 74,167 $ 72,182 $ 9,535 $ 9,535 $ 83,702 $ 81,717 $ Buildings 65,720 63,062 6,006 6,292 71,726 69,354 Improvements other than buildings 42,252 33,330 67,269 55,314 109,521 88,644 Machinery and equipment 16,336 15,231 907 1,037 17,243 16,268 Leasehold improvements 54 82 - - 54 82 Lease assets 596 442 - - 596 442 Subscriptions asset 6,391 3,490 21 28 6,412 3,518 Infrastructure 203,765 108,709 57,160 56,626 260,925 165,335 Construction in progress 126,312 218,673 28,191 20,562 154,503 239,235 Total 535,593$ 515,201 $ 169,089 $ 149,394 $ 704,682$ 664,595 $ Capital Assets
(net of depreciation)
activities activities
Governmental Business-type
Total

Long-term debt. At the end of the current fiscal year, the City has total long- term debt outstanding of $25.8 million, an increase of $5.2 million due to the full go-l ive of the utility billing and cashiering system increasing the subscription liability, and loan from Caltrans for Airport infrastructure projects. Additional information on the City’s long-term debt can be found in Note 14 of the Notes to the Financial Statements.

($ in thousands)
2024 2023 2024 2023 2024 2023
Revenue bonds - $ - $ 5,257 $ 5,723 $ 5,257 $ 5,723 $ Judgement obligation bonds 4,355 4,800 - - 4,355 4,800 Notes, leases, and subscriptions payable 14,735 10,082 1,474 - 16,209 10,082 Total 19,090$ 14,882$ 6,731$ 5,723 $ 25,821 $ 20,605 $ Governmental Business-type
Total
Long-term Debt
activities activities

12 Economic Factors and Next Year’s Budget

The City of Fullerton’s local economy has rebounded since the C OVID-19 pandemic as General Fund revenues, led by its stable property tax base, have grown year over year. Sales tax revenues will stabilize in FY 2024-25 as spending appears to be normalizing after strong growth in prior years. Expenditures continue to increase due to inflation, impacts of labor negotiations with the City’s variou s bargaining units, increasing pension costs, and aging infrastructure needs. However, the fiscal year 2024-25 G eneral Fund budget is balanced with the use of excess reserves due to the City’s fiscal condition which has im proved over the past few years with the support of the American Rescue Plan Act Fund (ARPA) revenue replacement provision. In addition, the fiscal year 2024-25 General Fund budget incorporates ongoing community programming and enhanced service levels for Public Safety, investment in S treet Infrastructure and continue s to promote cost recovery efforts. FY 2024-25 is anticipated to achieve its 17% reserves goal for third consecutive year but will face financial challenges to meet its financial goals thereafter beginning in FY 2025-26. The City Ma nager, in conjunction with the City Council, continues to explore cost recovery and containment strategies a s well as revenue generating opportunities to move the Fullerton towards a path to fiscal and organizational sustainability.

Requests for Information

This financial report is designed to provide a general overview of the City of Fullerton’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be address ed to the office of the Director of Administrative Services, 303 W. Commonwealth Avenue, Fullerton, California 92832. 13 THIS PAGE INTENTIONALLY LEFT BLANK
14 CITY OF FULLERTON, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 160,173,752$ 71,115,157 $ 231,288,909$ Receivables:

Accounts 28,434,366 11,944,354 40,378,720
Taxes 415,641 - 415,641 Accrued interest 807,969 298,536 1,106,505 Leases 6,154,327 11,267,851 17,422,178
Notes and loans 26,308,634 - 26,308,634 Internal balances (6,907,085) 6,907,085 - Restricted assets:

Cash held with fiscal agent 1,896,483 279,525 2,176,008 Inventories 263,312 57,032 320,344 Prepaid costs 890,504 - 890,504 Capital assets (not being depreciated) 200,479,629 37,726,257 238,205,886 Capital assets (net of accumulated depreciation/amortization) 335,112,874 131,362,316 466,475,190 Total assets 754,030,406 270,958,113 1,024,988,519

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 357,955 81,813 439,768 Pension deferrals 67,293,202 4,311,443 71,604,645 Other post-employment benefits deferrals 5,245,101 702,022 5,947,123 Total deferred outflows of resources 72,896,258 5,095,278 77,991,536

LIABILITIES
Accounts payable 10,483,484 14,532,188 25,015,672 Accrued liabilities 2,749,633 140,283 2,889,916 Accrued interest 134,122 82,662 216,784 Unearned revenue 13,515,895 - 13,515,895 Deposits payable 8,128,352 2,405,569 10,533,921 Due to other governments 3,397,249 - 3,397,249 Noncurrent liabilities:

Due within one year: bonds, loans, leases, SBITAs, claims, and compensated absences 8,546,813 2,816,385 11,363,198 Net OPEB liability 1,790,912 - 1,790,912 Due in more than one year:

Net pension liability 285,531,599 17,668,670 303,200,269 Net OPEB liability 21,233,810 3,081,707 24,315,517 Bonds, loans, leases, SBITAs, claims,
and compensated absences 44,238,856 6,503,438 50,742,294 Total liabilities 399,750,725 47,230,902 446,981,627

DEFERRED INFLOWS OF RESOURCES
Leases 5,754,899 10,386,669 16,141,568
Pension deferrals 1,662,918 82,299 1,745,217 Other post-employment benefits deferrals 10,639,806 1,424,068 12,063,874 Total deferred inflows of resources 18,057,623 11,893,036 29,950,659

NET POSITION
Net investment in capital assets 519,129,183 163,657,338 682,786,521 Restricted:

Community development projects 2,468,618 - 2,468,618 Public safety 633,757 - 633,757 Parks and recreation 1,608,626 - 1,608,626 Public works 21,319,452 - 21,319,452 Capital projects 553,316 - 553,316 Debt service 205,907 279,525 485,432 Housing 12,545,793 - 12,545,793 Refuse collection 1,473,160 - 1,473,160 Opioid settlement 156,146 - 156,146 Library 1,155,311 - 1,155,311 Pension stabilization 637,739 - 637,739 Donations 786,837 - 786,837 Unrestricted (153,555,529) 52,992,590 (100,562,939) Total net position 409,118,316$ 216,929,453 $ 626,047,769 $ June 30, 2024
Primary Government
See Notes to Financial Statements.
15 CITY OF FULLERTON, 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 15,602,418$ 521,807$ 24,697,361$ -$ Public safety 100,594,910 11,111,481 953,556 - Community development 10,688,124 4,612,583 3,660,235 - Human and leisure 13,398,760 874,047 27,210 - Public works 30,258,343 13,754,132 7,301,325 4,347,887 Refuse collection 15,649,157 14,087,483 - - Interest on long-term debt 244,237 - - - Total governmental activities 186,435,949 44,961,533 36,639,687 4,347,887 Business-type activities:

Airport 4,197,996 2,122,988 - 559,046 Brea Dam Facilities Recreational 4,163,204 4,183,613 - - Water Utility 32,754,725 50,035,155 - 108,527 Parking Facilities 12,726 - - - Sewer Enterprise 4,718,716 5,931,907 - - Compressed Natural Gas Facility 62,372 - - - Total business-type activities 45,909,739 62,273,663 - 667,573 Total primary government 232,345,688$ 107,235,196$ 36,639,687$ 5,015,460$ General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Franchise taxes
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See Notes to Financial Statements.
16 Governmental Business-Type
Activities Activities Total
9,616,750$ - $ 9,616,750$
(88,529,873) - (88,529,873)
(2,415,306) - (2,415,306)
(12,497,503) - (12,497,503)
(4,854,999) - (4,854,999)
(1,561,674) - (1,561,674)
(244,237) - (244,237)
(100,486,842) - (100,486,842)
- (1,515,962) (1,515,962)
- 2 0,409 20,409
- 17,388,957 17,388,957
- ( 1 2 , 7 2 6 ) (12,726) - 1,213,191 1,213,191
- ( 6 2 , 3 7 2 ) (62,372) - 17,031,497 17,031,497
(100,486,842) 17,031,497 (83,455,345)
57,094,753 123,987 57,218,740
30,507,858 - 30,507,858
5,715,912 - 5,715,912
5,257,297 - 5,257,297
178,344 - 178,344
12,117,693 3,295,731 15,413,424
4,106,240 (359,157) 3,747,083
(449,565) 449,565 -
114,528,532 3,510,126 118,038,658
14,041,690 20,541,623 34,583,313
395,076,626 196,387,830 591,464,456
409,118,316$ 216,929,453 $ 626,047,769 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
17 CITY OF FULLERTON, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
Capital Projects
Fund
General
ASSETS
Cash and investments 34,447,871$ - $ 11,413,536$ -$ Receivables:

Accounts 14,883,212 2,189,155 - 5,185,041 Taxes 415,641 - - - Accrued interest 91,264 - 247,407 - Leases 6,154,327 - - - Notes and loans - 14,557,243 - - Due from other funds 9,020,074 - - - Inventories 6,528 - - - Prepaid costs 396,115 3,721 - - Restricted assets:

Cash held with fiscal agents 754,387 354,300 - - Total assets 66,169,419$ 17,104,419$ 11,660,943$ 5,185,041$

LIABILITIES
Accounts payable 2,174,246$ 190,877 $ - $ 1,923,171$ Accrued liabilities 2,570,287 5,799 2,062 14,656 Deposits payable 8,123,917 36,936 - 10,450 Due to other funds - 199,010 - 5,296,329 Due to other governments 3,042,629 354,620 - - Unearned revenue 36,833 1,763,072 10,233,054 1,254,551 Total liabilities 15,947,912 2,550,314 10,235,116 8,499,157

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 5,809,773 16,414,692 - 5,127,690 Leases 5,754,899 - - - Total deferred inflows of resources 11,564,672 16,414,692 - 5,127,690

FUND BALANCES (DEFICITS)
Nonspendable 402,643 - - - Restricted 1,892,325 - 1,425,827 - Committed 3,277,873 - - - Assigned 22,962,550 - - - Unassigned (deficit) 10,121,444 (1,860,587) - (8,441,806) Total fund balances (deficits) 38,656,835 (1,860,587) 1,425,827 (8,441,806) Total liabilities, deferred inflows of resources,
and fund balances (deficits) 66,169,419$ 17,104,419$ 11,660,943$ 5,185,041$ Special Revenue Funds
Grants
Administration
American
Rescue Plan
Act Capital Projects
See Notes to Financial Statements.
18 CITY OF FULLERTON, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Taxes
Accrued interest
Leases
Notes and loans
Due from other funds
Inventories
Prepaid costs
Restricted assets:

Cash held with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Due to other governments
Unearned revenue
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Leases
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Nonmajor Governmental
Funds Funds
25,871,612$ 71,733,019 $
6,102,128 28,359,536
- 415,641
128,038 466,709
- 6,154,327
11,751,391 26,308,634
- 9,020,074
- 6,528
- 399,836
- 1,108,687
43,853,169$ 143,972,991 $
3,842,286$ 8,130,580 $
87,656 2,680,460
2,100 8,173,403
783,630 6,278,969
- 3,397,249
271,290 13,558,800
4,986,962 42,219,461
1,348,875 28,701,030
- 5,754,899
1,348,875 34,455,929
- 402,643
39,952,291 43,270,443
- 3,277,873
- 22,962,550
(2,434,959) (2,615,908)
37,517,332 67,297,601
43,853,169$ 143,972,991 $
See Notes to Financial Statements.
19 THIS PAGE INTENTIONALLY LEFT BLANK
20 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 67,297,601$
512,168,414
Deferred outflows-pension related 65,287,540 $
Deferred outflows-OPEB related 4,963,028
Deferred inflows-pension related (1,624,633)
Deferred inflows-OPEB related (10,067,618)
Total deferred outflows and inflows related to postemployment benefits 58,558,317 28,753,132
45,489,871
Long-term debt (869,110)
Leases and SBITA (105,969)
Compensated absences (3,075,211)
Net pension liability (277,312,232)
Net OPEB liability (21,786,497)
Total long-term liabilities (303,149,019)
Net position of governmental activities 409,118,316$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF FULLERTON, 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.
21 CITY OF FULLERTON, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
Capital
Projects Fund
General

REVENUES
Taxes 92,859,908$ - $ - $ -$ Franchise taxes 5,534,009 - - - Licenses and permits 2,292,622 - - - Intergovernmental 650,572 14,090,638 12,788,866 2,834,203 Charges for services 13,181,721 - - 122,825 Investment earnings 5,573,334 - 1,555,210 - Fines and forfeitures 2,064,407 - - - Miscellaneous 1,451,739 65,337 - 346,342 Total revenues 123,608,312 14,155,975 14,344,076 3,303,370

EXPENDITURES
Current:

General government 6,076,194 252,766 718,352 - Public safety 91,357,962 1,498,567 - - Community development 5,500,596 2,271,167 - - Human and leisure 10,235,467 92,329 - - Public works 10,172,976 421,033 - 1,897,916 Refuse collection - - - - Capital outlay 243,658 9,975,474 - 20,436,514 Debt service:

Prinicpal retirement 358,338 - - - Interest and fiscal charges 32,809 - - - Total expenditures 123,978,000 14,511,336 718,352 22,334,430 Excess (deficiency) of revenues
over (under) expenditures (369,688) (355,361) 13,625,724 (19,031,060)

OTHER FINANCING SOURCES (USES)
Transfers in 7,261,334 - - 16,441,012 Transfer out (1,872,125) (400,213) (12,070,512) (1,740) Subscriptions financing 150,115 - - - Total other financing sources (uses) 5,539,324 (400,213) (12,070,512) 16,439,272 Net change in fund balances 5,169,636 (755,574) 1,555,212 (2,591,788) Fund balances (deficit)-beginning 33,487,199 (1,105,013) (129,385) (5,850,018) Fund balances (deficit)-ending 38,656,835$ (1,860,587)$ 1,425,827$ (8,441,806)$ Special Revenue Funds
American
Rescue Plan
Act
Grants
Administration
Capital
Projects
See Notes to Financial Statements.
22 CITY OF FULLERTON, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Capital outlay
Debt service:

Prinicpal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfer out
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total Total
Nonmajor Governmental
Funds Funds
181,903$ 93,041,811$
- 5,534,009
- 2,292,622
11,933,414 42,297,693
21,013,827 34,318,373
1,619,058 8,747,602
272,442 2,336,849
4,750 1,868,168
35,025,394 190,437,127
206,992 7,254,304
290,085 93,146,614
2,447,046 10,218,809
228,081 10,555,877
11,689,540 24,181,465
15,548,256 15,548,256
327,619 30,983,265
- 358,338
- 32,809
30,737,619 192,279,737
4,287,775 (1,842,610)
614,398 24,316,744
(10,908,698) (25,253,288)
1,576 151,691
(10,292,724) (784,853)
(6,004,949) (2,627,463)
43,522,281 69,925,064
37,517,332$ 67,297,601 $
See Notes to Financial Statements.
23 THIS PAGE INTENTIONALLY LEFT BLANK
24 Reconciliation of the Statement of Revenues, Expenses 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: (2,627,463)$ Capital outlay 31,158,663$
Depreciation/amortization expense (11,473,704)
Loss on disposal of capital assets (6,675,093)
Total adjustment 13,009,866
7,418,698
Leases and subscriptions (37,333)
Principal payments 612,900
Total adjustment 575,567
9,307,877
Compensated absences (483,191)
Changes in pension liabilities and related deferred outflows and inflows of resources (13,529,660) Changes in OPEB liabilities and related deferred outflows and inflows of resources 369,996 Total adjustment (13,642,855)
Change in net position of governmental activities 14,041,690 $ 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 useo fc u r r e n t financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF FULLERTON, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, inthe 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 whi ch 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 P osition.

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 Posit ion. Also, governmental funds report the effect of premiums, discounts, and similaritems when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See Notes to Financial Statements.
25 CITY OF FULLERTON, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
ASSETS
Current assets:

Cash and investments 3,750,646$ 57,915,877 $ 6,746,271$ Receivables:

Accounts 702,938 9,406,203 1,787,833
Accrued interest 34,387 223,661 28,089 Leases 382,924 153,669 -
Prepaid costs - - - Inventory - - - Cash held with fiscal agent - - - Total current assets 4,870,895 67,699,410 8,562,193 Noncurrent:

Leases 9,248,961 622,844 -
Capital assets - net of accumulated depreciation/amortization 19,008,471 92,852,054 54,125,094 Total noncurrent assets 28,257,432 93,474,898 54,125,094 Total assets 33,128,327 161,174,308 62,687,287

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 81,813 - Pension deferrals 391,196 2,785,981 974,888 Other post-employment benefits deferrals 56,876 444,707 180,590 Total deferred outflows of resources 448,072 3,312,501 1,155,478

LIABILITIES
Current liabilities:

Accounts payable 339,564 10,936,180 528,441 Accrued liabilities 12,762 89,919 30,421 Accrued interest payable 5,074 60,669 - Unearned revenue - - - Deposits payable 150,437 2,215,330 34,778 Due to other funds - - - Claims and judgments - current 2,200,000 - - Compensated absences - current 1,388 14,491 2,774 Bonds, loans, leases, and subscriptions - current 62,022 376,322 - Total current liabilities 2,771,247 13,692,911 596,414 Noncurrent liabilities:

Claims and judgments - noncurrent - - - Compensated absences 17,810 250,364 81,154 Bonds, loans, leases, and subscriptions 1,249,432 3,864,599 - Net pension liability 1,603,158 11,417,201 3,995,172 Net other post-employment benefits liability 249,671 1,952,157 792,747 Total noncurrent liabilities 3,120,071 17,484,321 4,869,073 Total liabilities 5,891,318 31,177,232 5,465,487

DEFERRED INFLOWS OF RESOURCES
Leases 8,894,853 700,758 -
Pension deferrals 7,467 53,180 18,609 Other post-employment benefits deferrals 115,374 902,099 366,331 Total deferred inflows of resources 9,017,694 1,656,037 384,940

NET POSITION
Net investment in capital assets 18,997,017 88,611,133 54,125,094 Restricted for debt service - - - Unrestricted (329,630) 43,042,407 3,867,244 Total net position 18,667,387$ 131,653,540 $ 57,992,338 $ 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 Net position of business-type activities
Business-Type Activities
Airport Water Utility
Sewer
Enterprise
See Notes to Financial Statements.
26 CITY OF FULLERTON, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
ASSETS
Current assets:

Cash and investments
Receivables:

Accounts
Accrued interest
Leases
Prepaid costs
Inventory
Cash held with fiscal agent
Total current assets
Noncurrent:

Leases
Capital assets - net of accumulated depreciation/amortization Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding
Pension deferrals
Other post-employment benefits deferrals
Total deferred outflows of resources

LIABILITIES
Current liabilities:

Accounts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Deposits payable
Due to other funds
Claims and judgments - current
Compensated absences - current
Bonds, loans, leases, and subscriptions - current
Total current liabilities
Noncurrent liabilities:

Claims and judgments - noncurrent
Compensated absences
Bonds, loans, leases, and subscriptions
Net pension liability
Net other post-employment benefits liability
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Pension deferrals
Other post-employment benefits deferrals
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
Total net position
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 Net position of business-type activities
Governmental
Activities
Other Total
Enterprise Enterprise Internal
Funds Funds Service Funds
2,702,363$ 71,115,157$ 88,440,733$
47,380 11,944,354 74,830
12,399 298,536 343,699
29,594 566,187 -
- - 490,668 57,032 57,032 256,784
279,525 279,525 787,796
3,128,293 84,260,791 90,394,510
829,859 10,701,664 -
3,102,954 169,088,573 23,424,089
3,932,813 179,790,237 23,424,089
7,061,106 264,051,028 113,818,599
- 81,813 357,955
159,378 4,311,443 2,005,662
19,849 702,022 282,073
179,227 5,095,278 2,645,690
2,728,003 14,532,188 2,307,853
7,181 140,283 71,610
16,919 82,662 134,122
- - 9,197
5,024 2,405,569 -
473,195 473,195 2,267,910
- 2,200,000 6,095,000
9,388 28,041 -
150,000 588,344 2,004,682
3,389,710 20,450,282 12,890,374
- - 24,525,000 11,219 360,547 -
1,028,860 6,142,891 16,110,698
653,139 17,668,670 8,219,367
87,132 3,081,707 1,238,225
1,780,350 27,253,815 50,093,290
5,170,060 47,704,097 62,983,664
791,058 10,386,669 -
3,043 82,299 38,285
40,264 1,424,068 572,188
834,365 11,893,036 610,473
1,924,094 163,657,338 17,746,094
279,525 279,525 -
(967,711) 45,612,310 35,124,058
1,235,908$ 209,549,173 52,870,152 $
7,380,280
216,929,453$
Business-Type Activities
See Notes to Financial Statements.
27 CITY OF FULLERTON, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024

OPERATING REVENUES
Sales and service charges 2,122,988$ 50,035,155 $ 5,931,907$ Interfund service charges - - - Miscellaneous 9,559 148,721 101 Total operating revenues 2,132,547 50,183,876 5,932,008

OPERATING EXPENSES
Maintenance, operations, and administration 4,706,841 13,925,300 3,953,733 Cost of water - 18,527,631 - Claims expense - - - Depreciation/amortization expense 448,762 1,693,210 994,872 Total operating expenses 5,155,603 34,146,141 4,948,605 Operating income (loss) (3,023,056) 16,037,735 983,403

NONOPERATING REVENUES (EXPENSES)
Taxes 123,987 - -
Intergovernmental 26,621 - - Investment earnings 381,465 2,403,074 363,177 Interest expense (4,803) (194,855) - Gain (loss) on disposal of capital assets - - - Total nonoperating revenues (expenses) 527,270 2,208,219 363,177 Income (loss) before capital contributions and transfers (2,495, 786) 18,245,954 1,346,580 Capital contributions 532,425 273,854 - Transfers In - 719,565 - Transfers Out - (180,000) (90,000) Change in net position (1,963,361) 19,059,373 1,256,580 Net position-beginning 20,630,748 112,594,167 56,735,758 Net position-ending 18,667,387$ 131,653,540$ 57,992,338$ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds
Changes in net position of business-type activities
Business-Type Activities
Airport Water Utility
Sewer
Enterprise
See Notes to Financial Statements.
28 CITY OF FULLERTON, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024

OPERATING REVENUES
Sales and service charges
Interfund service charges
Miscellaneous
Total operating revenues

OPERATING EXPENSES
Maintenance, operations, and administration
Cost of water
Claims expense
Depreciation/amortization expense
Total operating expenses
Operating income (loss)

NONOPERATING REVENUES (EXPENSES)
Taxes
Intergovernmental
Investment earnings
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers Capital contributions
Transfers In
Transfers Out
Change in net position
Net position-beginning
Net position-ending
Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds
Changes in net position of business-type activities
Governmental
Activities
Other Total
Enterprise Enterprise Internal
Funds Funds Service Funds
4,183,613$ 62,273,663$ -$
- - 41,868,170 40,040 198,421 1,074,752
4,223,653 62,472,084 42,942,922
4,296,003 26,881,877 30,331,700
- 18,527,631 -
- - 2,224,017 85,646 3,222,490 2,407,950
4,381,649 48,631,998 34,963,667
(157,996) 13,840,086 7,979,255
- 123,987 -
- 26,621 -
148,015 3,295,731 3,411,854
(60,204) (259,862) (211,428)
- - (99,566) 87,811 3,186,477 3,100,860
(70,185) 17,026,563 11,080,115
- 806,279 -
- 719,565 1,437,685
- (270,000) (950,706)
(70,185) 18,282,407 11,567,094
1,306,093 41,303,058
1,235,908$ 52,870,152 $
2,259,216
20,541,623$
Business-Type Activities
See Notes to Financial Statements.
29 CITY OF FULLERTON, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,402,771$ 49,047,521 $ 5,198,568$ Receipts from interfund charges - - - Payments to suppliers and service providers (3,845,695) (24,426,868) (2,376,454) Payments to employees for salaries and benefits (788,397) (5,065,072) (1,905,217) Payments of insurance claims - - - Other receipts (payments) 2,209,559 148,721 101 Net cash provided by (used for)
operating activities (1,021,762) 19,704,302 916,998

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - 719,565 - Transfers to other funds - (180,000) (90,000) Principal paid on non-capital debt - - - Interest paid on on-capital debt - - - Payments from other funds on interfund borrowings - - - Taxes 123,987 - -
Operating grants and contributions 26,621 - - Net cash provided by (used for)
noncapital financing activities 150,608 539,565 (90,000)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Proceeds from capital debt 1,300,000 - - Capital contributions 532,425 - - Acquisition and construction of capital assets (1,263,031) (18,161,144) (3,046,878) Principal paid on capital debt (3,643) (404,937) - Interest paid on capital debt - (190,212) - Proceeds from sales of assets - - - Net cash provided by (used for)
capital and related financing activities 565,751 (18,756,293) (3,046,878)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 366,538 2,429,757 377,192 Net cash provided by (used for)
investing activities 366,538 2,429,757 377,192 Net increase (decrease) in
cash and cash equivalents 61,135 3,917,331 (1,842,688) Cash and cash equivalents-beginning 3,689,511 53,998,546 8,588,959 Cash and cash equivalents-ending 3,750,646$ 57,915,877$ 6,746,271$ Business-Type Activities
Airport Water Utility
Sewer
Enterprise
See Notes to Financial Statements.
30 CITY OF FULLERTON, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts from interfund charges
Payments to suppliers and service providers
Payments to employees for salaries and benefits
Payments of insurance claims
Other receipts (payments)
Net cash provided by (used for)
operating activities

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Principal paid on non-capital debt
Interest paid on on-capital debt
Payments from other funds on interfund borrowings
Taxes
Operating grants and contributions
Net cash provided by (used for)
noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Proceeds from capital debt
Capital contributions
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of assets
Net cash provided by (used for)
capital and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided by (used for)
investing activities
Net increase (decrease) in
cash and cash equivalents
Cash and cash equivalents-beginning
Cash and cash equivalents-ending
Governmental
Activities
Other
Enterprise Internal
Funds Totals Service Funds
4,126,052$ 59,774,912$ -$
- - 41,833,404 (4,084,778) (34,733,795) (25,498,981)
(365,723) (8,124,409) (3,514,246)
- - (3,147,017) 40,040 2,398,421 1,074,752
(284,409) 19,315,129 10,747,912
- 7 1 9 , 5 6 5 1,437,685 - (270,000) (950,706)
- - (876,102) (1,832) (1,832) (96,749)
154,525 1 54,525 2,267,910
- 1 2 3 , 9 8 7 -
- 26,621 -
152,693 752,866 1,782,038
- 1,300,000 -
- 5 3 2 , 4 2 5 -
(164,750) (22,635,803) (5,619,050)
(170,918) (579,498) (1,458,937)
(57,721) (247,933) (71,501)
26,323 26,323 (362,473)
(367,066) (21,604,486) (7,511,961)
153,156 3,326,643 3,419,336
153,156 3,326,643 3,419,336
(345,626) 1,790,152 8,437,325
3,327,514 69,604,530 80,791,204
2,981,888$ 71,394,682 $ 89,228,529 $
Business-Type Activities
See Notes to Financial Statements.
31 CITY OF FULLERTON, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities
Airport Water Utility
Sewer
Enterprise

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 3,750,646$ 57,915,877 $ 6,746,271$ Cash held with fiscal agent - - - Total cash and cash equivalents 3,750,646$ 57,915,877$ 6,746,271$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (3,023,056)$ 16,037,735 $ 983,403$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 448,762 1,693,210 994,872 (Increase) decrease in accounts receivable (577,832) (521,489) (767,287) (Increase) decrease in leases receivable (221,861) (15,876) - (Increase) decrease in inventories - - - (Increase) decrease in prepaid items - - - Increase (decrease) in accounts payable 316,409 3,636,390 36,792 Increase (decrease) in accrued liabilities 3,240 8,982 7,090 Increase (decrease) in deposits payable 79,476 (450,269) 33,948 Increase (decrease) in unearned revenue - - - Increase (decrease) in compensated absences (3,658) 302 (4,978) Increase (decrease) in claims and judgments 2,200,000 - - Increase (decrease) in pension items (95,487) (159,766) (205,227) Increase (decrease) in other post-employment benefits items (147 ,755) (524,917) (161,615) Total adjustments 2,001,294 3,666,567 (66,405) Net cash provided by (used for)
operating activities (1,021,762)$ 19,704,302 $ 916,998 $

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments (16,060)$ (246,785)$ (31,252)$ Amortization of deferred charge on refunding - (8,391) - Contributions of capital assets 532,425 - - Amortization on bond discount/(premium) - 38,615 - See Notes to Financial Statements.
32 CITY OF FULLERTON, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments
Cash held with fiscal agent
Total cash and cash equivalents

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense
(Increase) decrease in accounts receivable
(Increase) decrease in leases receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in compensated absences
Increase (decrease) in claims and judgments
Increase (decrease) in pension items
Increase (decrease) in other post-employment benefits items Total adjustments
Net cash provided by (used for)
operating activities

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments
Amortization of deferred charge on refunding
Contributions of capital assets
Amortization on bond discount/(premium)
Governmental
Activities
Other
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
2,702,363$ 71,115,157$ 88,440,733$
279,525 2 79,525 787,796
2,981,888$ 71,394,682 $ 89,228,529 $
(157,996)$ 13,840,086$ 7,979,255$
85,646 3,222,490 2,407,950
(40,094) (1,906,702) (32,810)
(21,501) (259,238) -
28,042 28,042 (19,493)
- - (490,668) (140,889) 3,848,702 1,253,096
1,740 21,052 7,086
4,034 (332,811) -
- - (1,956) 2,003 (6,331) -
- 2,200,000 (923,000)
46,779 (413,701) 698,778
(92,173) (926,460) (130,326)
(126,413) 5,475,043 2,768,657
(284,409)$ 19,315,129 $ 10,747,912 $
(9,490)$ (303,587)$ (380,040) $
- (8,391) -
- 532,425 -
- 38,615 39,772
See Notes to Financial Statements.
33 Custodial
Funds
ASSETS
Cash and cash equivalents -$ 9,168,898$ 597,393$ Restricted assets - cash and cash equivalents - 5,848,806 - Investments:

Mutual funds - 3 - Equity securities 80,662 - - Receivables:

Taxes - - 24,078 Interest - 54,182 -
Leases - 32,683 -
Notes and loans - 49,176,003 - Prepaid costs - 54,549 - Land held for resale - 2,900,768 - Total assets 80,662 67,235,892 621,471

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 31,015 - Total deferred outflows of resources - 31,015 -

LIABILITIES
Accounts payable - 91,945 22,200 Accrued liabilities - 1,427 - Accrued interest - 326,305 - Due to bondholders - - 496,175 Noncurrent:

Bonds payable - due within one year - 8,940,000 - Bonds payable - due in more than one year - 20,808,359 - Total liabilities - 30,168,036 518,375

DEFERRED INFLOWS OF RESOURCES
Leases - 30,645 -
Total deferred inflows of resources - 30,645 -

NET POSITION
Restricted for:

Restricted for post-employment benefits other than pensions 80,662 - - Restricted for individuals, organizations, and other governments- 37,068,226 103,096 Total net position 80,662$ 37,068,226$ 103,096$

CITY OF FULLERTON, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Retiree Health
Insurance
Program
Private
Purpose Trust
Funds
Pension
(and Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
34 Custodial
Funds

ADDITIONS
Contributions:

Contributions from other funds -$ 6,228,325$ -$ Total contributions - 6,228,325 - Investment earnings:

Investment earnings 10,833 1,077,403 18,174 Total investment earnings 10,833 1,077,403 18,174 Taxes - 11,403,609 -
Sale of property - 10,700,000 - Miscellaneous - - 25,796 Total additions 10,833 29,409,337 43,970

DEDUCTIONS
Administrative expenses 424 141,435 - Contractual services - 647,095 - Contributions to other funds - 6,228,325 - Miscellaneous - - 25,796 Interest expense - 123,428 - Total deductions 424 7,140,283 25,796 Net increase (decrease) in fiduciary net position 10,409 22,269,054 18,174 Net position-beginning 70,253 14,799,172 84,922 Net position-ending 80,662$ 37,068,226$ 103,096$

CITY OF FULLERTON, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Retiree Health
Insurance
Program
Private
Purpose Trust
Funds
Pension
(and Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
35 THIS PAGE INTENTIONALLY LEFT BLANK
36 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Financial Reporting Entity

The City of Fullerton (the City) is a general law city governed by an elected five-member city council. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City’s elected officials have a contin uing full or partial accountability for fiscal matters of the other entities. The financial reporting City consists of: ( 1) the City, (2) organizations for which the City is financially accountable, and (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component units' balances and transactions are reported in a ma nner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or the component unit provides services almost entirely to the City.

1. Blended Component Units

City of Fullerton Public Financing Authority

The City of Fullerton Public Financing Authority (the PFA) was created on June 2, 1998, through a joint exercise of powers agreement between the City and the former Fullerton R edevelopment Agency for the purposes of (1) financing the acquisition and construction of various publi c capital improvements relating to the three Redevelopment Project Areas, and (2) refinancing various outsta nding obligations of the former Fullerton Redevelopment Agency. The City's Council Members serve as the board of directors for the Authority. The Authority's financial data and transactions have been blended i nto the City's ACFR in the government-wide governmental activities and funds of the City as applicable.

City of Fullerton Housing Authority

The City of Fullerton Housing Authority (the Housing Authority) was established on February 15, 2011. The Housing Authority was activated pursuant to State Law Section 3 4290 of the California Health and Safety Code, which allows for every City to establish a housing authority. The Housing Authority is designed to help protect local housing funds and programs, provide new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare, and ensure decent, safe, sanitary, and affordable housing accommodations to persons of low income. The Fullerton City Cou ncil serves as the Housing Authority’s Commissioners. The City has operational responsibility for the Housing Authority. The Authority’s financial data and transactions are included with the City under the Housing Special Revenue Fund.

Separate financial statements are not prepared for the PFA and the Housing Authority.

2. Jointly Governed Organization

North Orange County Cities Joint Power Authority

The City of and the City of Brea are members of the North Orang e County Cities Joint Powers Authority, these activities are reported as a fiduciary fund. For more informati on on this Joint Exercise of Powers Agreement see Note 19.
37 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. Basic Financial Statements - 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 as a whole. As a general rule the effect of interfund activity has been eliminat ed from the government-wide financial statements.

Exceptions to this rule are payments where the amounts are reasonably equivalent in value to the interfund services provided between the government's water, airport, parking facilities, recreational facilities and sewer functions 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. Governme ntal 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. The interfu nd activities and balance s between governmental activities and business-type activities are shown in the government-wide financial statements.

The statement of activities demon strates the degree to which th e direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect costs for administrative overhead are allocat ed among the functions and are included in the program expenses. 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.

The underlying accounting system of the City is organized and o perated on the basis of separate funds, each of which is considered to be a separate accounting entity. The ope rations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Separate financial statements f or the government's governmental , proprietary, and fiduciary funds are presented after the government-wide finan cial statements. These statement s display information about major funds individually and other governmental funds in the aggregate for governmental funds.

Fiduciary statements, even though excluded from the government- wide financial statements, include financial information that primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

C. Measurement Focus, Basis of Accounting, and Financial Statem ent 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. The City's fiduciary funds consists of a pension (and other employee benefits) trust fund, a private-p urpose trust fund, and custodial funds. Under the economic resources measurement focus, all assets and liabilitie s (whether current or noncurrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual b asis of accounting, 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.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current fin ancial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available expendable resources". Governmental fund operating statements present increases (revenues and other financing sour ces) and decreases (expenditures and other financing uses) in net current a ssets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Noncurrent portions of long-term receivables due to governmental 38 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

funds are reported on their balance sheets in spite of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be conside red "available spendable resources" since they do not represent net current assets. Recognition of governmental f und type revenue represented by noncurrent receivables is unavailable until they become current receivables. Noncurrent portions of other long-term receivables are offset by nonspendable fund balance. Governmental fund reve nues are recognized when they become measurable and available as net current assets. The primary revenue sources susceptible to accrual are taxpayer assessed taxes, grant revenues, investment income and capital project financing sources. Revenues are recognized when they are measurable at the end of the year and available within 60 days after the end of the fiscal year. Grant revenues have been recorded according to the provisions of GASB Statement 33, whereby grant funds earned but not received are recorded as a receivable, and grants received or receivable before the related revenue recognition criteria have been met are reported as unavailable revenue. Primary revenue sources not susceptible to accrual are court fines, and charges for services. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due.

The City reports the following major governmental funds:

• The General Fund is the City's primary operating fund. It acco unts for all financial resources of the general government, except those required to be accounted for in another fund.

• The Grants Administration Special Revenue Fund accounts for re ceipts and expenditures of various federal, state, and local grant programs.

• The American Rescue Plan Act Fund accounts for receipts and expenditures of the federal funding received from the American Rescue Plan Act of 2021 for the purposes of e mergency response expenditures and economic recovery costs associated with the coronavirus pandemic.

• The Capital Projects Fund accounts for financial resources seg regated for the acquisition or construction of major capital facilities and equipment, and the maintenance and construction of the City's major infrastructure.

The City reports the following major enterprise funds:

• The Airport Fund accounts for t he operation and maintenance of the Fullerton Airport.

• The Water Utility Fund accounts for the operation and maintena nce of the City's water production, transmission, and distribution system.

• The Sewer Enterprise Fund accounts for the operation and maintenance of the City's sewer system.

Additionally, the City reports the following fund types:

• Debt Service Fund accounts for the principal and interest payments of long-term liabilities for the city.

• Internal Service Funds account f or the activity that provides goods and services to other funds or departments on a cost-reimbursement basis, su ch as, liability insurance, equipment replacement, workers’ compensation, group insurance, equipment maintenance, information technology, building maintenance services and facility capital repair.

• The Pens
ion (and Other Employee Benefit) Trust Fund accounts f or the assets held in trust to pay for future benefits related to the City’s post-employment healthcare plan. 39 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

• The Private Purpose Trust Funds account for the assets and lia bilities of the former redevelopment agency and are allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated, and for the assets and liabilities held by the City in a fiduciary capacity that do not meet the criteria of the former redevelopment agency.

• The Custodial Funds account for fiduciary activities not requi red to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Some of these fiduciary activities of the City include collections to be remitted to other governments, assessment districts, and community facilities districts, and the North Orange County Cities Joint Powers Authority.

Enterprise funds account for operations where the intent of the City is that the costs of providing goods or services to the general public on a continuing basis be financed or reco vered primarily through user charges and space rentals. Under GASB Statement No. 34, enterprise funds are also required for any activity whose principal revenue sources meet any of the following criteria: (1) any activity that has issued debt backed solely by the fees and charges of the activity, (2) if the cost of providing services for an activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or it is the policy of the City to establish activity fees or charges to recover the cost of providing services, including capital costs.

Enterprise funds distinguish operating revenues and expenses fr om nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the Water Utility Fund, the Airport Fund, the Sewer Fund, the Parking Facilities Fund, and the Brea Dam Recreation Facilities Fund are charges to customers for sales and services. Operating expenses for enterprise 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 nonoperating revenues and expenses.

When both restricted and unrestricted resources are available f or use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, Deferred Ou tflows, Liabilities, Deferred Inflows and Net Position

1. Cash and Investments

The City pools all available cash from all funds for the purpose of increasing income through investment activities.

The City's cash and cash equivalents for the proprietary funds represents cash and investments, cash and investments with fiscal agents, and customer deposits with original maturities of three months or less held by the funds at fiscal year-end.

All investments are reported at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale), except for investments which have a remaining maturity of less than one year when purchased, which are stated at amortized cost. Those investments are short-term, highly liquid debt instruments including commercial paper, certificates of deposit, and agency obligations.

In accordance with GASB 72, Fair Value Measurement and Applicat ion, the City's investments are stated at fair value.
40 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. 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 balance s outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."

Advances to other funds are offset by a fund balance nonspendable or restricted account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles.

3. Property Tax Calendar

Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien date January 1
Levy date July 1 to June 30
Due date November 1, 1st Installment and March 1, 2nd installmen t Collection date December 10, 1st installment and April 10, 2nd installment

Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by state statutes. Accordingly, the City accrues only those taxes which are received from the county within 60 days after year-end.

4. Inventory, Prepaid Items, and Land Held for Resale

The City uses the consumption method to account for automotive parts and fuels inventory. Inventory is capitalized when purchased and is thereafter recorded as expenditure at the time the inventory item is consumed. Inventory assets are classified as nons pendable fund balance. The City us ed the purchases method for miscellaneous materials, supplies, utility department meters, pipe, valves, and fittings.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the purchases method.

Land held for resale is carried at the lower of cost or estimated realizable value. Fund balances are nonspendable or restricted in amounts equal to the carrying value of the land held for resale because such assets are not available to finance the City's current operations.

5. Capital Assets

Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), lease assets, and subscription assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with initial, individual cost of more than $5,000 ($150, 000 for certain groups of items in aggregate) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value when received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
41 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property, plant, equipment, infrastructure, lease assets, and s ubscription assets are depreciated/amortized using the straight-line method over the following estimated useful lives:

Assets Years
Building and improvements 20-50
Water system lines and mains 50-100
Vehicles, furniture, and equipment 3-20
Public domain infrastructure:

Streets, highways, and alleys 30-50
Bridges 50
Storm drains 50
Sewers 75
Traffic signals 20
Lease Assets
Subscription Assets
Shorter of underlying asset's useful
life or term of agreement

6. Deferred Outflows/Inflows of Resources

In addition to assets and liabilities, the Statement of Net Position and the Governmental Funds’ Balance Sheet will sometimes report separate sections for deferred outflows of resources and for deferred inflows of resources.

The separate financial statement element of deferred outflows of resources represent a consumption of net assets that applies to future periods which will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has items that qualify for reporting in this category: the deferred charge on refunding of long-term liabilities and components of the calculations for the net pension and other post-employment benefits liabilities.

The separate financial statement element of deferred inflows of resources represent an ac quisition of net assets that applies to future periods which will not be recognized as an inflow of resources (revenue) until that time. The City has items that qualify for reporting in this category: unavailable revenue, leases, and components of the calculations for the net pension and OPEB liabilities. Unavaila ble revenue exists only under the modified accrual basis of accounting and, accordingly, is reported only in the governmental funds’ balance sheet. The governmental funds typically report unavailable revenues for grant receipts which have been earned, but which are not received within the City’s defined availability period (60 days); these amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The recognition period differs depending on the source of the gain or loss.

7. Leases

Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.

At the commencement of a lease, the City initially measures the lease liability at the pres ent value of payments expected to be made during the lease term. Subsequently, the le ase liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, p lus certain initial direct costs. Subsequently, the lease asset is amortized on a straight ‐line basis over its useful life. Key estimates and judgments re lated to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

• The City uses the interest rat e charged by the lessor as the d iscount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
42 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are com posed of fixed payments and purch ase option price that the City is reasonably certain to exercise.

The City monitors changes in ci rcumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease l iabilities are reported wi th long-term debt on the statement of net position.

Lessor: The City is a lessor for a noncancellable lease of a building. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, th e lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of reso urces is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at o r before the lease commencement date.

Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

• The City uses its estimated incremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease . Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certa in changes occur that are expected to significantly affect the amount of the lease receivable.

8. Subscription-Based Information Technology Arrangements

The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right‐to‐use subscription asset (subscription asset) in the government‐wide financial statements.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscr iption asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequen tly, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments re lated to subscriptions include how the City determines (1) the discount rate it uses to discount the expect ed subscription payments to present value, (2) lease term, and (3) subscription payments.

• The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.

• The subscripti
on term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.
43 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain chang es occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities ar e reported with long-term debt on the statement of net position.

9. 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 prob able amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the Internal Service Fund that accounts for the City's self-insurance activities. It is the City's policy that all insurance claims outstanding at June 30, 2024, will be liquidated from expendable available financial resources at June 30, 2024.

10. Compensated Absences

It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Unused vacation and sick pay are accrued in the government-wide and pr oprietary fund financial statements. Only the current portion of the unused sick pay is recorded in the governmental fund statements. The current portion of the unpaid sick pay is the accumulation, as described below, for those employees that have reached retirement age.

Employees may accumulate sick leave without limitation as to the number of hours of accumulation. However, the maximum accumulation of vacation leave is limited to the total number of hours accruable for two years. Employees are paid 100 percent of their accumulated vacation pay when they terminate their employment for any reason.

Accumulated sick pay is paid to eligible safety employees and n on-safety employees, who were hired before June 30, 1984, and August 31, 1983, respectively, only under the following conditions: (1) 50 percent or 55 percent (depending on employee's classification) of the total accumulation is paid upon retirement or death; (2) 50 percent of the accumulation in excess of 120 days is paid for full-time employees terminated for any other reason after ten full years of continuous serv ice. Only 50 percent or 55 per cent of unpaid sick pay for eligible employees was recorded as a City liability. The portion for those eligible em ployees who reached their retirement ages at the end of the fiscal year were recorded as the current portion of unpa id sick pay. The remaining portion was recorded as a long-term liability.

11. Net Pension Liability

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

GASB 68 requires that the reported results must pertain to liab ility and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023

12. Other Post-Employment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and the OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. 44 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022, to June 30, 2023

13. Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or prop rietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds for all the bonds issued after June 30, 2002.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of d ebt 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

14. Fund Equity

In the fund financial statements, government funds report the following fund balance classification:

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

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

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

• Assigned include amounts that are constrained by the governmen t’s intent to be used for specific purposes but are neither restricted nor committed. The Director of Administrative Services is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution.

• Unassigned includes the residual amounts that have not been re stricted, committed, or assigned to specific purposes. The General Fund is the only City fund that is able to report a positive unassigned fund balance.

Pursuant to the City’s fund balance policy, the City Council’s goal is to achieve a minimum of 10% of the annual General Fund appropriation, as assigned fund balance in the General Fund. This is intended to be used to provide for temporary financing of unanticipated extraordinary needs of an emergency nature, such as economic uncertainties or a local disaster.

15. Net Position Flow Assumption

Sometimes the City will fund outlays for a particular purpose f rom 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. 45 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

16. Fund Balance Flow Assumptions

Sometimes the City will fund outlays for a particular purpose f rom both restricted and unrestricted resources (the total of commi tted, 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.

NOTE 2: STEWARDSHIP, COMPLIA NCE, AND ACCOUNTABILITY

A. Violations of Legal or Contractual Provisions

The notes to the required supplementary information, on the Excess of expenditures over appropriations, describes budgetary violations that occurred for the year ended June 30, 2024.

B. Deficit Fund Equity

At June 30, 2024, The City reported deficit fund equities in the following funds:

NOTE 3: CASH AND INVESTMENTS

Cash and investments at June 30, 2024, are classified in the accompanying financial statements as follows:

Fund Name Fund Type Deficit Cause
Sanitation Non-major special revenue fund (312,433) (a) Grants Administration Non-major special revenue fund (1,860,587) (a) SB2 / PLHA Non-major special revenue fund (2,122,526) (a) Capital Projects Major capital projects fund (8,441,806) (a) Compressed Natural Gas Facility Non-major enterprise fund (147,535) (b) (a) Deficit due to timing differences between grants or other receipts anddisbursements, and is expected to be eliminated through future grant or operational revenues. (a) Deficit due to the costs of maintenance and operations. The deficit is expected to be eliminated through future operational revenues.

Statement of Net Position:

Cash and inv estments 231,288,909$
Restricted cash and investments 2,176,008
Fiduciary Funds:

Cash and inv estments 9,846,956
Restricted cash and investments 5,848,806
Total cash and inv estments 249,160,679$
46 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

Cash and investments as of June 30, 2024, consist of the following:

At June 30, 2024, the carrying amount of the City’s deposits was $6,089,557 and the bank balance was $6,815,826.

The $726,269 difference represents outstanding deposits, checks, and other reconciling items.

A. Investments Authorized by th e California Government Code and the City's Investment Policy

The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

B. Investments Authorized by Debt Agreements

The above investments do not address investments of debt proceeds held by a bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Demand deposits 12,589,214$
Cash on hand 51,495
Investments 234,734,241
Investments with fiscal agents 1,785,728
Total cash and investments 249,160,679$
Authorized Inv estment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Inv estment in
One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None 40%
U.S. Federal instrumentalities 5 years None 40%
Banker's Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Collateralized Certificates of Deposit 5 years 25% 10%
Repurchase Agreements 1 year 25% 20%
Medium-Term Notes 5 years 30% 5%
Orange County Investment Pool None 0% 0%
Asset Back Securities 5 years 20% 5%
Municipal Bonds 5 years 20% 5%
Supranational Debt 5 years 30% 5%
Money Market Funds 5 years 2% 10%
Local Agency Investment Fund (LAIF) None
Lesser of
$50M or 60% None
47 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

C. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City monitors the interest rate inherent in its portfolio by measuring the weighted average maturity of its portfolio.

The investment maturities of the City’s portfolio as of June 30, 2024, are as follows:

D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations

The City has no investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

E. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investm ent will not fulfil its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. 12 months or
less 1 to 3 years 3 to 5 years Fair Value
Investments
Local Agency Investment Fund 52,461,826 $ - $ - $ 52, 461,826$ California CLASS 72,824,885 - - 72, 824,885 US Government Treasury Notes - 50,604,107 39,124,955 89,729,062 Corporate Notes 1,155,599 5,826,472 5,015,440 11,997,512 Municipal Issuances 783,536 4,050,693 1,098,075 5,932,304 Federal Agency Securities:

FNMA 286,992 777,442 - 1, 064,434 Money Market Mutual Funds 724,218 - - 724,218 Total Investments 128,237,057 61,258,714 45,238,470 234,734,241 Investments with Fiscal Agents:

PARS OPEB Trust Fund:

Equity Securities 80,662 - - 80,662 PARS Section 115 Pension Trust Fund:

Equity Securities 637,739 - - 637,739 Money Market Mutual Funds 1,067,327 - - 1, 067,327 Total Investments with Fiscal Agents 1,785,728 - - 1, 785,728 Total 130,022,786$ 61,258,714$ 45,238,470$ 236,519,970$ Remaining Investment Maturities
48 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

Presented below is the minimum rating as required by (where app licable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Standard and Poor’s, as of year-end for each investment type:

F. Concentration of Credit Risk

The investment policy of the City contains no limitations on th e amount that can be invested in any one issuer beyond that stipulated by the California Government Code . There were no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and externa l investment pools) that represented 5% or more of total City investments in FY 2024.

G. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the eve nt of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy req uirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2024, none of the City's deposits or investments were exposed to custodial credit risk. As of June 30, 2024, $2,256,677 in investments are purchased and held by the bond trustee.

Not Subject
Total as of Minimum to Credit
June 30, 2024 Legal Rating AAA AA- to AA+ A- to A+ Risk Disclosure Inv estments:

Local Agency Investment Fund 52,461,826$ N/A - $ - $ - $ 52, 461,826$ California CLASS 72,824,885 N/A - - - 72, 824,885 US Government Treasury Notes 89,729,062 N/A 89, 729,062 - - - Corporate Notes 11,997,512 A 2, 099,235 2, 656,516 6, 257,611 984,150 Municipal Issuances 5,932,304 N/A 4, 493,833 814,803 - 623,668 Federal Agency Securities:

FNMA 1,064,434 N/A 1, 064,434 - - - Money Market Mutual Funds 724,218 AAA 724,218 - - - Total Investments 234,734,241 98,110,782 3,471,319 6,257,611 126,894,529 Investments with Fiscal Agents:

PARS OPEB Trust Fund:

Equity Securities 80,662 N/A - - - 80,662 PARS Section 115 Pension Trust Fund:

Equity Securities 637,739 N/A - - - 637,739 Money Market Mutual Funds 1,067,327 AAA 1,067,327 - - - Total Investments with Fiscal Agents 1,785,728 1,067,327 - - 718,401 Total 236,519,970$ 99,178, 109$ 3,471,319$ 6,257,611$ 127,612,931$ 49 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

H. Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investm ent Fund (LAIF) that is regulated by California Government Code Sect ion 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata shares of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawals is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF does not impose limits or restrictions on participant withdrawals, and the entire balance of the City’s investment in the portfolio is available for withdrawal at any time. LAIF is not registered with the Sec urities and Exchange Commission and is not rated.

Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.

I. Allocation of interest income among funds

Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated on a monthly basis based on the weighted average cash balances in each fund receiving interest. Interest income from cash and investments with fiscal agent is credited directly to the related fund.

J. Restricted cash and investments

The restricted cash and investments account include various cas h amounts retained in debt service reserves required by the revenue bond covenants, customer deposits held by utility, bond current debt service account and bond future debt service reserve account. Cash and investments for CDBG loan program accounts are also included in the restricted cash and investments since their use is restricted by legal requirements.

K. 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 quoted prices for similar assets in active markets; Level 3 inputs are significant unobservable inputs.

50 CITY OF FULLERTON, CALIFORNIA
Notes to the 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: ACCOUNTS RECEIVABLE

Receivables as of year-end for the government’s individual major funds and aggregate nonmajor, internal service, and fiduciary funds, including applicable allowances for uncollectible accounts, are as follows:

Total as of Not Measured
June 30, 2024 at Fair Value Level 1 Level 2
Investments:

Local Agency Investment Fund 52,461,826$ 52,461,826 $ - $ - $ California CLASS 72,824,885 72,824,885 - - US Government Treasury Notes 89,729,062 - - 89,729,062 Corporate Notes 11,997,512 - - 11,997,512 Municipal Issuances 5,932,304 - - 5,932,304 Federal Agency Securities:

FNMA 1,064,434 - - 1,064,434 Money Market Mutual Funds 724,218 - 724,218 - Total Investments 234,734,241 125,286,711 724,218 108,723,312 Investments with Fiscal Agents:

PARS OPEB Trust Fund:

Equity Securities 80,662 - - 80,662 PARS Section 115 Pension Trust Fund:

Equity Securities 637,739 - - 637,739 Money Market Mutual Funds 1,067,327 - 1,067,327 - Total Investments with Fiscal Agents 1,785,728 - 1,067,327 718,401 Total 236,519,970 $ 125,286,711 $ 1,791,546 $ 109,441,713 $ Component
Accounts 1,113,062 $ 565,956 $ 545,541 $ 40,431 $ 74,830 $ 2,339,820 $ Unbilled accounts 13,404,052 1,623,199 4,639,500 4,932,545 - 24,599,296 Water, sanitation, and trash 31,427 - - 1,129,152 - 1,160,579 Parks and recreation 69,316 - - - - 69,316 Bank return items 265,355 - - - - 265,355 Total 14,883,212 $ 2,189,155 $ 5,185,041 $ 6,102,128 $ 74,830 $ 28,434,366$ Component
Accounts 674,799 $ 21,545 $ 99,509 $ 47,063 $ 842,916 $ Unbilled accounts 28,139 7,553,256 1,262,396 - 8,843,791 Water, sanitation, and trash - 1,831,402 425,928 317 2,257,647 Total 702,938 $ 9,406,203 $ 1,787,833 $ 47,380 $ 11,944,354$ Capital Projects
Business-Type Activities
Sewer Enterprise
Governmental Activ ities
Airport Water Utility
Nonmajor
Enterprise Funds Total
Nonmajor
Governmental
Funds
Internal Service
Funds TotalGeneral Fund
Grants
Administration
51 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 5: NOTES AND LOANS RECEIVABLE

Housing Fund

A. Affordable Housing Loan Program

The former Redevelopment Agency Low and Moderate Housing fund offered low interest loans to owners and developers providing affordable housing to low- and moderate-in come tenants. The loans have various interest rates and terms of repayment. These activities have been transferred to the City and are accounted for in the Housing Fund. The outstanding balance at June 30, 2024, is $11,265,238

B. DAP – Down Payment Assistance Program

The loans are given in amounts not to exceed $45,000 per applicant. The loans are payable after 15 years’ interest free. The outstanding balance at June 30, 2024, is $486,153

The Housing Fund notes and loans receivable total $11,751,391.

Grants Administration Fund

C. Housing and Community Development Loan Program (CDBG Loans)

The City uses Community Development Block Grant (CDBG) funding to provide loans to eligible applicants. Two types of loans are available: below market interest rate loans and deferred loans.

Below market interest rate loans are offered to low and moderate-income owner/occupants and to owner/investors whose tenants have low and moderate income. Pacific Premier Ban k acts as the lender for this program, with the City providing interest subsidies. The maximum term of the loans is fifteen years.

Interest-free deferred loans are offered to low and moderate-income owner/occupants. The City lends CDBG funding directly to eligible households through this program. D eferred loans are payable upon the sale or transfer of the property.

The rehabilitation loans are re corded in the Grants Administrat ion Fund as Notes Receivable and Deferred Revenue. Since the Department of Housing and Urban Development has a claim to any funds remaining when the program is terminated, these funds are reported as liabilities. The outstanding balance at June 30, 2024, is $1,164,880.

D. Civic Center Barrio Housing (HOME Fund – Notes Receivable)

On July 19, 1994, an Owner Participation Agreement was issued for the acquisition and rehabilitation of affordable rental housing projects located at Garnet Lane Apartments at a simple interest rate of 3%. These loans are due in 30 years commencing July 19, 2024. Repayments are due in instal lment amounts, starting December 14, 2001.

The installments are equal to the percentage of the “net operating income after debt service,” if any, for the period from the Note Date through the end of the full calendar year preceding the first installment payment that is equal to the percentage of the total costs of acquiring the site and dev eloping the project, that is financed by the City. The outstanding principal balance is $844,944 with accrued interest of $749,498, totaling $1,594,442 at June 30, 2024.

On December 14, 2000, a 30-year loan was granted for the acquis ition and rehabilitation of an affordable rental housing project serving very low-income households through fund s the City received from the HOME Investment Partnerships Program for the project located at 436 & 442 W. Va lencia Drive. The original amount loaned was $444,281 at a simple interest rate of 3%. Repayments are due in installment amounts, starting December 14, 2001.

The installments are equal to the percentage of the “net operating income after debt service,” if any, for the period from the note date through the end of the full calendar year preceding the first installment payment that is equal to the percentage of the total costs of acquiring the site and dev eloping the project, that is financed by the City. The outstanding principal balance is $444,281 with accrued interest of $303,582, totaling $747,863 at June 30, 2024. 52 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)

On February 22, 2001, a 30-year l oan was granted for the acquis ition and rehabilitation of an affordable rental housing project serving very low-income households through fund s the City received from the HOME Investment Partnerships Program for the project located at 461 West Avenue for $308,065 at a simple interest rate of 3%.

Repayments are due in installment amounts, starting December 14, 2001. The installments are equal to the percentage of the “net operating income after debt service,” if any, for the period from the note date through the end of the full calendar year preceding the first installment payment that is equal to the percentage of the total costs of acquiring the site and developing the project, that is finan ced by the City. The outstanding principal balance is $308,065 with accrued interest of $211,596 totaling $519,661 at June 30, 2024.

E. Fullerton Interfaith Housing (HOME Fund – Notes Receivable)

On October 28, 1994, the disposition and development agreement/ Home program participation agreement was entered into between Interfaith Housing Development Corporation and the City. A 30-year loan was granted for the acquisition and rehabilitation of the East Fullerton Villas up to $165,000 at a compounded interest rate of 6.25%.

Repayments are due in installments every August 1, starting Aug ust 1, 1998. The installments are equal to the percentage of the “net operating income after debt service,” if any, for the period from the note date through the end of the full calendar year preceding the first installment payment that is equal to the percentage of the total costs of acquiring the site and developing the project, that is finan ced by the City. The outstanding principal balance is $165,000 with accrued interest of $698,951, totaling $863,951 at June 30, 2024.

F. Neighborhood Services (HOME Fund – Notes Receivable)

On November 5, 1996, an owner participation and HOME Program Pa rticipation Agreement was entered into between the City and La Habra Neighborhood Housing Services, Inc., in which a loan was granted for the acquisition and rehabilitation of an affordable rental housing project serv ing very low-income households through funds the City received from HOME Investment Partnership Program for the project located at Garnet Lane Apartments “B” up to $565,000 at a simple interest rate of 3%. Repayments are due in installments every August 1, starting August 1, 1998. The installments are eq ual to the percentage of the “n et operating income after debt service,” if any, for the period from the note date through the end of the full calendar year preceding the first installment payment that is equal to the percentage of the total costs of acquiring the site and developing the project, that is financed by the City. The note matures on November 27, 2026, at which time the loan will become due in full. The outstanding principal balance is $577,504 with accrued interest of $609,244 totaling $1,186,748 at June 30, 2024.

G. Richman Court, LP (HOM E Fund – Notes Receivable)

On November 23, 2010, the City agreed to loan $1,750,000 as a p urchase assistance loan for the Roberta Apartments, which was later amended to an additional $269,560 for a rehabilitation loan. The loan matures over 55 years at a simple interest of 1.5%. Annual payments equ al to 50% of project cash flow will begin on November 23, 2030. The outstanding principal balance is $2,019, 560 with accrued interest of $404,455, totaling $2,424,015 at June 30, 2024.

On August 16, 2010, the City agreed to loan $1,985,000 as a purchase assistance loan for the Home Apartments.

An additional construction loan was granted on April 30, 2012, for $176,416. The loan matures over 45 years at a simple interest rate of 3%. The loan will begin to receive loan reductions of $48,032 annually starting one year after the release of the construction covenants which occurred on Apr il 11, 2012. The outstanding principal balance is $1,585,039 with accrued interest of $778,254, totaling $2,363,293 at June 30, 2024.

H. Neighborhood Housing Services (HOME Fund – Notes Receivable)

On February 17, 2004, the City agreed to loan $550,000 as a pur chase assistance loan for the 3810 and 3830 Franklin Avenue Apartments. An additional loan was granted for $953,337 on July 31, 2006. The loan matures over 30 years with a simple interest rate of 3% annually. The loan began loan reductions as forgiveness starting September 19, 2007, of $55,000 annually. Any unpaid portion will be payable on the Maturity Date. The outstanding principal balance is $577,504 with accrued interest of $609,244 totaling $1,186,748 at June 30, 2024. 53 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)

On November 5, 2004, the City agreed to loan $146,663 as a deve lopment assistance loan for 3810 and 3830 Franklin Avenue Apartments. $50,000 was issued on November 5, 2004, and $96,663 was issued on September 14, 2007. The loan matures over 30 years with a simpl e interest rate of 3% annually. The outstanding principal is $146,663 with accrued interest of $78,194, totaling $224,857 at June 30, 2024.

I. Orange County Community Hou sing Corporation (HOME Fund – Notes Receivable)

On July 23, 2014, the City agreed to loan $185,136 as a purchase assistance loan for the 2007 Oxford Avenue Apartments. The loan matures over 15 years with no interest. Th e loan is subject to loan reductions should the borrower be following various Affordable Housing requirements. The outstanding balance at June 30, 2024 is $185,136.

J. HOME Rehabilitation program

The City uses HOME grant funding to offer interest free deferre d loans to low- and moderate-income owner/occupants. Deferred loans are payable upon the sale or tr ansfer of the property and are reviewed every fifteen years to ensure that income qualifications are met. The outstanding balance at June 30, 2024, is $861,019.

K. DAP – Down Payment Assistance Program

The down payment assistance program is funded by HOME Grants. T he loans are given in amounts not to exceed $45,000 per applicant. The loans are payable after 15 years interest free. The outstanding balance at June 30, 2024, is $182,598.

L. NSP – Neighborhood Stabilization Program

The neighborhood stabilization program is funded by HOME Grants . The loans are issued for the acquisition and rehabilitation of property. No interest shall accrue on the loans. Repayment of the loan will concurrently occur upon the transfer of the property to an eligible homebuyer following the completion of the rehabilitation project and in compliance with the NSP Agreement. The amount paid shall be equ al to the resale price of the property. Any outstanding balance, if any, shall be forgiven. The outstanding balance at June 30, 2024, was $206,074.

M. 1600 Commonwealth L.P. (HOME Loan)

On May 31, 2024, the City agreed to loan $1,000,000 for the 1650 W Commonwealth Ave & 203 S Basque Ave construction project. The loan matures in 55 years from the dat e of recordation of the Certificate of Occupancy (COO) for the project and carries an interest rate of 3%. Annua l payments of 50% of the residual receipts will commence once both the City Land and Bonds Loans are paid in full. At the end of the term, the outstanding balance will be due and payable. The loan is secured with a third trust deed and includes affordability restrictions associated with the HOME Loan for 20 years from the COO. As of June 30, 20 24, the outstanding balance of the loan is $1,000,000.

The Grants Administration Fund notes and loans receivable total $14,557,243.

54 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: CAPITAL ASSETS

A. The following is summary of capital assets for governmental activities:

Governmental activities depreciation/amortization expense for capital assets for the year ended June 30, 2024, is as follows:

Beginning
Balance
Transfers of
CIP Increases Decreases
Ending
Balance
Capital assets, not being depreciated/
amortized:

Land 72,181,848 $ - $ 6,484,171$ (4,498,832)$ 74,167,187$ Construction in progress 218,672,680 (114,209,016) 23,434,182 (1,585,404) 126,312,442 Total capital assets, not being
depreciated/amortized 290,854,528 (114,209,016) 29,918,353 (6,084,236) 200,479,629 Capital assets, being depreciated/
amortized:

Buildings 92,067,793 1,306,309 3,100,051 (117,586) 96,356,567 Improv ements other than buildings 75,495,852 11,886,486 204,706 (168,172) 87,418,872 Machinery and equipment 42,176,609 290,117 3,385,818 (1,329,829) 44,522,715 Leasehold improv ements 1,837,445 - - - 1,837,445 Lease assets 582,880 - 423,246 - 1,006,126 Subscription assets 3,740,120 - 4,114,510 (561,376) 7,293,254 Infrastructure 308,038,208 100,726,104 1,879 (5,723,631) 403,042,560 Total capital assets, being depreciated/
amortized 523,938,907 114,209,016 11,230,210 (7,900,594) 641,477,539 Less accumulated depreciation/
amortization for:

Buildings (29,005,931) - (1,748,645) 117,586 (30,636,990) Improv ements other than buildings (42,165,028) - (3,170,281) 168,172 (45,167,137) Machinery and equipment (26,946,160) - (2,402,677) 1,162,200 (28,186,637) Leasehold improv ements (1,755,470) - (27,325) - (1,782,795) Lease assets (140,333) - (269,847) - (410,180) Subscription assets (249,905) - (721,512) 68,983 (902,434) Infrastructure (199,329,279) - (5,541,367) 5,592,154 (199,278,492) Total accumulated depreciation/
amortizaton (299,592,106) - (13,881,654) 7,109,095 (306,364,665) Total capital assets being depreciated/
amortized, net 224,346,801 114,209,016 (2,651,444) (791,499) 335,112,874 Governmental activities capital assets, net 515,201,329$ -$ 27,266,909$ (6,875,735)$ 535,592,503$ General government 233,521$
Public safety 1,199,161
Public works 7,151,064
Community development 161,491
Human and leisure 2,728,467
Liability insurance 228
Vehicle replacement 1,404,640
Equipment maintenance 2,463
Information technology 35,557
Building maintenance 3,429
Worker's Compensation 944,966
Group Insurance 4,919
Facility capital repair 11,748
Total depreciation/amortization expense - gov ernmental activ ities 13,881,654$ 55 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: CAPITAL ASSETS (CONTINUED)

B. The following is summary of capital assets for business-type activities:

Business-type activities depreciation/amortization expense for capital assets for the year ended June 30, 2024, is as follows:

Beginning
Balance
Transfers of
CIP Increases Decreases Ending Balance
Capital assets, not being
depreciated/
amortized:

Land 9,535,034 $ - $ - $ - $ 9,535,034$ Construction in progress 20,562,397 (15,076,080) 22,704,906 - 28,191,223 Total capital assets, not being
depreciated/amortized 30,097,431 (15,076,080) 22,704,906 - 37,726,257 Capital assets, being depreciated/
amortized:

Buildings 9,894,685 - - - 9,894,685 Improvements other than buildings 96,611,082 13,322,175 104,075 - 110,037,332 Machinery and equipment 14,399,664 - 100,674 - 14,500,338 Subscription assets 28,948 - 33,697 (28,948) 33,697 Infrastructure 64,474,080 1,753,905 - - 66,227,985 Total capital assets, being
depreciated/amortized 185,408,459 15,076,080 238,446 (28,948) 200,694,037 Less accumulated depreciation/
amortization for:

Buildings (3,601,781) - (287, 019) - (3,888,800) Improvements other than buildings (41,297,168) - (1,471, 254) - (42,768,422) Machinery and equipment (13,362,888) - (230, 128) - (13,593,016) Subscription assets (1,316) - (14,788) 2,625 (13,479) Infrastructure (7,848,703) - (1,219, 301) - (9,068,004) Tot
al accumulated depreciation/
amortization (66,111,856) - (3,222, 490) 2,625 (69,331,721) Total capital assets being
depreciated/amortized, net 119,296,603 15,076,080 (2,984,044) (26,323) 131,362,316 Business-type activities capital
assets, net 149,394,034$ -$ 19,720,862$ (26,323) $ 169,088,573$ Airport 448,762$
Water Utility 1,693,210
Sewer Enterprise 994,872
Compressed Natural Gas 1,309
Brea Dam Facilities Recreational 84,337
Total depreciation/amortization expense - business-type activ ities 3,222,490$ 56 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENE FIT PENSION PLANS

A. General Information about the Pension Plans

Plan Description, Benefits Provided, and Employees Covered

The Miscellaneous and Safety Plans (the Plans) are agent multip le employer defined benefit pension plans administered by the California Public Employees’ Retirement Sys tem (CalPERS). CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on ye ars 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.

The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows

Prior to On or after
Hire date January 1, 2013* January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 52
Monthly benefits, as a % of eligible compensation 1.426% - 2.418 %1 . 0 % - 2 . 5 % Required employee contribution rates 6.790% 7.390%
Required employer contribution rates 26.498% 26.498%
* Closed to new entrants
Miscellaneous
Prior to On or after
Hire date January 1, 2013* January 1, 2013
Benefit formula 3% @ 50 3% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 52
Monthly benefits, as a % of eligible compensation 2.0% - 3.0% 2.0 % - 2.7% Required employee contribution rates 9.671% 12.500%
Required employer contribution rates 51.769% 51.769%
* Closed to new entrants
Safety
57 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENEFIT PEN SION PLANS (CONTINUED)

At June 30, 2024, the following employees were covered by the benefit terms of the Plans:

Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated am ount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Miscellaneous Plan contributions for the year equaled $7,986,451 and Safety Plan contributions for the year equaled $19,995,561.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The June 30, 2022, valuation was rolled forward to determine th e June 30, 2023, total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Ent ry Age Normal Cost Method
Actuarial Assumptions
Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by entry age and services
Mortality rate table Derived using CalPERS’ membership data for all funds Post-retirement benefit increase The lesser of contract COLA or 2.30% until purchasing power protection allowance floor on purchasing power applies,

2.30% thereafter

The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions . Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience stud y report from November 2021 that can be found on the CalPERS website.

Long-term Expected Rate of Return

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

Description
Miscellaneous
Plan Safety Plan
Active members 294 180
Transferred members 381 77
Terminated members 260 54
Retired members and beneficiaries 700 451 Total 1,635 762
Number of Members
58 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENEFIT PEN SION PLANS (CONTINUED)

In determining the long-term expe cted 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 usin g 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:

Discount Rate

The discount rate used to measure the total pension liability w as 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from pla n members will be made a t the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB Statement No. 68, gains and losses related to change s in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

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

Net difference between projected 5-year straight-line amortizat ion and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

Assumed
Asset
Asset Class Allocation Real Return 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%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study 59 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENEFIT PEN SION PLANS (CONTINUED)

The EARSL for the plan for the measurement period ending June 30, 2023 is 2.0 years, which was obtained by dividing the total service years of 3,197 (the sum of remaining service lifetimes of the active employees) by 1,635 (the total number of participan ts: active, inactive, and retire d). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

B. Pension Liabilities, Pension Expense, Deferred Outflows of R esources, and Deferred Inflows of Resources

Changes in the Net Pension Liabilities

Changes in the City’s net pension liabilities for the year ended June 30, 2024, were as follows:

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Assets)
Miscellaneous Plan:

Balance at: 6/30/2023 (Measurement Date of 6/30/2022) 325,337,555$ 242,949,913 $ 82,387,642 $ Changes recognized for the Measurement Period:

Service Cost 3,386,609 - 3, 386,609 Interest on the Total Pension Liability 22,005,969 - 22, 005,969 Changes of Benefit Terms 429,739 - 429,739 Difference between Expected and Actual Experience 1,245,548 - 1, 245,548 Contribution from the Employer - 8, 225,656 (8, 225,656) Contributions from Employees - 1, 689,621 (1, 689,621) Net Investment Income - 14, 895,695 (14, 895,695) Benefit Payments including Refunds of Employee
Contributions (19, 558,103) (19, 558,103) - Administrative Expense - ( 178,654) 178,654 Net changes during 2022-2023 7,509,762 5, 074,215 2, 435,547 Balance at: 6/30/2024 (Measurement Date of 6/30/2023) 332,847,31 7 248,024,128 84,823,189 Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Assets)
Safety Plan:

Balance at: 6/30/2023 (Measurement Date of 6/30/2022) 564,056,423 355,181,739 208,874,684 Changes recognized for the Measurement Period:

Service Cost 6,837,489 - 6, 837,489 Interest on the Total Pension Liability 38,518,042 - 38, 518,042 Changes of Benefit Terms 230,662 - 230,662 Difference between Expected and Actual Experience 7,481,421 - 7, 481,421 Contribution from the Employer - 19, 372,239 (19,372,239) Contributions from Employees - 2, 550,442 (2,550,442) Net Investment Income - 21, 903,721 (21,903,721) Benefit Payments including Refunds of Employee
Contributions (33,909,499) (33,909,499) -
Administrative expense - (261,184) 261,184 Net changes during 2022-2023 19,158,115 9,655,719 9,502,396 Balance at: 6/30/2024 (Measurement Date of 6/30/2023) 583,214,53 8 364,837,458 218,377,080 Total Plans: 916,061,855$ 612,861,586$ 303,200,269$ Increase (Decrease)
Increase (Decrease)
60 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liabilities calculated u sing the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated u sing a discount rate that i s 1-percentage-point lower (5.90 percent) or 1-percentage-point higher (7.90 percent) than the current rate:

Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2024, the City recognized pension expense of $12,319,069 for the Miscellaneous Plan, and $30,011,538 for the Safety Plan for a combined total pensio n expense recognized during the year of $42,330,607. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
Miscellaneous Plan 126,685,163$ 84,823,189$ 50,309,315$ Safety Plan 296,018,043 218,377,080 154,891,912 Total 422,703,206$ 303,200,269$ 205,201,227$ Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Plan:

Contributions Subsequent to the Measurement Date 7,986,451$ -$ Changes of Assumptions 752,155 -
Differences Between Expected and Actual Experience 622,774 (395,097) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 11,336,852 -
Subtotal - Miscellaneous Plan 20,698,232 (395,097) Safety Plan:

Contributions Subsequent to the Measurement Date 19,995,561 - Changes of Assumptions 8,468,848 -
Differences Between Expected and Actual Experience 5,854,131 (1,350,120) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 16,587,873 -
Subtotal - Safety Plan 50,906,413 (1,350,120) Total - Both Plans 71,604,645$ (1,745,217)$
61 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: DEFINED BENEFIT PEN SION PLANS (CONTINUED)

The $7,986,451 and $19,995,561 reported as deferred outflows of resources related to contributions subsequent to the measurement date for the Miscellaneous and Safety Plans, respectively, and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. A mounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

NOTE 8: DEFINED CONTRIBUTION PENSION PLAN

The City provides pension benefits for all of its non-regular employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered as part of the City's 457 plan. All non-re gular employees are eligible to participate from the date of employment. Federal legislation requires contributi ons of at least 7.50% to a retirement plan, and City Council resolved to match the employees' contributions of 3.75%. The City's contributions for each employee (and interest earned by the accounts) are fully vested immediately.

For the year ended June 30, 2024, the City's payroll covered by the plan was $1,182,323 The City made employer contributions of $44,337 (3.75% of current covered payroll), and employees contributed $44,337 (3.75% of current covered payroll). These amounts are now held in trust for the exclusive benefit of the participants and their beneficiaries.

NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN

Plan Description

The City administers a single employer defined benefit healthca re plan which provides medical insurance benefits to eligible retirees and their spouses in accordance w ith various labor agreements. Employees are eligible for retiree health benefits if they retire from the Ci ty on or after age 50 with at least 10 years of service (5 years for Executive, Management and Confidential employees) or with a disability at any age with any service and are eligible for a PERS pension.

Miscellaneous and Police retirees and their spouses are covered either under the Kaiser plan or the Cigna HMO and PPO health plans. Fire and Fire Management retirees and the ir spouses are covered in the health plans available through California PERS.

The City’s contribution for retiree health benefits is $200 for participants that retire with 20 or more years of service and $100 for participants that retire with more than 10 but less than 20 years of service at retirement for all non-Fire bargaining unit employees hired after January 1, 2012.

After age 65, the City’s contribution towards retiree health insurance stops except that the City will pay the minimum required contribution for Fire and Fire Management retirees enrolled in the California PERS health plans.

Miscellaneous Safety Total
Deferred Deferred Deferred
Year Ended Outflows/(Inflows) Outflows/(Inflows) Outflows/(Inflows ) June 30, of Resources of Resources of Resources
2025 2,936,733$ 9,938,901$ 12,875,634$ 2026 1,017,773 6,293,677 7,311,450 2027 8,062,748 12,900,113 20,962,861 2028 299,430 428,041 727,471 Total 12,316,684$ 29,560,732$ 41,877,416$ 62 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN (CONTINUED)

Employees Covered

As of the June 30, 2024, actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:

Contributions

The contribution requirements of p lan members and the City are established and may be amended by the City Council and/or the employee associations. The required contribution is based on projected pay-as-you-go premiums. The City pays 100 percent of the amount provided to active employees (single party) of the premium for the retirees employed by the City for 20 years and 25 percent f or Management employees employed by the City more than five years but less than 10 years. The City's obligation under the resolution will be discontinued at the earlier of the retiree reaching the age of 65 or receipt of health insurance coverage from another employer. For the measurement date ended June 30, 2023, the City recognized contr ibutions, including the implicit subsidy, in the amount of $730,089 as a reduction to the net OPEB liability.

Net OPEB Liability

The City's net OPEB liability was based on an actuarial valuation as of June 30, 2023. This is the date as of which the actuarial valuation was performed. The City’s measurement date was as of June 30, 2023, and to develop the net OPEB liability at the beginning of the measurement period o n July 1, 2021, the results of the June 30, 2023, valuation were rolled back, based on the following actuarial methods and assumptions:

Discount Rate

The discount rate used to measure the net OPEB liability was 3.86 percent. It reflects the long-term expected rate of return on OPEB plan investments that are expected to be used to finance the payment of benefits. To the extent that OPEB plan assets are insufficient to finance all OPEB bene fits, the discount rate is based on 20-year tax exempt AA or higher Municipal Bonds.

Active 466
Inactive employees or beneficiaries currently receiving benefits 187 Inactive employees entitled to, but not yet receiving benefits 71 Total 724
Actuarial Cost Method Entry Age, Lev el Percent of Pay
Actuarial Assumptions
Discount Rate 3.86%
Long-term expected investment return 6.50%
Inflation Rate 2.30%
Mortality Based on assumptions for Public Agency
Miscellaneous, Police, and Fire members
published in the 2021 CalPERS Experience
Study. These tables include 15 years of
static mortality improvement using 80% of
Scale MP-2020.

Healthcare Cost-trade Rate Based on 2022 Getzen model that reflects actual premium changes from 2022 to 2023
followed by 6.50% in 2023 decreasing
gradually to an ultimate rate of 3.73% by
2075.
63 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN (CONTINUED)

Changes in the Net OPEB Liability

The changes in the net OPEB liability for the Plan are as follows:

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate, for measurement period ended June 30, 2023:

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates

The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher t han the current healthcare cost trend rate, for measurement period ended June 30, 2023:

Total OPEB
Liability (a)
Plan
Fiduciary Net
Position (b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2023 (measured 6/30/2022) 26,488,642$ 63,432$ 26,425,210$ Changes Recognized from the Measurement Period
Service Cost 1,083,117 - 1, 083,117 Interest 983,060 - 983,060
Difference between Expected and Actual Experience 62,188 - 62,188 Changes of Assumptions (579,160) - ( 579,160) Difference between Projected and Actual Earnings
on Investments - 3,087 (3,087) Projected Earnings on OPEB Plan Investments - 4,111 (4,111) Contribution - Employer - (1, 861,165) 1,861,165 Benefit Payments (1,861,165) 1,861,165 (3,722,330) Administrative Expense - (377) 377 Net Changes (311,960) 6,821 (305,139)
Balance at June 30, 2024 (measured 6/30/2023) 26,176,682$ 70,253$ 26,106,429$ Increase (Decrease)
Miscellaneous Plan
1% Decrease
(2.86%)
Current
Discount
Rate (3.86%)
1% Increase
(4.86%)
Net OPEB Liability $28,736,440 $26,106,429 $23,846,701 1% Decrease
Current
Healthcare
Cost Trend
Rate 1% Increase
Net OPEB Liability $23,846,666 $26,106,429 $28,916,442 64 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN (CONTINUED)

Net OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2024, the City recognized ne t OPEB income of $1,426,780. As of fiscal year ended June 30, 2024, the City re ported deferred outflows and de ferred inflows of resources related to net OPEB from the following sources:

The $1,832,299 was reported as deferred outflows of resources r elated to contributions made subsequent to the measurement date for the net OPEB liability but before the end of the City’s reporting period and will be recognized as a reduction of the net OPEB liability in the subsequent fiscal period rather than in the current fiscal period.

Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

NOTE 10: COMMITMENTS AND CONTINGENCIES

As of June 30, 2024, there are certain personal injury lawsuits , which have been denied by the City Council. The outcome and eventual liability to the City, if any, in these ca ses are not known at this time. After reviewing these lawsuits with legal counsel, management estimates that the pote ntial claims against the City, not covered by insurance, resulting from such litigation would not materially affect the financial statements of the City.

The City is party to certain ongoing litigation, which would no t be covered by the City’s insurance and payable out of the Airport enterprise fund should an unfavorable outcome occur. As of this time, the outcome and likely liability to the City is not known.

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contribution subsequent to
measurement date $1,832,299 -$
Difference between projected
actual experience 1,624 (4,918,039)
Difference between expected and
actual earnings on inv estments 152,323 -
Change in Assumptions 3,960,877 (7,145,835)
Total 5,947,123$ (12,063,874)$
Year ended
June 30:

Deferred
(Inflows) of
Resources
2025 (1,721,299)$
2026 (1,445,413)
2027 (986,971)
2028 (1,067,723)
2029 (1,035,132)
Thereafter (1,692,512)
Total (7,949,050)$
65 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 10: COMMITMENTS AND CONTINGENCIES (CONTINUED)

The following material construction commitments existed at June 30, 2024:

NOTE 11: RISK MANAGEMENT

A. Self-Insurance Program

The City is exposed to various risks of loss related to its ope rations, including losses associated with errors and omissions, injuries to employees and members of the public; and natural disasters for which the City carries commercial insurance.

On September 3, 1991, the City Council approved the City's memb ership in the Independent Cities Risk Management Authority (ICRMA). For Fiscal Year 2023-24, the City’s Self-Insured Retention (SIR) is $4M. The City purchased two separate excess liability coverage; $1M excess of $4M and $3M excess of $5M. The City attached at $8M with ICRMA; $35M losses above $35M are self-insured.

Current Amount
Expenditures to
date as of
June 30, 2024
Remaining
Commitments
Harbor Signal Synchronization 526,302 $ 87,725 $ 438,577$ Fullerton Safe Streets and Road 246,570 12,019 234,551 Water Rate Study 164,233 8,883 155,350 City Wide Tree Removals 554,593 33,780 520,813 Sewer Master Plan 249,450 132,302 117,148 Water Well Replacement Program 385,527 189,536 195,992 PFAS Management 552,524 103,457 449,067 Skyline-Raymond Area Water Main 393,150 206,178 186,973 Lindendale Area Water Main Rep 127,145 - 127,145 Union Pacific Trail â€“ Phase 182,545 36,090 146,455 Nutwood-Yale St. Improvements 100,105 - 100,105 Valencia Mesa Drive Rehabilitation 745,299 - 745,299 Hermosa Area Street Rehabilitation 2,878,222 - 2, 878,222 Orangethorpe Signal Synchronization 1,520,130 1, 356,779 163,351 AFI Building Renovation 2,360,527 664,320 1, 696,207 Marion Area Infrastructure Improvement 1,824,533 1, 288,885 535,648 Glenwood Area Water Main Replacement 3,492,991 3, 372,799 120,192 Crown Area Water Main Replacement 770,560 464,350 306,210 Hol
lydale Area Water Main Replacement 1,770,100 984,320 785,780 Orangethorpe Acacia to Sta 152,327 - 152,327 Rancho-Verona Area Water Main 1,850,900 1,003,875 847,025 Firethorne Area Water Main Replacement 1,748,596 459,906 1,288,690 Euclid and Rosecrans Water Main 3,353,050 776,500 2,576,550 Candlewood Area Water Main Replacement 1,298,246 - 1, 298,246 Energy Infrastructure Modernization 695,012 152,793 542,219 CNG Station Compressor Equipment 550,549 117,953 432,596 PFAS Management 243,967 81,322 162,644 Airport Runway 6 Precision App 388,389 - 388,389 Electrical Generator Upgrades 338,139 - 338,139 Project Name
66 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 11: RISK MANAGEMENT (CONTINUED)

Additionally, the City purchases commercial workers' compensation insurance with limits equal to statutory limits in excess of $750,000 for non-safety personnel and $1,000,000 for safety personnel per claim self-insured retention level.

The City utilizes the services of a contract claims administrator for the administration of the Workers' Compensation and Liability programs.

On February 15, 1978, the City initiated a program of self-insu rance for unemployment lia bility claims. By this action, the City will pay all clai ms based on the individual re imbursement account method as provided by the State of California. Expenditures are recognized when reimbursements are made to the State of California.

The total insurance claims liability as of June 30, 2024, is $30,620,000 as established by the City's contract insurance administrator, and the City's Risk Manager. An estimate for incurred but not reported (IBNR) claims has been recorded as a liability as of June 30, 2024.

Settlements have not exceeded coverages for each of the past three fiscal years. Changes in the balances of claims liabilities during the past two years are as follows:

NOTE 12: LEASES

A lessee is required to recognize a lease liability and lease a sset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.

A. Leases Receivable and Deferred Inflows of Resources

The City leases land and buildings to various companies. The te rms by lease type are listed in the table below.

Some leases have extension options of ranging from five to 20 y ears. As of June 30, 2024, the value of the lease receivable is $17,454,861 which includes $32,683 in leases receivable reported in the fiduciary funds. The value of the deferred inflow of resources as of June 30, 2024 was $16,172,213, and the amortization of the deferred inflow during the year totaled $1,599,472.

Public Liability
Workers'
Compensation Total
Unpaid claims, June 30, 2022 15,794,000$ 16, 385,000$ 32,179,000 $ Incurred claims (including IBNRs) 2,037,922 952,053 2, 989,975 Claim payments (2,190,922) (1, 435,053) (3, 625,975) Unpaid claims, June 30, 2023 15,641,000 15, 902,000 31, 543,000 Incurred claims (including IBNRs) - 2, 483,125 2, 483,125 Claim payments (1,407,000) (1, 999,125) (3, 406,125) Unpaid claims, June 30, 2024 14,234,000$ 16,386,000$ 30,620,000$ Lease Receivable as
of Commencement
Date
Lease Receivable as
of June 30, 2024
Land - Cell Towers 2.08 to 20.76 6,311,444$ 5,563,729$ Buildings 3.17 to 16.25 3,869,489 2,017,125 Golf Course 20.26 to 20.26 273,545 242,122 Airport Hangar Rent 6.50 to 29.02 10,745,031 9,631,885 21,199,509$ 17,454,861$
Term Range
67 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 12: LEASES (CONTINUED)

The principal and interest payments that are expected to maturity are as follows:

B. Leases Payable and Lease Assets

The City entered has into various interest-bearing lease agreem ents to obtain equipment and vehicles for use by various City departments. The lease terms range from two to sev en years, with total base monthly payments of $22,023 per month and interest rates ranging from 0.29% to 1.33%. As of June 30, 2024, the total value of the lease liabilities was $561,356.

Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 495,099$ 176,512 $ $ 671,611 2026 495,821 161,791 657,612 2027 468,403 147,277 615,680 2028 474,343 133,474 607,817 2029 466,615 118,786 585,401 2030-2034 1,666,270 424,772 2,091,042 2035-2039 1,486,607 195,108 1,681,715 2040-2043 601,169 21,630 622,799 Total 6,154,327$ 1,379,350$ 7,533,677$
Governmental Activities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 566,187$ 292,268 $ $ 858,455 2026 563,175 277,097 840,272 2027 576,230 262,143 838,373 2028 581,146 247,494 828,640 2029 565,738 231,820 797,558 2030-2034 3,044,079 930,243 3,974,322 2035-2039 3,039,184 534,617 3,573,801 2040-2044 1,310,003 238,004 1,548,007 2045-2049 835,075 89,154 924,229 2050-2053 187,034 2,612 189,646 Total 11,267,851$ 3,105,452$ 14,373,303$
Business-Type Activ ities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 32,683 $ 78 $ $ 32,761 Total 32,683 $ 78 $ 32,761 $
Fiduciary Funds
Principal Interest
Fiscal Year Payments Payments Total
2024 314,262$ 2,426$ 316,688$
2025 151,569 1,155 152,724
2026 84,043 370 84,413
2027 11,482 14 11,496
Total 561,356$ 3,965$ 565,321$
68 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 12: LEASES (CONTINUED)

The value of the right to use assets as of June 30, 2024 was $1 ,006,126 with total accumulated amortization of $410,179.

NOTE 13: SUBSCRIPTIONS PAYABLE

The City has entered into various subscription agreements. As of June 30, 2024, the total value of the subscription liabilities was $5,018,580. The subscriptions have varying inte rest rates ranging from 2.184% and 3.331%. The value of the right to use assets as of June 30, 2024 was $7,326 ,951, with total accumulated amortization of $915,913.

Asset Class
Lease Asset
Value
Accumulated
Amortization
Equipment 1,006,126$ 410,179 $
Governmental Activities
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Software 7,293,254$ 902,434 $
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Software 33,697 $ 13,479 $
Business-type Activ ities
Governmental Activities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 633,379$ 129,522$ $ 762,901
2026 656,033 112,778 768,811 2027 584,979 95,618 680,597 2028 597,944 80,550 678,494 2029 545,340 65,163 610,503 2030-2034 1,967,405 125,229 2,092,634 2035-2036 22,046 994 23,040 Total 5,007,126$ 609,854$ 5,616,980$
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 3,729$ 271$ $ 4,000 2026 3,817 183 4,000 2027 3,908 92 4,000 Total 11,454$ 546$ 12,000$
Governmental Activities
Business-Type Activ ities
69 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 14: LONG-TERM LIABILITIES

The table below summarizes the City’s outstanding bond issuance s, direct borrowing, and direct placement debts for both governmental and business-type activities:

A. Judgment Obligation Bonds

Taxable Judgment Obligation Refunding Bonds, Series 2021 (Debt Serviced by the Liability Insurance Fund)

On March 9, 2021, the City issued the Taxable Judgment Obligation Refunding Bonds in the amount of $5,010,000.

The Bonds are being issued to (a) refund, on an advance basis, the City’s 2013 Taxable Judgment Obligation Bonds that matured on April 1, 2023, and (b) pay the costs of issuance of the Bonds. Interest and principal payments are due semiannually and annually, respectively, under the terms of the bond agreement.

B. Revenue Bonds

2010 Lease Revenue Bond, Series A (Debt Serviced by the Brea Dam Facilities Recreational Fund)

On December 22, 2010, the City issued 2010 Lease Revenue Bonds, Series A in the amount of $2,705,000. The bonds were issued as “Taxable Recovery Zone Economic Development Bonds” for purposes of the American Recovery and Reinvestment Act of 2009 signed into law on Februa ry 17, 2009 (the “Recovery Act”). Pursuant to the Recovery Act, the City expects to receive a cash subsidy pa yment from the United States Treasury equal to 45% of the interest payable on or about each interest payment d ate. The subsidy payment is pledged under the indenture to payment of interest. Issuance of the debt was for the purpose of financing the acquisition and construction of certain capital improvements for the City and refinancing certain outstanding obligations of the City.

Interest and principal payments are due semiannually and annually, respectively, under the terms of the bond agreement.

2014 Water Revenue Refunding Bonds (Debt Serviced by the Water Utility Fund)

On February 26, 2014, the City issued the 2014 Water Revenue Re funding Bonds in the amount of $6,810,000.

The bonds were issued by the City, together with other available funds of the City, to prepay the 2004 Water Revenue Certificates o f Participation and the City’s obligation with the Orange County Water District. The 2014 Water Revenue Refunding Bonds are secured by a pledge of net revenues of the City’s water system. Interest and principal payments are due semiannually and annually, respectively, under the terms of the bond agreement.

C. Advance Refunding

The City issued $5,010,000 of judgment obligation refunding bonds to provide resources to purchase securities that were placed in an irrevocable trust for the purpose of generati ng resources for future debt service payments of $4,370,000 of the 2013 Taxable Judgment Obligation Bonds. As a result, the refunded bonds are considered to be Original Interest Final Outstanding
Borrowing Rates Maturity at Year-End
Governmental Activities:

Judgment Obligaton Bonds:

Taxable Judgment Obligation Refunding Bonds, Series 2021 5,010,0 00$ 0.359% - 2.702% April 1, 2033 4,355,000$ Total Judgment Obligation Bonds 4,355,000
Total Governmental Activities 4,355,000$
Business-Type Activ ities:

Revenue Bonds:
2010 Lease Revenue Bonds, Series A 2,705,000$ 6.500% - 7.750% May 1, 2031 1,195,000$ 2014 Water Revenue Refunding Bonds 6,810,000 3.000% - 5.000% September 1, 2033 3,705,000 Total Revenue Bonds 4,900,000
Total Business-Type Activ ities 4,900,000$
70 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 14: LONG-TERM LIABILITIES (CONTINUED)

partially defeased and the portion of the defeased liability ha s been removed from the financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $477,273. This amount is being netted against the new debt and amortized over the remaining life of t he refunded debt, which is equal to the remaining life of the new debt issued. This advance refunding was undertaken to reduce total debt service payments over the next ten years by $542,063 and resulted in an economic gain of $456,024.

D. Event of Default, Acceleration Clauses, and Termination Even ts

The outstanding bonds contain a provision that if any event of default should occur and is continuing, the Trustee at the written direction of the Owners of a majority in aggregate principal amount of the bonds then outstanding the Trustee shall, (a) declare the principal of the bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same will become immediately due and payable, anything in the Indenture or in the bonds to the contrary notwithstanding, and (b) exercise any other remedies available in law or at equity.

E. Loans Payable

In July 2016, the City entered into a financed purchase agreement with Motorola Solutions, Inc., for the acquisition of 800 MHz Radio Equipment at a cost of $2,472,439. The interest rate on the loan is 0.0% for the first two years and 2.81% for the remainder of the loan. The term of the loan i s ten years. Payments are due annually under the terms of the financing agreement. At June 30, 2024, the outstanding balance was $869,110.

In September 2017, the City entered into a tax-exempt financed purchase agreement with U.S. Bancorp Government Leasing and Finance, Inc. for the acquisition of street lighting equipment, at a cost of $1,400,000. The interest rate on the loan is 2.56%. The term of the loan is seven years. Payments are due annually under the terms of the financing agreement. At June 30, 2024, the outstanding balance was $215,481.

In December 2021, the City entered into a financed purchase agreement with Banc of America Public Capital Corp. for the acquisition of various equipment and fixtures including lighting system upgrades, solar system installation, HVAC replacements, electric vehicle charging stations, and vari ous other energy efficient equipment, at a cost of up to $8,894,000. The interest rate on the loan is 1.84%. The term of the loan is eighteen years. Payments are due semi-annually under the terms of the financing agreement. At Ju ne 30, 2024, the outstanding balance was $8,082,385

In January 2024, the City entered into an agreement with Goodman Logistics Center Fullerton, LLC., for use of an easement at a cost of $406,611. T he interest rate on the loan i s 0.0%. The term of the agreement is five years.

Payments are due annually under the terms of the agreement. At June 30, 2024, the outstanding balance was $162,645.

In April 2024, the City entered into an agreement with the Department of Transportation for the Building Renovation and Expansion Project at the Fullerton Airport. The interest ra te on the loan is 3.29%. The term of the agreement is seventeen years. Payments are due annually under the terms of the agreement. At June 30, 2024, the outstanding balance was $1,300,000.

71 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 14: LONG-TERM LIABILITIES (CONTINUED)

The debt service requirements for the City’s loans/financed purchases are as follows:

F. Changes in Long-Term Liabilities

Changes in the City’s long-term liabilities for the year ended June 30, 2024, are as follows:

June 30 Principal Interest Principal Interest Principal Interest 2025 936,228$ 174,615$ 139,615$ 42,758$ 1,075,843$ 217,373$ 2026 736,742 153,030 141,532 40,841 878,274 193,871 2027 753,108 136,589 62,190 38,861 815,298 175,450 2028 463,718 119,766 64,236 36,815 527,954 156,581 2029 472,250 111,155 66,349 34,702 538,599 145,857 2030-2034 2,494,835 420,965 365,949 139,306 2,860,784 560,271 2035-2039 2,732,964 180,646 430,222 75,034 3,163,186 255,680 2040-2044 577,132 5,310 192,551 9,551 769,683 14,861 9,166,977$ 1,302,076$ 1,462,644$ 417,868$ 10,629,621$ 1,719,944$ Governmental Activities Business-Type Activities Total Primary Government Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Governmental Activities:

Bonds Payable:

Judgment obligation bonds 4,800,000$ -$ 445,000$ 4,355,000$ 450,000$ Total Bonds Payable 4,800,000 - 445,000 4,355,000 450,000 Financed purchases 10,082,195 - 915,218 9,166,977 936,228 Subscription liability 2,824,761 3,193,597 1,011,232 5,007,126 633,379 Lease liability 421,601 423,246 283,491 561,356 314,262 Compensated absences 2,592,020 3,058,169 2,574,979 3,075,210 117,944 Claims 31,543,000 2,483,125 3,406,125 30,620,000 6,095,000 Total Governmental Activities 52,263,577$ 9,158,137$ 8,636,045$ 52,785,669$ 8,546,813$ Business-Type Activities:

Bonds payable:

Revenue bonds 5,330,000$ -$ 430,000$ 4,900,000$ 445,000$ Premium 411,893 - 38,616 373,277 - Discount (18,623) - (2,483) (16,140) - Total bonds payable 5,723,270 - 466,133 5,257,137 445,000 Loans payable 243,966 1,300,000 81,322 1,462,644 139,615 Compensated absences 349,919 323,568 284,899 388,588 28,041 Claims - 2,200,000 - 2,200,000 2,200,000 Subscription liability 25,918 15,097 29,561 11,454 3,729 T
otal Business-Type Activities 6,343,073$ 3,838,665$ 861,915$ 9,319,823$ 2,816,385$ 72 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 14: LONG-TERM LIABILITIES (CONTINUED)

For compensated absences, the General Fund normally liquidates 90%, and the Airport Fund, Water Fund, Sewer Fund, and the Brea Dam Facilities Recreational Fund liquidate t he remaining 10%. For claims, the Liability Insurance Fund normally liquidates approximately 40%, and the Workers’ Compensation Fund normally liquidates approximately 55%; the remaining 5% is liquidated by the Genera l Fund. The General Fund normally liquidates 65% of the Miscellaneous Plan net pension liability, while the Water Fund liquidates 15%. The remaining Miscellaneous Plan net pension liability is liquidated among the various other enterprise and internal service funds.

The net pension liability for the Safety Plan is wholly liquida ted by the General Fund. For net OPEB, the General Fund normally liquidates 80%, and the Water Fund liquidates 10%. The remaining 10% is liquidated among the various other enterprise and internal service funds.

The debt service requirements for the City’s bonds are as follows:

NOTE 15: FUND BALANCE CLASSIFICATIONS

The fund balances of the City’s governmental funds as of June 30, 2024, are presented below:

June 30 Principal Interest Principal Interest Principal Interest 2025 450,000$ 92,216 $ 445,000 $ 270,119$ 895,000$ 362,335$ 2026 455,000 86,969 465,000 243,738 920,000 330,707 2027 460,000 80,526 490,000 215,850 950,000 296,376 2028 470,000 72,140 510,000 186,438 980,000 258,578 2029 480,000 62,632 530,000 155,888 1, 010,000 218,520 2030-2034 2,040,000 133,871 2,460,000 315,063 4,500,000 448,934 4,355,000$ 528,354$ 4,900,000$ 1,387,096$ 9,255,000$ 1,915,450$ Governmental Activities Business-Type Activities Total Primary Government American Other Total
Grants Rescue Plan Governmental Governmental
Classification General Fund Administration Act Capital Projects Funds Funds Nonspendable:

Inventories 6,528$ -$ -$ -$ -$ 6,528$ Prepaid costs 396,115 - - - - 396,115 Subtotal - nonspendable 402,643 - - - - 402,643 Restricted:

Community development - - 1,425,827 - 1,042,791 2,468,618 Public safety - - - - 633,757 633,757 Parks and recreation - - - - 1,608,626 1,608,626 Public works - - - - 21,319,452 21,319,452 Capital projects - - - - 553,316 553,316 Debt service - - - - 205,907 205,907 Refuse collection - - - - 1,473,160 1,473,160 Housing - - - - 12,545,793 12,545,793 Opioid settlement - - - - 156,146 156,146 Library 881,092 - - - - 881,092 Pension stabilization 637,739 - - - - 637,739 Donations 373,494 - - - 413,343 786,837 Subtotal - restricted 1,892,325 - 1,425,827 - 39,952,291 43,270,443 Committed:

Capital projects 3,277,873 - - - - 3,277,873 Subtotal - restricted 3,277,873 - - - - 3,277,873 Assigned:

Contingency reserve 21,075,598 - - - - 21,075,598 Street projects 1,627,126 - - - - 1,627,126 Building permits 70,041 - - - - 70,041 Subsequent year Police Department Retention 189,785 - - - - 189,785 Subtotal - assigned 22,962,550 - - - - 22,962,550 Unassigned 10,121,144 (1,860,587) - (8,441,806) (2,434,959) (2,616,208) Total Fund Balance 38,656,535$ (1,860,587)$ 1,425,827$ (8,441,806)$ 37,517,332$ 67,297,301$ 73 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 16: INTERFUND TRANSACTIONS

The composition of interfund balances as of June 30, 2024, is as follows:

A. Transfers to and From Other Funds

In the fund financial statements, the interfund transfers generally are made for the purpose of debt service payments made from a debt service fund but funded from an operating fund , capital improvement project expenditures paid by a capital projects fund but funded from other funds, or subsidy transfers. Additionally, during fiscal year 2023-24, the American Rescue Plan Act Fund transferred funds to the General Fund for revenue replacement. The General Fund also transferred funds to Internal Service Funds for the CCTV Network and Security Upgrade and the EnerGov ERP Implementation projects.

NOTE 17: SPECIAL ASSESSMENT DEBT WITH NO CITY COMMITMENT

The City issued special tax and assessment bonds on behalf of t he property owners, pursuant to the Municipal Improvement Bond Acts of 1911, 1913, and 1915 and the Mello-Roos Community Facilities Act of 1982, to finance the acquisition and construction of certain infrastr ucture improvements within the assessment districts and community facilities districts.

The City acts solely as an agent for those paying special tax and assessments and remits the amounts collected to the bondholders of these Municipal Improvement Bond Acts and Mello-Roos Community Facilities Act issues. The City is acting as an agent and is in no way liable for the Special Assessment debt.

The bonds are not general obligations of the City but are limited obligations, payable solely from special tax and assessments. 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 the bond proceeds, the City has no duty to pay the delinquency out of the available funds of the City. Neither the faith and credit nor the taxing power of the City, or the State of California, or any political subdivision thereof is pledged to the payment of these bonds.

At June 30, 2024, non-committal debt amounts issued and outstanding are as follows:

American Other
Grants Rescue Plan Governmental Sewer Internal Service
Transfers In General Fund Administration Act Capital Projects Funds Water Utility Enterprise Funds Total General Fund -$ -$ 6,950,000$ -$ 311,334$ - $ - $ -$ 7,261,334$ Capital Projects 1,663,908 400,213 4,400,947 - 9,025,238 - - 950,706 16,441,012 Other Governmental Funds - - - 1,740 612,658 - - - 614,398 Water Utility - - 719,565 - - - - 719,565 Internal Service Funds 208,217 - - - 959,468 180,000 90,000 - 1,437,685 Total 1,872,125$ 400,213$ 12,070,512$ 1,740$ 10,908,698$ 180,000$ 90,000$ 950,706$ 26,473,994$ Transfers Out
Amount of Outstanding
Non-committal Debt Issues: Issue June 30, 2024
CFD No. 1 2021 Special Tax Refunding Bonds 12,565,000$ 10,330,000$ CFD No. 2 2014 Special Tax Bonds 7,570,000 7,060,000 Total Non-committal Debt Issues: 20,135,000$ 17,390,000$ 74 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY

The California Supreme Court upheld Assembly Bill 1X 26 (“the B ill”) 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 repor ting 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 would agree to serve as the “successor agency” to hold the asse ts until they are distributed to other units of state and local government. On January 10, 2012, the City Council ele cted to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-04.

After the enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California could not enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enfor ceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceab le obligations of the former r edevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

In accordance with the timeline set forth in the Bill (as modif ied 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.

A. Cash and investments

Cash and investments reported in the accompanying financial statements consisted of the following:

B. Loans Receivable

Rehabilitation Loan:

On October 19, 2004, the former Redevelopment Agency entered into a developer disposition agreement with the Fullerton Historic Theatre Foundation to renovate the FOX Theat re and adjacent condominium units. The agreement was later amended on September 19, 2006. The original amount loaned of $2,665,722 was increased in prior fiscal years by $3,078,278 totaling $5,744,000. Based on the 2 nd Amendment dated August 3, 2009, the maximum loan amount could not exceed $6,000,000. A repayment ac count was established in the Successor Agency’s name for the repayment of the loan once tenants begin paying rent. Deposits shall be made into the repayment account by the allocation and deposit from the aggreg ate monthly rental payme nts from all tenants in the Firestone Building Condominium Unit and/or Tea Room Buildin g. The allocation and deposits shall include subleases rental payments pursuant to any master lease agreements. Following the completion of the Fox Theatre two dollars per ticket surcharge, per ticket sold for an event shall be deposited one month after the event occurred.

Payments to the Successor Agency from the repayment account sha ll commence on the sufficient fund date. The outstanding balance at June 30, 2024, is $5,450,604.

The former Redevelopment Agency issued additional various rehabilitation loans from $5,000 - $180,000 to assist in the acquisition and rehabilitation within the redevelopment project areas. The loans were issued at no interest.

The outstanding balance at June 30, 2024 is $864,028.

Cash and investments pooled with the City 9,168,898$
Cash and investments with fiscal agent 3
9,168,901$
75 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

Seismic Loans:

The former Redevelopment Agency issued 10-year loans for $25,00 0 - $50,000 for the purpose of seismically retrofitting historic buildings in the downtown area. There is no interest accrued on these loans. The deferred loans are payable upon sale or transfer of property. The outstanding balance at June 30, 2024, is $816,483.

School Expansion Loans:

The Fullerton School District (Maple) was issued a 25-year loan for $440,442 for the purpose of assisting in the expansion cost of the school. This loan is a noninterest bearing loan. The outstanding balance at June 30, 2024, is $31,460.

Tenant Rehab Loans:

The former Redevelopment Agency ent ered into various Owner Part icipation Agreements for the purpose of providing loan assistance to participants of the Tenant Improve ment Loan Program. This program assisted the tenants in the construction of certain properties. These loans are non-interest-bearing loans. The loan shall be repaid in 10 equal annual payments beginning 18 months after th e effective date or 1 year after the recording of the Notice of Completion for the improvements. The outstanding balance at June 30, 2024, is $23,750.

Fullerton Interfaith Housing Services (dba Pathways of Hope):

On May 20, 2013, the Successor Agency agreed to loan $630,000 from the $28.9M 2010 Tax Allocation Housing Bonds for assistance in the devel opment of eight (8) very-low-income units located at 504 West Amerige Avenue and 117 North Richman Avenue. According to the Promissory Note the loan matures over 55 years at a simple interest rate of 3% annually. If the borrower does not default per the Affordable Housing Agreement by and between the City and Fullerton Interfaith Emergency Services, then upon the expiration of the 55-year term the loan and all interest accrued shall be forgiven and the Note shall automatically be cancelled. The outstanding principal balance is $630,000 with accrued interest of $196,098, totaling $826,098 at June 30, 2024.

TRG Fullerton Affordable LLC:

On December 19, 2013, the Successor Agency agreed to loan $8,972,000 for the acquisition of real property located at 345 East Commonwealth Avenue and the construction of affordable apartment units. According to the Promissory Note the Term of the loan shall terminate on the fifty-eighth ( 58 th) anniversary of the first date on which at least
75% of the units restricted for rental to and occupancy by eligible tenants have been leased to and are occupied by eligible tenants. Interest and principal payments are payable annually on April 1 of each year during the Term at a simple interest rate of 3% annually. The outstanding principal balance is $8,972,000 with accrued interest of $2,590,639 totaling $11,562,639 at June 30, 2024.

Fullerton Family Housing Partners, LP:

On October 13, 2016, the Successor Agency agreed to loan $7,200,000 for the acquisition of real property located at 336 East Santa Fe Avenue and the construction of affordable apartment units. According to the Promissory Note the Term of the loan matures over 55 years at a simple interest rate of 3% annually. If the borrower does not default per the Affordable Housing Agreement by and between the City an d Fullerton Family Housing Partners, LP, then upon the expiration of the 55-year term the loan and all interest accrued shall be forgiven and the Note shall automatically be cancelled. The outstanding principal balance is $7,200,000 with accrued interest of $1,324,965 totaling $8,524,965 at June 30, 2024.

76 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

Richman Park Housing Partners LP (Jamboree):

On October 31, 2016, the Successor Agency agreed to loan $4,402,564 for the acquisition of real property located at multiple addresses and the construction of affordable apartm ent units. According to the Promissory Note the Term of the loan matures over 55 years at a simple interest rat e of 3% annually. If the borrower does not default per the Affordable Housing Agreement by and between the City and Richman Park Housing Partners LP, then upon the expiration of the 55-year term the loan and all interest accrued shall be forgiven and the Note shall automatically be cancelled. The outstanding principal balance is $4,402,564 with accrued interest of $768,176 totaling $5,170,740 at June 30, 2024.

Fullerton Supportive Housing, LP:

On November 28, 2016, the Successor Agency agreed to loan $3,000,001 for the acquisition of real property located at 1220 East Orangethorpe Avenue and the construction of affordable apartment units. According to the Promissory Note the Term the loan matures over 55 years at a simple interest rate of 3% annually. If the borrower does not default per the Affordable Housing Agreement by and between the City and Fullerton Supportive Housing, LP, then upon the expiration of the 55-year term the loan and all interest accrued shall be forgiven and the Note shall automatically be cancelled. T he outstanding principal balance i s $3,000,001 with accrued interest of $615,496, totaling $3,615,497 at June 30, 2024.

Affordable Housing Apartment Loans:

In June 2018, the Successor Agency agreed to loan $872,000 for the acquisition of real property located at 418 & 424 Valencia Dr. and 437, 443, 455 & 467 West Ave and the const ruction of affordable apartment units. The loan is payable by the apartment buyers. According to the Promissory Note no interest shall accrue unless the borrower is required to repay all or any portion of the note, in which c ase interest shall accrue at a rate of 6% compounded annually. The site must be used for affordable housing for 60 y ears. The loan is repayable only in the event of a default by the borrower. The outstanding balance is $872,000 at June 30, 2024.

1600 Commonwealth LP (Low & Moderate Housing Loan)

On May 31, 2024, the Successor Agency agreed to loan $717,738 f or the 1650 W Commonwealth Ave & 203 S Basque Ave construction project. The loan matures in 55 years f rom the date of recordatio n of the Certificate of Occupancy (COO) for the project and carries a simple interest r ate of 3%. Once the City Land Loan is paid in full, the City’s LMIHAF will receive 50% of the residual receipts. At the end of the term, the outstanding balance will be due and payable. The loan is secured with a third trust deed an d includes affordability restrictions associated with the Taxable Housing Bonds for 55 years from the COO. As of June 30, 2024, the outstanding balance of the loan is $717,738.

1600 Commonwealth LP (City Land Loan)

On May 31, 2024, the City agreed to loan $10,700,000 for the 1650 W Commonwealth Ave and 203 S Basque Ave construction project. The loan matures in 55 years from the dat e of recordation of the Certificate of Occupancy (COO) for the project and carries a simple interest rate of 3%. Annual payments of 50% of the residual receipts will be required. At the end of the term, the outstanding balance will be due and payable. The loan is secured with a third trust deed and includes 55-year affordability restriction s associated with the City Land Loan. As of June 30, 2024, the outstanding balance of the loan is $10,700,000.

Total Loans Receivable is $49,176,003.
77 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

C. Long-Term Liabilities

2015 Tax Allocation Refunding Bonds

On January 28, 2015, the former Fullerton Redevelopment Agency issued 2015 Tax Allocation Refunding Bonds in the amount of $11,975,000. Issuance of the debt was for the purpose of prepaying a financing agreement entered into by the former Fullerton Redevelopment Agency (the “1998 Financing Agreement”) and to refund on a current basis certain outstanding bonds issued by the PFA, which bonds are secured by the 1998 Financing Agreement, to purchase municipal bond debt s ervice reserve insurance polic y for the bonds, and to provide for the costs of issuing the Bonds. The 2015 Tax Allocation Refunding Bonds are secured by the tax increment revenues. Bond repayment commenced on March 1, 2016, with interest rates ranging from 3.00% to 5.00%. The final maturity date is March 1, 2025. Interest and principal payments are due semiannually and annually, respectively, under terms of the bond agreement. At June 30, 2024, the outstanding balance was $2,210,000.

2020A and 2020B Tax Allocation Refunding Bonds

On August 19, 2020, the former Fullerton Redevelopment Agency i ssued 2020A and 2020B Tax Allocation Refunding Bonds in the amount of $33,965,000 and $10,730,000, r espectively. Issuance of the debt was for the purpose of refunding, on a current basis, the 2005 Tax Allocati on Revenue Bond and the 2010 Tax Allocation Housing Bond. The 2020A and 2020B Tax Allocation Refunding Bonds are secured by the tax increment revenues.

Bond repayment commenced on September 1, 2021, with interest rates ranging from 0.591% to 4.000%. The final maturity date is September 1, 2027. Interest and principal paym ents are due semiannually and annually, respectively, under the terms of the bond agreement. At June 30, 2024, the outstanding balances of the 2020A and 2020B were $20,390,000 and $5,270,000, respectively.

Events of Default, Acceleration Clauses, and Termination Events

The outstanding bonds contain a provision that if any event of default occurs, then, and in each and every such case during the continuance of such event of default, with the prior written consent of the Bond Insurer the Trustee may, and at the written directi on of the Bond Insurer or (with the prior written consent of the Bond Insurer) at the written direction of the Owners of a majority in aggregate principal amount of the Bonds at the time outstanding, the Trustee will, upon notice in writing to the Authority and the Agency, declare the principal of all of the Bonds then outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration the same will become immediately due and payable, anything in t he Indenture or in the Bonds contained to the contrary notwithstanding.

Pledged Revenues

The City 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 s et-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 defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocat ed to redevelopment agencies no longer are deemed tax increments but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelo pment agency. The total principal and interest remaining on the debt is $29,807,791 with annual debt service requirements as indicated on the following pages.

For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $11,403,609 and the debt service obligation on the bonds was $8,782,616.
78 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

Changes in Long-term Liabilities

Changes in the Successor Agency’s long-term liabilities for the year ended June 30, 2024, are as follows:

All of the above liabilities are liquidated by the Successor Agency private-purpose trust fund. The City paid the next debt service payment on the bonds prior to June 30, 2024, resulting in no amount of principal and only a portion of interest due within one year as of June 30, 2024.

The debt service requirements for the City’s bonds are as follows:

D. Insurance

The Successor Agency is covered under the City’s insurance poli cies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 11.

NOTE 19: JOINT POWERS AGREEMENT – NORTH ORANGE COUNTY CITIES JO INT POWERS

AUTHORITY

On November 21, 2016, the North Orange County Cities Joint Powe rs Authority (NOCCJPA) was created by a Joint Exercise of Powers Agreement (the JPA) for the purpose of providing quality municipal services to the cities of Fullerton and Brea and their residents while increasing cost-effectiveness by pooling the cities’ resources when it is most efficient. The City of Fullerton and the City of Brea are members of NOCCJPA. Members of the Board of Directors consist of four Directors, two appointed from each member’s respective City Council. Annually, the Board adopts a budget and det ermines the activities for the year. NOCCJPA commenced operations on January 15, 2017. Funding of t he JPA’s budgeted amounts is derived from grants and other sources, as well as contributions made by the members to carry out purposes and pow ers of the JPA, consistent with all joint Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Bonds Payable:
2015 Tax Allocation Refunding Bond 3,335,000$ -$ 1,125,000$ 2,210,000$ 2,210,000$ 2020A Tax Allocation Refunding Bond 25,090,000 - 4,700,000 20,390,000 4,880,000 2020B Tax Allocation Refunding Bond 7,105,000 - 1,835,000 5,270,000 1,850,000 Premiums 2,870,373 - 992,014 1,878,359 - Total Bonds Payable 38,400,373$ -$ 8,652,014$ 29,748,359$ 8,940,000$ June 30 Principal Interest
2025 8,940,000$ 855,174$
2026 5,045,000 591,783
2027 8,075,000 374,634
2028 5,810,000 116,200
27,870,000$ 1,937,791$
79 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 19: JOINT POWERS AGREEMENT – NORTH ORANGE COUNTY CITIES JO INT POWERS

AUTHORITY (CONTINUED)

resolutions, the JPA’s budget, and any cost-sharing agreements between the members. The assets and activity is reported as a custodial fund in the City financial statements. Separate financial statements for NOCCJPA are not available, however financial information for the NOCCJPA is as follows:

NOTE 20: 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.

Asse ts:

Cash and cash equivalents 28,641$
Net Position:

Restricted 28,641 $
Revenues: - $
Expenses -
Change in Net Position -
Net Position - Beginning 28,641
Net Position - Ending 28,641 $
Condens ed Statement of Net Pos ition
Condensed Statement of Revenues,
Expenses, and Changes in Net Position
80 CITY OF FULLERTON, 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 92,018,298$ 92,018,298 $ 92,859,908 $ 841,610$ Franchise taxes 4,300,000 4,300,000 5,534,009 1,234,009 Licenses and permits 2,464,846 2,464,846 2,292,622 (172,224) Intergovernmental 581,725 641,725 650,572 8,847 Charges for services 12,888,523 12,888,523 13,181,721 293,198 Investment earnings 4,362,145 4,687,145 5,573,334 886,189 Fines and forfeitures 1,634,300 1,634,300 2,064,407 430,107 Miscellaneous 2,422,020 2,537,020 1,451,739 (1,085,281) Total revenues 120,671,857 121,171,857 123,608,312 2,436,455

EXPENDITURES
Current:

General government:

Council 438,995 543,995 541,280 2,715 City Manager 2,927,504 2,927,504 2,746,512 180,992 City Clerk 725,282 725,282 609,972 115,310 Administrative Services Finance 3,347,304 3,347,304 3,098,227 249,077 Human Resources 717,258 717,258 558,234 159,024 Non-departmental 210,180 210,180 (1,478,031) 1,688,211 Public safety:

Fire 25,465,742 27,612,082 27,604,430 7,652 Police 60,040,816 63,723,748 63,753,532 (29,784) Community development 6,155,593 6,155,593 5,500,596 654,997 Human and leisure:

Parks and Recreation 5,924,622 6,325,802 5,924,888 400,914 Library 4,123,406 4,416,163 4,310,579 105,584 Public works 10,251,604 10,331,604 10,172,976 158,628 Capital outlay 100,000 100,000 243,658 (143,658) Debt service:

Principal retirement 266,748 266,748 358,338 (91,590) Interest and fiscal charges 189,386 189,386 32,809 156,577 Total expenditures 120,884,440 127,592,649 123,978,000 3,614,649 Excess (deficiency) of revenues
over (under) expenditures (212,583) (6,420,792) (369,688) 6,051,104

OTHER FINANCING SOURCES (USES)
Transfers in 7,150,000 7,150,000 7,261,334 111,334 Transfers out (4,584,587) (10,694,131) (1,872,125) 8,822,006 Subscriptions financing - - 150,115 150,115 Total other financing sources (uses) 2,565,413 (3,544,131) 5,539,324 9,083,455 Net change in fund balances 2,352,830 $ (9,964,923) $ 5,169,636 15,134,559 $ Fund balances (deficit)-beginning 33,487,199
Fund balances (deficit)-ending 38,656,835$
81 CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants Administration
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 3,875,062$ 18,353,470 $ 14,090,638 $ (4,262,832)$ Miscellaneous - - 65,337 65,337 Total revenues 3,875,062 18,353,470 14,155,975 (4,197,495)

EXPENDITURES
Current:

General government - 310,000 252,766 57,234 Public safety 852,654 3,956,847 1,498,567 2,458,280 Community development 1,945,991 2,326,974 2,271,167 55,807 Human and leisure 270,905 434,858 92,329 342,529 Public works - 422,882 421,033 1,849 Capital outlay - 10,201,397 9,975,474 225,923 Total expenditures 3,069,550 17,652,958 14,511,336 3,141,622 Excess (deficiency) of revenues
over (under) expenditures 805,512 700,512 (355,361) (1,055,873)

OTHER FINANCING SOURCES (USES)
Transfer out (675,000) (1,109,818) (400,213) 709,605 Total other financing sources (uses) (675,000) (1,109,818) (400,213) 709,605 Net change in fund balances 130,512$ (409,306)$ (755,574) (346,268)$ Fund balances (deficit)-beginning (1,105,013)
Fund balances (deficit)-ending (1,860,587)$
82 CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual American Rescue Plan Act
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 12,788,866$ 12,788,866$ Investment earnings - - 1,555,210 1,555,210 Total revenues - - 14,344,076 14,344,076

EXPENDITURES
Current:

General government 181,852 1,107,631 718,352 389,279 Total expenditures 181,852 1,107,631 718,352 389,279 Excess (deficiency) of revenues
over (under) expenditures (181,852) (1,107,631) 13,625,724 14,733,355

OTHER FINANCING SOURCES (USES)
Transfers out (12,450,000) (18,703,657) (12,070,512) 6,633,145 Bond Discount - - - - Total other financing sources (uses) (12,450,000) (18,703,657) (12,070,512) 6,633,145 Net change in fund balances (12,631,852) $ (19,811,288) $ 1,555,212 21,366,500 $ Fund balances (deficit)-beginning (129,385)
Fund balances (deficit)-ending 1,425,827$
83 CITY OF FULLERTON, 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 3,386,609$ 3,627,562 $ 3,548,169 $ 3,775,731$ Interest on total pension liability 22,005,969 21, 493,649 21,513,474 21,144,370 Changes of benefit terms 429,739 - - - Changes of assumptions - 8,273,705 - - Difference between expected and actual experience 1,245,548 (4,346,059) (2, 050,727) 394,873 Benefit payments, including refunds of employee
contributions (19,558,103) (18,944,042) (17,885,130) (17,301,500) Net change in total pension liability 7,509,762 10,104,815 5,125,786 8,013,474 Total pension liability-beginning 325,337,555 315,232,740 310, 106,954 302,093,480 Total pension liability-ending (a) 332,847,317 325,337,555 315, 232,740 310,106,954

PLAN FIDUCIARY NET POSITION
Contributions-employer 8,225,656 7,585,752 7,017,542 6,036,525 Contributions-employee 1,689,621 1,639,319 1,811,572 2,274,075 Net investment income 14,895,695 (20, 344,557) 51,372,978 11,301,839 Benefit payments, including refunds of employee
contributions (19,558,103) (18,944,042) (17,885,130) (17,301,500) Net plan to plan resource movement - - - - Administrative expense (178,654) (170,177) ( 230,852) (322,988) Other miscellaneous income/(expense) - - - - Net change in fiduciary net position 5,074,215 (30,233,705) 42,086,110 1,987,951 Plan fiduciary net position-beginning 242,949,913 273,183,618 231, 097,508 229,109,557 Plan fiduciary net position-ending (b) 248,024,128 242,949,913 273,183,618 231,097,508 Net pension liability/(asset) (a) - (b) 84,823,189 $ 82, 387,642$ 42,049,122 $ 79,009,446 $ Plan fiduciary net position as a percentage of the
total pension liability 74.5% 74.7% 86.7% 74.5%
Covered payroll 20,826,179$ 21, 004,994$ 22,456,766 $ 23,791,627$ Plan net pension liability/(asset) as a percentage of
covered payroll 407.3% 392.2% 187.2% 332.1%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

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.

Changes of Assumptions : None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 84 2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
3,774,798$ 4,018,130$ 4,028,019$ 3,436,150$ 3,434,664$ 20,552,464 19,980,940 19,457,971 19,021,926 18,544,020 - - - - - - (1,127,539) 15,777,516 - (4,406,198) (669,374) (817,761) (1,691,562) (2,713,807) (3,523,723) (15,586,850) (14,842,526) (13,600,494) (13,105,760) (12,931,194) 8,071,038 7, 211,244 23, 971,450 6,638,509 1,117,569 294,022,442 286,811,198 262,839,748 256,201,239 255,083,670 302,093,480 294,022,442 286,811,198 262,839,748 256,201,239 4,809,655 3,880,635 3,455,877 2,831,939 2,087,882 2,852,167 2,857,654 3,207,458 2,961,557 2,852,024 14,470,021 17,972,220 21,919,922 994,336 4,617,716 (15,586,850) (14,842,526) (13,600,494) (13,105,760) (12,931,194) (650) (518) - - (715) (158,940) (333,194) (294,007) (125,288) (231,434) 518 (632,741) - - - 6,385,921 8, 901,530 14, 688,756 (6,443, 216) (3, 605,721) 222,723,636 213,822,106 199,133,350 205,576,566 209,182,287 229,109,557 222,723,636 213,822,106 199,133,350 205,576,566 72,983,923$ 71, 298,806$ 72, 989,092$ 63,706,398 $ 50,624,673 $

75.8% 75.8% 74.6% 75.8% 80.2%
23,492,645$ 25,445,697$ 25,506,709$ 24,160,809$ 24,121,530$ 310.7% 280.2% 286.2% 263.7% 209.9%
85 CITY OF FULLERTON, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Safety 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 6,837,489$ 6,727,723 $ 6,193,673 $ 5,929,528$ Interest on total pension liability 38,518,042 37, 241,475 36,643,567 35,667,102 Changes of benefit terms 230,662 - - - Changes of assumptions - 19, 054,908 - - Difference between expected and actual experience 7,481,421 (3,037,772) 2,697,088 1,835,234 Benefit payments, including refunds of employee
contributions (33,909,499) (32,560,850) (31,213,796) (30,324,105) Net change in total pension liability 19,158,115 27,425,484 14,320,532 13,107,759 Total pension liability-beginning 564,056,423 536,630,939 522, 310,407 509,202,648 Total pension liability-ending (a) 583,214,538 564,056,423 536, 630,939 522,310,407

PLAN FIDUCIARY NET POSITION
Contributions-employer 19,372,239 16, 849,633 15,515,050 14,081,827 Contributions-employee 2,550,442 3,293,443 3,261,576 3,622,586 Net investment income 21,903,721 (30, 042,048) 75,203,654 16,454,572 Benefit payments, including refunds of employee
contributions (33,909,499) (32,560,850) (31,213,796) (30,324,105) Net plan to plan resource movement - - - - Administrative expense (261,184) (247,861) ( 335,102) (468,167) Other miscellaneous income/(expense) - - - - Net change in fiduciary net position 9,655,719 (42,707,683) 62,431,382 3,366,713 Plan fiduciary net position-beginning 355,181,739 397,889,422 335, 458,040 332,091,327 Plan fiduciary net position-ending (b) 364,837,458 355,181,739 397,889,422 335,458,040 Net pension liability/(asset) (a) - (b) 218,377,080 $ 208,874,684 $ 138,741,517 $ 186,852,367 $ Plan fiduciary net position as a percentage of the
total pension liability 62.6% 63.0% 74.1% 64.2%
Covered payroll 23,225,598$ 21, 632,551$ 21,947,814 $ 20,747,123$ Plan net pension liability/(asset) as a percentage of
covered payroll 940.2% 965.6% 632.1% 900.6%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

Changes of Assumptions : None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 86 2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
6,713,029$ 7,276,694$ 7,137,610$ 6,139,343$ 6,159,575$ 34,715,015 33,741,761 32,652,041 31,849,067 30,783,877 - - - - - - (1,878,673) 27,036,186 - (7,450,669) 406,378 2,515,633 (1,625,395) (590,872) (3,274,488) (28,787,130) (26,274,949) (24,235,721) (22,872,497) (21,964,313) 13,047,292 15, 380,466 40, 964,721 14,525,041 4,253,982 496,155,356 480,774,890 439,810,169 425,285,128 421,031,146 509,202,648 496,155,356 480,774,890 439,810,169 425,285,128 12,127,485 10,730,240 10,074,802 8,358,879 7,227,836 3,161,725 3,605,789 3,864,941 3,747,337 3,711,794 21,203,073 26,311,505 32,030,653 1,497,136 6,738,820 (28,787,130) (26,274,949) (24,235,721) (22,872,497) (21,964,313) 650 (757) - - - (231,653) (485,640) (428,677) (182,711) (341,647) 757 (922,239) - - 90 7,474,907 12, 963,949 21, 305,998 (9,451, 856) (4, 627,420) 324,616,420 311,652,471 290,346,473 299,798,329 304,425,749 332,091,327 324,616,420 311,652,471 290,346,473 299,798,329 177,111,321$ 171,538,936 $ 169,122,419 $ 149,463,696 $ 125,486,799 $

65.2% 65.4% 64.8% 66.0% 70.5%
22,649,309$ 24,764,981$ 23,799,967$ 22,949,957$ 23,105,917$ 782.0% 692.7% 710.6% 651.3% 543.1%
87 CITY OF FULLERTON, 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 1,083,117$ 1, 908,946$ 1,673,868 $ 1,349,773$ Interest on total pension liability 983,060 674,684 784,439 1,049,606 Changes of assumptions (579,160) (6,552,244) 1,853,345 3,881,547 Difference between expected and actual experience 62,188 (1,560,876) 148,817 (6,727,717) Benefit payments, including refunds of employee
contributions (1,861,165) (1,692,781) (1,668,735) (1,635,980) Net change in total OPEB liability (311,960) (7,222,271) 2,791,734 (2,082,771) Total OPEB liability-beginning 26,488,642 33, 710,913 30,919,179 33,001,950 Total OPEB liability-ending (a) 26,176,682 26,488,642 33,710,913 30,919,179

PLAN FIDUCIARY NET POSITION
Contributions-employer 1,861,165 1, 692,781 1,668,735 1,635,980 Net investment income 7,198 (10,755) 18,630 (94) Benefit payments, including refunds of employee
contributions (1,861,165) (1,692,781) (1,668,735) (1,635,980) Administrative expense (377) (433) (370) (300) Net change in fiduciary net position 6,821 (11,188) 18,260 (394) Plan fiduciary net position-beginning 63,432 74,620 56,360 56,754 Plan fiduciary net position-ending (b) 70,253 63,432 74,620 56,360 Net OPEB liability/(asset) (a) - (b) 26,106,429 $ 26,425,210 $ 33,636,293 $ 30,862,819 $ Plan fiduciary net position as a percentage of the
total OPEB liability 0.3% 0.2% 0.2% 0.2%
Covered-employee payroll 53,938,658$ 49,278,492 $ 55,369,789 $ 51,823,148$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 48.4% 53.6% 60.7% 59.6%
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.

Benefit Changes: None
Changes of Assumptions: None
88 2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
1,287,092$ 1,184,811$ 1,913,643$
1,103,389 1,324,045 1,288,253
1,889,194 - -
- (7,029,124) -
(1,390,063) (1,338,227) (1,584,473)
2,889,612 (5, 858,495) 1, 617,423
30,112,338 35,970,833 34,353,410
33,001,950 30,112,338 35,970,833
1,390,063 1,388,227 -
3,203 3,686 -
(1,390,063) (1,338,227) -
(135) - -
3,068 53,686 -
53,686 - -
56,754 53,686 -
32,945,196$ 30,058,652$ 35,970,833$

0.2% 0.2% 0.0%
55,541,742$ 53,294,857$ 47,763,989$

59.3% 56.4% 75.3%
89 CITY OF FULLERTON, 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 7,986,451$ 7,986,451$ -$ 24,311,542$ 32.9% 2023 6,711,592 8,218,595 (1,507,003) 20,826,179 39.5% 2022 7,585,485 7,585,485 - 21,004,994 36.1% 2021 7,018,243 7,018,243 - 22,456,766 31.3% 2020 6,036,168 6,036,168 - 23,791,627 25.4% 2019 4,809,655 4,809,655 - 23,492,645 20.5% 2018 3,880,635 3,880,635 - 25,445,697 15.3% 2017 3,455,877 3,455,877 - 25,506,709 13.5% 2016 2,831,939 2,831,939 - 24,160,809 11.7% 2015 2,087,882 2,087,882 - 24,121,530 8.7% 2024 19,995,561$ 19,995,561$ -$ 25,835,458$ 77.4% 2023 15,619,397 18,845,445 (3,226,048) 23,225,598 81.1% 2022 16,849,576 16,849,576 - 21,632,551 77.9% 2021 15,515,569 15,515,569 - 21,947,814 70.7% 2020 14,081,945 14,081,945 - 20,747,123 67.9% 2019 12,127,485 12,127,485 - 22,649,309 53.5% 2018 10,730,240 10,730,240 - 24,764,981 43.3% 2017 10,074,802 10,074,802 - 23,799,967 42.3% 2016 8,358,879 8,358,879 - 22,949,957 36.4% 2015 7,227,836 7,227,836 - 23,10 5,917 31.3%
2024 1,820,569$ 1,832,299$ (11,730)$ 37,167,877$ 4.9% 2023 1,771,061 1,810,481 (39,420) 53,938,658 3.4% 2022 2,073,368 1,692,781 380,587 49,278,492 3.4% 2021 2,017,876 1,668,735 349,141 55,369,789 3.0% 2020 2,286,732 1,635,980 650,752 51,823,148 3.2% 2019 2,181,997 1,390,063 791,934 55,541,742 2.5% 2018 1,388,227 1,388,227 - 53,294,857 2.6% 1 Historical information is required only for measurement for which GASB 68and GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation for GASB 75, therefore only six years are shown.

Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
Single Employer OPEB Plan
90 CITY OF FULLERTON, CALIFORNIA
Notes to the Required Supplementary Information
For the Year Ended June 30, 2024

NOTE 1: BUDGETARY COMPARISON INFORMATION

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. The budget is presented by fund, program, a nd department and includes proposed appropriations and the means to finance them. The City Council approves the budget prior to July 1 by resolution and amends the budget throughout the year.

The City Manager is authorized to transfer budgeted amounts within departments, within funds. Transfers of appropriations between departments and between funds may be made only by authority of the City Council. Total fund and department expenditures in excess of the total budgeted amounts are prohibited. Expenditures may not legally exceed budgeted appropriat ions at the department level. Formal budgetary information is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlli ng expenditures. Appropriations lapse at fiscal year-end unless carried over by approval by the City Council.

A. Budgetary Compliance

The Debt Service Reserve, West Coyote Hills Endowment and Opioid Litigation Settlement special revenue funds did not adopt budgets for the year ended June 30, 2024.

During the year, the City’s General Fund incurred excesses of expenditures over appropriations as follows:

NOTE 2: ACTUARIAL ASSUMPTIONS UN DERLYING THE SCHEDULES OF PLAN CONTRIBUTIONS

A. CalPERS Miscellaneous and Safety Pension Plans

The collective total pension liability for the June 30, 2023 me asurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to r oll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:

The mortality table was developed based on CalPERS-specific dat a. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Appropriations Expenditures Excess
General fund:

Capital outlay 100,000$ 243,658$ 143,658$ Debt Service:

Principal 266,748 358,338 91,590
91 CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments 8,203,213$ 5,314,840 $ - $ 1,600,270$ Receivables:

Accounts 746,881 120,884 - - Accrued interest 40,066 24,057 - 8,356 Notes and loans - - - - Total assets 8,990,160 5,459,781 - 1,608,626

LIABILITIES
Accounts payable 95,999 - - - Accrued liabilities 22,474 4,099 - - Deposits payable - - - - Due to other funds - - - - Unearned revenue - - - - Total liabilities 118,473 4,099 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 16,749 51,122 - - Total deferred inflows of resources 16,749 51,122 - -

FUND BALANCES (DEFICITS)
Restricted 8,854,938 5,404,560 - 1,608,626 Unassigned (deficit) - - - - Total fund balances (deficits) 8,854,938 5,404,560 - 1,608,626 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 8,990,160$ 5,459,781$ -$ 1,608,626$ Special Revenue Funds
State Gas Tax
Drainage
Capital Outlay Traffic Safety Park Dwelling
92 CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Accrued interest
Notes and loans
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned (deficit)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(CONTINUED)
637,663$ 389,744$ 1 ,037,907$ -$
24,243 3, 203,566 - 1,430,219 2,356 3,147 4,884 - - - - - 664,262 3, 596,457 1, 042,791 1, 430,219 18,301 1, 246,142 - 238,239 - 7,753 - 50,095 - - - - - - - 783,630 7,455 55,578 - 208,257 25,756 1, 309,473 - 1,280,221 4,749 813,824 - 462,431 4,749 813,824 - 462,431 633,757 1, 473,160 1, 042,791 - - - - (312,433) 633,757 1, 473,160 1, 042,791 (312,433) 664,262$ 3, 596,457$ 1 ,042,791$ 1 ,430,219$ Asset Seizure
Refuse
Collection
Air Quality
Improvement Sanitation
Special Revenue Funds
93 CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Accrued interest
Notes and loans
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned (deficit)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
6,566,621$ 827,572$ 520,417 $ 14$
532,950 - 43,385 - 35,054 3,183 4,759 - - 11,751,391 - - 7,134,625 12,582,146 568,561 14 74,671 31,018 15,245 2,122,540 - 3,235 - - - 2,100 - - - - - - - - - - 74,671 36,353 15,245 2, 122,540 - - - - - - - - 7,059,954 12,545,793 553,316 - - - - (2,122,526) 7,059,954 12,545,793 553,316 (2,122,526) 7,134,625$ 12,582,146 $ 568,561 $ 14 $
Housing
FTV Cable -
PEG Access
Fund SB2 / PLHA Measure M2
Special Revenue Funds
94 CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Accrued interest
Notes and loans
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned (deficit)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
411,760$ 155,684$ 205,907$ 25,871,612$ - - - 6,102,128 1,583 593 - 128,038 - - - 11,751,391 413,343 156,277 205,907 43,853,169 - 131 - 3,842,286 - - - 87,656 - - - 2,100 - - - 783,630 - - - 271,290 - 131 - 4,986,962 - - - 1,348,875 - - - 1,348,875 413,343 156,146 205,907 39,952,291 - - - (2,434,959) 413,343 156,146 205,907 37,517,332 413,343$ 156,277$ 205,907$ 43,853,169$ Special Revenue Funds
Debt Service
Reserve
West Coyote
Hills
Endowment
Opioid Litigation
Settlement Fund
Debt Service
Fund
95 CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes -$ - $ - $ -$ Intergovernmental 7,608,836 - - - Charges for services 68,874 665,728 - 84,140 Investment earnings 344,058 274,538 - 101,767 Fines and forfeitures - - 272,442 - Miscellaneous - - - - Total revenues 8,021,768 940,266 272,442 185,907

EXPENDITURES
Current:

General government 838 - - 53 Public safety - - - - Community development - - - - Human and leisure - - - - Public works 3,423,722 220,189 - - Refuse collection - - - - Capital outlay - - - - Total expenditures 3,424,560 220,189 - 53 Excess (deficiency) of revenues
over (under) expenditures 4,597,208 720,077 272,442 185,854

OTHER FINANCING SOURCES (USES)
Transfers in - 1,740 - - Transfers out (2,685,098) (1, 516,353) ( 311,334) (1,536,282) Subscriptions financing - - - - Total other financing sources (uses) (2,685,098) (1,514,613) (311,334) (1,536,282) Net change in fund balances 1,912,110 (794,536) (38,892) (1,350,428) Fund balances (deficit)-beginning 6,942,828 6,199,096 38,892 2,959,054 Fund balances (deficit)-ending 8,854,938$ 5,404,560 $ - $ 1,608,626$ Special Revenue Funds
State Gas Tax
Drainage
Capital Outlay Traffic Safety Park Dwelling
96 CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(CONTINUED)
-$ - $ - $ -$ 541,480 145,426 240,444 - - 14,087,483 - 6,003,775 67,080 68,708 50,426 14,184 - - - - - - - - 608,560 14,301,617 290,870 6,017,959 - - - 81,139 242,349 - - - - - 5,505 - - - - - - - - 7,761,462 - 15,548,256 - - 327,619 - - - 569,968 15,548,256 5,505 7,842,601 38,592 (1, 246,639) 285,365 (1, 824,642) - - - - - ( 145,000) (2 32,287) (60,000) - - - - - ( 145,000) (2 32,287) (60,000) 38,592 (1, 391,639) 53,078 (1, 884,642) 595,165 2, 864,799 989,713 1,572,209 633,757$ 1 ,473,160$ 1,042,791 $ (312,433) $ Special Revenue Funds
Asset Seizure
Refuse
Collection
Air Quality
Improvement Sanitation
97 CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ - $ 181,903$ -$ 3,345,093 - - - - - - - 329,620 297,959 51,697 8 - - - - - 4,750 - - 3,674,713 302,709 233,600 8 - - 123,494 - - - 47,736 - - 319,001 - 2,122,540 228,081 - - - 284,157 - - - - - - - - - - - 512,238 319,001 171,230 2,122,540 3,162,475 (16,292) 62,370 (2,122,532) - - - 612,658 (3,092,418) (612,658) (717,268) - - - 1,576 - (3,092,418) ( 612,658) (715,692) 612,658 70,057 ( 628,950) (653,322) (1,509,874) 6,989,897 13, 174,743 1, 206,638 (612,652) 7,059,954$ 12,545,793$ 553,316 $ (2,122,526)$ Special Revenue Funds
Housing
FTV Cable -
PEG Access
Fund SB2 / PLHA Measure M2
98 CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
-$ - $ - $ 181,903$ - 52,135 - 11,933,414 - 103,827 - 21,013,827 17,361 1,652 - 1,619,058 - - - 272,442 - - - 4,750 17,361 157,614 - 35,025,394 - 1,468 - 206,992 - - - 290,085 - - - 2,447,046 - - - 228,081 10 - - 11,689,540 - - - 15,548,256 - - - 327,619 10 1,468 - 30,737,619 17,351 156,146 - 4,287,775 - - - 614,398 - - - (10,908,698) - - - 1,576 - - - (10, 292,724) 17,351 156,146 - (6,004,949) 395,992 - 205,907 43,522,281 413,343$ 156,146 $ 205,907$ 37,517,332$ Debt Service
Fund Special Revenue Funds
West Coyote
Hills Endowment
Opioid Litigation
Settlement Fund
Debt Service
Reserve
99 CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual State Gas Tax
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 7,686,092$ 7,686,092 $ 7,608,836 $ (77,256)$ Charges for services 15,000 15,000 68,874 53,874 Investment income 142,836 142,836 344,058 201,222 Total revenues 7,843,928 7,843,928 8,021,768 177,840

EXPENDITURES
Current:

General government 62,639 62,639 838 61,801 Public works 3,720,500 3,720,500 3,423,722 296,778 Capital outlay 7,000 7,000 - 7,000 Total expenditures 3,790,139 3,790,139 3,424,560 365,579 Excess (deficiency) of revenues
over (under) expenditures 4,053,789 4,053,789 4,597,208 543,419

OTHER FINANCING SOURCES (USES)
Transfers out (3,820,000) (10,893,055) (2,685,098) 8,207,957 Total other financing sources (uses) (3,820,000) (10,893,055) (2,685,098) 8,207,957 Net change in fund balances 233,789$ (6,839,266)$ 1,912,110 8,751,376$ Fund balances (deficit)-beginning 6,942,828
Fund balances (deficit)-ending 8,854,938$
100

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Drainage Capital Outlay
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 800,000$ 800,000 $ 665,728 $ (134,272)$ Investment income 93,795 93,795 274,538 180,743 Total revenues 893,795 893,795 940,266 46,471

EXPENDITURES
Current:

Public works 276,657 276,657 220,189 56,468 Total expenditures 276,657 276,657 220,189 56,468 Excess (deficiency) of revenues
over (under) expenditures 617,138 617,138 720,077 102,939

OTHER FINANCING SOURCES (USES)
Transfers in - - 1,740 1,740 Transfers out (2,025,000) (6,362,402) (1,516,353) 4,846,049 Total other financing sources (uses) (2,025,000) (6,362,402) (1,514,613) 4,847,789 Net change in fund balances (1,407,862) $ (5,745,264) $ (794,536) 4,950,728 $ Fund balances (deficit)-beginning 6,199,096
Fund balances (deficit)-ending 5,404,560$
101

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Safety
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Fines and forfeitures 200,000$ 200,000 $ 272,442 $ 72,442$ Total revenues 200,000 200,000 272,442 72,442 Excess (deficiency) of revenues
over (under) expenditures 200,000 200,000 272,442 72,442

OTHER FINANCING SOURCES (USES)
Transfers out (200,000) (200,000) (311,334) (111,334) Total other financing sources (uses) (200,000) (200,000) (311,334) (111,334) Net change in fund balances -$ -$ (38,892) (38,892)$ Fund balances (deficit)-beginning 38,892
Fund balances (deficit)-ending -$
102

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Dwelling
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 3,161,260$ 3,161,260 $ 84,140 $ (3,077,120)$ Investment income 94,928 94,928 101,767 6,839 Total revenues 3,256,188 3,256,188 185,907 (3,070,281)

EXPENDITURES
Current:

General government - - 53 (53) Total expenditures - - 53 (53) Excess (deficiency) of revenues
over (under) expenditures 3,256,188 3,256,188 185,854 (3,070,334)

OTHER FINANCING SOURCES (USES)
Transfers out (835,000) (4,806,086) (1,536,282) 3,269,804 Total other financing sources (uses) (835,000) (4,806,086) (1,536,282) 3,269,804 Net change in fund balances 2,421,188 $ (1,549,898) $ (1,350,428) 199,470 $ Fund balances (deficit)-beginning 2,959,054
Fund balances (deficit)-ending 1,608,626$
103

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Seizure
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 365,000$ 365,000 $ 541,480 $ 176,480$ Investment earnings 10,679 10,679 67,080 56,401 Total revenues 375,679 375,679 608,560 232,881

EXPENDITURES
Current:

Public safety 158,254 158,254 242,349 (84,095) Capital outlay 380,000 380,000 327,619 52,381 Total expenditures 538,254 538,254 569,968 (31,714) Excess (deficiency) of revenues
over (under) expenditures (162,575) (162,575) 38,592 201,167 Net change in fund balances (162,575)$ (162,575)$ 38,592 201,167$ Fund balances (deficit)-beginning 595,165
Fund balances (deficit)-ending 633,757$
104

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Refuse Collection
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 145,426$ 145,426$ Charges for services 15,074,764 15,074,764 14,087,483 (987,281) Investment earnings 20,000 20,000 68,708 48,708 Total revenues 15,094,764 15,094,764 14,301,617 (793,147)

EXPENDITURES
Current:

Refuse collection 15,331,508 15,331,508 15,548,256 (216,748) Total expenditures 15,331,508 15,331,508 15,548,256 (216,748) Excess (deficiency) of revenues
over (under) expenditures (236,744) (236,744) (1,246,639) (1,009,895)

OTHER FINANCING SOURCES (USES)
Transfers out - (145,000) (145,000) - Total other financing sources (uses) - (145,000) (145,000) - Net change in fund balances (236,744)$ (381,744)$ (1,391,639) (1,009,895)$ Fund balances (deficit)-beginning 2,864,799
Fund balances (deficit)-ending 1,473,160$
105

CITY OF FULLERTON, 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 181,000$ 181,000 $ 240,444 $ 59,444$ Investment earnings 15,600 15,600 50,426 34,826 Total revenues 196,600 196,600 290,870 94,270

EXPENDITURES
Current:

Community development 23,050 23,050 5,505 17,545 Capital outlay 265,000 265,000 - 265,000 Total expenditures 288,050 288,050 5,505 282,545 Excess (deficiency) of revenues
over (under) expenditures (91,450) (91,450) 285,365 376,815

OTHER FINANCING SOURCES (USES)
Transfers out - (480,948) (232,287) 248,661 Total other financing sources (uses) - (480,948) (232,287) 248,661 Net change in fund balances (91,450)$ (572,398)$ 53,078 625,476$ Fund balances (deficit)-beginning 989,713
Fund balances (deficit)-ending 1,042,791$
106

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Sanitation
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 7,200,000$ 7,200,000 $ 6,003,775 $ (1,196,225)$ Investment earnings 51,636 51,636 14,184 (37,452) Total revenues 7,251,636 7,251,636 6,017,959 (1,233,677)

EXPENDITURES
Current:

General government 202,140 202,140 81,139 121,001 Public works 8,553,522 8,553,522 7,761,462 792,060 Total expenditures 8,755,662 8,755,662 7,842,601 913,061 Excess (deficiency) of revenues
over (under) expenditures (1,504,026) (1,504,026) (1,824,642) (320,616)

OTHER FINANCING SOURCES (USES)
Transfers out - (60,000) (60,000) - Total other financing sources (uses) - (60,000) (60,000) - Net change in fund balances (1,504,026) $ (1,564,026) $ (1,884,642) (320,616) $ Fund balances (deficit)-beginning 1,572,209
Fund balances (deficit)-ending (312,433)$
107

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M2
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 3,725,398$ 3,725,398 $ 3,345,093 $ (380,305)$ Investment earnings 72,925 72,925 329,620 256,695 Total revenues 3,798,323 3,798,323 3,674,713 (123,610)

EXPENDITURES
Current:

Human and leisure 370,406 370,406 228,081 142,325 Public works 304,000 304,000 284,157 19,843 Total expenditures 674,406 674,406 512,238 162,168 Excess (deficiency) of revenues
over (under) expenditures 3,123,917 3,123,917 3,162,475 38,558

OTHER FINANCING SOURCES (USES)
Transfers out (3,035,440) (7,800,625) (3,092,418) 4,708,207 Total other financing sources (uses) (3,035,440) (7,800,625) (3,092,418) 4,708,207 Net change in fund balances 88,477$ (4,676,708)$ 70,057 4,746,765$ Fund balances (deficit)-beginning 6,989,897
Fund balances (deficit)-ending 7,059,954$
108

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment earnings 275,350$ 275,350 $ 297,959 $ 22,609$ Miscellaneous - - 4,750 4,750 Total revenues 275,350 275,350 302,709 27,359

EXPENDITURES
Current:

Community development 1,006,144 1,006,144 319,001 687,143 Capital outlay - - - - Total expenditures 1,006,144 1,006,144 319,001 687,143 Excess (deficiency) of revenues
over (under) expenditures (730,794) (730,794) (16,292) 714,502

OTHER FINANCING SOURCES (USES)
Transfers out - - (612,658) (612,658) Total other financing sources (uses) - - (612,658) (612,658) Net change in fund balances (730,794)$ (730,794)$ (628,950) 101,844$ Fund balances (deficit)-beginning 13,174,743
Fund balances (deficit)-ending 12,545,793$
109

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual FTV Cable - PEG Access Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 200,000$ 200,000 $ 181,903 $ (18,097)$ Investment earnings 16,015 16,015 51,697 35,682 Total revenues 216,015 216,015 233,600 17,585

EXPENDITURES
Current:

General government 194,856 194,856 123,494 71,362 Public safety - - 47,736 (47,736) Capital outlay - - - - Total expenditures 194,856 194,856 171,230 23,626 Excess (deficiency) of revenues
over (under) expenditures 21,159 21,159 62,370 41,211

OTHER FINANCING SOURCES (USES)
Transfers out - (717,268) (717,268) - Subscriptions financing - - 1,576 1,576 Total other financing sources (uses) - (717,268) (715,692) 1,576 Net change in fund balances 21,159$ (696,109)$ (653,322) 42,787$ Fund balances (deficit)-beginning 1,206,638
Fund balances (deficit)-ending 553,316$
110

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB2 / PLHA
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,177,577$ 1,177,577 $ - $ (1,177,577)$ Investment earnings - - 8 8 Total revenues 1,177,577 1,177,577 8 (1,177,569)

EXPENDITURES
Current:

Community development 1,177,577 1,177,577 2,122,540 (944,963) Total expenditures 1,177,577 1,177,577 2,122,540 (944,963) Excess (deficiency) of revenues
over (under) expenditures - - (2,122,532) (2,122,532)

OTHER FINANCING SOURCES (USES)
Transfers in - - 612,658 612,658 Total other financing sources (uses) - - 612,658 612,658 Net change in fund balances -$ -$ (1,509,874) (1,509,874)$ Fund balances (deficit)-beginning (612,652)
Fund balances (deficit)-ending (2,122,526)$
111

CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Projects
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 471,610$ 22,458,145$ 2,834,203 $ (19,623,942)$ Charges for services 100,000 630,558 122,825 (507,733) Miscellaneous - 320,998 346,342 25,344 Total revenues 571,610 23,409,701 3,303,370 (20,106,331)

EXPENDITURES
Current:

Public works 229,582 229,582 1,897,916 (1,668,334) Capital outlay 21,412,468 76,148,788 20,436,514 55,712,274 Total expenditures 21,642,050 76,378,370 22,334,430 54,043,940 Excess (deficiency) of revenues
over (under) expenditures (21,070,440) (52,968,669) (19,031,060) 33,937,609

OTHER FINANCING SOURCES (USES)
Transfers in 21,070,440 52,117,657 16,441,012 (35,676,645) Transfers out - - (1,740) (1,740) Bond proceeds - 851,012 - (851,012) Total other financing sources (uses) 21,070,440 52,968,669 16,439,272 (36,529,397) Net change in fund balances -$ -$ (2,591,788) (2,591,788)$ Fund balances (deficit)-beginning (5,850,018)
Fund balances (deficit)-ending (8,441,806)$
112

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Other Enterprise Funds
June 30, 2024
Total Other
Enterprise
Funds
ASSETS
Current assets:

Cash and investments 2,702,363$ -$ -$ 2,702,363$ Receivables:

Accounts 47,380 - - 47,380 Accrued interest 12,399 - - 12,399 Leases 29,594 - - 29,594 Inventory 57,032 - - 57,032 Restricted: - - - Cash held with fiscal agent 279,525 - - 279,525 Total current assets 3,128,293 - - 3,128,293 Noncurrent:

Leases 829,859 - - 829,859 Capital assets - net of accumulated depreciation/amortization 2, 561,165 541,789 - 3,102,954 Total noncurrent assets 3,391,024 541,789 - 3,932,813 Total assets 6,519,317 541,789 - 7,061,106

DEFERRED OUTFLOWS OF RESOURCES
Pension deferrals 140,749 8,280 10,349 159,378 Other post-employment benefits deferrals 15,945 2,124 1,780 19,849 Total deferred outflows of resources 156,694 10,404 12,129 179,227

LIABILITIES
Current liabilities:

Accounts payable 2,726,993 543 467 2,728,003 Accrued liabilities 6,724 203 254 7,181 Accrued interest payable 15,100 1,424 395 16,919 Deposits payable 5,024 - - 5,024 Due to other funds - 370,341 102,854 473,195 Compensated absences - current 9,388 - - 9,388 Bonds, loans, leases, and subscriptions - current 150,000 - - 150,000 Total current liabilities 2,913,229 372,511 103,970 3,389,710 Noncurrent liabilities:

Compensated absences 8,345 1,212 1,662 11,219 Bonds, loans, leases, and subscriptions 1,028,860 - - 1,028,860 Net pension liability 576,798 33,929 42,412 653,139 Net other post-employment benefits liability 69,996 9,324 7,812 87,132 Total noncurrent liabilities 1,683,999 44,465 51,886 1,780,350 Total liabilities 4,597,228 416,976 155,856 5,170,060

DEFERRED INFLOWS OF RESOURCES
Leases 791,058 - - 791,058 Pension deferrals 2,687 158 198 3,043 Other post-employment benefits deferrals 32,345 4,309 3,610 40,264 Total deferred inflows of resources 826,090 4,467 3,808 834,365

NET POSITION
Net investment in capital assets 1,382,305 541,789 - 1,924,094 Restricted for debt service 279,525 - - 279,525 Unrestricted (409,137) ( 411,039) (147,535) (967,711) Total net position 1,252,693$ 130,750$ (147,535)$ 1,235,908$ Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
113

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Other Enterprise Funds
For the Year Ended June 30, 2024
Total Other
Enterprise
Funds

OPERATING REVENUES
Sales and service charges 4,183,613$ - $ - $ 4,183,613$ Miscellaneous 40,040 - - 40,040 Total operating revenues 4,223,653 - - 4,223,653

OPERATING EXPENSES
Maintenance, operations, and administration 4,218,555 13,346 64,102 4,296,003 Depreciation/amortization expense 84,337 - 1,309 85,646 Total operating expenses 4,302,892 13,346 65,411 4,381,649 Operating income (loss) (79,239) (13,346) (65,411) (157,996)

NONOPERATING REVENUES (EXPENSES)
Investment earnings 164,210 (13,855) (2, 340) 148,015 Interest expense (60,204) - - (60,204) Total nonoperating revenues (expenses) 104,006 (13,855) (2,340) 87,811 Change in net position 24,767 (27,201) (67,751) (70,185) Net position-beginning 1,227,926 157,951 (79, 784) 1,306,093 Net position-ending 1,252,693$ 130,750$ (147,535)$ 1,235,908$ Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
114

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Other Enterprise Funds
For the Year Ended June 30, 2024
Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,126,052$ - $ - $ 4,126,052$ Payments to suppliers and service providers (4,037,932) (12,803) (49,390) (4,100,125) Payments to employees for salaries and benefits (273,879) (52,770) (23,727) (350,376) Other receipts (payments) 40,040 - - 40,040 Net cash provided by (used for)
operating activities (145,719) (65,573) (73,117) (284,409)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Interest paid on on-capital debt (1,832) - - (1,832) Payments from other funds on interfund borrowings - 79,357 75,168 154,525 Net cash provided by (used for)
noncapital financing activities (1,832) 79,357 75,168 152,693

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (164,750) - - (164,750) Principal paid on capital debt (145,000) - (25,918) (170,918) Interest paid on capital debt (57,721) - - (57,721) Proceeds from sales of assets - - 26,323 26,323 Net cash provided by (used for)
capital and related financing activities (367,471) - 405 (367,066)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 169,396 (13,784) (2,456) 153,156 Net cash provided by (used for)
investing activities 169,396 (13,784) (2,456) 153,156 Net increase (decrease) in
cash and cash equivalents (345,626) - - (345,626) Cash and cash equivalents-beginning 3,327,514 - - 3,327,514 Cash and cash equivalents-ending 2,981,888$ -$ -$ 2,981,888$

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 2,702,363$ - $ - $ 2,702,363$ Restricted cash and investments 279,525 - - 279,525 Total cash and cash equivalents 2,981,888 $ - $ - $ 2,981,888$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (79,239)$ (13,346) $ (65,411) $ (157,996)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 84,337 - 1,309 85,646 (Increase) decrease in accounts receivable (40,094) - - (40,094) (Increase) decrease in leases receivable (21,501) - - (21,501) (Increase) decrease in inventory 28,042 - - 28,042 Increase (decrease) in accounts payable (141,886) 543 454 (140,889) Increase (decrease) in accrued liabilities 1,767 (69) 42 1,740 Increase (decrease) in deposits payable 4,034 - - 4,034 Increase (decrease) in compensated absences 2,411 (570) 162 2,003 Increase (decrease) in pension items 71,261 (27,233) 2,751 46,779 Increase (decrease) in other post-employment benefits items (54,851) (24,898) (12,424) (92,173) Total adjustments (66,480) (52,227) (7,706) (126,413) Net cash provided by (used for)
operating activities (145,719)$ (65,573) $ (73,117) $ (284,409) $

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments (11,516) $ 1,585 $ 441 $ (9,490)$ Amortization on bond discount (2,483) - - (2,483)
Business-Type Activities
Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
115

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
ASSETS
Current assets:

Cash and investments 28,244,596$ 7,581,224$ 32,877,969$ Receivables:

Accounts - - - Accrued interest 108,741 28,368 126,428 Prepaid costs - 364,438 - Inventory - - - Restricted:

Cash held with fiscal agent - - - Total current assets 28,353,337 7,974,030 33,004,397 Noncurrent:

Capital assets - net of accumulated depreciation/amortization 1, 144 12,062,955 9,851 Total noncurrent assets 1,144 12,062,955 9,851 Total assets 28,354,481 20,036,985 33,014,248

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 357,955 - - Pension deferrals 173,865 - 206,985 Other post-employment benefits deferrals 14,748 - 18,240 Total deferred outflows of resources 546,568 - 225,225

LIABILITIES
Current liabilities:

Accounts payable 5,176 762,854 2,759 Accrued liabilities 4,310 - 4,991 Accrued interest payable 22,676 2,083 - Unearned revenue - - - Due to other funds - - - Claims and judgments - current 3,685,000 - 2,410,000 Bonds, loans, leases, and subscriptions - current 450,000 90,003 - Total current liabilities 4,167,162 854,940 2,417,750 Noncurrent liabilities:

Claims and judgments - noncurrent 10,549,000 - 13,976,000 Bonds, loans, leases, and subscriptions 3,905,000 186,127 - Net pension liability 712,515 - 848,232 Net other post-employment benefits liability 64,738 - 80,067 Total noncurrent liabilities 15,231,253 186,127 14,904,299 Total liabilities 19,398,415 1,041,067 17,322,049

DEFERRED INFLOWS OF RESOURCES
Pension deferrals 3,319 - 3,951 Other post-employment benefits deferrals 29,916 - 36,999 Total deferred inflows of resources 33,235 - 40,950

NET POSITION
Net investment in capital assets 1,144 11,786,825 9,851 Unrestricted 9,468,255 7,209,093 15,866,623 Total net position 9,469,399$ 18,995,918$ 15,876,474$ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
116

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
ASSETS
Current assets:

Cash and investments
Receivables:

Accounts
Accrued interest
Prepaid costs
Inventory
Restricted:

Cash held with fiscal agent
Total current assets
Noncurrent:

Capital assets - net of accumulated depreciation/amortization Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding
Pension deferrals
Other post-employment benefits deferrals
Total deferred outflows of resources

LIABILITIES
Current liabilities:

Accounts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Due to other funds
Claims and judgments - current
Bonds, loans, leases, and subscriptions - current
Total current liabilities
Noncurrent liabilities:

Claims and judgments - noncurrent
Bonds, loans, leases, and subscriptions
Net pension liability
Net other post-employment benefits liability
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension deferrals
Other post-employment benefits deferrals
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Unrestricted
Total net position
(CONTINUED)
2,605,135$ 4,666,692$ -$
- 46,990 27,840
10,018 17,943 2,120
28,249 - 97,981
- 256,784 -
- - -
2,643,402 4,988,409 127,941
156,240 - 11,096,276
156,240 - 11,096,276
2,799,642 4,988,409 11,224,217
- - -
327,032 521,596 198,704
33,527 80,290 24,927
360,559 601,886 223,631
37,718 178,133 1,201,941
27,250 15,146 5,873
3,599 4 ,205 77,312
9,197 - -
- - 2,267,910 - - -
15,031 215,481 795,133
92,795 412,965 4,348,169
- - -
132,830 - 4,243,390
1,340,206 2,137,544 814,303
147,175 352,454 109,422
1,620,211 2,489,998 5,167,115
1,713,006 2,902,963 9,515,284
6,243 9 ,956 3,793
68,010 162,870 50,564
74,253 172,826 54,357
8,379 (215,481) 6,057,753
1,364,563 2,729,987 (4,179,546)
1,372,942$ 2,514,506 $ 1,878,207 $
Information
Technology
Group
Insurance
Equipment
Maintenance
117

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
ASSETS
Current assets:

Cash and investments
Receivables:

Accounts
Accrued interest
Prepaid costs
Inventory
Restricted:

Cash held with fiscal agent
Total current assets
Noncurrent:

Capital assets - net of accumulated depreciation/amortization Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding
Pension deferrals
Other post-employment benefits deferrals
Total deferred outflows of resources

LIABILITIES
Current liabilities:

Claims and judgments - noncurrent
Bonds, loans, leases, and subscriptions
Net pension liability
Net other post-employment benefits liability
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension deferrals
Other post-employment benefits deferrals
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Total Internal
Service
Funds
10,229,931$ 2,235,186$ 88,440,733$
- - 74,830 39,338 10,743 343,699
- - 490,668 - - 256,784 787,796 - 787,796
11,057,065 2,245,929 90,394,510
40,741 56,882 23,424,089
40,741 56,882 23,424,089
11,097,806 2,302,811 113,818,599
- - 357,955 577,480 - 2,005,662
110,341 - 282,073
687,821 - 2,645,690
119,272 - 2,307,853
14,040 - 71,610
24,247 - 134,122
- - 9,197
- - 2,267,910 - - 6,095,000 439,034 - 2,004,682
596,593 - 12,890,374
- - 24,525,000 7,643,351 - 16,110,698
2,366,567 - 8,219,367
484,369 - 1,238,225
10,494,287 - 50,093,290
11,090,880 - 62,983,664
11,023 - 38,285
223,829 - 572,188
234,852 - 610,473
40,741 56,882 17,746,094
419,154 2,245,929 35,124,058
459,895$ 2,302,811 $ 52,870,152 $
Building
Maintenance
Facility
Capital Repair
118

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119

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024

OPERATING REVENUES
Interfund service charges 11,353,111$ 2,963,067 $ 3,332,146$ Miscellaneous 400 252,955 159,280 Total operating revenues 11,353,511 3,216,022 3,491,426

OPERATING EXPENSES
Maintenance, operations, and administration 5,838,400 283,887 1,161,634 Claims expense 224,892 - 1,999,125 Depreciation/amortization expense 228 1,404,640 2,463 Total operating expenses 6,063,520 1,688,527 3,163,222 Operating income (loss) 5,289,991 1,527,495 328,204

NONOPERATING REVENUES (EXPENSES)
Investment earnings 1,058,889 285,424 1,356,316 Interest expense (134,431) (1,897) - Gain (loss) on disposal of capital assets - (109,030) - Total nonoperating revenues (expenses) 924,458 174,497 1,356,316 Income (loss) before capital contributions and transfers 6,214,449 1,701,992 1,684,520 Transfers in - 204,050 - Transfers out (33,780) - - Change in net position 6,180,669 1,906,042 1,684,520 Net position-beginning 3,288,730 17,089,876 14,191,954 Net position-ending 9,469,399$ 18,995,918$ 15,876,474$ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
120

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024

OPERATING REVENUES
Interfund service charges
Miscellaneous
Total operating revenues

OPERATING EXPENSES
Maintenance, operations, and administration
Claims expense
Depreciation/amortization expense
Total operating expenses
Operating income (loss)

NONOPERATING REVENUES (EXPENSES)
Investment earnings
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
(CONTINUED)
7,397,159$ 4,839,857$ 7,840,728$
48,911 13,320 16,102
7,446,070 4,853,177 7,856,830
7,680,363 3,880,045 7,634,845
- - -
35,557 3 ,429 944,966
7,715,920 3,883,474 8,579,811
(269,850) 969,703 (722,981)
113,012 1 80,075 (11,197)
(7,783) (6,640) (60,677)
- - 9,464
105,229 173,435 (62,410)
(164,621) 1,143,138 (785,391)
- - 1,233,635 - - -
(164,621) 1,143,138 448,244
1,537,563 1,371,368 1,429,963
1,372,942$ 2,514,506 $ 1,878,207 $
Information
Technology
Group
Insurance
Equipment
Maintenance
121

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024

OPERATING REVENUES
Interfund service charges
Miscellaneous
Total operating revenues

OPERATING EXPENSES
Maintenance, operations, and administration
Claims expense
Depreciation/amortization expense
Total operating expenses
Operating income (loss)

NONOPERATING REVENUES (EXPENSES)
Investment earnings
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
Total Internal
Service
Funds
3,572,559$ 5 69,543$ 41,868,170$
583,784 - 1,074,752
4,156,343 569,543 42,942,922
3,852,379 1 47 30,331,700
- - 2,224,017 4,919 11,748 2,407,950
3,857,298 11,895 34,963,667
299,045 557,648 7,979,255
309,212 1 20,123 3,411,854
- - (211,428) - - (99,566) 309,212 120,123 3,100,860
608,257 677,771 11,080,115
- - 1,437,685 - (916,926) (950,706)
608,257 (239,155) 11,567,094
(148,362) 2,541,966 41,303,058
459,895$ 2,302,811 $ 52,870,152 $
Building
Maintenance
Facility
Capital Repair
122

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123

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 11,353,111$ 2,963,067 $ 3,332,146$ Payments to suppliers and service providers (5,643,158) (648,325) (946,019) Payments to employees for salaries and benefits (120,541) - (93,884) Payments of insurance claims (1,631,892) - (1,515,125) Other receipts (payments) 400 1,007,001 159,280 Net cash provided by (used for)
operating activities 3,957,920 3,321,743 936,398

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - 204,050 - Transfers to other funds (33,780) - - Principal paid on noncapital debt (445,000) - - Interest paid on noncapital debt (95,456) - - Payments from other funds on interfund borrowings - - - Net cash provided by (used for)
noncapital financing activities (574,236) 204,050 -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets - (2,616,652) - Principal paid on capital debt - (80,269) - Interest paid on capital debt - - - Proceeds from sales of assets - - - Net cash provided by (used for)
capital and related financing activities - (2,696,921) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,060,814 283,498 1,372,031 Net cash provided by (used for)
investing activities 1,060,814 283,498 1,372,031 Net increase (decrease) in
cash and cash equivalents 4,444,498 1,112,370 2,308,429 Cash and cash equivalents-beginning 23,800,098 6,468,854 30,569,540 Cash and cash equivalents-ending 28,244,596 $ 7,581,224 $ 32,877,969 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 28,244,596$ 7,581,224 $ 32,877,969$ Cash held with fiscal agent - - - Total cash and cash equivalents 28,244,596$ 7,581,224$ 32,877,969$ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
124

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges
Payments to suppliers and service providers
Payments to employees for salaries and benefits
Payments of insurance claims
Other receipts (payments)
Net cash provided by (used for)
operating activities

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Principal paid on noncapital debt
Interest paid on noncapital debt
Payments from other funds on interfund borrowings
Net cash provided by (used for)
noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of assets
Net cash provided by (used for)
capital and related financing activities

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments
Cash held with fiscal agent
Total cash and cash equivalents
7,395,203$ 4,834,887 $ 7,812,888$
(5,829,501) (3,049,966) (7,058,890)
(1,500,367) (1,039,062) (510,777)
- - -
48,911 13,320 16,102
114,246 759,179 259,323
- - 1,233,635 - - -
- - -
- - -
- - 2,267,910 - - 3,501,545 - - (3,002,398) (14,087) (217,067) (1,147,514)
(4,184) (6,640) (60,677)
(17,431) - (345,042)
(35,702) (223,707) (4,555,631)
114,211 183,300 (13,585)
114,211 183,300 (13,585)
192,755 718,772 (808,348)
2,412,380 3,947,920 808,348
2,605,135$ 4,666,692 $ - $
2,605,135$ 4,666,692 $ -$
- - -
2,605,135$ 4,666,692 $ - $
Equipment
Maintenance
Information
Technology
Group
Insurance
125

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

CASH FLOWS FROM NONCAPITAL

CASH FLOWS FROM CAPITAL AND RELATED

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments
Cash held with fiscal agent
Total cash and cash equivalents
Totals
3,572,559$ 569,543 $ 41,833,404$
(3,077,021) (147) (26,253,027)
(249,615) - (3,514,246) - - (3,147,017) 583,784 - 1,828,798
829,707 569,396 10,747,912
- - 1,437,685 - (916,926) (950,706)
(431,102) - (876,102)
(1,293) - (96,749)
- - 2,267,910 (432,395) (916,926) 1,782,038
- - (5,619,050) - - (1,458,937) - - (71,501) - - (362,473) - - (7,511,961) 295,767 123,300 3,419,336
295,767 123,300 3,419,336
693,079 (224,230) 8,437,325
10,324,648 2,459,416 80,791,204
11,017,727$ 2,235,186 $ 89,228,529 $
10,229,931$ 2,235,186 $ 88,440,733$
787,796 - 787,796
11,017,727$ 2,235,186 $ 89,228,529 $
Building
Maintenance
Facility
Capital Repair
126

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Liability
Insurance
Vehicle
Replacement
Workers'
Comp

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) 5,289,991$ 1,527,495 $ 328,204$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 228 1,404,640 2,463 (Increase) decrease in accounts receivable - - - (Increase) decrease in inventories - - - (Increase) decrease in prepaid costs - (364,438) - Increase (decrease) in accounts payable 5,049 754,046 (7,604) Increase (decrease) in accrued liabilities 1,088 - 1,206 Increase (decrease) in unearned revenue - - - Increase (decrease) in claims and judgments (1,407,000) - 484,000 Increase (decrease) in pension and related items 92,331 - 146,556 Increase (decrease) in OPEB and related items (23,767) - (18,427) Total adjustments (1,332,071) 1,794,248 608,194 Net cash provided by (used for)
operating activities 3,957,920$ 3,321,743 $ 936,398 $

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments (120,984)$ (31,562)$ (140,665)$ Amortization on bond discount/(premium) 39,772 - - 127

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid costs
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in unearned revenue
Increase (decrease) in claims and judgments
Increase (decrease) in pension and related items
Increase (decrease) in OPEB and related items
Total adjustments
Net cash provided by (used for)
operating activities

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments
Amortization on bond discount/(premium)
Equipment
Maintenance
Information
Technology
Group
Insurance
(269,850)$ 969,703 $ (722,981)$
35,557 3,429 944,966
- (4,970) (27,840)
- (19,493) -
(28,249) - (97,981)
13,445 69,771 382,796
1,931 3,190 (3,200)
(1,956) - -
- - -
373,555 (145,994) (150,636)
(10,187) (116,457) (65,801)
384,096 (210,524) 982,304
114,246$ 759,179 $ 259,323 $
(11,146)$ (19,964) $ - $
- - -
128

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments
Amortization on bond discount/(premium)
Totals
Building
Maintenance
Facility
Capital Repair
299,045$ 557,648 $ 7,979,255$
4,919 11,748 2,407,950
- - (32,810) - - (19,493) - - (490,668) 35,593 - 1,253,096
2,871 - 7,086
- - (1,956) - - (923,000) 382,966 - 698,778
104,313 - (130,326)
530,662 11,748 2,768,657$
829,707$ 569,396 $ 10,747,912$
(43,767)$ (11,952) $ (380,040) $
- - 39,772 129
Total Private
Purpose
Trust
Funds
ASSETS
Cash and cash equivalents 9,168,898$ -$ 9,168,898$ Restricted assets - cash and cash equivalents - 5,848,806 5,848,806 Investments:

Mutual funds 3 - 3 Receivables:

Interest 54,182 - 54,182 Leases 32,683 - 32,683 Notes and loans 49,176,003 - 49,176,003 Prepaid costs 54,549 - 54,549 Land held for resale 2,900,768 - 2,900,768 Total assets 61,387,086 5,848,806 67,235,892

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 31,015 - 31,015 Total deferred outflows of resources 31,015 - 31,015

LIABILITIES
Accounts payable 9,265 82,680 91,945 Accrued liabilities 1,427 - 1,427 Accrued interest 326,305 - 326,305 Noncurrent:

Bonds payable - due within one year 8,940,000 - 8,940,000 Bonds payable - due in more than one year 20,808,359 - 20,808,359 Total liabilities 30,085,356 82,680 30,168,036

DEFERRED INFLOWS OF RESOURCES
Leases 30,645 - 30,645 Total deferred inflows of resources 30,645 - 30,645

NET POSITION
Restricted for:

Restricted for individuals, organizations, and other governments 31,302,100 5,766,126 37,068,226 Total net position 31,302,100$ 5,766,126$ 37,068,226$

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Private Purpose Trust Funds
June 30, 2024
Successor
Agency of the
Former RDA Other
130
Total Private
Purpose
Trust
Funds

ADDITIONS
Contributions:

Contributions from other funds -$ 6,228,325$ 6,228,325$ Total contributions - 6,228,325 6,228,325 Investment earnings:

Investment earnings 1,077,403 - 1,077,403 Total investment earnings 1,077,403 - 1,077,403 Taxes 11,403,609 - 11,403,609 Sale of property 10,700,000 - 10,700,000 Total additions 23,181,012 6,228,325 29,409,337

DEDUCTIONS
Administrative expenses 141,435 - 141,435 Contractual services 184,896 462,199 647,095 Contributions to other funds 6,228,325 - 6,228,325 Interest expense 123,428 - 123,428 Total deductions 6,678,084 462,199 7,140,283 Net increase (decrease) in fiduciary net position 16,502,928 5,766,126 22,269,054 Net position-beginning 14,799,172 - 14,799,172 Net position-ending 31,302,100$ 5,766,126 $ 37,068,226 $

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Private Purpose Trust Funds
For the Year Ended June 30, 2024
Other
Successor
Agency of the
Former RDA
131
Total
Custodial
Funds
ASSETS
Cash and cash equivalents 125,296$ 56,819$ 415,278$ 597,393$ Receivables:

Taxes - 24,078 - 24,078 Total assets 125,296 80,897 415,278 621,471

LIABILITIES
Accounts payable 22,200 - - 22,200 Due to bondholders - 80,897 415,278 496,175 Total liabilities 22,200 80,897 415,278 518,375

NET POSITION
Restricted for:

Restricted for individuals, organizations, and other governments 103,096 - - 103,096 Total net position 103,096$ -$ -$ 103,096$ Community
Facilities
Districts
Assessment
Districts

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Collections
for Other
Governments
132
Total
Custodial
Funds

ADDITIONS
Investment earnings:

Investment earnings 18,174$ -$ -$ 18,174$ Total investment earnings 18,174 - - 18,174 Miscellaneous - 25,796 - 25,796 Total additions 18,174 25,796 - 43,970

DEDUCTIONS
Miscellaneous - 25,796 - 25,796 Total deductions - 25,796 - 25,796 Net increase (decrease) in fiduciary net position 18,174 - - 18,174 Net position-beginning 84,922 - - 84,922 Net position-ending 103,096 $ - $ - $ 103,096$

CITY OF FULLERTON, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
Collections
for Other
Governments
Community
Facilities
Districts
Assessment
Districts
133

THIS PAGE INTENTIONALLY LEFT BLANK
134
Statistical
Section

This part of the City of Fullerton’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information says about the government’s overall financial health.

Contents Page
Financial Trends .............................................................................................................................................136 These schedules contain trend information to help the reader un derstand how the City’s financial performance and well-being have changed over time.

Revenue Capacity ..........................................................................................................................................146 These schedules contain information to help the reader assess t he City’s most significant local revenue source, the property tax.

Debt Capacity .................................................................................................................................................149 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information ......................................................................................................157 These schedules offer demographic and economic indicators to he lp the reader understand the environment within which the government’s financial activities take place.

Operating Information ....................................................................................................................................160

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the City’s Annual Comprehensive Financial Report for the relevant year.

135
City of Fullerton
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2014-15 2015-16 2016-17 2017-18 2018-19
Governmental activities
Net investment in capital assets 343,504$ 384,032 $ 406,560 $ 428,099 $ 450,340$ Restricted 28,620 26,427 27,704 39,316 42,006 Unrestricted (128,432) (122,478) (123,501) (169,976) (170,220) Total governmental activities net position 243,692$ 287,981$ 310,763$ 297,439$ 322,126$ Business-type activities
Net investment in capital assets 87,838$ 93,508 $ 97,142 $ 102,771 $ 108,226$ Restricted 308 279 276 298 300 Unrestricted 10,579 11,119 14,490 14,223 16,408 Total business-type activities net position 98,725$ 104,906$ 111,908$ 117,292$ 124,934$ Primary government
Net investment in capital assets 431,342$ 477,540 $ 503,701 $ 530,870 $ 558,566$ Restricted 28,928 26,706 27,980 39,614 42,306 Unrestricted (117,853) (111, 358) (109, 010) (155, 753) (153,812) Total primary government net position 342,417$ 392,887$ 422,671$ 414,731$ 447,060$ Fiscal Year
136
City of Fullerton
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities
Net investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
2019-20 2020-21 2021-22 2022-23 2023-24
469,893$ 473,537 $ 486,642 $ 499,394 $ 519,129$ 41,568 41,442 42,423 45,654 43,545 (181,629) ( 190,128) ( 156,105) ( 149,971) (153,556) 329,832$ 324,851 $ 372,960 $ 395,077 $ 409,118 $ 114,443$ 122,811 $ 134,468 $ 143,202 $ 163,657$ 300 289 260 286 279 18,156 27,727 41,377 52,900 52,993 132,899$ 150,827 $ 176,105 $ 196,388 $ 216,929 $ 584,336$ 596,348 $ 621,110 $ 642,596 $ 682,786$ 41,868 41,731 42,683 45,940 43,824 (163,473) (162,401) (114,728) (97,071) (100,563) 462,731$ 475,678 $ 549,065 $ 591,465 $ 626,047 $ Fiscal Year
137
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2014-15 2015-16 2016-17 2017-18 2018-19
Expenses
Governmental activities:

General government 4,983 $ 1,799$ 1,594 $ 6,862 $ 5,675$ Public safety 55,089 57,569 65,249 75,773 76,743 Community development 8,583 5,539 6,687 8,761 10,645 Human and leisure 11,110 11,741 11,670 12,670 13,065 Public works 18,598 23,129 26,944 28,183 24,726 Refuse collection 10,077 10,181 10,384 10,394 10,878 Interest on long-term debt 554 431 378 358 391 Total governmental activities net expenses 108,994 110,389 122,906 143,001 142,123 Business-type activities:

Airport 1,445 1,492 1,526 1,667 1,831 Brea Dam recreational facilities 2,745 2,764 2,857 2,770 2,945 Water utility 26,929 24,991 27,268 30,290 27,806 Parking facilities 29 28 28 45 23 Sewer enterprise 3,375 3,076 3,495 3,735 3,384 Compressed Natural Gas facility 522 458 396 274 140 Total business-type activities net expenses 35,045 32,809 35,570 38,781 36,129 Total primary government expenses 144,039$ 143,198$ 158,476$ 181,782$ 178,252$ Program Revenues
Governmental activities:

Charges for services:

General government 1,553 $ 820 $ 778 $ 1,305 $ 1,222 $ Public safety 5,066 5,035 5,071 5,179 7,209 Community development 4,085 3,810 4,548 4,515 4,850 Human and leisure 8,400 1,547 4,399 1,809 5,387 Public works 7,691 7,300 8,195 9,717 11,587 Refuse collection 10,449 10,569 10,788 10,894 11,661 Operating grants and contributions 8,820 8,473 13,748 8,897 9,035 Capital grants and contributions 39,543 29,053 22,761 23,180 27,752 Total governmental activities program revenues 85,607 66,607 70,288 65,496 78,703 Fiscal Year
138
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
Expenses
Governmental activities:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Interest on long-term debt
Total governmental activities net expenses
Business-type activities:

Airport
Brea Dam recreational facilities
Water utility
Parking facilities
Sewer enterprise
Compressed Natural Gas facility
Total business-type activities net expenses
Total primary government expenses
Program Revenues
Governmental activities:

Charges for services:

General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
2019-20 2020-21 2021-22 2022-23 2023-24
6,368 $ 7,814$ 7,941$ 15,532$ 15,603$ 83,043 83,200 74,950 82,072 100,595 8,524 10,123 7,194 7,413 10,688 13,574 11,058 11,134 11,447 13,399 26,077 24,617 24,819 27,870 30,258 11,716 12,862 12,766 13,504 15,649 410 336 241 246 244 149,712 150,010 139,044 158,085 186,436 2,493 1,953 2,227 2,125 4,198 2,679 2,729 3,978 3,730 4,163 32,315 32,167 31,070 29,345 32,755 104 97 73 76 13 4,831 3,412 3,579 5,559 4,719 196 170 285 106 62 42,618 40,528 41,212 40,941 45,910 192,330$ 190,538 $ 180,256$ 199,026$ 232,346$
962$ 1,857 $ 1,593 $ 769 $ 522 $ 7,945 7,095 8,284 10,173 11,111 3,936 4,359 5,977 6,525 4,613 1,356 1,552 1,000 1,190 874 11,449 11,618 11,686 12,023 13,754 12,059 13,107 13,728 14,332 14,087 10,538 13,978 12,589 23,760 36,640 4,796 3,725 20,434 6,924 4,348 53,041 57,291 75,291 75,696 85,949 Fiscal Year
139
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2014-15 2015-16 2016-17 2017-18 2018-19
Business-type activities:

Charges for services:

Airport 1,650 1,885 1,823 1,775 1,884 Brea Dam recreational facilities 3,083 2,918 2,725 2,863 2,510 Water utility 28,715 27,041 30,021 33,095 32,715 Parking facilities - 17 24 16 12 Sewer enterprise 6,418 5,844 5,948 6,390 6,044 Compressed Natural Gas facility 385 552 313 421 222 Operating grants and contributions - - - - - Capital grants and contributions 457 420 1,417 189 185 Total business-type activities program revenues 40,708 38,677 42,271 44,749 43,572 Primary government program revenues 126,315$ 108,965$ 107,767$ 123,452$ 122,275$ Net (Expense)/Revenue
Governmental activities (23,387)$ (43,783)$ (52,618)$ (77,505)$ (63,420)$ Business-type activities 5,663 5,869 6,701 5,968 7,443 Total primary government net expense (17,724)$ (37,914)$ (45,917)$ (71,537)$ (55,977)$ General Revenues and
Other Changes in Net Position
Governmental activities:

Property taxes 35,723 $ 37,840$ 39,738$ 42,146$ 44,204$ Sales taxes 20,643 23,000 21,456 21,834 24,438 Franchise taxes 4,392 4,383 4,181 4,336 4,493 Other Taxes - - - - - Unrestricted motor vehicle in-lieu taxes 57 57 64 75 69 Use of money and property 3,858 4,615 3,976 4,594 8,444 Miscellaneous 4,699 4,823 6,024 5,558 6,459 Extraordinary item - 13,667 - - - Gain on sale of capital asset - - - 3,150 - Transfers (36) (36) (36) (290) - Total governmental activities 69,336 88,349 75,403 81,403 88,107 Business-type activities:

Property taxes 105 104 110 98 87 Use of money and property 39 41 38 40 45 Miscellaneous 366 132 117 166 67 Gain on sale of capital asset - - - - - Transfers 36 36 36 290 Total business-type activities 546 313 301 594 199 Total primary government 69,882$ 88,662$ 75,704$ 81,997$ 88,306 $ Change in Net Position
Governmental activities 45,948 $ 44,566$ 22,782$ 3,898$ 24,687$ Business-type activities 6,210 6,182 7,002 6,562 7,642 Total primary government 52,158$ 50,748$ 29,784$ 10,460$ 32,329 $ Fiscal Year
140
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
Business-type activities:

Charges for services:

Airport
Brea Dam recreational facilities
Water utility
Parking facilities
Sewer enterprise
Compressed Natural Gas facility
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Primary government program revenues
Net (Expense)/Revenue
Governmental activities
Business-type activities
Total primary government net expense
General Revenues and
Other Changes in Net Position
Governmental activities:

Property taxes
Sales taxes
Franchise taxes
Other Taxes
Unrestricted motor vehicle in-lieu taxes
Use of money and property
Miscellaneous
Extraordinary item
Gain on sale of capital asset
Transfers
Total governmental activities
Business-type activities:

Property taxes
Use of money and property
Miscellaneous
Gain on sale of capital asset
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
2019-20 2020-21 2021-22 2022-23 2023-24
1,849 1,822 1,885 1,922 2,123 2,448 3,958 4,256 4,223 4,184 37,786 44,691 49,901 48,228 50,035 8 - - - - 5,944 6,212 6,061 5,372 5,932 190 170 150 - - - - 108 - - 567 1,302 4,930 339 667 48,792 58,156 67,292 60,084 62,941 106,083$ 133,447 $ 142,988$ 135,780$ 148,890$
(96,671)$ (92,719) $ (82,389)$ (82,389)$ (100,487)$ 6,174 17,628 26,351 19,143 17,031 (90,497)$ (75,091) $ (56,038)$ (63,246)$ (83,456)$ 46,258 $ 50,150$ 50,894$ 53,871$ 57,095$ 23,095 25,571 30,494 31,876 30,508 4,358 4,382 4,468 4,996 5,716 - - 5,552 5,217 5,258 113 104 161 148 178 7,453 3,271 372 6,414 12,118 5,249 3,898 1,147 1,797 4,106 17,850 - 18,378 - - - - - - - - 186 396 187 (450) 104,376 87,562 111,862 104,506 114,529 107 88 113 227 124 1,612 227 (861) 991 3,295 71 172 798 101 (359) - - - 8 - - (186) (396) (187) 450 1,790 301 (346) 1,140 3,510 106,166$ 87,863 $ 111,516$ 105,646$ 118,039$ 7,705$ (5,157) $ 29,473$ 22,117$ 14,042$ 7,964 17,929 26,005 20,283 20,541 15,669 $ 12,772$ 55,478$ 42,400$ 34,583$ Fiscal Year
141
City of Fullerton
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
2014-15 2015-16 2016-17 2017-18 2018-19
General Fund
Nonspendable 13$ 11 $ 68$ 290$ 7$ Restricted - - - - 1,386 Committed 7,967 8,743 9,139 - - Assigned - - - 8,992 15,656 Unassigned 9,231 6,139 1,522 4,999 5,432 Total general fund 17,211$ 14,893 $ 10,729 $ 14,281 $ 22,481$ All Other Governmental Funds
Nonspendable
Capital projects funds -$ - $ - $ - $ -$ Other governmental funds - - - - - Restricted
Special revenue funds 17,943 17,769 17,921 21,355 - Other governmental funds 10,677 8,658 9,783 17,962 40,620 Committed
Special revenue funds 12,209 10,681 10,473 - - Other governmental funds 9,520 10,227 9,445 - - Assigned
Capital projects funds - - - - - Unassigned
Special revenue funds (97) (39) (77) (172) (189) Capital projects funds (1,528) (4,187) (10,441) (3,233) (20,501) Other governmental funds
Total all other governmental funds 48,724 $ 43,109 $ 37,104 $ 35,912 $ 19,930$ Fiscal Year
Beginning in 2011, the City started reporting fund balance in conformity with GASB Statement 54, which changed how fund balance is classified.
142
City of Fullerton
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
2019-20 2020-21 2021-22 2022-23 2023-24
3,214$ 2,908$ 713$ 313$ 403$ 672 1,514 1,519 1,519 1,892 - - 439 1,536 3,278 13,958 16,140 18,570 19,809 22,963 217 - 4,034 10,311 10,121 18,061$ 20,562 $ 25,275 $ 33,488 $ 38,657 $ -$ 170$ 52 $ - $ -$ - 1 - - - - 5 5 - - 1,426 40,897 39,873 40,903 44,135 39,953 - - - - - - - - - - - 1,429 - - - (327) (1,015) (2,036) (1,234) (1,861) (1,391) - (446) (5,850) (8,442) (847) (1,473) (613) (2,435) 39,179$ 39,666 $ 37,000 $ 36,438 $ 28,641 $ Fiscal Year
143
City of Fullerton
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
2014-15 2015-16 2016-17 2017-18 2018-19
Revenues
Taxes 60,558$ 65,275 $ 66,134 $ 68,810$ 73,901$ Franchise fees 4,392 4,383 4,181 4,335 4,493 Licenses and permits 2,283 1,877 2,037 2,284 2,784 Intergovernmental 68,498 34,616 31,140 42,575 20,611 Charges for services 31,870 24,449 28,913 26,383 33,008 Investment income 3,595 4,156 3,897 4,399 6,895 Fines and forfeitures 1,751 1,628 1,513 1,674 1,658 Other 1,284 948 1,820 1,624 1,958 Total revenues 174,231 137,332 139,635 152,084 145,308 Expenditures
Current
General government 5,396 5,197 5,230 4,466 4,922 Public safety 55,877 61,631 64,986 65,519 68,958 Community development 4,982 5,746 6,717 6,763 6,601 Human and leisure 9,400 10,047 9,876 9,980 10,480 Public works 13,209 14,337 17,927 15,428 16,590 Refuse collection 10,078 10,183 10,385 10,737 11,166 Capital outlay 47,912 37,338 37,012 38,426 33,636 Debt service
Principal retirement 764 712 722 519 806 Interest and fiscal charges 180 103 29 18 13 Total expenditures 147,798 145,294 152,884 151,856 153,172 Excess (deficiency) of revenues
over (under) expenditures 26,433 (7,962) (13,249) 228 (7,864) Other Financing Sources (Uses)
Loss on disposition of assets (1,395) (3,406)
Proceeds from sale of capital asset 12 53 3,150 2,411 Transfers in 6,292 8,992 9,460 15,170 10,637 Transfers out (6,040) (8,739) (8,853) (14,793) (9,560) Lease Financing - - 2,473 - - Subscription Financing - - - - - Total other financing sources (uses) 264 306 3,080 2,132 82 Extraordinary item -
Net change in fund balances 26,697 (7,656) (10,169) 2,361 (7,782) Fund balances - July 1 39,238 65,935 58,002 47,832 50,193 Restatements - (277) - - - Fund balances - June 30 65,935$ 58,002 $ 47,833 $ 50,193 $ 42,411$ Debt service as a percentage of
noncapital expenditures 0.92% 0.75% 0.64% 0.47% 0.69%
Fiscal Years
144
City of Fullerton
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
Revenues
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Other
Total revenues
Expenditures
Current
General government
Public safety
Community development
Human and leisure
Public works
Refuse collection
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Loss on disposition of assets
Proceeds from sale of capital asset
Transfers in
Transfers out
Lease Financing
Subscription Financing
Total other financing sources (uses)
Extraordinary item -
Net change in fund balances
Fund balances - July 1
Restatements
Fund balances - June 30
Debt service as a percentage of
noncapital expenditures
2019-20 2020-21 2021-22 2022-23 2023-24
73,850$ 79,279 $ 87,136$ 91,173$ 93,042$ 4,145 4,182 4,270 4,787 5,534 2,146 2,406 2,737 3,208 2,293 37,715 23,343 35,760 34,524 42,298 30,505 31,430 32,997 35,088 34,318 5,185 3,013 1,868 5,566 8,747 1,239 1,014 1,692 2,074 2,337 1,464 1,160 1,302 1,530 1,868 156,249 145,827 167,762 177,950 190,437 5,870 7,506 7,462 9,804 7,254 72,921 72,970 76,740 84,500 93,147 7,940 9,780 7,219 7,565 10,219 10,668 8,704 9,307 9,363 10,556 16,926 16,244 17,265 22,470 24,182 11,899 12,714 13,208 13,966 15,548 15,483 14,947 33,289 22,036 30,983 745 252 259 295 358 66 54 47 42 33 142,518 143,171 164,796 170,041 192,280 13,731 2,656 2,966 7,909 (1,843) 13,711 15,573 12,438 14,365 24,317 (15,513) (15,418) (13,357) (15,192) (25,253) - - - 389 - - - - 179 152 (1,802) 155 (919) (259) (784) 2,900
14,829 2,811 2,047 7,650 (2,627) 42,411 57,240 60,228 62,275 69,925 - 177 - - - 57,240$ 60,228 $ 62,275$ 69,925$ 67,298$

0.64% 0.24% 0.23% 0.23% 0.24%
Fiscal Years
145
City of Fullerton
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(in Thousands)
Total Taxable
Fiscal Residential Commercial Industrial Agricultural² Other¹ Tax-Exe mpt Assessed Total Direct Year Property Property Property Property Property Property Value Tax Rate 2014-15 12,261,966 1, 744,831 1,395,924 - 6,320 - 15,409,041 1.0543 2015-16 13,055,598 1, 778,875 1,474,548 - 6,443 - 16,315,464 1.0649 2016-17 13,709,472 1, 841,370 1,453,964 - 6,539 - 17,011,345 1.0798 2017-18 14,398,621 1, 927,864 1,603,068 - 6,666 - 17,936,219 1.0816 2018-19 15,200,869 2, 089,736 1,697,146 - 516 - 18,988,267 1.0785 2019-20 15,955,232 2, 253,396 1,792,068 - 1,518 - 20,002,214 1.0737 2020-21 16,628,149 2, 844,107 1,990,344 - 1,520 - 21,464,120 1.0825 2021-22 17,250,541 2, 538,472 2,033,533 6,975 1,422 - 21,830,943 1.0769 2022-23 18,366,489 2, 593,936 2,022,255 6,711 1,300 - 22,990,691 1.0747 2023-24 19,441,720 2, 809,192 2,479,838 - 3,907 - 24,734,657 1.0589 ¹Other property includes water, mineral rights, rural, extensions, and unique miscellaneous. Values have changed due to reclassification. ²FY 21/22 Agricultural classification is added
Source: Orange County Assessor
146
City of Fullerton
Principal Property Tax Payers
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
GLC Fullerton LLC 235,723,067$ 1 0.91
Rexford Industrial Walnut LLP 182,677,879 2 0.71 Trea Amplifi Apartments LLC 172,449,022 3 0.67
Wilshire Lambert Road Owner LLC 156,000,000 4 0.61 Aspect Acquisition LLC 144,206,914 5 0.56
Prologis USLV Subreit 3 LLC 133,592,174 6 0.52
FHF I Amerige Pointe LLC 129,275,561 7 0.50
3503 RP Fullerton Metrocenter Land LLC 123,760,164 8 0.48 Uptown Fullerton LLC 110,436,388 9 0.43
WPI Nordahl LLC Pk | Fullerton Town 104,549,995 10 0.41 Corecare III
Rreef America Reit II Corporation
University House Fullerton LLC
Realty Income Propertis 14 LLC
Kimberly-Clark Worldwide Inc 186,283,698$ 1 1.13
Sommerville-Conzelman Company 106,257,202 2 0.64 Hughes Drive Acquisitions Partners LLC 99,482,338 3 0.60 University House Fullerton LLC 84,180,096 4 0.51 Corecare III 82,179,292 5 0.50
Rreef America Reit II Corporation 80,874,647 6 0.49 La Villita-La Costa Apartments LP 72,150,138 7 0.44 Fullerton LLC 61,569,080 8 0.37
Breitburn Energy Partners 60,550,324 9 0.37
Amerige Heights Apartments LLC 59,177,166 10 0.36 1,492,671,164$ 5.79% 892,703,981 $ 5.41%
Source: Orange County Assessor 2023/24 Combined Tax Rolls and the SBE Non Unitary Tax Roll Excludes government and tax-exempt property owners
2023-24 2014-15
%
%
147
City of Fullerton
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
Collections in
Subsequent
Years
Fiscal Year
ended June 30 Total Tax Levy Amount % of Levy Amount % of Levy 2015 21,759,590$ 21,412,516 $ 98.40 162,109 $ 21,574,625 $ 99.15 2016 22,974,457 22,718,019 98.88 159,395 22,877,414 99.58 2017 23,839,526 23,583,249 98.92 141,968 23,725,217 99.52 2018 24,908,566 24,706,931 99.19 142,799 24,849,730 99.76 2019 26,273,796 25,981,413 98.89 157,559 26,138,972 99.49 2020 27,520,292 27,217,700 98.90 214,101 27,431,801 99.68 2021 29,380,451 29,133,624 99.16 207,733 29,341,357 99.87 2022 29,446,168 29,147,874 98.99 183,935 29,147,874 98.99 2023 31,163,950 30,846,432 98.98 216,723 30,846,432 98.98 2024 32,991,432 32,627,731 98.90 N/A 32,627,731 98.90
Property tax totals are net of 1915 act bond assessment district levies.

Collected within the Fiscal Year of the Levy Total Collections to Date Source: Orange County Auditor/Controller
148
City of Fullerton
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amounts) Total % of
Fiscal Loan Subscription Lease Section 108 Loan Subscription Construction Primary Personal Per Year Payable Liability ³ Liability ² Loans Payable Liab ility ³ Loan Government Income ¹ Capita ¹ 2014-15 6,725$ 453 $ - $ - $ 2,500 $ 8,940 $ - $ - $ 2,523$ 21,141 $ 0.49% 150 2015-16 6,455 2,733 - - 2,000 8,485 - - 2,059 21,732 0.51% 154 2016-17 6,135 4,208 - - 1,500 8,766 - - 1,575 22,184 0.51% 157 2017-18 5,858 4,799 - - 1,000 8,236 - - 1,071 20,964 0.46% 145 2018-19 5,575 3,832 - - 500 7,691 - - 546 18,144 0.38% 126 2019-20 5,283 2,942 - - - 7,017 - - - 15,242 0.30% 107 2020-21 5,649 2,531 - - - 6,606 - - - 14,786 0.28% 106 2021-22 5,232 11,052 - - - 6,169 - - - 22,453 0.37% 157 2022-23 4,800 10,082 2,825 422 - 5,723 244 26 - 24,122 0.37% 169 2023-24 4,355 9,167 5,007 561 - 5,257 1,463 11 - 25,821 NYA 184 Note: Details regarding the outstanding debt can be found in the notes to the financial statements. ¹ See the Schedule of Demographic and Economic Statistics for personal income and population data. ² In the fiscal year ended June 30, 2022, the City implemented GASB 87. ³ In the fiscal year ended June 30, 2023, the City implemented GASB 96.

NYA = Not Yet Available
Governmental Activities Business-Type Activities
Bonds Bonds
149
City of Fullerton
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
N. OC Placentia Metro
Fiscal City Fullerton Anaheim Brea OlindaBuena Park La Habra Community Yorba Linda Water Year Direct Rate Schools Schools Schools Schools Schools College School s District 2014-15 1.0000 0.03721 0.05279 0.02528 0.04793 0.02612 0.01704 0.05822 0 .00350 2015-16 1.0000 0.03447 0.09175 0.02292 0.01628 0.02546 0.03043 0.05665 0 .00350 2016-17 1.0000 0.05091 0.08720 0.02298 0.03570 0.02719 0.02885 0.05475 0 .00350 2017-18 1.0000 0.05237 0.06713 0.02325 0.03455 0.03058 0.02927 0.05529 0 .00350 2018-19 1.0000 0.05025 0.09303 0.02370 0.03034 0.03084 0.02829 0.05261 0 .00350 2019-20 1.0000 0.04960 0.09911 0.02291 0.03593 0.03353 0.02409 0.04848 0 .00350 2020-21 1.0000 0.05055 0.10566 0.02489 0.03396 0.03617 0.03198 0.06032 0 .00350 2021-22 1.0000 0.04812 0.10125 0.02376 0.04206 0.04090 0.02877 0.04849 0 .00350 2022-23 1.0000 0.04687 0.07683 0.02412 0.02907 0.03848 0.02778 0.04641 0 .00350 2023-24 1.0000 0.04177 0.07808 0.02198 0.03605 0.03862 0.01715 0.04236 0 .00350 N. OC Total
Fiscal City Fullerton Community Direct
Year Direct Rate Schools College Tax Rate
2014-15 1.0000 0.03721 0.01704 1.0543
2015-16 1.0000 0.03447 0.03043 1.0649
2016-17 1.0000 0.05091 0.02885 1.0798
2017-18 1.0000 0.05237 0.02927 1.0816
2018-19 1.0000 0.05025 0.02829 1.0785
2019-20 1.0000 0.04960 0.02409 1.0737
2020-21 1.0000 0.05055 0.03198 1.0825
2021-22 1.0000 0.04812 0.02877 1.0769
2022-23 1.0000 0.04687 0.02778 1.0747
2023-24 1.0000 0.04177 0.01715 1.0589
Source: Orange County Assessor Tax Rate Table
Overlapping Rates
Total Direct Tax Rate
150
City of Fullerton
Direct and Overlapping Governmental Activities Debt
As of June 30, 2024
(in Thousands)
Estimated
Estimated Share of
Debt Percentage Overlapping
2023-24 Assessed Valuation: $25,741,192,951 Outstanding Applicable 1 Debt Direct Debt:

City of Fullerton ²
Bonds Payable 4,355$ 100% 4,355 $
Loans Payable 9,167 100 9,167
Subscription Payable 5,007 100 5,007 Lease Payable 561 100 561
Total City of Fullerton Direct Debt ² 19,090 19,090 Overlapping Tax and Assessment Debt:

Metropolitan Water District 18,210 0.67% 121 North Orange County Joint Community College District 291,561 15.03 43,830 Brea-Olinda Unified School District 4,345 0.82 36 Placentia-Yorba Linda Unified School District 197,151 5.07 9,988 Anaheim Union High School District District 229,079 0.01 23 Fullerton Joint Union High School District 177,700 51.46 91,448 Anaheim School District 345,876 0.02 62
Buena Park School District 61,297 5.94 3,641 Fullerton School District 13,190 99.82 13,167 La Habra City School District 33,373 8.80 2,938 Fullerton School District Community Facilities District No. 2000-1 510 100 510 Fullerton School District Community Facilities District No. 2001-1 8,300 100 8,300 City of Fullerton Community Facilities District No. 1 10,330 100 10,330 City of Fullerton Community Facilities District No. 2 6,920 100 6,920 Total Overlapping Tax and Assessment Debt 1,397,842 191,314 Overlapping General Fund Debt
Orange County General Fund Obligations 440,385 0.03% 147 Orange County Board of Education Certificates of Participation 10,030 3.34 335 North Orange County Regional Occupation Program Certificates of Participation 7,350 15.46 1,136 Brea-Olinda Unified School District Certificates of Participation 6,615 0.82 55 Placentia-Yorba Linda Unified School District Certificates of Participation 79,900 5.07 4,048 Anaheim Union High School District Certificates of Participatio n 28,320 0.01 3 Fullerton Joint Union High School District Certificates of Participation 14,940 51.46 7,688 Fullerton School District Certificates of Participation 2,410 99.82 2,406 Total Overlapping General Fund Debt 589,950 15,818 Overlapping Tax Increment Debt (Successor Agency)
Successor Agency to Brea Redevelopment Agency 68,137 3.44% 2,347 Successor Agency to Fullerton Redevelopment Agency 27,870 100 27,870 Total Overlapping Tax Increment Debt 96,007$ 30,217 Total Overlapping Debt 237,349 ³
Total Direct and Overlapping Debt 256,439$
² Includes all long-term debt instruments of the governmental a ctivities, including bonds, notes, loans, leases and SBITA paya ble.

Source for overlapping debt: California Municipal Statistics, I nc.

Source for City direct debt: City of Fullerton Administrative S ervices Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments thatis born by the residents and businesses of the City of Fullerton. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden born 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 governme nt. 1 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
³ Overlapping debt excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
151
City of Fullerton
Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands)
2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1)
Debt limit 2,311,356$ 2,447,320$ 2,551,702$ 2,690,433$ 2,848,240$ Legal debt margin 2,311,356$ 2,447,320$ 2,551,702$ 2,690,433$ 2,848,240$ Total net debt applicable to the
limit as a percentage of debt limit 0% 0% 0% 0% 0%
Legal Debt Margin Calculation for Fiscal Year 2023-24
Assessed value 24,734,657$
Total Assessed Value 24,734,657$
Debt limit
(15% of total assessed value) 3,710,199$
Legal debt margin 3,710,199$
(1) Net Taxable Value was used for the calculation rather than Assessed Value as in previous years.

Fiscal Year
Note: Under state finance law, the City of Fullerton's outstanding general obligation debt should not exceed 15 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.
152
City of Fullerton
Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands)
2020 (1) 2021 (1) 2022 (1) 2023 (1) 2024 (1)
3,219,618$ 3,219,618$ 3,274,641$ 3,448,604$ 3,710,199$ 3,219,618$ 3,219,618 $ 3,274,641 $ 3,448,604 $ 3,710,199 $ 0% 0% 0% 0% 0%
Fiscal Year
153
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2016 4,125,954$ 350,000 $ 273,663 $ 623,663 $ 6.62 2017 4,826,465 360,000 263,013 623,013 7.75
2018 3,670,038 370,000 252,063 622,063 5.90
2019 6,036,975 380,000 240,813 620,813 9.72
2020 6,908,323 390,000 231,213 621,213 11.12
2021 14,593,816 250,000 222,313 472,313 30.90
2022 19,634,918 265,000 212,013 477,013 41.16
2023 19,660,261 270,000 201,313 471,313 41.71
2024 17,730,945 285,000 190,213 475,213 37.31
(1) All water system net available revenue (operating income adjusted by depreciation expenses) Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 885,000 17,700 902,700 - 2016 N/A - - - N/A 2017 N/A - - - N/A 2018 N/A - - - N/A 2019 N/A - - - N/A 2020 N/A - - - N/A 2021 N/A - - - N/A 2022 N/A - - - N/A 2023 N/A - - - N/A 2024 N/A - - - N/A (1) Total Debt Service Fund revenues for Central and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012. *2003 COP fully retired in FY 14/15
Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 592,167 1,323,221 1,915,388 0.00 2016 N/A 0 0 0 N/A
2017 N/A 0 0 0 N/A
2018 N/A 0 0 0 N/A
2019 N/A 0 0 0 N/A
2020 N/A 0 0 0 N/A
2021 N/A 0 0 0 N/A
2022 N/A 0 0 0 N/A
2023 N/A 0 0 0 N/A
2024 N/A 0 0 0 N/A
(1) Total Debt Service Fund revenues for Central and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012. * The bonds were retired in February of 2015.

Note- Gross Revenue comes from the ACFR financial statements not the GL 1998 Refunding Revenue Bonds (2)
Last Ten Fiscal Years
Debt Service Requirements
2014 Water Revenue Refunding Bonds
Debt Service Requirements
Last Nine Fiscal Years
2003 Refunding Certificates of Participation (2)
Last Ten Fiscal Years
Debt Service Requirements
154
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 1,765,000 3,362,661 5,127,661 - 2016 - 3,245,000 3,371,173 6,616,173 - 2017 - 3,210,000 3,209,063 6,419,063 - 2018 - 3,285,000 3,046,688 6,331,688 - 2019 - 3,415,000 2,878,488 6,293,488 - 2020 - 3,765,000 2,698,953 6,463,953 - 2021 - - - - N/A 2022 - - - - N/A 2023 - - - - N/A 2024 - - - - N/A (1) Total Debt Service Fund revenues for Orangefair, Central, and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012.

Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 140,000 7,014 147,014 -
2016 N/A - - - N/A 2017 N/A - - - N/A 2018 N/A - - - N/A 2019 N/A - - - N/A 2020 N/A - - - N/A 2021 N/A - - - N/A 2022 N/A - - - N/A 2023 N/A - - - N/A 2024 N/A - - - N/A (1) Total Debt Service Fund revenues for Orangefair, Central, and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012. * The bonds were retired in FY 14/15
Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 140,000 17,442 157,442 -
2016 - 150,000 9,540 159,540 -
2017 N/A - - - N/A 2018 N/A - - - N/A 2019 N/A - - - N/A 2020 N/A - - - N/A 2021 N/A - - - N/A 2022 N/A - - - N/A 2023 N/A - - - N/A 2024 N/A - - - N/A (1) Total Debt Service Fund revenues for Orangefair, Central, and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012. *The bonds were retired in FY 15/16
2005 Tax Allocation Revenue Bonds (2)
Last Ten Fiscal Years
Last Ten Fiscal Years
Debt Service Requirements
*This bond is completely defeased with the issuance of the 2020A Tax Allocation Refunding Bonds as of June 30, 2021
Debt Service Requirements
Debt Service Requirements
2005 CRA/ERAF Taxable Revenue Bonds (2)
2006 CRA/ERAF Taxable Revenue Bonds (2)
Last Ten Fiscal Years
155
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 1,425,000 1,369,828 2,794,828 - 2016 - 1,485,000 1,310,707 2,795,707 - 2017 - 1,545,000 1,245,324 2,790,324 - 2018 - 1,615,000 1,170,453 2,785,453 - 2019 - 1,695,000 1,086,554 2,781,554 - 2020 - 1,780,000 994,045 2,774,045 - 2021 - - - - N/A 2022 - - - - N/A 2023 - - - - N/A 2024 - - - - N/A (1) Total Debt Service Fund revenues for Orangefair and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012.

Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2015 - 105,000 179,050 284,050 -
2016 - 105,000 172,226 277,226 -
2017 - 110,000 165,400 275,400 -
2018 - 115,000 158,250 273,250 -
2019 - 120,000 150,776 270,776 -
2020 - 125,000 142,976 267,976 -
2021 - 125,000 134,850 259,850 -
2022 - 135,000 125,162 260,162 -
2023 - 140,000 114,700 254,700 -
2024 - 145,000 103,850 248,850 -
(1) Total Debt Service Fund revenues for Central and East Fullerton Redevelopment Project Areas. (2) The Redevelopment Agency was dissolved on February 1, 2012.

Debt Service Requirements
Last Ten Fiscal Years
2010 Tax Allocation Housing Revenue Bonds (2)
Note: The information for the 2015, 2020A, 2020B Tax Allocation Refunding Bonds are not included in the statistical section of the City of Fullerton's Annual Comprehensive Financial Report. Effective February 1, 2012 the State of California dissolved all redevelopment agencies, including the Redevelopment Agency of the City of Fullerton. A Successor Agency was set up to handle the ongoing debt service obligationsof the former redevelopment agency. The Successor Agency acts in a fiduciary capacity only and is therefore excluded from the government-wide financial statements because any resources of this Agency cannot be used to support the government's programs. Likewise, the liabilities, including the debt service are not included in the statistical sections.

Debt Service Requirements
2010 Lease Revenue Bonds - Series A (2)
Last Ten Fiscal Years
*This bond was completely defeased with the issuance of the 2020B Tax Alloc ation Refunding Bonds as of June 30, 2021
156
City of Fullerton
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (1) (in thousands) Income (2)* Rate (3) 2015 142,457 4,101,586 28,791 5.1%
2016 142,234 4,228,814 29,731 4.6%
2017 144,214 4,311,756 29,898 4.5%
2018 142,824 4,533,852 31,744 3.0%
2019 141,863 4,796,794 33,812 2.9%
2020 139,431 5,058,288 36,278 9.6%
2021 142,732 5,369,372 37,618 8.5%
2022 142,873 6,023,146 42,157 4.3%
2023 140,311 6,570,771 46,830 3.3%
2024 140,311 NYA NYA 4.0%
Sources:
(1) State of California - Department of Finance
(2) U.S. Dept. of Commerce - Bureau of Economic Analysis (3) U.S. Dept. of Labor - Bureau of Labor Statistics
*Based on Orange County personal income data.

NYA = Not Yet Available
157

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158
City of Fullerton
Principal Employers
Current Year and Nine Years Ago
% of Total % of Total
City City
Employer Employees Rank Employment² Employees Rank Employment¹ California State University, Fullerton 3,000 1 4.00% 3,450 1 5.34% St. Jude Medical Center 1,797 2 2.40% 1,000 5 1.55% Raytheon Systems Co. 1,200 3 1.60% 1,320 2 2.04% Fullerton College 1,100 4 1.47% 1,235 4 1.91% City of Fullerton 710 5 0.95% 631 9 0.98% Chuze Fitness 700 6 0.93%
AJ Kirkwood & Associates, Inc 600 7 0.80%
Albertson's Regional Corporate 400 8 0.53% 950 6 1.47% Morningside of Fullerton 350 9 0.47%
RPM Transportation 300 10 0.40%
Fullerton School District 1,300 3 2.01%
Fullerton Joint Union High School Dist. 870 7 1.35% Alcoa Fastening Systems 750 8 1.16%
St. Jude Heritage Health 604 10 0.94%
Kraft Foods
Total 10,157 13.54% 12,110 18.75%
¹Based upon U.S. Census Bureau's American Community Survey's estimate of 64,591 residents employed ²Based upon U.S. Census Bureau's American Community Survey's estimate of 75,000 residents employed Source: A to Z Databases from Fullerton Public Library | Data Axle Reference Solutions 2024 2015
159
City of Fullerton and Fullerton Successor Agency
Full-Time Equivalent City Employees by Function (1)
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19
Total Total Total Total Total
Department Positions Positions Positions Positions Positions City Council 6.0 6.0 6.0 6.0 6.0
City Manager 6.5 7.0 7.0 6.5 6.5
Administrative Svcs. 33.0 33.0 33.0 33.0 33.0
Human Resources 8.9 8.9 8.9 8.9 8.9
Fire 92.0 92.0 92.0 92.0 89.0
Police 211.0 212.0 212.0 217.0 218.0
Community Dev. 29.0 28.0 28.0 28.0 28.0
Engineering
Maintenance Svcs.

Public Works
199.5 200.0 200.0 198.0 198.0
Parks & Recreation 22.0 22.0 22.0 21.0 21.0
Library 23.8 23.8 23.8 23.8 23.8
Subtotal 631.7 632.7 632.7 634.2 632.2
Part-Time Hours 177,389 165,840 165,920 165,255 159,639 Full-Time Equivalents 85.3 79.7 79.8 79.4 76.7
TOTAL POSITIONS 717.0 712.4 712.5 713.6 708.9
¹ Reductions in the non-regular positions due to COVID-19 in FY 20/21 ² FY 22/23, City Council implemented budget reduction strategies, removing unfunded positions (1) Source: City of Fullerton Final Budget
160
City of Fullerton and Fullerton Successor Agency
Full-Time Equivalent City Employees by Function (1)
Last Ten Fiscal Years
2019-20 2020-21 2021-22 2022-23 2023-24
Total Total Total Total Total
Positions Positions Positions Positions ² Positions

6.0 6.0 6.0 5.0 5.0

7.0 7.0 7.0 8.0 8.0

35.0 29.0 30.0 32.0 31.0

8.9 9.0 11.0 11.0 11.0

87.0 86.0 87.0 87.0 88.0
203.0 209.0 209.0 197.0 192.0

30.0 31.0 31.0 31.0 32.5
194.0 195.0 192.0 185.0 196.5

21.0 17.0 21.0 14.0 14.0

23.8 21.8 23.8 20.3 21.3
615.7 610.8 617.8 590.3 599.3
160,159 68,410 ¹ 109,127 71,925 114,488

77.0 32.9 52.5 34.6 55.0
692.7 643.7 670.3 624.9 654.3
161
City of Fullerton
Elementary, High School, and University Enrollment Information (1) Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19
Fullerton Elementary School District 13,730 13,544 13,700 13,700 13,700 Fullerton Joint Union High School District 13,910 13,773 13,664 13,649 13,695 Fullerton College 35,335 35,335 23,000 23,000 23,000
California State University - Fullerton 38,948 40,235 40,439 39,343 39,030 Western State University College of Law ² 376 - - - - Marshall B. Ketchum University ³ 391 400 544 500 500 ¹
Hope International University 1,420 1,438 2,349 1,752 1,749

Total enrollment in Fullerton's schools
and universities 104,110 104,725 93,696 91,944 91,674
¹ Based on average attendance (actual enrollment data is not available) ² Southern California College of Optometry became part of Marshall B. Ketchum University in 2013 ³ Western State University College of Law moved to Irvine during fiscal year 2015-16 (1) Sources: California School Dashboard (CA Dept of Education) California Community Colleges Chancellor's Office
California State University Office of the Chancellor
Marshall B. Ketchum University - Registrar's Office
Hope International University - Registrar’s Office
162
City of Fullerton
Elementary, High School, and University Enrollment Information (1) Last Ten Fiscal Years
2019-20 2020-21 2021-22 2022-23 2023-24
13,700 12,852 12,141 11,681 11,626
13,600 13,630 13,473 13,431 13,173
23,000 21,785 18,742 18,370 18,572
39,270 41,408 40,087 39,729 41,326
- - - - - 500 ¹ 740 ¹ 738 ¹ 1,458 ¹ 661
1,784 1,531 1,623 1,442 1,491

91,854 91,946 86,804 86,111 86,849
163
City of Fullerton
Operating Indicators by Function
Last Ten Fiscal Years
Function: 2014-15 2015-16 2016-17 2017-18 2018-19
Police
Calls dispatched 48,637 50,628 52,527 52,332 49,647 Crime reports 16,925 17,635 18,059 16,346 15,363 Moving citations 5,212 7,573 3,878 4,078 2,394 Parking citations 35,551 37,613 36,658 27,993 28,980 Fire
Unit responses 17,500 18,813 18,250 17,992 16,132 Medical calls 8,201 8,725 8,298 8,088 8,448 Annual fire inspections 4,205 4,437 3,806 3,717 2,678 Water
Number of customer accounts 31,795 31,307 31,427 31,923 31,913 Average daily consumption
(millions of gallons) 22.9 20.9 20.6 23.2 20.5 Water samples taken 4,439 4,597 4,657 4,604 4,607 Sewers
Feet of sewer mains root cut/
chemically treated 209,009 215,312 236,257 * * Miles of sewer mains root cut/
hydro jetted 363
357
Number of chemically or
mechanically treated sewer
laterals 4 2,166 1,711 2,167 2,438 2,222 Traffic and General Engineering
Traffic signals maintained 150 151 151 153 154 Infrastructure improvement
projects administered 60 80 77 68 56 Private development
plans reviewed 2,695 2,500 2,564 2,988 3,023 Maintenance
Square ft. graffiti removal 344,120 316,667 348,336 327,223 365,246 Street sweeping miles 40,504 36,044 36,864 34,870 35,783 Trees pruned per year 13,500 14,975 14,005 8,436 9,587 Culture and Recreation
Park event attendance 39,500 42,000 45,000 49,500 57,625 Independ/ Park /Comm. Ctr.
participants 152,000 170,000 240,000 250,000 268,000 Fullerton Museum Center
attendance 23,987 29,265 21,734 21,435 23,328 Sources: City of Fullerton Budget Division and various City departments * Note - As of 7/1/17 sewer mains are root cut/hydro jetted rather than root cut/chemically treated ² As of FY 21/22 Fullerton Museum Center is no longer operated by the City ³ Independence gym has not reopened since COVID-19
¹ Temporarily remain closed due to COVID-19 in FY 20/21 4 Starting in FY 23-24, the City has discontinued chemical treatment and uses only mechanical cleaning for sewer laterals
164
City of Fullerton
Operating Indicators by Function
Last Ten Fiscal Years
2019-20 2020-21 2021-22 2022-23 2023-24
69,027 45,174 46,825 46,255 42,132 13,539 12,877 12,960 13,117 13,500 2,462 5,331 1,454 2,354 6,129 22,258 31,352 10,275 49,027 72,933 13,611 13,928 15,580 16,189 15,751 10,300 11,160 9,507 11,097 13,105 3,887 2,905 7,277 2,567 3,011 31,987 31,890 31,107 31,176 31,977

20.1 21.1 20.4 18.0 16.9 3,901 4,099 4,139 4,037 4,090 * * * 11,354 11,454
280 248 332 253 302 909 392 1,578 2,425 3,082 154 154 154 154 154 38 58 62 79 82 2,823 2,835 2,906 3,050 3,016 502,178 441,146 634,989 739,811 663,894 32,231 34,321 34,666 34,397 34,920 8,821 13,089 11,479 12,715 11,593 48,900 - 49,400 ¹ 52,000 53,000 244,656 56,224 146,057 ¹ 153,000 ³ 180,000 ³ 12,500 - N/A ² N/A ² N/A ²
165
City of Fullerton
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function: 2014-15 2015-16 2016-17 2017-18 2018-19
Public Safety
P o l i c e s t a t i o n s 11111
Number of patrol units 31 34 31 33 32
F i r e s t a t i o n s 66666
Number of ladder trucks 2 2 2 2 2
Number of fire engines 11 11 11 11 11
Highways and streets
Miles of streets 290 285 285 285 285 Traffic Signals 150 151 151 153 154 Streetlights 7,275 6,900 6,900 6,700 6,700 Water
Number of water wells 11 11 10 10 10
Number of reservoirs 15 15 15 15 15
Miles of lines & mains 423 423 423 423 423
Sewer
Miles of sanitary sewers 322.40 323.30 320.00 325.00 325.00 Miles of storm drains 71.20 71.20 71.20 71.70 71.70 Culture and Recreation
Number of recreation and
cultural facilities 67 67 67 67 67
Number of acres for above 683 683 683 683 683
Number of libraries 2 2 2 2 2
Number of library books 210,597 210,597 210,597 179,914 212,665 Sources: City of Fullerton Budget Division and various City departments ¹ The Hunt Library underwent a major refurbishment and was unavailable to the public until FY2023. 166
City of Fullerton
Capital Asset Statistics by Function
Last Ten Fiscal Years
2019-20 2020-21 2021-22 2022-23 2023-24
1111 1
31 34 35 44 57
6666 6
1112 2
999 1 0 1 0
294 294 298 298 298
154 154 154 154 154
6,700 6,700 6,700 6,700 6,700
10 9 9 9 9
15 15 15 15 15
423 423 423 423 423
320.00 320.00 320.00 320.00 320.00

71.70 71.70 71.70 71.70 71.70
67 61 61 61 61
683 683 683 683 683
1¹ 1¹ 1¹ 1¹ 2
199,196 132,039 168,280 152,924 163,346
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City Council - Successor Agency - Housing AuthorityJanuary 21, 2025

City Council - Successor Agency - Housing Authority
January 21, 2025