ANNUAL COMPREHENSIVE
FINANCIAL REPORT (ACFR)
FOR FISCAL YEAR ENDING
JUNE 30, 2025
www.cityoffullerton.com/financialreports
City of Fullerton, California
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CITY OF FULLERTON, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
PREPARED BY THE ADMINISTRATIVE SERVICES DEPARTMENT
CITY OF FULLERTON, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................................. i Organization Chart ............................................................................................................................................... ix City Officials ......................................................................................................................................................... x Certificate of Achievement for Excellence in Financial Reporting ....................................................................... xi
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, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedules
General Fund ........................................................................................................................................ 96 Grants Administration Fund .................................................................................................................. 97 Schedule of Changes in the Net Pension Liability and Related Ratios Miscellaneous Plan .......................................................................................................................... 98 Safety Plan .................................................................................................................................... 100 Schedule of Changes in the Net OPEB Liability and Related Ratios ....................................................... 102 Schedules of Plan Contributions ............................................................................................................... 104 Notes to Required Supplementary Information ......................................................................................... 105
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................. 114 Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ..................................................................................................................................... 119 Drainage Capital Outlay ..................................................................................................................... 120 Traffic Safety ....................................................................................................................................... 121 Park Dwelling ...................................................................................................................................... 122 Asset Seizure ...................................................................................................................................... 123 Refuse Collection................................................................................................................................ 124 Air Quality Improvement ..................................................................................................................... 125 Sanitation ............................................................................................................................................ 126 Measure M2 ........................................................................................................................................ 127 Housing ............................................................................................................................................... 128 FTV Cable – PEG Access Fund ......................................................................................................... 129 SB2 / PLHA ......................................................................................................................................... 130 American Rescue Plan Act ................................................................................................................. 131 Budgetary Comparison Schedules – Capital Projects Funds Capital Projects ................................................................................................................................... 132 Combining Statement of Net Position – Other Enterprise Funds ............................................................. 133 Combining Statement of Revenues, Expenses and Changes
In Net Position – Other Enterprise Funds ................................................................................................. 134 Combining Statement of Cash Flows – Other Enterprise Funds .............................................................. 135
CITY OF FULLERTON, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
Combining Statement of Net Position – Internal Service Funds ............................................................... 136
Combining Statement of Revenues, Expenses and Changes
In Net Position – Internal Service Funds ................................................................................................... 140
Combining Statement of Cash Flows – Internal Service Funds ............................................................... 144
Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds………… ....................... 150
Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds .................. 151
Combining Statement of Fiduciary Net Position – Custodial Funds………… ........................................... 152
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 153
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................... 156 Changes in Net Position – Last Ten Fiscal Years .................................................................................... 158 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................ 162 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ......................................... 164
Revenue Capacity:
Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years .................................... 166 Principal Property Tax Payers – Current Year and Nine Years Ago ........................................................ 167 Secured Property Tax Levies and Collections – Last Ten Fiscal Years ................................................... 168
Debt Capacity:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................. 169 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ...................................................... 170 Direct and Overlapping Governmental Activities Debt – As of June 30, 2025 ......................................... 171 Legal Debt Margin Information – Last Ten Fiscal Years ........................................................................... 172
Revenue Bond Coverage:
2014 Water Revenue Refunding Bonds – Last Ten Fiscal Years ............................................................ 174 2005 Tax Allocation Revenue Bonds – Last Ten Fiscal Years ................................................................. 175 2006 CRA/ERAF Taxable Revenue Bonds – Last Ten Fiscal Years ...................................................... 175 2010 Tax Allocation Housing Revenue Bonds – Last Ten Fiscal Year .................................................... 176 2010 Lease Revenue Bonds – Series A – Last Ten Fiscal Year ............................................................. 176
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years .............................................................. 177 Principal Employers – Current Year and Nine Years Ago ........................................................................ 179
CITY OF FULLERTON, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
Operating Information:
Full-Time Equivalent City Employees by Function – Last Ten Fiscal Years ............................................ 180 Elementary, High School, and University Enrollment Information – Last Ten Fiscal Years ..................... 182 Operating Indicators by Function – Last Ten Fiscal Years ....................................................................... 184 Capital Asset Statistics by Function – Last Ten Fiscal Years ................................................................... 186 7+,63$*(,17(17,21$//</()7%/$1.
City Manager’s Office
303 West Commonwealth Avenue, Fullerton, California 92832-1775 (714) 738-6310 y [email protected] y www.cityoffullerton.com December 23, 2025
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) 2024-25 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 Standards Board (GASB), as well as to 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 LSL, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Fullerton for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Fullerton’s financial statements for the fiscal year ended June 30, 2025, 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 introduction, 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 financial statements of the City of 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.
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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. There are approximately over 237,000 average boardings a year, making the Fullerton Train Station a leading transit hub in Orange County.
Encompassing 22.4 square miles, the City has a population of 141,469, 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 government, 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 sanitation services, construction and maintenance of streets and infrastructure, recreational and cultural services, library services, general governmental support, and a general aviation airport.
Major employers in Fullerton include California State University, Fullerton, Providence St. Jude Medical Center, Fullerton Joint Union High School District, Raytheon Systems Company, Fullerton College, and the City of Fullerton. The City has over 9,712 active business licenses which allows businesses to operate within the City and form the basis of our local economy. The City’s unemployment rate was 4.1% in FY 2024-25, below the state average of 5.4%, and positive indicator of the City’s economic health.
Named “The Education Community”, the City of Fullerton is home to many educational institutions, award-winning schools, and is a center of higher education in Orange County.
California State University, Fullerton, and Fullerton Community College are located within the City, as well as two private colleges/universities for a total enrollment of 62,520 students. The City benefits from a strong higher-education footprint—including California State University, Fullerton, one of the largest universities in the state—which contributes significantly to local employment, talent development, research activity, and consumer spending. Fullerton maintains a diversified tax base consisting of residential, commercial, and industrial properties. Increased assessed valuations have enabled property tax revenue to remain resilient, exceeding the adopted budget levels. Sales tax revenue remained flat in FY 2024-25 compared to the prior year. Tariffs, higher- than-anticipated interest rates, and global economic uncertainty contributed to cautious consumer spending which resulted in stagnant sales tax revenue compared to the prior year. Franchise fees, which are a percentage of gross receipts received from electrical, gas, refuse, cable TV, and internet service providers for doing business within the City have demonstrated positive growth in FY 2024-25, primarily due to an increase in electric and gas receipts.
The Federal government provided states and local agencies across the nation with economic relief from the COVID pandemic through the American Rescue Plan Act (ARPA). The City was allocated $32.7 million and has been actively applying ARPA funds toward various City Council approved projects and priorities. In FY 2021-22, the City obligated funds toward improvements of the City’s street infrastructure, water main replacements, and revenue replacement funds to stabilize government finances. ARPA funds also provided other forms of assistance to the community, by assisting residents through a utility subsidy grant program and other various ii
initiatives, including addressing homelessness issues and aid to non-profit organizations. The City has fully obligated its ARPA allocation in compliance with the US Treasury deadline of December 31, 2024. In FY 2024-25, the City spent a total of $8.2 million on ARPA-related projects. $6.8 million was spent on street rehabilitation projects, $0.9 million on revenue replacement for budgeted services, $0.3 million on water infrastructure projects, and $0.2 million on various city-wide programs and services. The City must fully expend all obligated ARPA funds by December 31, 2026.
The City is committed to further development of its long-range strategic and financial planning efforts, as well as continual assessment and identification of further revenue enhancement and operational efficiency opportunities to support financial stability in the fiscal years to come.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the government are protected from loss, theft, or misuse, and for compiling sufficient reliable information for the preparation of the City of Fullerton’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Fullerton’s framework of internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. Management is responsible for both the accuracy of the financial report and the completeness and fairness of the presentation. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Budgetary Controls
The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the budget approved by the City Council. Activities of the general fund, special revenue funds, debt service funds, capital projects funds, proprietary funds, and fiduciary funds are calculated using the appropriations limit and included in the annual budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at both the fund and departmental levels.
To ensure diligent fiscal monitoring and provide fiscal transparency, staff presents quarterly financial reports to the City Council. These financial reports demonstrate the City’s revenues and expenditures progress throughout the year and may also include additional budget appropriation requests and amendments, in which the City Council can amend the operating budget during the fiscal year. The City also maintains an encumbrance accounting system as another method of accomplishing budgetary control. Encumbrances set aside and reserve funds for a specific purpose or contractual obligation to help ensure appropriated budgets are not overspent and aid departments in budget monitoring efforts. Budgetary control is the responsibility of each respective department, which is supported by the Administrative Services Department oversight and monitoring of citywide and departmental budgets throughout the year.
Financial Policies
General Fund Balanced Budget
It is the City’s policy to adopt a balanced budget in the General Fund, where operating revenues are equal to, or exceed operating expenditures. In FY 2024-25, the City adopted a balanced budget, supported by ongoing revenues and $9.4 million in excess of 17% contingency reserves. iii
The City’s General Fund balance, including all assigned and unassigned balances, are discussed below. With future economic uncertainty, reserves may be applied in future fiscal years to support municipal operations.
General Fund Reserve
To ensure that adequate funds are reserved for potential contingencies such as economic uncertainties or emergencies that might threaten the health, safety, and welfare of the community, the City Council established a policy requiring a minimum of ten percent (10%) and a goal of seventeen percent (17%) of annual General Fund expenditures be set aside (assigned) as contingency reserves.
As of June 30, 2025, the City’s General Fund balance, comprised of non-spendable, restricted, committed, assigned, and unassigned balances, totaled $30.0 million, of which $0 is considered unassigned. Of the $30.0 million, the assigned fund balance for contingency reserves is $19.8 million (approx. 14%) in FY 2024-25; which remains within the City’s reserve policy of 10% but does not meet the City’s goal of 17% of General Fund expenditures. This is primarily attributed to $2.9 million accounting correction inadvertently recorded to the General Fund in 2022, and now transferred back to the Successor Agency which is reflected in the FY 2024-25 financial statements; and $5.7 million operating deficit as expenditures have exceeded revenues in FY 2024-25. As a result, this has reduced the General Fund unassigned fund balance to $0 and its contingency reserves to 14%.
Going forward, with expenditures expected to outpace revenue growth, it is unlikely that the City will be able to meet the 17% contingency reserve goal.
Debt Management
To ensure that City debt is issued and prudently managed to maintain a sound fiscal position and assist the City in its financial flexibility to meet fiscal challenges and finance projects that promote and foster economic growth, a debt management policy was implemented in July 2020. It is considered sound fiscal practice and prudent financial management for the City to adopt a formal debt management policy that sets parameters for issuing debt, managing the City's debt portfolio, and provides guidance to City staff and decision makers to issue debt with respect to the City’s overall fiscal condition.
Purchasing
The City’s Purchasing Policy, Administrative Policy No. 4.1.2, regulates its centralized purchasing system for the City to achieve the procurement of goods and services from the lowest responsible bidders based on price, specifications, product evaluation, and delivery. The purchasing policy of the City is developed to comply with state and federal procurement laws, promotes an open and competitive process to purchase / procure goods and services without prejudice, and is geared to ensure accountability and establish strong internal controls to ensure purchases are made appropriately and within budget. A review of the City’s Purchasing policy and related procedures are done every few years, with the goals of implementing best purchasing practices to achieve improved efficiency, greater transparency, and ease of understanding. iv
Long-Term Financial Planning
As part of the City’s financial planning efforts, the City develops and employs financial planning tools such as financial forecasts, which include a five-year General Fund financial plan. The City also employs a five-year Capital Improvement Plan (CIP) for its capital project planning efforts.
Financial forecasts are sound, financial planning tools that provide the City’s financial outlook over a number of fiscal years to project the City’s fiscal condition in its efforts to address and manage fiscal sustainability and transparency.
Five-Year Financial Plan
Staff presents a Five-Year Financial Plan or Forecast for the General 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 limited 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 reprioritize goals to stay within financial resources (revenues).
The General Fund Five-Year Financial Forecast was presented to the City Council on May 13, 2025, at the FY 2025-26 Budget Study Session. In FY 2025-26, the budget was adopted and, at the time, the General Fund was projected to maintain its 17% contingency reserve goal with the use of prior year’s excess unassigned reserves. The financial forecast factors in labor increases from approved labor agreements, funds set aside for the Infrastructure Fund, funding for homelessness recovery services, which was previously supported with ARPA, and a one-time $0.5 million General Fund contribution to the Capital Improvement Projects Fund towards street rehabilitation projects.
Beginning in FY 2026-27, due to expenditures 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 in its most recent financial forecast. The City has implemented various cost-containment strategies and improved cost recovery of revenues (i.e. 100% cost recovery of user fees) in FY 2024-25 and FY 2025-26 to aid short-term in balancing the budget. However, more long-term solutions, such as seeking revenue-generating opportunities to support / generate long-term fiscal sustainability are needed.
Ad Hoc Fiscal Sustainability Committee
On August 8, 2024, City Council approved the formation of the Ad Hoc Fiscal Sustainability Committee to assist the City in identifying long-term cost containment and/or revenue strategies towards fiscal stability. The committee was comprised of 5 members, who met regularly between December 2024 through April 2025, were tasked to evaluate the City’s finances and make recommendations to improve the City’s financial position. The committee members identified revenue-enhancing opportunities through add-on sales tax measure options. The committee voted 2-2-1 (with 1 member absent) to consider a 0.5% dedicated add-on sales tax for Infrastructure and 0.5% dedicated add-on sales tax for Public Safety. In addition, the committee voted 2-2-1 (with 1 member absent) to consider a 1% general add-on sales tax for City General purpose.
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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 Advisory Committee (INRAC) contributes to the City’s capital project efforts by reviewing the City’s deferred maintenance, 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 important 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 essential 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 2024-25, $2.9 million was transferred to the Infrastructure Fund for vital street rehabilitation and 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.
MAJOR INITIATIVES
Overarching financial planning is the establishment and adherence to the City’s overall strategic priorities. These priorities were developed during the 2017-18 fiscal year with the establishment of three strategic priority policy statements: Fiscal and Organizational Stability, Public Safety, and Infrastructure and City Assets. These strategic priority policy statements were more specifically defined through tactical goals and objectives that help ensure focus on established priorities.
In FY 2023-24 and with adoption of the FY 2025-26 Budget, the City’s major policy priorities are revisited annually with the City Council to reaffirm and/or identify new priorities for the City. The three top priorities of Fiscal and Organizational Stability, Public Safety, Infrastructure continue to be identified as the top priorities for the City Council. In addition, community development and preservation, community engagement, organizational efficiencies and community events were identified as other important priorities for the City.
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Notwithstanding, these current policy statements, which are listed on every City Council agenda item, include:
Fiscal and Organizational Stability
Fiscal and organizational stability objectives and goals include implementing financial stability and making sound financial decisions for the General Fund. Organizational stability initiatives include organizational reviews, fostering a positive and productive workplace, a fair and equitable collective bargaining process with all employee labor groups, and improvement of the employee performance review process. In FY 2023-24, the City Council approved multi-year agreements with structured salary increases for all employee labor groups. FY 2024-25 represents Year 2 of agreements for most labor groups. This has resulted in improved employee recruitments, higher retention rates, and has lowered vacancy rates to as low as 10%-12% citywide. All of which have contributed to improved programming and service delivery to our residents.
Revenues. The City’s property tax revenue base continues to be resilient with the City’s assessed valuations increasing steadily year-over-year, and overall property tax revenue projected to increase over the next year in FY 2025-26. Conversely, sales tax has slowed in recent years and has remained flat in FY 2024-25 compared to the prior year as consumers are spending cautiously. Sales Tax revenue is projected to show modest increase in FY 2025-26. The financial forecast highlights these trends in the upcoming fiscal years, in which revenues are being outpaced by expenditures. The City continues to examine strategies to generate new or additional revenues to achieve its fiscal stability objectives.
As discussed prior, the City set aside 14% General Fund contingency reserves to end FY 2024-25, a decrease from the previous year’s goal of 17%.
Add-On Local Sales Tax Measure Options
The Ad Hoc Fiscal Sustainability Committee’s financial recommendations, including both 0.5% dedicated for special purposes and 1% add-on general sales tax options, were presented to the City Council in May 2025. The City Council directed staff to assess placement of two (2) 0.5% dedicated add-on sales tax measures on next General Election ballot: one 0.5% dedicated for public safety and one 0.5% for infrastructure. If successful, this would generate additional revenue for both the General Fund and its infrastructure needs. In FY 2025-26, staff will continue its work with the Ad Hoc Fiscal Sustainability Committee to consider placing these potential ballot measures on the November 2026 general election ballot.
Public Safety
Public Safety is one of the top priorities for the City and constitutes over 70% of the General Fund budget. The City operates a full-service Fire Department dedicated to all the Fullerton residents and community. Further, the City bolstered its Fire operations with the hiring of key personnel, purchase of new equipment and vehicles to better serve the community. The Fire Department also conformed operations to optimize departmental efficiencies and implemented cost recovery efforts.
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The Fullerton Police Department (FPD), along with the regional North Orange County Collaborative, have continued to work together over the last year to operate the Homeless Outreach and Proactive Engagement Center (HOPE Center). The HOPE Center serves as a command center for case workers, healthcare, and outreach providers who will work together to assist the unhoused population in the North Orange County region. The HOPE Center will also dispatch mobile homeless outreach units with healthcare professionals and homeless liaisons to bring resources to the community. The FPD has also continued to expand community engagement through various events like Coffee with A Cop, and Citizen’s Academy which help to promote a safe community and increase community trust and collaboration.
Infrastructure and City Assets
The City’s Infrastructure (e.g., roads, flood and sewer control, city buildings, information technology systems) is another top priority and readily acknowledged as needing significant repairs/upgrades requiring investment through additional funding. The City has already begun addressing this and have implemented several initiatives including: the establishment of an Infrastructure Fund that redirects 50% of all sales and secured property taxes above an annually established baseline level and allocates approximately $2M-$3M per year to infrastructure improvements, an assessment of building and maintenance and improvement needs, pavement management plan, water and sewer master plans and fee studies, and approved user fee increases to 100% cost recovery to ensure development/engineering and fire user fees are adequately charged for full cost recovery, as well as amended local zoning to apply transient occupancy taxes to short-term rental properties in the city.
Through these steps, the City is proactively investing in its Infrastructure, having budgeted $32.2 million in the adopted Capital Improvements Project (CIP) budget for FY 2025-26. The street rehabilitation projects total $8.2 million, which is comprised of $3.7 million in SB1 gas tax funds, $1.6 million in County Measure M2 local fair share funds, $2.5 million in General Funds (including the Infrastructure funds), and $350,000 in CDBG funds. The Adopted CIP Budget also includes $16.1 million for water projects, $1 million towards sewer improvements and $4.8 million for traffic systems.
AWARD
Fullerton’s financial reporting efforts have been recognized by the Government Finance Officers Association (GFOA) with a Certificate of Achievement for Excellence Award for Financial Reporting in our annual comprehensive financial report for the fiscal year ended June 30, 2024.
To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. viii
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MAYOR MAYOR PRO TEM
FRED JUNG SHANA CHARLES
DISTRICT 1 DISTRICT 3
COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER
NICK DUNLAP JAMIE VALENCIA AHMAD ZAHRA
DISTRICT 2 DISTRICT 4 DISTRICT 5
INTERIM CITY MANAGER
EDDIE MANFRO
POLICE CHIEF INTERIM LIBRARY DIRECTOR FIRE CHIEF
JONATHAN RADUS BEATRIZ SARMIENTO ADAM LOESER LAURA GIANNETTI-MERCER
INTERIM DIRECTOR OF ADMINISTRATIVE SERVICES DIRECTOR OF PUBLIC WORKS
STEVEN AVALOS STEPHEN BISE
DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
SUNAYANA THOMAS
DEPUTY CITY MANAGER/ACTING DIRECTOR OF PARKS & RECREATION
DAISY PEREZ
CITY OF FULLERTON
CITY OFFICIALS
ELECTED OFFICALS
EXECUTIVE TEAM
ACTING DIRECTOR OF HUMAN RESOURCES
xi
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, 2024
Executive Director/CEO
xii
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable 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, (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opi nion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and Members of the City Council
City of Fullerton, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Honorable Mayor and Members of the City Council City of 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 combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ 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 23, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Irvine, California
December 23, 2025
3 7+,63$*(,17(17,21$//</()7%/$1.
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, 2025. 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 deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2025, by $648.8 million (net position). • The City’s net position totaled $648.8 million at June 30, 2025, representing an increase of $22.8 million over the previous fiscal year primarily due to an increase in capital assets, park dwelling fees, and property tax revenue growth, offset by increases in labor and the cost of goods and services.
Of the total net position, $705.3 million is the City’s net investment in capital assets, while $54.0 million is restricted for specific governmental operations, leaving a ($110.5) million negative unrestricted balance.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $64.9 million, a decrease of $2.4 million compared with the prior fiscal year. The decrease is primarily the result of a $2.9 million correction of a prior-year accounting error, as well as increases in salaries, employee benefits, and the cost of goods and services. o Within the governmental funds, the General Fund ended the year with a total fund balance of $30.0 million, consisting of $21.7 million in assigned (compared to $23.0 for the prior year), $3.6 million in restricted, $4.5 million in committed, $0.2 million in nonspendable, and $0.0 million in unassigned fund balance. Unassigned fund balance totaled $10.1 million in the prior year, reflecting a decrease of $10.1 million.
o The reduction in unassigned fund balance is primarily attributable to the $2.9 million prior-year correction and a General Fund operating deficit of $5.7 million as expenditures exceeded revenues.
Assigned fund balance decreased by $1.3 million, primarily due to a $1.2 million reduction in contingency reserves, consistent with the decline in General Fund balance. This reduction lowered contingency reserves from 17% to 14% of General Fund expenditures, which remains within the City’s reserve policy but reduces flexibility to respond to unforeseen events or economic disruptions.
• Long-term debt increased by $3.4 million in fiscal year 2024-25 primarily due to an increase in subscription liabilities, including Axon software utilized by the Police Department. • Capital assets increased by $31.0 million (net of accumulated depreciation) due to various multi-year capital improvement projects, including significant construction in progress additions for water system and street/road infrastructure improvements.
Overview of the Financial Statements
This annual report consists of four parts: (1) management’s discussion 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 three 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.
5 Government-wide financial statements. The government-wide financial statements 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 outflows of resources, liabilities, and deferred inflow of 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.
The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as 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 revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The 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 enterprise operations, airport, parking facilities, Brea Dam recreational facilities, and CNG station.
The government-wide financial statements include the City, Fullerton Public Financing Authority, and Housing Authority. Although these entities are legally separate, they function for all practical purposes as part of the City and, therefore, have been included as blended component units as an integral part of the primary government.
Fund financial statements. The statements focus on current available resources and are organized 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 specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. 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 statements. However, unlike the government- wide financial statements, the governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds 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 decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, 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 balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund; the Grants Administration Special Revenue Fund; and the City Capital Projects Fund, all of which are considered major funds. The remaining governmental funds are combined into a single, aggregated presentation. 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 utility, 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 funds or departments 6 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 statements, only in more detail. The proprietary fund financial statements provide separate information for the airport, water utility and sewer enterprise, all of which are considered major funds of the City. Individual fund data for the other enterprise funds is provided in the form of combining statements elsewhere in this report.
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-wide financial statements because the resources of those funds are not available to support the City’s own programs. 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 accompanying 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 $648.8 million at the close of the most recent fiscal year. The City’s net position increased by $22.8 million from the previous year due to an increase in capital assets, park dwelling fees and property tax revenue growth, offset by increases in labor and the cost of goods and services.
($ in thousands)
2025 2024 2025 2024 2025 2024
Current and other assets $223,424 $218,438 $99,982 $101,870 $323,406 $320,307 Capital assets 545,290 535,593 190,369 169,089 735,660 704,681 Total as sets 768,715 754,030 290,351 270,958 1,059,066 1,024,989 Deferred Outflows 56,256 72,896 3,985 5,095 60,242 77,992 Long-term liabilities 364,593 361,342 28,802 30,070 393,395 391,412 Other liabilities 30,344 38,409 16,826 17,161 47,171 55,569 Total liabilities 394,937 399,751 45,629 47,231 440,566 446,982 Deferred Inflows 18,184 18,058 11,727 11,893 29,910 29,951 Net position:
Net inv estment in capital assets 524,205 519,128 181,047 163,657 705,252 682,786 Restricted 53,758 43,545 269 280 54,027 43,824
Unrestricted (166,113) (153,556) 55,665 52,993 (110,448) (100,563) Restatements - - - - - -
Total net position $411,850 $409,117 $236,981 $216,929 $648,832 $626,047 Net Position
Gove rnme nta l Busine ss-type
activities activities
Total
7 ($ in thousands)
2025 2024 2025 2024 2025 2024
Revenues:
Program revenues:
Charges for services $57,524 $44,962 $64,280 $62,274 $121,805 $107,234 Operating grants and contributions 19,839 36,640 3,884 - 23,723 36,640 Capital grants and contributions 5,442 4,348 794 668 6,236 5,016 General revenues:
Property taxes 62,307 57,095 165 124 62,472 57,219 Sales taxes 30,583 30,508 - - 30,583 30,508 Franchise taxes 5,172 5,716 - - 5,172 5,716 Other taxes 5,301 5,257 - - 5,301 5,257 Motor vehicle in lieu – unrestricted 227 178 - - 227 178 Use of Money & Property 13,374 12,118 3,363 3,296 16,737 15,413 Gain on sale of Cap Asset 3 -
Other 5,568 4,106 347 (359) 5,915 3,747 Special Items - - -
Total revenues 205,343 200,927 72,832 66,002 278,176 266,929 Expenses:
General government 9,437 15,603 - - 9,437 15,603 Public safety 107,321 100,595 - - 107,321 100,595 Public w orks 36,530 30,258 - - 36,530 30,258 Community development 10,111 10,688 - - 10,111 10,688 Human and leisure 14,934 13,399 - - 14,934 13,399 Refuse collection 16,119 15,649 - - 16,119 15,649 Interest on long-term debt 332 244 - - 332 244 Water utility - - 41,721 32,755 41,721 32,755 Airport - - 2,461 4,198 2,461 4,198 Parking facilities - - 44 13 44 13 Brea Dam recreational facilities - - 5,162 4,163 5,162 4,163 Sew er enterprises - - 4,429 4,719 4,429 4,719 CNG - - 146 62 146 62 Total expenses 194,784 186,437 53,963 45,910 248,747 232,346 Excess (Deficiency) of Revenues Over 10,559 14,490 18,870 20,092 29,429 34,582 Special Items - - - - - - Transfers (1,516) (450) 1,516 450 - -
Change in net position 9,043 14,040 20,386 20,541 29,429 34,582 Net position - beginning 409,117 395,077 216,929 196,388 626,046 591,464 Restatements (6,310) - (335) - (6,644) -
Net position - beginning (restated) 402,807 395,077 216,595 196,388 619,402 591,465 Net position - ending $411,850 $409,117 $236,981 $216,929 $648,831 $626,047 Governm ental Bus ine s s -type Total
Changes in Net Position
activities activities
Governmental activities. The net position for governmental activities increased by $2.7 million over the prior year. Total revenues reflect an increase of $4.4 million from the prior year. This increase is related to $4.3 million increase in park dwelling fees related to the Hub at Fullerton student oriented housing project and the recognition of $1.9 million in current and prior year general plan update fee revenue and an increase in property tax revenue growth as property value in the City of Fullerton increased 6.23% from Fiscal Year 2023-24 due to an increase in prior year transfers of ownership and increase in property base year value of 2%. Revenue increases are offset by decreases in operating grants and contributions revenue from the prior year.
Total expenses increased by $8.3 million from the prior year. The increase was primarily attributed to increases in negotiated labor bargaining agreements and increases in the cost of goods and services. 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%
Gain on Sale (Capital
Asset)
0.00%
REVENUES BY SOURCE -
GOVERNMENTAL ACTIVITIES
FISCAL YEAR 2024-25
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 2024-25
Expenses Program Revenues
Business-type activities. The Business-type activities reported an increase in net position of $20.0 million. Revenues reflect an increase of $6.8 million, and expenses show an increase of $8.0 million.
The primary factor for increased revenue is due to a $3.8 million State grant received for PFAS Management pertaining to synthetic chemicals and increases in water sales and refuse services fees. Expenses primarily increased for construction costs related to capital projects. 9 Charges for Services
- Water
81.31%
Charges for Services
- Sewer
8.28%
Charges for Services
- Airport
3.37%
Charges for Services
- Brea Dam
6.97%
Charges for Services
- Parking
0.01%
REVENUES BY SOURCE -
BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2024-25
Charges for Services
- Water
81.31%
Charges for Services
-S e w e r
8.28%
Charges for Services
- Airport
4%
Charges for Services
-B r e a D a m
6.97%
Charges for Services
- Parking
0.01%
Charges for Services
- Compressed Nat
Gas Facility
0.07%
REVENUES BY SOURCE -
BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2024-25
0 10,000
20,000
30,000
40,000
50,000
60,000
Water Utility Airport Sewer Enterprise Brea Dam CNG
Dollars in Thousands
EXPENSES & PROGRAM REVENUES -
BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2023-24
Expenses Program Revenues
0 10,000
20,000
30,000
40,000
50,000
60,000
Water Utility Airport Sewer
Enterprise
Brea Dam CNG Parking
Dollars in Thousands
EXPENSES & PROGRAM REVENUES -
BUSINESS-TYPE ACTIVITIES
FISCAL YEAR 2024-25
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 information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. Unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As mentioned previously in this discussion, the City’s governmental funds reported combined ending fund balances of $64.9 million, a decrease of $2.4 million in comparison with the prior year. Of that total, $0.2 million is nonspendable which represents inventory and prepaid costs; $53.8 million represents monies legally restricted by external agencies for debt service and specific programs or projects, 10 $4.5 million is committed to city infrastructure projects, and $21.7 million represents funds assigned by the City Council for a contingency reserve, street and road improvements, building permits and police retention for amounts seized as evidence .The remaining balance of negative $(15.3) million is unassigned.
The City reports three major governmental funds:
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, this fund balance totaled $30.0 million. Of that amount, $19.8 million was assigned to a contingency reserve, which is 14% of total General Fund expenditures. The General Fund’s reserve policy is to maintain a minimum reserve equal to 10% and strive to reach a level of 17% of total General Fund expenditures each year. The contingency reserve was reduced from 17% in the prior year to 14% with unassigned fund balance of $0.00 million. Revenues totaled $136.6 million, while expenditures totaled $144.0 million. The decrease in fund balance was primarily attributed to the $2.9 million prior-year correction and a General Fund operating deficit of $5.7 million. Revenues increased for property tax revenue growth as property value in the City of Fullerton increased 6.23% from FY 2023-24 due to an increase in prior year transfers of ownership and increase in property base year value of 2%. Revenue increases were offset by expenditure increases in labor and the cost of goods and services.
The Grants Administration Fund reflected a deficit fund balance of $(0.4) million due to uncollected receivables as of June 30, 2025. This total represents a decrease in the deficit of $1.4 million from the previous fiscal year. The decrease is attributed to grant funds received within the available 60 days after the end of the fiscal year for grant related expenditures. The timing of reimbursable grant monies resulted in the deficit fund balance of $(0.4) million.
The Capital Projects Fund reported a deficit fund balance of $(9.7) million, decrease of $1.3 million from the prior year. The purpose of the fund is for the construction, acquisition, and/or improvements of the City’s capital assets. Funding for many of the projects comes from grants that operate on a reimbursement basis and timing of receipt of the funds can often overlap fiscal years.
Another sixteen non-major governmental funds are combined for reporting purposes in the government-wide statements and include the Gas Tax; Drainage Capital Outlay; Traffic Safety; Park Dwelling, Asset Seizure; Refuse Collection; Air Quality Improvement; Sanitation; Measure M2; Housing; FTV Cable – PEG Access; SB2/PLHA, American Rescue Plan Act, 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 information found in the government-wide financial statements, but in more detail. The City’s proprietary 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 $47.2 million at the end of the year: $45.4 million for the Water Utility Fund, ($0.5) million for the Airport Fund, $4.5 million for the Sewer Fund, and a combined ($2.2) million for the remaining nonmajor enterprise funds. The total increase in net position for these enterprise funds was $19.3 million from the prior fiscal year.
Unrestricted net position of the internal service funds totaled $43.5 million at the end of the year:
$10.4 million for Liability Insurance Fund, $9.1 million for Vehicle Replacement Fund, $16.2 million for Workers’ Comp Fund, $2.0 million for Group Insurance Fund, $3.8 million for Equipment Maintenance Fund, ($3.1) million for Information Technology Fund, $2.6 million for Building Maintenance Fund, and $2.5 million for Facility Capital Repair Fund.
Fiduciary funds. The City reports six fiduciary funds consisting of one Pension (and Other Employee Benefit Trust Fund), two Private Purpose Trust Funds, and three Custodial Funds.
The Retiree Health Insurance Program Fund is reported as a Pension (and Other Employee Benefit) Trust Fund and accounts for other post-employment benefits for eligible retirees. The fund’s ending net position totaled $0.09 million as of June 30, 2025.
11 The two Private Purpose Trust Funds include the Successor Agency Trust Fund, which accounts for all transactions associated with the Successor Agency to the Redevelopment Agency, and the Other Trust Fund, which accounts for reimbursements for the Frontier parking structure costs. Ending net position for these funds totaled $38.8 million and $5.7 million, respectively, as of June 30, 2025.
The three Custodial Funds include the 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 Custodia Funds have a combined net position of $1.8 million as of June 30, 2025.
General Fund Budgetary Highlights
The General Fund ended the fiscal year with a fund balance of $30.0 million, reflecting a decrease of $8.6 million from the prior year. The decrease in fund balance is attributed to a $5.7 million operating deficit, as well as a $2.9 million prior-year correction. As compared to the prior year, total revenues increased by $13.0 million, expenditures increased by $20.1 million, and net other financing sources and uses decreased by $3.8 million. The increase in revenue is primarily due to a 5.7% growth in property taxes, which is comparable with a 6.2% increase in the City’s taxable assessed property values over the prior year.
Expenditure increases were primarily due to the City Council approved labor agreements for Public Safety bargaining units and high inflation costs for goods and services.
The General Fund’s fund balance was expected to decrease by $8.7 million, reflective of a final adopted budget in which planned expenditures and other financing uses exceeded anticipated revenues and other financing sources. The actual change in fund balance from current year operations totaled $5.7 million, a $3.0 positive variance from the adopted budget. Actual revenues exceeded budgeted amounts by $8.9 million, mostly due to the previously mentioned property tax growth. Actual expenditures were $11.2 million higher than the final budgeted amounts, mostly attributed to higher-than-anticipated public safety costs for fire operations and police patrols.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business type activities as of June 30, 2025, totaled $735.7 million (net of accumulated depreciation), an increase of $31.0 million.
The net increase primarily related to capital improvement projects, including the PFAS Management project, the Sunny Hills-Twilight Area Water Main Replacement, and the Orangethorpe Avenue Rehabilitation project, all of which were reported as construction in progress at the end of the current fiscal year. Additional information on the City’s capital assets can be found in Note 6 of the Notes to the Financial Statements.
($ in thousands)
2025 2024 2025 2024 2025 2024
Land 72,541 $ 74,167 $ 9,535 $ 9,535 $ 82,076 $ 83,702 $ Buildings 75,591 65,720 5,844 6,006 81,435 71,726 Improvements other than buildings 43,926 42,252 69,934 67,269 113,861 109,521 Machinery and equipment 18,470 16,336 971 907 19,441 17,243 Leasehold improvements 27 54 - - 27 54 Lease assets 2,024 596 - - 2,024 596 Subscriptions asset 10,135 6,391 265 21 10,399 6,412 Infrastructure 297,954 203,765 59,557 57,160 357,511 260,925 Construction in progress 24,623 126,312 44,262 28,191 68,885 154,503 Total 545,290 $ 535,593 $ 190,369 $ 169,089 $ 735,660 $ 704,682 $ Capital Assets
(net of depreciation)
activities activities
Governmental Business-type Total
12 Long-term debt. At the end of the current fiscal year, the City has total long-term debt outstanding of $29.2 million, an increase of $3.2 million primarily due to several new subscription agreements. The most significant subscription addition was with Axon to provide evidence, records, dispatch, and other cloud- based software services for the Police Department. Additional information on the City’s long-term debt can be found in Note 14 of the Notes to the Financial Statements.
($ in thousands)
2025 2024 2025 2024 2025 2024
Revenue bonds - $ - $ 4,776$ 5,257 $ 4,776 $ 5,257 $ Judgement obligation bonds 3,905 4,355 - - 3,905 4,355 Notes, leases, and subscriptions payable 18,938 14,735 1,552 1,474 20,490 16,209 Total 22,843 $ 19,090 $ 6,328 $ 6,731 $ 29,171 $ 25,821 $ Governmental Business-type Total
Long-term Debt
activ ities activities
Economic Factors and Next Year’s Budget
The City adopted a balanced Fiscal Year 2025-26 Annual Budget (All City Funds). For the General Fund, that included a combination of strategic cost containment measures and a limited use of available reserves.
The FY 2025-26 Budget was developed consistent with the City Council’s top priorities of Public Safety, Infrastructure, and Organizational & Fiscal Sustainability, as well as other identified key policy areas, and highlighted the following significant assumptions:
• An $8.2 million investment in street projects
• Enhanced public safety service levels with plans to transition to a new, in-house Ambulance Program and with continuation of the Police Department’s Operation Clean Streets initiative • A lowered vacancy rate as a result of improved employee retention and recruitment efforts • Budgeted funding for various community events and services • Citywide cost containment reductions totaling $7.2 million • Use of one-time, excess General Fund reserves to balance the Fiscal Year 2025-26 budget
Requests for Information
This financial report is designed to provide a general overview of the City of Fullerton’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the office of the Director of Administrative Services, 303 W. Commonwealth Avenue, Fullerton, California 92832. 13 7+,63$*(,17(17,21$//</()7%/$1.
14 CITY OF FULLERTON, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 159,348,925$ 68,919,405 $ 228,268,330$ Receivables:
Accounts 34,432,122 11,236,001 45,668,123
Taxes 392,242 - 392,242 Accrued interest 840,210 370,580 1,210,790 Leases 7,172,519 11,308,391 18,480,910
Notes and loans 26,528,557 - 26,528,557 Internal balances (7,838,223) 7,838,223 - Restricted assets:
Cash held with fiscal agent 1,258,790 269,023 1,527,813 Inventories 306,974 40,220 347,194 Prepaid costs 982,311 - 982,311 Capital assets (not being depreciated) 97,163,349 53,797,522 150,960,871 Capital assets (net of accumulated depreciation/amortization) 448,127,021 136,571,661 584,698,682 Total assets 768,714,797 290,351,026 1,059,065,823
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 318,182 73,421 391,603 Pension deferrals 49,118,073 3,011,424 52,129,497 Other post-employment benefits deferrals 6,820,151 900,353 7,720,504 Total deferred outflows of resources 56,256,406 3,985,198 60,241,604
LIABILITIES
Accounts payable 10,875,894 14,312,036 25,187,930 Accrued liabilities 3,374,209 225,816 3,600,025 Accrued interest 106,421 75,256 181,677 Pass-through payable - - - Unearned revenue 6,236,762 167,934 6,404,696 Deposits payable 6,876,685 2,045,350 8,922,035 Due to other governments 2,874,282 - 2,874,282 Noncurrent liabilities:
Due within one year: bonds, loans, leases, SBITAs, claims, and compensated absences 9,016,078 3,533,169 12,549,247 Net OPEB liability 1,751,635 - 1,751,635 Due in more than one year:
Net pension liability 275,557,704 16,546,687 292,104,391 Net OPEB liability 21,103,169 3,017,153 24,120,322 Bonds, loans, leases, SBITAs, claims,
and compensated absences 57,164,116 5,705,366 62,869,482 Total liabilities 394,936,955 45,628,767 440,565,722
DEFERRED INFLOWS OF RESOURCES
Leases 6,723,195 10,280,470 17,003,665
Pension deferrals 506,294 - 506,294 Other post-employment benefits deferrals 10,954,264 1,446,115 12,400,379 Total deferred inflows of resources 18,183,753 11,726,585 29,910,338
NET POSITION
Net investment in capital assets 524,205,948 181,047,434 705,253,382 Restricted:
Community development projects 3,069,393 - 3,069,393 Public safety 1,894,191 - 1,894,191 Public works 23,033,475 - 23,033,475 Parks and recreation 6,159,846 - 6,159,846 Capital projects 619,878 - 619,878 Debt service 205,907 269,023 474,930 Housing 12,441,090 - 12,441,090 Refuse collection 1,449,631 - 1,449,631 Opioid settlement 872,268 - 872,268 Library 617,926 - 617,926 Pension stabilization 703,277 - 703,277 Donations 835,595 - 835,595 General plan updates 1,855,329 - 1,855,329 Unrestricted (166,113,259) 55,664,415 (110,448,844) Total net position 411,850,495$ 236,980,872 $ 648,831,367 $ June 30, 2025
Primary Government
See Notes to Financial Statements. 15
CITY OF FULLERTON, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government 9,437,125 $ 1,633,936 $ 10,117,944 $ -$ Public safety 107,321,173 11,456,357 2,025,177 - Community development 10,111,256 8,499,363 366,424 - Human and leisure 14,934,204 6,784,797 - - Public works 36,529,506 13,161,221 7,329,839 5,442,262 Refuse collection 16,119,085 15,988,733 - - Interest on long-term debt 331,835 - - - Total governmental activities 194,784,184 57,524,407 19,839,384 5,442,262 Business-type activities:
Airport 2,460,643 2,155,963 13,542 348,579 Brea Dam Facilities Recreational 5,162,050 4,480,596 - - Water Utility 41,721,341 52,265,826 3,870,288 445,217 Parking Facilities 44,272 8,000 - - Sewer Enterprise 4,428,742 5,325,144 - - Compressed Natural Gas Facility 145,517 44,885 - - Total business-type activities 53,962,565 64,280,414 3,883,830 793,796 Total primary government 248,746,749 $ 121,804,821 $ 23,723,214 $ 6,236,058 $ 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
Gain on sale of capital asset
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Restatements - correction of an error
Restatements - change in accounting principle
Net position-beginning, as restated
Net position-ending
Program Revenues
See Notes to Financial Statements. 16
Governmental Business-Type
Activities Activities Total
2,314,755$ - $ 2,314,755$
(93,839,639) - (93,839,639)
(1,245,469) - (1,245,469)
(8,149,407) - (8,149,407)
(10,596,184) - (10,596,184)
(130,352) - (130,352)
(331,835) - (331,835)
(111,978,131) - (111,978,131)
- 57,441 57,441
- (681,454) (681,454)
- 14,859,990 14,859,990
- (36,272) (36,272)
- 896,402 896,402
- (100,632) (100,632)
- 14,995,475 14,995,475
(111,978,131) 14,995,475 (96,982,656)
62,307,371 164,744 62,472,115
30,583,316 - 30,583,316
5,172,170 - 5,172,170
5,301,080 - 5,301,080
226,850 - 226,850
13,374,289 3,362,607 16,736,896
5,568,000 346,948 5,914,948
3,266 - 3,266
(1,516,426) 1,516,426 -
121,019,916 5,390,725 126,410,641
9,041,785 20,386,200 29,427,985
409,118,316 216,929,453 626,047,769
(2,900,768) - (2,900,768)
(3,408,838) (334,781) (3,743,619)
402,808,710 216,594,672 619,403,382
411,850,495$ 236,980,872 $ 648,831,367 $
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, 2025
Special
Revenue Funds
Capital Projects
Fund
General
ASSETS
Cash and investments 20,713,021$ 1,226,309 $ -$ Receivables:
Accounts 17,540,303 598,756 10,098,470 Taxes 392,242 - -
Accrued interest 149,190 - - Leases 7,172,519 - -
Notes and loans - 14,731,704 - Due from other funds 12,634,965 - - Prepaid costs 185,831 1,600 - Restricted assets:
Cash held with fiscal agents 843,741 380,397 - Total assets 59,631,812 $ 16,938,766 $ 10,098,470 $
LIABILITIES
Accounts payable 2,931,239$ 75,709 $ 2,182,731$ Accrued liabilities 3,109,038 22,110 23,789 Deposits payable 6,836,370 32,504 - Due to other funds - - 6,847,131 Due to other governments 2,493,565 380,717 - Unearned revenue 536,760 1,713,661 1,470,850 Total liabilities 15,906,972 2,224,701 10,524,501
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 6,959,887 15,114,989 9,241,347 Leases 6,723,195 - -
Total deferred inflows of resources 13,683,082 15,114,989 9,241,347
FUND BALANCES (DEFICITS)
Nonspendable 185,831 1,600 - Restricted 3,578,155 - - Committed 4,528,440 - - Assigned 21,749,332 - -
Unassigned (deficit) - (402,524) (9,667,378) Total fund balances (deficits) 30,041,758 (400,924) (9,667,378) Total liabilities, deferred inflows of resources,
and fund balances (deficits) 59,631,812 $ 16,938,766 $ 10,098,470 $ Grants
Administration Capital Projects
See Notes to Financial Statements. 18
CITY OF FULLERTON, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Leases
Notes and loans
Due from other funds
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
37,622,479$ 59,561,809$
6,145,612 34,383,141
- 392,242
266,004 415,194
- 7,172,519
11,796,853 26,528,557
- 12,634,965
- 187,431
- 1,224,138
55,830,948$ 142,499,996 $
4,721,019$ 9,910,698$
128,980 3,283,917
2,100 6,870,974
2,937,484 9,784,615
- 2,874,282
2,496,459 6,217,730
10,286,042 38,942,216
596,389 31,912,612
- 6,723,195
596,389 38,635,807
- 187,431
50,179,651 53,757,806
- 4,528,440
- 21,749,332
(5,231,134) (15,301,036)
44,948,517 64,921,973
55,830,948$ 142,499,996 $
See Notes to Financial Statements. 19
7+,63$*(,17(17,21$//</()7%/$1.
20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 64,921,973$
521,378,207
Deferred outflows-pension related 47,893,483 $
Deferred outflows-OPEB related 6,548,939
Deferred inflows-pension related (506,294)
Deferred inflows-OPEB related (10,518,655)
Total deferred outflows and inflows related to postemployment benefits 43,417,473 31,912,612
54,095,753
Long-term debt (587,397)
Leases and SBITA (5,892,241)
Compensated absences (6,620,889)
Net pension liability (268,829,042)
Net OPEB liability (21,945,954)
Total long-term liabilities (303,875,523)
Net position of governmental activities 411,850,495$
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, 2025
Capital
Projects Fund
Formerly
Major Fund
General
REVENUES
Taxes 98,191,767$ - $ - $ -$ Franchise taxes 5,030,545 - - - Licenses and permits 4,754,026 - - - Intergovernmental 1,632,305 5,008,015 - 781,556 Charges for services 14,811,236 - - 4,698 Investment earnings 6,284,686 - - - Fines and forfeitures 1,733,243 - - - Miscellaneous 4,166,652 16,192 - 591,210 Total revenues 136,604,460 5,024,207 - 1,377,464
EXPENDITURES
Current:
General government 7,923,302 1,018 - - Public safety 100,067,779 1,629,988 - - Community development 6,295,241 1,370,253 - - Human and leisure 11,473,008 97,286 - - Public works 11,176,081 81,411 - 543,281 Refuse collection - - - - Capital outlay 6,130,379 34,588 - 20,557,334 Debt service:
Prinicipal retirement 961,008 - - - Interest and fiscal charges 24,423 - - - Total expenditures 144,051,221 3,214,544 - 21,100,615 Excess (deficiency) of revenues
over (under) expenditures (7,446,761) 1,809,663 - (19,723,151)
OTHER FINANCING SOURCES (USES)
Transfers in 1,017,328 - - 18,497,579 Transfer out (5,552,858) (350,000) - - Lease financing 1,574,566 - - - Subscriptions financing 4,690,150 - - - Proceeds for sale of capital assets 3,266 - - - Total other financing sources (uses) 1,732,452 (350,000) - 18,497,579 Net change in fund balances (5,714,309) 1,459,663 - (1,225,572) Fund balances (deficit)-beginning 38,656,835 (1,860,587) 1,425,827 (8,441,806) Restatements - changes within the entity - - (1,425,827) - Restatements - correction of an error (2,900,768) - - - Fund balances (deficit)-beginning, as restated 35,756,067 (1,860,587) - (8,441,806) Fund balances (deficit)-ending 30,041,758 $ (400,924) $ - $ (9,667,378)$ 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, 2025
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:
Prinicipal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfer out
Lease financing
Subscriptions financing
Proceeds for sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Restatements - changes within the entity
Restatements - correction of an error
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
Total Total
Nonmajor Governmental
Funds Funds
141,625$ 98,333,392$
- 5,030,545
- 4,754,026
22,086,193 29,508,069
29,588,350 44,404,284
2,614,579 8,899,265
275,251 2,008,494
21,135 4,795,189
54,727,133 197,733,264
722,922 8,647,242
366,322 102,064,089
2,131,120 9,796,614
387,835 11,958,129
12,540,593 24,341,366
16,407,122 16,407,122
111,068 26,833,369
92,721 1,053,729
6,449 30,872
32,766,152 201,132,532
21,960,981 (3,399,268)
- 19,514,907
(16,340,536) (22,243,394)
91,300 1,665,866
293,613 4,983,763
- 3,266
(15,955,623) 3,924,408
6,005,358 525,140
37,517,332 67,297,601
1,425,827 -
- (2,900,768)
38,943,159 64,396,833
44,948,517$ 64,921,973 $
See Notes to Financial Statements. 23
7+,63$*(,17(17,21$//</()7%/$1.
24 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: 525,140$ Capital outlay 27,148,362$
Depreciation/amortization expense (15,409,399)
Miscellaneous transactions and loss on disposal (1,768,180) Total adjustment 9,970,783
3,159,480
Leases and subscriptions (7,412,621)
Principal payments 1,147,072
Total adjustment (6,265,549)
8,605,882
Compensated absences (136,840)
Changes in pension liabilities and related deferred outflows and inflows of resources (7,792,528) Changes in OPEB liabilities and related deferred outflows and inflows of resources 975,417 Total adjustment (6,953,951)
Change in net position of governmental activities 9,041,785 $ Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF FULLERTON, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
See Notes to Financial Statements. 25
CITY OF FULLERTON, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments 2,177,327$ 57,667,727 $ 7,160,606$ Receivables:
Accounts 233,349 9,542,618 1,410,051
Accrued interest 47,713 268,091 42,446 Leases 413,867 107,509 -
Prepaid costs - - - Inventory - - - Restricted:
Cash held with fiscal agent - - - Total current assets 2,872,256 67,585,945 8,613,103 Noncurrent:
Leases 8,834,834 1,122,308 -
Capital assets - net of accumulated depreciation/amortization 20,858,349 110,927,950 55,148,720 Total noncurrent assets 29,693,183 112,050,258 55,148,720 Total assets 32,565,439 179,636,203 63,761,823
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 73,421 - Pension deferrals 263,462 2,006,146 624,068 Other post-employment benefits deferrals 61,110 598,869 219,858 Total deferred outflows of resources 324,572 2,678,436 843,926
LIABILITIES
Current liabilities:
Accounts payable 54,864 10,669,822 518,882 Accrued liabilities 17,046 147,133 48,644 Accrued interest payable 4,771 56,400 521 Unearned revenue - - 167,934 Deposits payable 90,829 1,946,811 708 Due to other funds - - - Claims and judgments - current 2,200,000 - - Compensated absences - current 59,831 430,623 160,286 Bonds, loans, leases, and subscriptions - current 64,027 414,170 13,596 Total current liabilities 2,491,368 13,664,959 910,571 Noncurrent liabilities:
Claims and judgments - noncurrent - - - Compensated absences 3,842 20,017 2,956 Bonds, loans, leases, and subscriptions 1,185,405 3,587,689 7,484 Net pension liability 1,447,633 11,023,038 3,429,030 Net other post-employment benefits liability 204,783 2,006,854 736,761 Total noncurrent liabilities 2,841,663 16,637,598 4,176,231 Total liabilities 5,333,031 30,302,557 5,086,802
DEFERRED INFLOWS OF RESOURCES
Leases 8,320,698 1,217,451 -
Other post-employment benefits deferrals 98,152 961,881 353,128 Total deferred inflows of resources 8,418,850 2,179,332 353,128
NET POSITION
Net investment in capital assets 19,608,917 104,431,154 54,628,919 Restricted for debt service - - - Unrestricted (470,787) 45,401,596 4,536,900 Total net position 19,138,130$ 149,832,750 $ 59,165,819 $ 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, 2025
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Leases
Prepaid costs
Inventory
Restricted:
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
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
1,913,745$ 68,919,405 $ 99,787,116$
49,983 11,236,001 48,981
12,330 370,580 427,455
31,996 553,372 -
- - 794,880
40,220 40,220 306,974
269,023 269,023 34,652
2,317,297 81,388,601 101,400,058
797,877 10,755,019 -
3,434,164 190,369,183 23,912,163
4,232,041 201,124,202 23,912,163
6,549,338 282,512,803 125,312,221
- 73,421 318,182
117,748 3,011,424 1,224,590
20,516 900,353 271,212
138,264 3,985,198 1,813,984
3,068,468 14,312,036 970,907
12,993 225,816 92,730
13,564 75,256 106,421
- 167,934 19,032
7,002 2,045,350 -
616,825 616,825 2,233,525
- 2,200,000 6,095,000
32,889 683,629 -
157,747 649,540 1,958,107
3,909,488 20,976,386 11,475,722
- - 30,622,000 - 26,815 -
897,973 5,678,551 14,404,560
646,986 16,546,687 6,728,662
68,755 3,017,153 908,850
1,613,714 25,269,206 52,664,072
5,523,202 46,245,592 64,139,794
742,321 10,280,470 -
32,954 1,446,115 435,609
775,275 11,726,585 435,609
2,378,444 181,047,434 19,097,847
269,023 269,023 -
(2,258,342) 47,209,367 43,452,955
389,125$ 228,525,824 62,550,802 $
8,455,048
236,980,872$
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, 2025
OPERATING REVENUES
Sales and service charges 2,155,963$ 52,510,843 $ 5,337,697$ Interfund service charges - - - Miscellaneous - 95,140 3,310 Total operating revenues 2,155,963 52,605,983 5,341,007
OPERATING EXPENSES
Maintenance, operations, and administration 1,877,744 17,042,311 3,493,662 Cost of water - 23,431,364 - Claims expense - - - Depreciation/amortization expense 588,581 1,897,682 1,023,214 Total operating expenses 2,466,325 42,371,357 4,516,876 Operating income (loss) (310,362) 10,234,626 824,131
NONOPERATING REVENUES (EXPENSES)
Taxes 164,744 - -
Intergovernmental 13,542 3,870,288 - Investment earnings 336,723 2,500,533 407,929 Interest expense (42,726) (181,629) (521) Gain (loss) on disposal of capital assets (7,487) (22,014) - Total nonoperating revenues (expenses) 464,796 6,167,178 407,408 Income (loss) before capital contributions and transfers 154,434 16,401,804 1,231,539 Capital contributions 348,579 445,217 - Transfers in - 1,554,426 - Transfers out - (38,000) - Change in net position 503,013 18,363,447 1,231,539 Net position-beginning 18,667,387 131,653,540 57,992,338 Restatements - change in accounting principle (32,270) (184,237) (58,058) Net position-beginning 18,635,117 131,469,303 57,934,280 Net position-ending 19,138,130 $ 149,832,750 $ 59,165,819 $ Change in net position
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, 2025
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
Restatements - change in accounting principle
Net position-beginning
Net position-ending
Change in net position
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
4,533,481$ 64,537,984 $ -$
- - 44,123,828 18,469 116,919 1,191,521
4,551,950 64,654,903 45,315,349
5,318,677 27,732,394 28,907,173
- 23,431,364 -
- - 9,229,992 84,963 3,594,440 2,855,017
5,403,640 54,758,198 40,992,182
(851,690) 9,896,705 4,323,167
- 164,744 -
- 3,883,830 -
119,382 3,364,567 4,475,024
(54,259) (279,135) (300,963)
- (29,501) (28,639)
65,123 7,104,505 4,145,422
(786,567) 17,001,210 8,468,589
- 793,796 -
- 1,554,426 1,761,633
- (38,000) (549,572)
(786,567) 19,311,432 9,680,650
1,235,908 209,549,173 52,870,152
(60,216) (334,781) -
1,175,692 52,870,152
389,125$ 62,550,802 $
19,311,432
1,074,768
20,386,200$
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, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 2,374,973$ 52,169,298 $ 5,849,343$ Receipts from interfund charges - - - Payments to suppliers and service providers (2,162,444) (40,740,033) (3,503,221) Payments to employees for salaries and benefits (85,113) 351,571 (302,909) Payments of insurance claims - - - Other receipts (payments) - 95,140 3,310 Net cash provided by (used for)
operating activities 127,416 11,875,976 2,046,523
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - 1,554,426 - Transfers to other funds - (38,000) - Principal paid on non-capital debt - - - Interest paid on on-capital debt - - - Payments from other funds on interfund borrowings - - - Payments to other funds on interfund borrowings - - - Taxes 164,744 - -
Operating grants and contributions 13,542 3,870,288 - Net cash provided by (used for)
noncapital financing activities 178,286 5,386,714 -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital contributions 348,579 445,217 - Acquisition and construction of capital assets (2,453,869) (24,401,420) (1,980,666) Principal paid on capital debt (62,022) (323,390) - Interest paid on capital debt (40,258) (216,022) - Proceeds from sales of assets 22,898 4,493,822 - Net cash provided by (used for)
capital and related financing activities (2,184,672) (20,001,793) (1,980,666)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 305,651 2,490,953 348,478 Net cash provided by (used for)
investing activities 305,651 2,490,953 348,478 Net increase (decrease) in
cash and cash equivalents (1,573,319) (248,150) 414,335 Cash and cash equivalents-beginning 3,750,646 57,915,877 6,746,271 Cash and cash equivalents-ending 2,177,327 $ 57,667,727 $ 7,160,606 $ 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, 2025
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
Payments to 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
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
4,513,699$ 64,907,313 $ -$
- - 44,159,512 (4,666,933) (51,072,631) (27,554,015)
(330,509) (366,960) (4,226,397)
- - (3,132,992) 18,469 116,919 1,191,521
(465,274) 13,584,641 10,437,629
- 1,554,426 1,761,633
- (38,000) (549,572)
- - (450,000) (3,355) (3,355) (93,532)
143,630 143,630 -
- - (34,385) - 164,744 -
- 3,883,830 -
140,275 5,705,275 634,144
- 793,796 -
(389,550) (29,225,505) (5,294,513)
(150,000) (535,412) (2,010,878)
(56,742) (313,022) (195,359)
- 4,516,720 2,636,702
(596,292) (24,763,423) (4,864,048)
122,171 3,267,253 4,385,514
122,171 3,267,253 4,385,514
(799,120) (2,206,254) 10,593,239
2,981,888 71,394,682 89,228,529
2,182,768$ 69,188,428 $ 99,821,768 $
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, 2025
Business-Type Activities
Airport Water Utility
Sewer
Enterprise
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments 2,177,327$ 57,667,727 $ 7,160,606$ Cash held with fiscal agent - - - Total cash and cash equivalents 2,177,327 $ 57,667,727 $ 7,160,606 $
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (310,362)$ 10,234,626 $ 824,131$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 588,581 1,897,682 1,023,214 (Increase) decrease in accounts receivable 469,589 (136,415) 377,782 (Increase) decrease in leases receivable (190,971) 63,389 - (Increase) decrease in inventories - - - (Increase) decrease in prepaid items - - - Increase (decrease) in accounts payable (284,700) (266,358) (9,559) Increase (decrease) in accrued liabilities 4,284 57,214 18,223 Increase (decrease) in deposits payable (59,608) (268,519) 133,864 Increase (decrease) in unearned revenue - - - Increase (decrease) in compensated absences 12,205 1,548 21,256 Increase (decrease) in claims and judgments - - - Increase (decrease) in pension items (35,258) 332,492 (233,931) Increase (decrease) in other post-employment benefits items (66,344) (39,683) (108,457) Total adjustments 437,778 1,641,350 1,222,392 Net cash provided by (used for)
operating activities 127,416 $ 11,875,976$ 2,046,523 $
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments 16,108 $ 398,005 $ 72,902 $ Amortization of deferred charge on refunding - (8,391) - Contributions of capital assets 348,579 445,217 - Assets acquired through subscription arrangements - 204,265 21,080 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, 2025
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
Assets acquired through subscription arrangements
Amortization on bond discount/(premium)
Governmental
Activities
Other
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
1,913,745$ 68,919,405 $ 99,787,116$
269,023 269,023 34,652
2,182,768$ 69,188,428 $ 99,821,768 $
(851,690)$ 9,896,705 $ 4,323,167$
84,963 3,594,440 2,855,017
(2,603) 708,353 25,849
(19,157) (146,739) -
16,812 16,812 (50,190)
- - (304,212) 340,465 (220,152) (1,351,319)
5,812 85,533 35,493
1,978 (192,285) -
- - 9,835
(47,934) (12,925) -
- - 6,097,000 32,434 95,737 (747,918)
(26,354) (240,838) (455,093)
386,416 3,687,936 6,114,462
(465,274)$ 13,584,641 $ 10,437,629 $
9,585$ 496,600 $ 734,153 $
- (8,391) -
- 793,796 -
24,377 249,722 -
(2,483) 36,132 39,773
See Notes to Financial Statements. 33
Custodial
Funds
ASSETS
Cash and cash equivalents - $ 3,867,186$ 2,369,256$ Restricted assets - cash and cash equivalents - 5,710,737 - Restricted investments:
Mutual funds - 37 - Equity securities 88,951 - - Receivables:
Taxes - - 23,364 Interest - 4,139 -
Notes and loans - 49,769,088 - Prepaid costs - 31,062 - Land - 5,240,695 -
Total assets 88,951 64,622,944 2,392,620
LIABILITIES
Accounts payable - 5,336 47,634 Accrued liabilities - 667 - Accrued interest - 219,214 - Due to bondholders - - 527,749 Noncurrent:
Bonds payable - due within one year - 5,045,000 - Bonds payable - due in more than one year - 14,839,240 - Total liabilities - 20,109,457 575,383
NET POSITION
Restricted for:
Restricted for post-employment benefits other than pensions 88,951 - - Restricted for individuals, organizations, and other governments - 44,513,487 1,817,237 Total net position 88,951 $ 44,513,487$ 1,817,237 $
CITY OF FULLERTON, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Retiree Health
Insurance
Program
Private
Purpose Trust
Funds
Pension
(and Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements. 34
Custodial
Funds
ADDITIONS
Investment earnings:
Investment earnings 8,782 $ 674,693 $ -$ Total investment earnings 8,782 674,693 - Taxes - 6,803,908 -
Miscellaneous - 924,118 1,714,141 Total additions 8,782 8,402,719 1,714,141
DEDUCTIONS
Administrative expenses 493 111,160 - Contractual services - 67,200 - Interest expense - 779,098 - Total deductions 493 957,458 - Net increase (decrease) in fiduciary net position 8,289 7,445,261 1,714,141 Net position-beginning 80,662 37,068,226 103,096 Net position-ending 88,951 $ 44,513,487$ 1,817,237 $
CITY OF FULLERTON, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Retiree Health
Insurance
Program
Private
Purpose Trust
Funds
Pension
(and Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements. 35
7+,63$*(,17(17,21$//</()7%/$1.
36 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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 continuing 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 manner 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 Redevelopment Agency for the purposes of (1) financing the acquisition and construction of various public capital improvements relating to the three Redevelopment Project Areas, and (2) refinancing various outstanding 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 into 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 34290 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 Council 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.
37 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Jointly Governed Organization
North Orange County Cities Joint Power Authority
The City of and the City of Brea are members of the North Orange County Cities Joint Powers Authority, these activities are reported as a fiduciary fund. For more information on this Joint Exercise of Powers Agreement see Note 19.
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 eliminated 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. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The interfund activities and balances between governmental activities and business-type activities are shown in the government-wide financial statements.
The statement of activities demonstrates the degree to which the 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 allocated 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 operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund 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 for the government's governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements 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.
38 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. The City's fiduciary funds consists of a pension (and other employee benefits) trust fund, a private-purpose trust fund, and custodial funds. Under the economic resources measurement focus, all assets and liabilities (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 basis 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 financial 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 sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Noncurrent portions of long-term receivables due to governmental 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 considered "available spendable resources" since they do not represent net current assets. Recognition of governmental fund 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 revenues 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 accounts 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 receipts and expenditures of various federal, state, and local grant programs.
39 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• The Capital Projects Fund accounts for financial resources segregated 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 the operation and maintenance of the Fullerton Airport.
• The Water Utility Fund accounts for the operation and maintenance 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 for the activity that provides goods and services to other funds or departments on a cost-reimbursement basis, such as, liability insurance, equipment replacement, workers’ compensation, group insurance, equipment maintenance, information technology, building maintenance services and facility capital repair.
• The Pension (and Other Employee Benefit) Trust Fund accounts for the assets held in trust to pay for future benefits related to the City’s post-employment healthcare plan.
• The Private Purpose Trust Funds account for the assets and liabilities 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 required 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.
40 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 recovered 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 from 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 for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Deferred Outflows, 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 Application, the City's investments are stated at fair value.
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 balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
41 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 installment 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 nonspendable fund balance. The City used 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 consumption 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. Lease and subscription assets are subject to a higher capitalization threshold, utilizing $25,000. 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.
42 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property, plant, equipment, infrastructure, lease assets, and subscription 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 acquisition 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. Unavailable 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.
43 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
7. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible rightǦtoǦuse lease asset (lease asset) in the governmentǦwide financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease 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, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight Ǧline basis over its useful life. Key estimates and judgments related 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 rate charged by the lessor as the discount 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.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances 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 liabilities are reported with 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 governmentǦwide 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, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred 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. 44 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 certain 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 rightǦtoǦuse subscription asset (subscription asset) in the governmentǦwide 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 subscription 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. Subsequently, the subscription asset is amortized on a straightǦline basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected 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 subscription 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.
The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are 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 probable 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, 2025, will be liquidated from expendable available financial resources at June 30, 2025.
45 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 proprietary fund financial statements.
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 non-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 service. Only 50 percent or 55 percent of unpaid sick pay for eligible employees was recorded as a City liability. The portion for those eligible employees who reached their retirement ages at the end of the fiscal year were recorded as the current portion of unpaid 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 liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023, to June 30, 2024
46 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023, to June 30, 2024
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 proprietary 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 debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. 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 purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by the adoption of an ordinance.
• Assigned include amounts that are constrained by the government’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. 47 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Unassigned includes the residual amounts that have not been restricted, 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 from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
16. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is 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.
E. New GASB Pronouncements Effective during Fiscal Year
The following Government Accounting Standards Board (GASB) pronouncement was effective for and implemented for the fiscal year ended June 30, 2025:
GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
48 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
GASB Statement No. 102, Certain Risk Disclosures
The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.
Management has assessed the impact of this Statement on the City's financial statements and determined that it did not have a material impact.
F. New GASB Pronouncements Effective in Future Fiscal Years
GASB Statement No. 103, Financial Reporting Model Improvements
The requirements of this Statement will improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability.
The Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions.
This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.
This Statement also requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses.
Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses. In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses.
This Statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements.
49 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.
The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.
GASB Statement No. 104, Disclosure of Certain Capital Assets
The requirements of this statement will provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.
This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.
The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.
50 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: STEWARDSHIP, COMPLIANCE, 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, 2025.
B. Deficit Fund Equity
At June 30, 2025, The City reported deficit fund equities in the following funds:
NOTE 3: CASH AND INVESTMENTS
Cash and investments at June 30, 2025, are classified in the accompanying financial statements as follows:
Fund Name Fund Type Deficit Cause
Sanitation Non-major special revenue fund (1,352,605) (a) Grants Administration Major special revenue fund (400,924) (a) SB2 / PLHA Non-major special revenue fund (3,878,529) (a) Capital Projects Major capital projects fund (9,667,378) (a) Compressed Natural Gas Facility Non-major enterprise fund (259,773) (b) (a) Deficit due to timing differences between grants or other receipts and disbursements, and is expected to be eliminated through future grant or operational revenues. (b) 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 investments 228,268,330$
Restricted cash and investments 1,527,813
Fiduciary Funds:
Cash and investments 6,236,442
Restricted cash and investments 5,799,725
Total cash and investments 241,832,310$
51 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2025, consist of the following:
At June 30, 2025, the carrying amount of the City’s deposits was $12,830,085 and the bank balance was $12,136,774. The $693,311 difference represents outstanding deposits, checks, and other reconciling items.
A. Investments Authorized by the 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.
Authorized Inv estment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment 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 Inv estment Fund (LAIF) None
Lesser of
$50M or 60% None
Demand deposits 19,061,681 $
Cash on hand 54,954
Investments 221,619,734
Inv estments with fiscal agents 1,095,941
Total cash and investments 241,832,310$
52 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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, 2025, are as follows:
As of June 30, 2025, the City’s investments included the following callable investments exposed to interest rate risk:
12 months or
less 1 to 3 years 3 to 5 years Fair Value
Investments
Local Agency Investment Fund 41,429,662 $ - $ - $ 41,429,662$ California CLASS 64,266,458 - - 64,266,458 US Government Treasury Notes 1,050,259 79,530,130 22,125,837 102,706,226 Corporate Notes 3,263,282 7,440,885 - 10,704,167 Municipal Issuances 857,889 789,671 82,503 1,730,063 Money Market Mutual Funds 783,158 - - 783,158 Total Investments 111,650,708 87,760,686 22,208,340 221,619,734 Investments with Fiscal Agents:
PARS OPEB Trust Fund:
Equity Securities 88,952 - - 88,952 PARS Section 115 Pension Trust Fund:
Equity Securities 703,277 - - 703,277 Money Market Mutual Funds 303,712 - - 303,712 Total Investments with Fiscal Agents 1,095,941 - - 1,095,941 Total 112,746,649 $ 87,760,686 $ 22,208,340 $ 222,715,675 $ Remaining Investment Maturities
Issuer Next Call Date Yield to Call Maturity Date Fair Value Eli Lilly Co 1/9/2027 0.0395 2/9/2027 1,643,154 $
Home Depot Inc 8/30/2026 0.0407 9/30/2026 509,989
Home Depot Inc 8/15/2025 0.0478 9/15/2025 144,849
Pepsico Inc 10/10/2026 0.041 11/10/2026 663,253
Total 2,961,245$
53 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
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 investment 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.
Presented below is the minimum rating as required by (where applicable) 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 the 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, US Treasury notes, mutual funds, and external investment pools) that represented 5% or more of total City investments in FY 2025.
Not Subject
Total as of Minimum to Credit
June 30, 2025 Legal Rating AAA AA- to AA+ A- to A+ Risk Disclosure Investments:
Local Agency Investment Fund 41,429,662$ N/A - $ - $ - $ 41,429,662$ California CLASS 64,266,458 N/A - - - 64,266,458 US Government Treasury Notes 102,706,226 N/A - 102,706,226 - - Corporate Notes 10,704,167 A - 2,580,103 8,124,064 - Municipal Issuances 1,730,063 N/A 275,316 1,454,747 - - Money Market Mutual Funds 783,158 AAA 783,158 - - - Total Investments 221,619,734 1,058,474 106,741,076 8,124,064 105,696,120 Investments with Fiscal Agents:
PARS OPEB Trust Fund:
Equity Securities 88,952 N/A - - - 88,952 PARS Section 115 Pension Trust Fund:
Equity Securities 703,277 N/A - - - 703,277 Money Market Mutual Funds 303,712 AAA 303,712 - - - Total Investments with Fiscal Agents 1,095,941 303,712 - - 792,229 Total 222,715,675 $ 1,362,186 $ 106,741,076 $ 8,124,064 $ 106,488,349 $ 54 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2025, none of the City's deposits or investments were exposed to custodial credit risk. As of June 30, 2025, $1,616,799 in investments are purchased and held by the bond trustee.
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. 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 Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
I. Allocation of Interest Income among Funds
Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated on a monthly basis based on the weighted average cash balances in each fund receiving interest. Interest income from cash and investments with fiscal agent is credited directly to the related fund.
J. Restricted Cash and Investments
The restricted cash and investments account include various cash amounts retained in debt service reserves required by the revenue bond covenants, customer deposits held by utility, bond current debt service account and bond future debt service reserve account. Cash and investments for CDBG loan program accounts are also included in the restricted cash and investments since their use is restricted by legal requirements. 55 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
K. Fair Value Measurement and Application
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2025:
Total as of Not Measured
June 30, 2025 at Fair Value Level 1 Level 2
Investments:
Local Agency Investment Fund 41,429,664$ 41,429,664 $ - $ - $ California CLASS 64,266,458 64,266,458 - - US Government Treasury Notes 102,706,225 - - 102,706,225 Corporate Notes 10,704,167 - - 10,704,167 Municipal Issuances 1,730,062 - - 1,730,062 Money Market Mutual Funds 783,158 - 783,158 - Total Investments 221,619,734 105,696,122 783,158 115,140,454 Investments with Fiscal Agents:
PARS OPEB Trust Fund:
Equity Securities 88,952 - - 88,952 PARS Section 115 Pension Trust Fund:
Equity Securities 703,277 - - 703,277 Money Market Mutual Funds 303,712 - 303,712 - Total Investments with Fiscal Agents 1,095,941 - 303,712 792,229 Total 222,715,675 $ 105,696,122 $ 1,086,870 $ 115,932,683 $ 56 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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:
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-income 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, 2025, is $11,434,684.
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, 2025, is $362,169.
The Housing Fund notes and loans receivable total $11,796,853.
Component
Accounts 3,438,060 $ 446,028 $ 4,207,982 $ 406,257 $ 48,981 $ 8,547,308 $ Unbilled accounts 13,757,220 152,728 5,890,488 3,086,192 - 22,886,628 Water, sanitation, and trash 18,178 - - 2,653,163 - 2,671,341 Parks and recreation 69,316 - - - - 69,316 Bank return items 257,529 - - - - 257,529 Total 17,540,303 $ 598,756 $ 10,098,470 $ 6,145,612 $ 48,981 $ 34,432,122$ Component
Accounts 157,359 $ 32,530 $ 42,721 $ 16,287 $ 248,897 $ Unbilled accounts 75,990 4,378,607 660,548 33,333 5,148,478 Water, sanitation, and trash - 5,131,481 706,782 363 5,838,626 Total 233,349 $ 9,542,618 $ 1,410,051 $ 49,983 $ 11,236,001$ Capital Projects
Business-Type Activities
Sewer Enterprise
Governmental Activities
Airport Water Utility
Nonmajor
Enterprise Funds Total
Nonmajor
Governmental
Funds
Internal Service
Funds TotalGeneral Fund
Grants
Administration
57 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)
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 Bank 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. Deferred loans are payable upon the sale or transfer of the property.
The rehabilitation loans are recorded in the Grants Administration 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, 2025, is $1,357,786.
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, 2025. 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 financed by the City. The outstanding principal balance is $844,944 with accrued interest of $774,847, totaling $1,619,791 at June 30, 2025.
On December 14, 2000, a 30-year loan was granted for the acquisition and rehabilitation of an affordable rental housing project serving very low-income households through funds the City received from the HOME Investment Partnerships Program for the project located at 436 & 442 W. Valencia 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 developing the project, that is financed by the City. The outstanding principal balance is $444,281 with accrued interest of $316,910, totaling $761,191 at June 30, 2025.
58 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)
On February 22, 2001, a 30-year loan was granted for the acquisition and rehabilitation of an affordable rental housing project serving very low-income households through funds 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 financed by the City. The outstanding principal balance is $308,065 with accrued interest of $220,838 totaling $528,903 at June 30, 2025.
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 August 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 financed by the City. The outstanding principal balance is $165,000 with accrued interest of $751,613, totaling $916,613 at June 30, 2025.
F. Neighborhood Services (HOME Fund – Notes Receivable)
On November 5, 1996, an owner participation and HOME Program Participation 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 serving 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 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 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 $565,000 with accrued interest of $484,655 totaling $1,049,655 at June 30, 2025.
G. Richman Court, LP (HOME Fund – Notes Receivable)
On November 23, 2010, the City agreed to loan $1,750,000 as a purchase 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 equal to 50% of project cash flow will begin on November 23, 2030. The outstanding principal balance is $2,019,560 with accrued interest of $434,748, totaling $2,454,308 at June 30, 2025.
59 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)
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 April 11, 2012. The outstanding principal balance is $1,537,007 with accrued interest of $824,365, totaling $2,361,372 at June 30, 2025.
H. Neighborhood Housing Services (HOME Fund – Notes Receivable)
On February 17, 2004, the City agreed to loan $550,000 as a purchase 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 $522,504 with accrued interest of $623,260 totaling $1,145,764 at June 30, 2025.
On November 5, 2004, the City agreed to loan $146,663 as a development 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 simple interest rate of 3% annually. The outstanding principal is $146,663 with accrued interest of $82,594, totaling $229,257 at June 30, 2025.
I. Orange County Community Housing 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. The loan is subject to loan reductions should the borrower be following various Affordable Housing requirements. The outstanding balance at June 30, 2025 is $185,136.
J. HOME Rehabilitation program
The City uses HOME grant funding to offer interest free deferred loans to low- and moderate-income owner/occupants. Deferred loans are payable upon the sale or transfer of the property and are reviewed every fifteen years to ensure that income qualifications are met. The outstanding balance at June 30, 2025, is $761,688.
K. DAP – Down Payment Assistance Program
The down payment assistance program is funded by HOME Grants. 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, 2025, is $154,166.
60 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES AND LOANS RECEIVABLE (CONTINUED)
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 equal to the resale price of the property. Any outstanding balance, if any, shall be forgiven. The outstanding balance at June 30, 2025, was $206,074.
M. 1600 Commonwealth L.P. (HOME Loan)
On May 31, 2025, 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 date of recordation of the Certificate of Occupancy (COO) for the project and carries an interest rate of 3%. Annual 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, 2025, the outstanding balance of the loan is $1,000,000.
The Grants Administration Fund notes and loans receivable total $14,731,704.
61 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 6: CAPITAL ASSETS
A. The following is summary of capital assets for governmental activities:
Beginning
Balance Adjustments*
Beginning
Balance,
Adjusted
Transfers of
CIP Increases Decreases Ending Balance
Capital assets, not being depreciated/
amortized:
Land 74,167,187 $ (1,149,525) $ 73,017,662 $ - $ - $ (476,906)$ 72,540,756 $ Construction in progress 126,312,442 - 126,312,442 (121,794,424) 20,939,699 (835,124) 24,622,593 Total capital assets, not being
depreciated/amortized 200,479,629 (1,149,525) 199,330,104 (121,794,424) 20,939,699 (1,312,030) 97,163,349 Capital assets, being depreciated/
amortized:
Buildings 96,356,567 - 96,356,567 11,703,699 - - 108,060,266 Improvements other than buildings 87,418,872 - 87,418,872 5,211,157 106,42 3 (88,926) 92,647,526 Machinery and equipment 44,522,715 - 44,522,715 2,572,664 2,065,356 (3, 061,424) 46,099,311 Leasehold improvements 1,837,445 - 1,837,445 - - - 1,837,445 Machinery and equipment - lease assets 1,006,126 - 1,006,126 - 1,931,264 - 2,937,390 Subscription assets 7,293,254 - 7,293,254 - 5,115,635 (14,482) 12,394,407 Infrastructure 403,042,560 - 403,042,560 102,306,904 - (1,284,973) 504,064,491 Total capital assets, being depreciated/
amortized 641,477,539 - 641,477,539 121,794,424 9,218,678 (4,449,805) 768,040,836 Less accumulated depreciation/
amortization for:
Buildings (30,636,990) - (30,636,990) - (1,832,516) - (32,469,506) Improvements other than buildings (45,167,137) - (45,167,137) - (3,642,9 38) 88,926 (48,721,149) Machinery and equipment (28,186,637) - (28,186,637) - (2,440,973) 2,998,467 (27,629,143) Leasehold improvements (1,782,795) - (1,782,795) - (27,325) - (1,810,120) Machinery and equipment - lease assets (410,180) - (410,180) - (506,586) 3,398 (913,368) Subscription assets (902,434) - (902,434) - (1,565,381) 208,025 (2,259,790) Infrastructure (199,278,492) - (199,278,492) - (8,248,697) 1,416,450 (206,110,739) Total accumulated depreciation/
amortization (306,364,665) - (306,364,665) - (18,264,416) 4,715,266 (319,913,815) Total capital assets being depreciated/
amortized, net 335,112,874 - 335,112,874 121,794,424 (9,045,738) 265,461 448,127,021 Governmental activities capital assets, net 535,592,503$ (1,149,525) $ 534,442,978 $ - $ 11,893,961$ (1,046,569) $ 545,290,370 $ *Noted the adjustment relates to prior year disposals which were inadvertently omitted from capital asset disposals. 62 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 6: CAPITAL ASSETS (CONTINUED)
Governmental activities depreciation/amortization expense for capital assets for the year ended June 30, 2025, is as follows:
General government 126,571 $
Public safety 1,631,715
Public works 10,495,243
Community development 211,406
Human and leisure 2,944,464
Liability insurance 229
Vehicle replacement 1,558,526
Information technology 1,260,347
Building maintenance 3,997
Worker's Compensation 2,463
Group Insurance 18,257
Facility capital repair 11,198
Total depreciation/amortization expense - governmental activities 18,264,416$ 63 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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, 2025, 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 28,191,223 (7,551,744) 24,477,002 (853,993) 44,262,488 Total capital assets, not being
depreciated/amortized 37,726,257 (7,551,744) 24,477,002 (853,993) 53,797,522 Capital assets, being depreciated/
amortized:
Buildings 9,894,685 - 125,585 - 10,020,270 Improvements other than buildings 110,037,332 4,474,943 15,001 - 114,527,276 Machinery and equipment 14,500,338 - 296,656 (52,410) 14,744,584 Subscription assets 33,697 - 276,490 - 310,187 Infrastructure 66,227,985 3,076,801 562,815 - 69,867,601 Total capital assets, being depreciated/amortized 200,694,037 7,551,744 1,276,547 (52,410) 209,469,918 Less accumulated depreciation/
amortization for:
Buildings (3,888,800) - (286,971) - (4,175,771) Improvements other than buildings (42,768,422) - (1,824,406) - (44,592,828) Machinery and equipment (13,593,016) - (208,195) 27,904 (13,773,307) Subscription assets (13,479) - (32,182) - (45,661) Infrastructure (9,068,004) - (1,242,686) - (10,310,690) Total accumulated depreciation/
amortization (69,331,721) - (3,594,440) 27,904 (72,898,257)
Total capital assets being depreciated/amortized,
net 131,362,316 7,551,744 (2,317,893) (24,506) 136,571,661 Business-type activities capital assets, net 169,088,573$ - $ 22,159,109$ (878,499) $ 190,369,183 $ Airport 588,581 $
Water Utility 1,897,682
Sewer Enterprise 1,023,214
Compressed Natural Gas 1,579
Brea Dam Facilities Recreational 83,384
Total depreciation/amortization expense - business-type activities 3,594,440$ 64 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT 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 multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (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 years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.
The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2025, 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% 7.460%
Required employer contribution rates 32.440% 32.440%
* 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% 10.730%
Required employer contribution rates 74.740% 74.740%
* Closed to new entrants
Safety
65 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)
At June 30, 2025, 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 amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The 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 $9,160,471 and Safety Plan contributions for the year equaled $22,690,177.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2023, valuation was rolled forward to determine the June 30, 2024, total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry 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 study report from November 2021 that can be found on the CalPERS website.
Description
Miscellaneous
Plan Safety Plan
Active members 309 169
Transferred members 409 82
Terminated members 272 70
Retired members and beneficiaries 709 444 Total 1,699 765
Number of Members
66 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
Asset Class
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 2022 Asset Liability Management study Assumed Asset
Allocation Real Return
1, 2
67 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)
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 amortization 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.
The EARSL for the plan for the measurement period ending June 30, 2024 is 2.0 years, which was obtained by dividing the total service years of 3,388 (the sum of remaining service lifetimes of the active employees) by 1,699 (the total number of participants: active, inactive, and retired). 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.
68 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expense, Deferred Outflows of Resources, 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, 2025, were as follows:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Assets)
Miscellaneous Plan:
Balance at: 6/30/2024 (Measurement Date of 6/30/2023) 332,847,317$ 248,024,128 $ 84,823,189 $ Changes recognized for the Measurement Period:
Service Cost 3,663,598 - 3,663,598 Interest on the Total Pension Liability 22,599,587 - 22,599,587 Changes of Benefit Terms - - - Difference between Expected and Actual Experience 3,114,081 - 3,114,081 Contribution from the Employer - 7,986,461 (7,986,461) Contributions from Employees - 2,099,362 (2,099,362) Net Investment Income - 23,443,100 (23,443,100) Benefit Payments including Refunds of Employee
Contributions (20,525,918) (20,525,918) - Administrative Expense - (201,818) 201,818 Net changes during 2023-2024 8,851,348 12,801,187 (3,949,839) Balance at: 6/30/2025 (Measurement Date of 6/30/2024) 341,698,665 260,825,315 80,873,350 Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Assets)
Safety Plan:
Balance at: 6/30/2024 (Measurement Date of 6/30/2023) 583,214,538 364,837,458 218,377,080 Changes recognized for the Measurement Period:
Service Cost 6,989,703 - 6,989,703 Interest on the Total Pension Liability 39,566,729 - 39,566,729 Changes of Benefit Terms - - - Difference between Expected and Actual Experience 3,814,797 - 3,814,797 Contribution from the Employer - 20,000,007 (20,000,007) Contributions from Employees - 3,034,334 (3,034,334) Net Investment Income - 34,779,796 (34,779,796) Benefit Payments including Refunds of Employee
Contributions (34,186,659) (34,186,659) - Administrative expense - (296,869) 296,869 Net changes during 2023-2024 16,184,570 23,330,609 (7,146,039) Balance at: 6/30/2025 (Measurement Date of 6/30/2024) 599,399,108 388,168,067 211,231,041 Total Plans: 941,097,773 $ 648,993,382 $ 292,104,391 $ Increase (Decrease)
Increase (Decrease)
69 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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 using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90 percent) or 1-percentage-point higher (7.90 percent) than the current rate:
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, 2025, the City recognized pension expense of $10,795,173 for the Miscellaneous Plan, and $28,200,278 for the Safety Plan for a combined total pension expense recognized during the year of $38,995,451. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Discount Rate -1% Current Discount Rate Discount Rate +1%
5.90% 6.90% 7.90%
Miscellaneous Plan 123,615,486$ 80,873,350 $ 45,641,279 $ Safety Plan 290,853,043 211,231,041 146,110,858 Total 414,468,529 $ 292,104,391 $ 191,752,137 $ Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Plan:
Contributions Subsequent to the Measurement Date 9,160,471 $ - $ Changes of Assumptions 1,557,040 -
Net Difference Between Projected and Actual Earnings on Pension Plan Investments 4,001,093 -
Subtotal - Miscellaneous Plan 14,718,604 -
Safety Plan:
Contributions Subsequent to the Measurement Date 22,690,177 - Changes of Assumptions 3,175,818 -
Differences Between Expected and Actual Experience 5,828,996 (506,294) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 5,715,902 -
Subtotal - Safety Plan 37,410,893 (506,294)
Total - Both Plans 52,129,497 $ (506,294) $
70 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLANS (CONTINUED)
The $9,160,471 and $22,690,177 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, 2026. Amounts 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-regular employees are eligible to participate from the date of employment. Federal legislation requires contributions 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, 2025, the City's payroll covered by the plan was $1,038,160. The City made employer contributions of $38,931 (3.75% of current covered payroll), and employees contributed $38,931 (3.75% of current covered payroll). These amounts are now held in trust for the exclusive benefit of the participants and their beneficiaries.
NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN
Plan Description
The City administers a single employer defined benefit healthcare plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 10 years of service (5 years for Executive, Management and Confidential employees) or with a disability at any age with any service and are eligible for a PERS pension.
Miscellaneous and Police retirees and their spouses are covered either under the Kaiser plan or the Cigna HMO and PPO health plans. Fire and Fire Management retirees and their spouses are covered in the health plans available through California PERS.
Miscellaneous Safety Total
Deferred Deferred Deferred
Year Ended Outflows/(Inflows) Outflows/(Inflows) Outflows/(Inflows) June 30, of Resources of Resources of Resources
2026 1,230,099$ 5,478,281 $ 6,708,380 $ 2027 6,718,034 12,084,717 18,802,751 2028 (1,045,284) (1,341,055) (2,386,339) 2029 (1,344,716) (2,007,521) (3,352,237) Total 5,558,133$ 14,214,422 $ 19,772,555 $ 71 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN (CONTINUED)
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.
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 plan 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 for 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, 2024, the City recognized contributions, including the implicit subsidy, in the amount of $1,832,297 as a reduction to the net OPEB liability.
Active 537
Inactive employees or beneficiaries currently receiving benefits 156 Inactive employees entitled to, but not yet receiving benefits 97 Total 790
72 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: POST-EMPLOYMENT HEALTHCARE PLAN (CONTINUED)
Net OPEB Liability
The City's net OPEB liability was based on an actuarial valuation as of June 30, 2024. This is the date as of which the actuarial valuation was performed. The City’s measurement date was as of June 30, 2024, and to develop the net OPEB liability at the beginning of the measurement period on July 1, 2023, the results of the June 30, 2024, 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 4.09 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 benefits, the discount rate is based on 20-year tax exempt AA or higher Municipal Bonds.
Actuarial Cost Method Entry Age, Level Percent of Pay
Actuarial Assumptions
Discount Rate 4.09%
Long-term expected investment return 6.60%
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 Medical long-term trends from Society of Actuaries "Long Term Healthcare
Cost Trend Model v2024_1b" using baseline
assumption. Trend is followed by 6.80% in
2024 decreasing gradually to an ultimate rate
of 4.04% by 2075.
73 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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, 2024:
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 than the current healthcare cost trend rate, for measurement period ended June 30, 2024:
Total OPEB
Liability (a)
Plan
Fiduciary Net
Position (b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2024 (measured 6/30/2023) 26,176,682$ 70,253 $ 26,106,429$ Changes Recognized from the Measurement Period
Service Cost 921,095 - 921,095 Interest 1,010,610 - 1,010,610
Difference between Expected and Actual Experience 3,062,420 - 3,062,420 Changes of Assumptions (3,385,891) - (3,385,891) Difference between Projected and Actual Earnings
on Investments - 6,281 (6,281) Projected Earnings on OPEB Plan Investments - 4,552 (4,552) Contribution - Employer - (1,832,297) 1,832,297 Benefit Payments (1,832,297) 1,832,297 (3,664,594) Administrative Expense - (424) 424 Net Changes (224,063) 10,409 (213,654)
Balance at June 30, 2025 (measured 6/30/2024) 25,952,619$ 80,662 $ 25,871,957$ Increase (Decrease)
Miscellaneous Plan
1% Decrease
(3.09%)
Current
Discount Rate
(4.09%)
1% Increase
(5.09%)
Net OPEB Liability $28,233,478 $25,871,957 $23,774,372 1% Decrease
Current
Healthcare
Cost Trend
Rate 1% Increase
Net OPEB Liability $24,336,173 $25,871,957 $27,694,343 74 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
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, 2025, the City recognized net OPEB expense of $166,512. As of fiscal year ended June 30, 2025, the City reported deferred outflows and deferred inflows of resources related to net OPEB from the following sources:
The $1,837,862 was reported as deferred outflows of resources related 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:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contribution subsequent to
measurement date $1,837,862 - $
Difference between projected
actual experience - (3,632)
Difference between expected and
actual earnings on investments 2,824,929 (3,988,685)
Change in Assumptions 3,057,713 (8,408,062)
Total 7,720,504$ (12,400,379)$
Year ended
June 30:
Deferred
(Inflows) of
Resources
2026 (1,485,179)$
2027 (1,026,737)
2028 (1,107,489)
2029 (1,074,894)
2030 (808,319)
Thereafter (1,015,119)
Total (6,517,737)$
75 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 10: COMMITMENTS AND CONTINGENCIES
As of June 30, 2025, 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 cases are not known at this time. After reviewing these lawsuits with legal counsel, management estimates that the potential 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 not 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.
The following material construction commitments existed at June 30, 2025:
Contract Amount
Expenditures to
date as of
June 30, 2025
Remaining
Commitments
Cannon-Sheppard Area Water Main Replacement 1,968,518 $ 1,821,505 $ 147,013 $ Euclid and Rosecrans Water Main Rehabilitation 2,260,345 1,843,625 416,720 PFAS Management 715,648 254,173 461,475 S Raymond Cul-de-sacs Infrastructure Improvements 1,453,238 294,450 1,158,788 Sunny Hills-Twilight Area Water Main Replacement 3,668,775 3,491,610 177,165 Water System SCADA Upgrade 405,598 186,358 219,240 Water Well Replacement Program 3,537,290 741,630 2,795,660 Malvern - Euclid Sewer Improvement 172,929 14,653 158,276 Phone System Replacement Project 506,250 298,794 207,456 City Wide Tree Removals 837,514 316,701 520,813 Euclid St Sidewalk Gap Closure 327,763 33,500 294,263 Fullerton Community Center Generator 531,946 377,849 154,097 Harbor Signal Synchronization 1,057,065 480,328 576,737 Las Palmas Area Street Rehabilitation 2,429,291 2,105,388 323,903 Nutwood Avenue Bicycle & Pedestrian Mobility Enhancement Project 1,249,643 217,646 1,031,997 Orangethorpe Signal Synchronization Program 2,234,379 2,071,028 163,351 Traffic Signal at Euclid and Rosecrans 516,888 83,420 433,468 Union Pacific Trail - Phase II 1,862,483 619,545 1,242,938 25,735,562$ 15,252,202 $ 10,483,360 $
Project Name
76 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: RISK MANAGEMENT
A. Self-Insurance Program
The City is exposed to various risks of loss related to its operations, 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 membership in the Independent Cities Risk Management Authority (ICRMA). For Fiscal Year 2024-25, 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.
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-insurance for unemployment liability claims. By this action, the City will pay all claims based on the individual reimbursement 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, 2025, is $36,717,000 as established by the City's contract insurance administrator, and the City's Risk Manager. An estimate for incurred but not reported (IBNR) claims has been recorded as a liability as of June 30, 2025.
Settlements have not exceeded coverages for each of the past three fiscal years. Changes in the balances of claims liabilities during the past two years are as follows:
Public Liability
Workers'
Compensation Total
Unpaid claims, June 30, 2023 15,641,000$ 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 Incurred claims (including IBNRs) 11,086,441 4,240,551 15,326,992 Claim payments (6,101,441) (3,128,551) (9,229,992) Unpaid claims, June 30, 2025 19,219,000$ 17,498,000 $ 36,717,000 $ 77 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LEASES
A lessee is required to recognize a lease liability and lease asset, 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 terms by lease type are listed in the table below.
Some leases have extension options of ranging from five to 20 years. As of June 30, 2025, the value of the lease receivable is $18,480,910. The value of the deferred inflow of resources as of June 30, 2025 was $17,003,665, and the amortization of the deferred inflow during the year totaled $2,132,274.
Lease Receivable as
of Commencement
Date
Lease Receivable as
of June 30, 2025
Land - Cell Towers 2.08 to 20.76 6,311,444$ 7,108,644 $ Buildings 3.17 to 16.25 3,869,489 93,115 Golf Course 20.26 to 20.26 273,545 231,242 Airport Hangar Rent 6.50 to 29.02 10,745,031 11,047,909 21,199,509$ 18,480,910 $
Term Range
78 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LEASES (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 527,829 $ 229,515 $ $ 757,344 2027 501,468 213,615 715,083 2028 508,222 198,491 706,713 2029 501,400 182,334 683,734 2030 425,461 167,976 593,437 2031 - 2035 1,774,228 657,101 2,431,329 2036 - 2040 1,817,671 372,105 2,189,776 2041 - 2045 747,677 120,337 868,014 2046 - 2050 178,893 55,162 234,055 2051 - 2055 189,670 17,081 206,751 Total 7,172,519$ 2,213,717 $ 9,386,236 $
Gov ernmental Activ ities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 553,372$ 300,173 $ $ 853,545
2027 563,611 285,482 849,093 2028 565,549 271,138 836,687 2029 546,842 255,935 802,777 2030 552,183 241,863 794,046 2031 - 2035 3,238,503 969,494 4,207,997 2036 - 2040 3,167,610 532,663 3,700,273 2041 - 2045 1,290,539 219,055 1,509,594 2046 - 2050 830,182 66,497 896,679 Total 11,308,391$ 3,142,300 $ 14,450,691 $
Business-Type Activities
B. Leases Payable and Lease Assets
The City entered has into various interest-bearing lease agreements to obtain equipment and vehicles for use by various City departments. The leases have payments that range from $2,979 to $174,874 and interest rates that range from 0.3069% to 8.85%. As of June 30, 2025, the total combined value of the lease liability is $1,917,544, the total combined value of the short-term lease liability is $393,774.
Principal Interest
Fiscal Year Payments Payments Total
2026 393,774$ 46,440 $ 440,214 $
2027 334,180 37,723 371,903
2028 216,956 29,165 246,121
2029 160,292 24,211 184,503
2030 154,524 20,350 174,874
2031-2035 657,818 41,681 699,499
Total 1,917,544$ 199,570 $ 2,117,114 $
79 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LEASES (CONTINUED)
The value of the right to use assets as of June 30, 2025 was $2,937,390 with total accumulated amortization of $913,368.
NOTE 13: SUBSCRIPTIONS PAYABLE
The City has entered into various subscription agreements. As of June 30, 2025, the total value of the subscription liabilities was $9,018,070. The subscriptions have varying interest rates ranging from 2.184% and 3.331%. The value of the right to use assets as of June 30, 2025 was $12,704,594, with total accumulated amortization of $2,305,451.
Asset Class
Lease Asset
Value
Accumulated
Amortization
Computer Equipment 745,234 $ 547,045 $
Vehicle 457,194 189,961
Equipment 1,734,962 176,362
Total machinery and equipment - lease assets 2,937,390$ 913,368 $ Governmental Activities
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Software 12,394,407 $ 2,259,790 $
Total subscription assets 12,394,407 $ 2,259,790 $
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Software 310,187 $ 45,661 $
Total subscription assets 310,187 $ 45,661 $
Business-type Activities
Governmental Activities
80 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 13: SUBSCRIPTIONS PAYABLE (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:
NOTE 14: LONG-TERM LIABILITIES
The table below summarizes the City’s outstanding bond issuances, direct borrowing, and direct placement debts for both governmental and business-type activities:
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 1,335,562$ 247,420 $ 1,582,982 $
2027 1,252,445 209,930 1,462,375
2028 1,079,039 174,710 1,253,749
2029 1,082,929 144,641 1,227,570
2030 1,053,064 114,409 1,167,473
2031-2035 2,974,791 170,453 3,145,244
2036 11,183 335 11,518
Total 8,789,013$ 1,061,898 $ 9,850,911 $
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 36,210 $ 7,145 $ 43,355 $
2027 37,327 6,027 43,354
2028 34,480 4,875 39,355
2029 28,073 3,781 31,854
2030 28,952 2,903 31,855
2031-2035 64,015 3,159 67,174
Total 229,057 $ 27,890 $ 256,947 $
Governmental Activities
Business-Type Activities
Original Interest Final Outstanding
Borrowing Rates Maturity at Year-End
Governmental Activities:
Judgment Obligaton Bonds:
Taxable Judgment Obligation Refunding Bonds, Series 2021 5,010,000$ 0.359% - 2.702% April 1, 2033 3,905,000 $ Total Judgment Obligation Bonds 3,905,000
Total Governmental Activities 3,905,000$
Business-Type Activities:
Revenue Bonds:
2010 Lease Revenue Bonds, Series A 2,705,000 $ 6.500% - 7.750% May 1, 2031 1,045,000 $ 2014 Water Revenue Refunding Bonds 6,810,000 3.000% - 5.000% September 1, 2033 3,410,000 Total Revenue Bonds 4,455,000
Total Business-Type Activities 4,455,000$
81 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 14: LONG-TERM LIABILITIES (CONTINUED)
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, 2024, 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 February 17, 2009 (the “Recovery Act”). Pursuant to the Recovery Act, the City expects to receive a cash subsidy payment from the United States Treasury equal to 45% of the interest payable on or about each interest payment date. 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 Refunding 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 of 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 generating 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 partially defeased and the portion of the defeased liability has 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 the 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 $465,024.
82 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 14: LONG-TERM LIABILITIES (CONTINUED)
D. Event of Default, Acceleration Clauses, and Termination Events
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 is ten years. Payments are due annually under the terms of the financing agreement. At June 30, 2025, the outstanding balance was $587,397.
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. As of June 30, 2025, this loan was fully paid off.
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 various 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 June 30, 2025, the outstanding balance was $7,643,351.
In January 2023, the City entered into an agreement with Goodman Logistics Center Fullerton, LLC., for use of an easement at a cost of $406,611. The interest rate on the loan is 0.0%. The term of the agreement is five years.
Payments are due annually under the terms of the agreement. At June 30, 2025, the outstanding balance was $81,322.
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 rate 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, 2025, the outstanding balance was $1,241,707.
83 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 14: LONG-TERM LIABILITIES (CONTINUED)
The debt service requirements for the City’s loans/financed purchases are as follows:
June 30 Principal Interest Principal Interest Principal Interest 2026 736,742$ 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 480,940 102,386 68,531 32,520 549,471 134,906 2031-2035 2,540,740 374,637 377,985 127,270 2,918,725 501,907 2036-2040 2,783,250 129,898 444,373 60,883 3,227,623 190,781 2041 - - 97,833 3,218 97,833 3,218 8,230,748$ 1,127,461 $ 1,323,029 $ 375,110 $ 9,553,777 $ 1,502,571 $ Governmental Activities Business-Type Activities Total Primary Government
F. Changes in Long-Term Liabilities
Changes in the City’s long-term liabilities for the year ended June 30, 2025, are as follows:
Balance Balance Amount
Beginning of End Due Within
Year, as restated Additions Deletions of Year One Year
Governmental Activities:
Bonds Payable:
Judgment obligation bonds 4,355,000$ - $ 450,000$ 3,905,000 $ 455,000 $ Total Bonds Payable 4,355,000 - 450,000 3,905,000 455,000 Financed purchases 9,166,977 - 936,229 8,230,748 736,742 Subscription liability 5,007,126 6,104,085 2,322,198 8,789,013 1,335,562 Lease liability 561,356 1,929,572 573,384 1,917,544 393,774 Compensated absences 6,484,049 136,840 * - 6,620,889 - Claims 30,620,000 15,326,992 9,229,992 36,717,000 6,095,000 Total Governmental Activities 56,194,508$ 23,497,489 $ 13,511,803 $ 66,180,194 $ 9,016,078 $ Business-Type Activities:
Bonds payable:
Revenue bonds 4,900,000 $ - $ 445,000$ 4,455,000 $ 465,000 $ Premium 373,277 - 38,615 334,662 - Discount (16,140) - (2,483) (13,657) - Total bonds payable 5,257,137 - 481,132 4,776,005 465,000 Loans payable 1,462,644 - 139,615 1,323,029 141,532 Subscription liability 11,454 249,722 32,119 229,057 43,008 Compensated absences 723,367 - 12,923 * 710,444 683,629 Claims 2,200,000 - - 2,200,000 2,200,000 Total Business-Type Activities 9,654,602$ 249,722 $ 665,789 $ 9,238,535 $ 3,533,169 $ *Compensated absences are shown as a net change in accordance with GASB 101, Compensated Absences. 84 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 14: LONG-TERM LIABILITIES (CONTINUED)
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 General 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 liquidated 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:
June 30 Principal Interest Principal Interest Principal Interest 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 72,140 510,000 186,437 980,000 258,577 2029 480,000 62,632 530,000 155,888 1,010,000 218,520 2030 490,000 51,726 560,000 124,075 1,050,000 175,801 2031-2034 1,550,000 82,145 1,900,000 190,987 3,450,000 273,132 3,905,000$ 436,138 $ 4,455,000 $ 1,116,975 $ 8,360,000 $ 1,553,113 $ Governmental Activities Business-Type Activities Total Primary Government 85 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: FUND BALANCE CLASSIFICATIONS
The fund balances of the City’s governmental funds as of June 30, 2025, are presented below:
Other Total
Grants Governmental Governmental
Classification General Fund Administration Capital Projects Funds Funds Nonspendable:
Prepaid costs 185,831 $ 1,600 $ - $ - $ 187,431$ Subtotal - nonspendable 185,831 1,600 - - 187,431 Restricted:
Community development - - - 3,069,393 3,069,393 Public safety - - - 1,894,191 1,894,191 Parks and recreation - - - 6,159,846 6,159,846 Public works - - - 23,033,475 23,033,475 Capital projects - - - 619,878 619,878 Debt service - - - 205,907 205,907 Refuse collection - - - 1,449,631 1,449,631 Housing - - - 12,441,090 12,441,090 Opioid settlement - - - 872,268 872,268 Library 617,926 - - - 617,926 Pension stabilization 703,277 - - - 703,277 General plan updates 1,855,329 - - - 1,855,329 Donations 401,623 - - 433,972 835,595 Subtotal - restricted 3,578,155 - - 50,179,651 53,757,806 Committed:
Capital projects 3,726,151 - - - 3,726,151 Downtown parking 802,289 - - - 802,289 Subtotal - committed 4,528,440 - - - 4,528,440 Assigned:
Contingency reserve 19,827,681 - - - 19,827,681 Street projects 1,415,548 - - - 1,415,548 Building permits 126,533 - - - 126,533 Subsequent year Police Department Retention 379,570 - - - 379,570 Subtotal - assigned 21,749,332 - - - 21,749,332 Unassigned - (402,524) (9,667,378) (5,231,134) (15,301,036) Total Fund Balance 30,041,758 $ (400,924) $ (9,667,378) $ 44,948,517 $ 64,921,973 $ 86 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: INTERFUND TRANSACTIONS
The composition of interfund balances as of June 30, 2025, 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. The General Fund also transferred funds to Internal Service Funds for subsidy transfers.
B. Due To/From Other Funds
Amounts due to and due from other funds at June 30, 2025, is as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund Capital Projects
$
6,847,131 Overdrawn Cash
General Fund Other Govermental Funds 2,937,484 Overdrawn Cash General Fund Other Enterprise Funds 616,825 Overdrawn Cash General Fund Internal Service Funds 2,233,525 Overdrawn Cash Total
$
12,634,965
NOTE 17: SPECIAL ASSESSMENT DEBT WITH NO CITY COMMITMENT
The City issued special tax and assessment bonds on behalf of the 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 infrastructure 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.
Other
Grants Governmental Internal Service
Transfers In General Fund Administration Funds Water Utility Funds Total General Fund - $ - $ 1,017,328$ - $ - $ 1,017,328$ Capital Projects 3,875,920 350,000 13,722,087 - 549,572 18,497,579 Water Utility - - 1,554,426 - - 1,554,426 Internal Service Funds 1,676,938 - 46,695 38,000 - 1,761,633 Total 5,552,858 $ 350,000 $ 16,340,536$ 38,000 $ 549,572 $ 22,830,966 $ Transfers Out
87 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOT
E 17: SPECIAL ASSESSMENT DEBT WITH NO CITY COMMITMENT (CONTINUED) 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, 2025, non-committal debt amounts issued and outstanding are as follows:
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY The California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government would agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 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 enforceable 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 enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
Amount of Outstanding
Non-committal Debt Issues: Issue June 30, 2025
CFD No. 1 2021 Special Tax Refunding Bonds 12,565,000$ 9,370,000 $ CFD No. 2 2024 Special Tax Refunding Bonds 5,840,000 5,840,000 Total Non-committal Debt Issues: 18,405,000$ 15,210,000 $ 88 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
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 Theatre 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 account 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 aggregate monthly rental payments from all tenants in the Firestone Building Condominium Unit and/or Tea Room Building. 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 shall commence on the sufficient fund date. The outstanding balance at June 30, 2025, is $5,426,861.
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, 2025 is $864,028.
Cash and investments pooled with the City 3,867,186$
Cash and investments with fiscal agent 37
3,867,223$
89 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
Seismic Loans:
The former Redevelopment Agency issued 10-year loans for $25,000 - $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, 2025, 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. As of June 30, 2025, this loan was fully paid off.
Tenant Rehab Loans:
The former Redevelopment Agency entered into various Owner Participation Agreements for the purpose of providing loan assistance to participants of the Tenant Improvement 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 the effective date or 1 year after the recording of the Notice of Completion for the improvements. The outstanding balance at June 30, 2025, 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 development 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 $214,998, totaling $844,998 at June 30, 2025.
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 $2,859,798 totaling $11,831,799 at June 30, 2025.
90 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
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 and 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 $1,480,215 totaling $8,680,215 at June 30, 2025.
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 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 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 $883,156 totaling $5,285,719 at June 30, 2025.
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. The outstanding principal balance is $3,000,001 with accrued interest of $705,496, totaling $3,705,497 at June 30, 2025.
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 construction 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 case interest shall accrue at a rate of 6% compounded annually. The site must be used for affordable housing for 60 years. The loan is repayable only in the event of a default by the borrower. The outstanding balance is $872,000 at June 30, 2025.
91 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOT
E 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
1600 Commonwealth LP (Low & Moderate Housing Loan)
On Ma
y 31, 2024, the Successor Agency agreed to loan $717,738 for the 1650 W Commonwealth Ave & 203 S Basque Ave construction project. The loan matures in 55 years from the date of recordation of the Certificate of Occupancy (COO) for the project and carries a simple interest rate 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 and includes affordability restrictions associated with the Taxable Housing Bonds for 55 years from the COO. As of June 30, 2025, the outstanding balance of the loan is $717,738.
1600 Commonwealth LP (City Land Loan)
On Ma
y 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 date 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 restrictions associated with the City Land Loan. As of June 30, 2025, the outstanding balance of the loan is $10,700,000.
Total Loans Receivable is $49,769,088.
C. Long-Term Liabilities
2015 Ta
x Allocation Refunding Bonds
On Ja
nuary 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 service reserve insurance policy 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. As of June 30, 2025, the bonds were fully paid off. 2020A and 2020B Tax Allocation Refunding Bonds
On August 1
9, 2020, the former Fullerton Redevelopment Agency issued 2020A and 2020B Tax Allocation Refunding Bonds in the amount of $33,965,000 and $10,730,000, respectively. Issuance of the debt was for the purpose of refunding, on a current basis, the 2005 Tax Allocation 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 payments are due semiannually and annually, respectively, under the terms of the bond agreement. At June 30, 2025, the outstanding balances of the 2020A and 2020B were $15,510,000 and $3,420,000, respectively.
92 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
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 direction 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 the 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 set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low- and Moderate-Income Housing projects and defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated 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 redevelopment agency. The total principal and interest remaining on the debt is $20,012,617 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 $6,803,908 and the debt service obligation on the bonds was $9,795,174.
Changes in Long-term Liabilities
Changes in the Successor Agency’s long-term liabilities for the year ended June 30, 2025, are as follows:
All of the above liabilities are liquidated by the Successor Agency private-purpose trust fund. The City paid the next debt service payment on the bonds prior to June 30, 2025, resulting in no amount of principal and only a portion of interest due within one year as of June 30, 2025.
Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Bonds Payable:
2015 Tax Allocation Refunding Bond 2,210,000$ - $ 2,210,000$ - $ - $ 2020A Tax Allocation Refunding Bond 20,390,000 - 4,880,000 15,510,000 3,175,000 2020B Tax Allocation Refunding Bond 5,270,000 - 1,850,000 3,420,000 1,870,000 Premiums 1,878,359 - 924,119 954,240 - Total Bonds Payable 29,748,359 $ - $ 9,864,119$ 19,884,240 $ 5,045,000 $ 93 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
The debt service requirements for the City’s bonds are as follows:
D. Insurance
The Successor Agency is covered under the City’s insurance policies. 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 JOINT POWERS
AUTHORITY
On November 21, 2016, the North Orange County Cities Joint Powers 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 determines the activities for the year. NOCCJPA commenced operations on January 15, 2017.
Funding of the JPA’s budgeted amounts is derived from grants and other sources, as well as contributions made by the members to carry out purposes and powers of the JPA, consistent with all joint 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:
June 30 Principal Interest
2026 5,045,000$ 591,783 $
2027 8,075,000 374,634
2028 5,810,000 116,200
18,930,000$ 1,082,617 $
Asse ts:
Cash and cash equiv alents 28,641$
Net Position:
Restricted 28,641 $
Revenues: - $
Expenses -
Change in Net Position -
Net Position - Beginning 28,641
Net Position - Ending 28,641 $
Condensed Statement of Net Position
Condensed Statement of Revenues,
Expenses, and Changes in Net Position
94 CITY OF FULLERTON, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 20:
PRIOR PERIOD ADJUSTMENTS AND RESTATEMENTS
A. Correction of an Error in Previously Issued Financial Statements The p
rior period adjustment reflects corrections related to the transfer of land held for resale between the General Fund and the Successor Agency of the Former RDA during fiscal years 2020 and 2022. Due to uncertainty regarding property ownership, transfers were initiated and later reversed in those respective years. When the reversal occurred in 2022, the corresponding adjustment to cash and net position was inadvertently omitted. This omission has been corrected in the current fiscal year through a prior period adjustment and is shown in the table on the subsequent page.
B.
Change in Accounting Principle
For fiscal ye
ar ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for compensated absences, to align recognition and measurement under a single unified model to better meet the needs of financial statement users; refer to note 1.
The effect of the implementation of the change in accounting principle is shown in the table below.
C.
Changes Within the Entity
The Ameri
can Rescue Plan was previously reported as a major governmental fund during the prior fiscal year. Due to a significant decrease in assets of the fund during the year, it is now being presented as a nonmajor fund, in accordance with GASB Statement No. 34, during the fiscal year ended June 30, 2025. The effects of that change within the financial reporting entity are shown in the table below.
NOTE 21: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 23, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.
June 30, 2024 Correction Changes in Changes
As Previously of an Accounting within the June 30, 2024 Reported Error Principle Entity As Restated
Government-wide
Governmental activities 409,118,316$ (2,900,768)$ (3,408,838)$ -$ 402,808,710$ Business-type activities 216,929,453 - (334,781)
- 216,594,672
Total government-wide 626,047,769$ (2,900,768)$ (3,743,619)$ -$ 619,403,382$ Governmental funds
Major Funds
General Fund 38,656,835$ (2,900,768)$ -$ -$ 35,756,067$ Grants Administration (1,860,587) - - - (1,860,587) American Rescue Plan Act 1,425,827 - - (1,425,827) - Capital Projects (8,441,806) - - - (8,441,806) Total Nonmajor Funds 37,517,332 - - 1,425,827 38,943,159 Total governmental funds 67,297,601$ (2,900,768)$ -$ -$ 64,396,833$ Proprietary funds
Major Funds
Airport 18,667,387$ -$
(32,270)$ -$ 18,635,117$
Water Utility 131,653,540 - (184,237)
- 131,469,303
Sewer Enterprise 57,992,338 - (58,058) - 57,934,280 Total Nonmajor Funds 1,235,908 - (60,216) - 1,175,692 T
otal proprietary funds 209,549,173$ -$
(334,781)$ -$ 209,214,392$
95 CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 95,548,085$ 95,548,085$ 98,191,767$ 2,643,682$ Franchise taxes 4,500,000 4,500,000 5,030,545 530,545 Licenses and permits 2,401,028 2,401,028 4,754,026 2,352,998 Intergovernmental 864,725 864,725 1,632,305 767,580 Charges for services 15,332,571 15,332,571 14,811,236 (521,335) Investment earnings 4,751,345 4,751,345 6,284,686 1,533,341 Fines and forfeitures 1,809,300 1,809,300 1,733,243 (76,057) Miscellaneous 2,509,486 2,509,486 4,166,652 1,657,166 Total revenues 127,716,540 127,716,540 136,604,460 8,887,920
EXPENDITURES
Current:
General government:
Council 459,535 459,535 485,083 (25,548) City Manager 3,281,123 3,281,123 3,220,273 60,850 City Clerk 814,315 814,315 734,638 79,677 Administrative Services Finance 3,632,811 3,632,811 3,397,883 234,928 Human Resources 731,485 731,485 666,363 65,122 Non-departmental (2,759,011) (2,759,011) (580,938) (2,178,073) Public safety:
Fire 34,639,647 34,639,647 36,207,849 (1,568,202) Police 61,340,950 61,340,950 63,859,930 (2,518,980) Community development 7,060,213 7,060,213 6,295,241 764,972 Human and leisure:
Parks and Recreation 7,210,368 7,218,868 6,825,811 393,057 Library 4,744,137 4,744,137 4,647,197 96,940 Public works 11,271,027 11,271,027 11,176,081 94,946 Capital outlay 125,680 125,680 6,130,379 (6,004,699) Debt service:
Principal retirement 282,616 282,616 961,008 (678,392) Interest and fiscal charges 24,423 24,423 24,423 - Total expenditures 132,859,319 132,867,819 144,051,221 (11,183,402) Excess (deficiency) of revenues
over (under) expenditures (5,142,779) (5,151,279) (7,446,761) (2,295,482)
OTHER FINANCING SOURCES (USES)
Transfers in 1,320,164 1,320,164 1,017,328 (302,836) Transfers out (5,603,000) (5,603,000) (5,552,858) 50,142 Lease financing - - 1,574,566 1,574,566
Subscriptions financing - - 4,690,150 4,690,150
Proceeds for sale of capital assets - - 3,266 3,266
Total other financing sources (uses) (4,282,836) (4,282,836) 1,732,452 6,015,288 Net change in fund balances (9,425,615)$ (9,434,115)$ (5,714,309) 3,719,806$ Fund balances-beginning 38,656,835
Restatements - correction of an error (2,900,768)
Fund balances-beginning 35,756,067
Fund balances-ending 30,041,758$
96 CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants Administration
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 3,875,209$ 7,004,607 $ 5,008,015 $ (1,996,592)$ Miscellaneous - - 16,192 16,192
Total revenues 3,875,209 7,004,607 5,024,207 (1,980,400)
EXPENDITURES
Current:
General government - 57,265 1,018 56,247
Public safety 1,158,794 3,464,826 1,629,988 1,834,838 Community development 1,964,575 2,066,002 1,370,253 695,749 Human and leisure 215,633 392,220 97,286 294,934 Public works - 78,810 81,411 (2,601)
Capital outlay - 407,277 34,588 372,689
Total expenditures 3,339,002 6,466,400 3,214,544 3,251,856 Excess (deficiency) of revenues
over (under) expenditures 536,207 538,207 1,809,663 1,271,456
OTHER FINANCING SOURCES (USES)
Transfer out - - (350,000) (350,000)
Total other financing sources (uses) - - (350,000) (350,000) Net change in fund balances 536,207$ 538,207$ 1,459,663 921,456$ Fund (deficit)-beginning (1,860,587)
Fund (deficit)-ending (400,924)$
97 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
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 3,663,598$ 3,386,609 $ 3,627,562 $ 3,548,169 $ 3,775,731$ Interest on total pension liability 22,599,587 22,005,969 21,493,649 21,513,474 21,144,370 Changes of benefit terms - 429,739 - - -
Changes
of assumptions - - 8,273,705 - -
Di
fference between expected and actual experience 3,114,081 1,245,548 (4,346,059) (2,050,727) 394,873 Benefit payments, including refunds of employee
contributions (20,525,918) (19,558,103) (18,944,042) (17,885,130) (17,301,500) Net change in total pension liability 8,851,348 7,509,762 10,104,815 5,125,786 8,013,474 Total pension liability-beginning 332,847,317 325,337,555 315,232,740 310,106,954 302,093,480 Total pension liability-ending (a) 341,698,665 332,847,317 325,337,555 315,232,740 310,106,954
PLAN FIDUCIARY NET POSITION
Contributions-employer 7,986,461 8,225,656 7,585,752 7,017,542 6,036,525 Contributions-employee 2,099,362 1,689,621 1,639,319 1,811,572 2,274,075 Net investment income 23,443,100 14,895,695 (20,344,557) 51,372,978 11,301,839 Benefit payments, including refunds of employee
contributions (20,525,918) (19,558,103) (18,944,042) (17,885,130) (17,301,500) Net plan to plan resource movement - - - - -
Adm
inistrative expense (201,818) (178,654) (170,177) (230,852) (322,988) Other miscellaneous income/(expense) - - - - -
Net change in fiduciary net position 12,801,187 5,074,215 (30,233,705) 42,086,110 1,987,951 Plan fiduciary net position-beginning 248,024,128 242,949,913 273,183,618 231,097,508 229,109,557 Plan fiduciary net position-ending (b) 260,825,315 248,024,128 242,949,913 273,183,618 231,097,508 Net pension liability/(asset) (a) - (b) 80,873,350$ 84,823,189$ 82,387,642$ 42,049,122$ 79,009,446$ Plan fiduciary net position as a percentage of the
total pension liability 76.3% 74.5% 74.7% 86.7% 74.5%
Covered payroll 21,550,579$ 19,862,807 $ 21,004,994 $ 22,456,766 $ 23,791,627$ Plan net pension liability/(asset) as a percentage of
covered payroll 375.3% 427.0% 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 : There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERs took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERs Experience Study and Review of Actuarial Assumptions .T h e accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 98 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%
99 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
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 6,989,703$ 6,837,489 $ 6,727,723 $ 6,193,673 $ 5,929,528$ Interest on total pension liability 39,566,729 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 3,814,797 7,481,421 (3,037,772) 2,697,088 1,835,234 Benefit payments, including refunds of employee
contributions (34,186,659) (33,909,499) (32,560,850) (31,213,796) (30,324,105) Net change in total pension liability 16,184,570 19,158,115 27,425,484 14,320,532 13,107,759 Total pension liability-beginning 583,214,538 564,056,423 536,630,939 522,310,407 509,202,648 Total pension liability-ending (a) 599,399,108 583,214,538 564,056,423 536,630,939 522,310,407
PLAN FIDUCIARY NET POSITION
Contributions-employer 20,000,007 19,372,239 16,849,633 15,515,050 14,081,827 Contributions-employee 3,034,334 2,550,442 3,293,443 3,261,576 3,622,586 Net investment income 34,779,796 21,903,721 (30,042,048) 75,203,654 16,454,572 Benefit payments, including refunds of employee
contributions (34,186,659) (33,909,499) (32,560,850) (31,213,796) (30,324,105) Net plan to plan resource movement - - - - - Administrative expense (296,869) (261,184) (247,861) (335,102) (468,167) Other miscellaneous income/(expense) - - - - - Net change in fiduciary net position 23,330,609 9,655,719 (42,707,683) 62,431,382 3,366,713 Plan fiduciary net position-beginning 364,837,458 355,181,739 397,889,422 335,458,040 332,091,327 Plan fiduciary net position-ending (b) 388,168,067 364,837,458 355,181,739 397,889,422 335,458,040 Net pension liability/(asset) (a) - (b) 211,231,041 $ 218,377,080 $ 208,874,684 $ 138,741,517 $ 186,852,367 $ Plan fiduciary net position as a percentage of the
total pension liability 64.8% 62.6% 63.0% 74.1% 64.2%
Covered payroll 22,635,047$ 22,142,128 $ 21,632,551 $ 21,947,814 $ 20,747,123$ Plan net pension liability/(asset) as a percentage of
covered payroll 933.2% 986.3% 965.6% 632.1% 900.6%
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 : There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERs took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERs Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
100
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%
101
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
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL OPEB LIABILITY
Service cost 921,095$ 1,083,117 $ 1,908,946 $ 1,673,868 $ 1,349,773$ Interest on total pension liability 1,010,610 983,060 674,684 784,439 1,049,606 Changes of assumptions (3,385,891) (579,160) (6,552,244) 1,853,345 3,881,547 Difference between expected and actual experience 3,062,420 62,188 (1,560,876) 148,817 (6,727,717) Benefit payments, including refunds of employee
contributions (1,832,297) (1,861,165) (1,692,781) (1,668,735) (1,635,980) Net change in total OPEB liability (224,063) (311,960) (7,222,271) 2,791,734 (2,082,771) Total OPEB liability-beginning 26,176,682 26,488,642 33,710,913 30,919,179 33,001,950 Total OPEB liability-ending (a) 25,952,619 26,176,682 26,488,642 33,710,913 30,919,179
PLAN FIDUCIARY NET POSITION
Contributions-employer 1,832,297 1,861,165 1,692,781 1,668,735 1,635,980 Net investment income 10,833 7,198 (10,755) 18,630 (94) Benefit payments, including refunds of employee
contributions (1,832,297) (1,861,165) (1,692,781) (1,668,735) (1,635,980) Administrative expense (424) (377) (433) (370) (300) Net change in fiduciary net position 10,409 6,821 (11,188) 18,260 (394) Plan fiduciary net position-beginning 70,253 63,432 74,620 56,360 56,754 Plan fiduciary net position-ending (b) 80,662 70,253 63,432 74,620 56,360 Net OPEB liability/(asset) (a) - (b) 25,871,957 $ 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% 0.3% 0.2% 0.2% 0.2%
Covered-employee payroll 44,761,103$ 37,167,877 $ 49,278,492 $ 55,369,789 $ 51,823,148$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 57.8% 70.2% 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 eight years are shown.
Benefit Changes : None
Changes of Assumptions : None
102
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 $ 51,696,011$
59.3% 56.4% 69.6%
103
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 2025 9,160,471$ 9,160,471 $ - $ 27,740,894$ 33.0% 2024 7,986,451 7,986,451 - 21,550,579 37.1% 2023 6,711,592 8,218,595 (1,507,003) 19,862,807 41.4% 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% 2025 22,690,177$ 22,690,177 $ - $ 29,471,343$ 77.0% 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% 2025 1,870,131$ 1,837,862$ 32,269 $ 46,014,424$ 4.0% 2024 1,820,569 1,832,299 (11,730) 44,761,103 4.1% 2023 1,771,061 1,810,481 (39,420) 37,167,877 4.9% 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 68 and GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation for GASB 75, therefore only eight years are shown.
Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
Single Employer OPEB Plan
104
CITY OF FULLERTON, CALIFORNIA
Notes to the Required Supplementary Information
For the Year Ended June 30, 2025
NO
TE 1: BUDGETARY COMPARISON INFORMATION
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all govern
mental funds. The budget is presented by fund, program, and 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 appropriations 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 controlling expenditures. Appropriations lapse at fiscal year-end unless carried over by approval by the City Council.
A
. B
udgetary 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, 2025.
During the year, the City’s General Fund and Grants Administration Fund incurred excesses of expenditures over appropriations as follows:
Appropriations Expenditures Excess
General fund:
General government:
Council 459,535 $ 485,083$ 25,548$
Public safety:
Fire 34,639,647 36,207,849 1,568,202
Police 61,340,950 63,859,930 2,518,980
Capital outlay 125,680 6,130,379 6,004,699 Debt service:
Principal retirement 282,616 961,008 678,392 Grants Administration:
Public works 78,810 81,411 2,601
Transfers out -
350,000
350,000
105
CITY OF FULLERTON, CALIFORNIA
Notes to the Required Supplementary Information
For the Year Ended June 30, 2025
NO
TE 2: ACTUARIAL ASSUMPTIONS UNDERLYING THE SCHEDULES OF PLAN CONTRIBUTIONS A.
CalPERS Miscellaneous and Safety Pension Plans
The colle
ctive total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount rate 6.90%
Inflation 2.30%
Salary increa
ses 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 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, please refer to the 2021 experience study report that can be found on the CalPERS website.
106
7+,63$*(,17(17,21$//</()7%/$1.
107
CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments 9,228,661$ 4,934,507 $ - $ 6,128,580$ Receivables:
Accounts 766,992 40,386 - -
Accrued interest 50,571 25,210 - 31,266
Not
es and loans -
-
- -
Total assets 10,046,224 5,000,103 - 6,159,846
LIABILITIES
Accounts payable 148,435 - - -
Accr
ued liabilities 34,085 1,645 - -
Deposit
s payable - - - -
Due t
o other funds - - - -
Unear
ned revenue - - - -
Total liabilities 182,520 1,645 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 12,649 4,125 - -
Total deferred inflows of resources 12,649 4,125 - -
FUND BALANCES (DEFICITS)
Restricted 9,851,055 4,994,333 - 6,159,846 Unassigned (deficit) - - - -
Total fund balances (deficits) 9,851,055 4,994,333 - 6,159,846 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 10,046,224$ 5,000,103$ -$ 6,159,846$ Special Revenue Funds
State Gas Tax
Drainage
Capital Outlay Traffic Safety Park Dwelling
108
CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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)
1,890,719$ - $ 790,554$ -$ 31,447 3,555,771 - 1,128,697 8,153 - 3,387 - - - - - 1,930,319 3,555,771 793,941 1,128,697 6,635 1,315,495 - 258,382 - 9,669 - 71,714 - - - - - 41,194 - 1,889,674 - 233,995 - 217,197 6,635 1,600,353 - 2,436,967 29,493 505,787 - 44,335 29,493 505,787 - 44,335 1,894,191 1,449,631 793,941 - - - - (1,352,605) 1,894,191 1,449,631 793,941 (1,352,605) 1,930,319$ 3,555,771 $ 793,941 $ 1,128,697 $ Asset Seizure
Refuse
Collection
Air Quality
Improvement Sanitation
Special Revenue Funds
109
CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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)
7,640,380$ 681,681 $ 592,247 $ -$
585,143 - 37,176 - 40,805 2,920 2,737 - - 11,796,853 - - 8,266,328 12,481,454 632,160 - 78,241 33,947 12,282 2,867,602 - 4,317 - 4,311 - 2,100 - - - - - 1,006,616 - - - - 78,241 40,364 12,282 3,878,529 - - - - - - - - 8,188,087 12,441,090 619,878 - - - - (3,878,529) 8,188,087 12,441,090 619,878 (3,878,529) 8,266,328$ 12,481,454 $ 632,160 $ - $
Housing
FTV Cable -
PEG Access
Fund SB2 / PLHA Measure M2
Special Revenue Funds
110
CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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)
Formerly
Major Fund
4,228,574$ 432,121 $ 868,548 $ 205,907$ - - - - 95,384 1,851 3,720 - - - - - 4,323,958 433,972 872,268 205,907 - - - - 3,239 - - - - - - - - - - - 2,045,267 - - - 2,048,506 - - - - - - - - - - - 2,275,452 433,972 872,268 205,907 - - - - 2,275,452 433,972 872,268 205,907 4,323,958$ 433,972 $ 872,268 $ 205,907 $ Debt Service
Reserve
American
Rescue Plan
Act
West Coyote
Hills
Endowment
Opioid Litigation
Settlement Fund
Special Revenue Funds
Debt Service
Fund
111
CITY OF FULLERTON, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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
37,622,479$
6,145,612
266,004
11,796,853
55,830,948
4,721,019
128,980
2,100
2,937,484
2,496,459
10,286,042
596,389
596,389
50,179,651
(5,231,134)
44,948,517
55,830,948$
112
7+,63$*(,17(17,21$//</()7%/$1.
113
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes -$ - $ - $ -$ Intergovernmental 7,950,338 - - - Charges for services - 695,655 - 5,685,461 Investment earnings (loss) 520,550 274,926 - 190,452 Fines and forfeitures - - 275,251 - Miscellaneous - - - - Total revenues 8,470,888 970,581 275,251 5,875,913
EXPENDITURES
Current:
General government 622 - - 122 Public safety - - - - Community development - - - - Human and leisure - - - - Public works 4,180,070 217,021 - - Refuse collection - - - - Capital outlay 8,448 - - - Debt service:
Prinicipal retirement - - - - Interest and fiscal charges - - - - Total expenditures 4,189,140 217,021 - 122 Excess (deficiency) of revenues
over (under) expenditures 4,281,748 753,560 275,251 5,875,791
OTHER FINANCING SOURCES (USES)
Transfers out (3,285,631) (1,163,787) (275,251) (1,324,571) Lease financing - - - - Subscriptions financing - - - - Total other financing sources (uses) (3,285,631) (1,163,787) (275,251) (1,324,571) Net change in fund balances 996,117 (410,227) - 4,551,220 Fund balances-beginning 8,854,938 5,404,560 - 1,608,626 Change within reporting entity - - - - Fund balances (deficit)-beginning 8,854,938 5,404,560 - 1,608,626 Fund balances (deficit)-ending 9,851,055 $ 4,994,333 $ - $ 6,159,846$ Special Revenue Funds
State Gas Tax
Drainage
Capital Outlay Traffic Safety Park Dwelling
114
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings (loss)
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:
Prinicipal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Lease financing
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Change within reporting entity
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ - $ - $ -$ 1,598,213 197,029 186,252 - - 15,988,733 - 7,034,423 56,746 (15,725) 42,172 (62,795) - - - - 2,029 - - - 1,656,988 16,170,037 228,424 6,971,628 - 106 - 118,487 366,015 - - - - - 4,316 - - - - - - - - 7,893,313 - 16,407,122 - - 102,178 442 - - 13,212 79,509 - - 6,449 - - - 487,854 16,487,179 4,316 8,011,800 1,169,134 (317,142) 224,108 (1,040,172) - - (472,958) - 91,300 - - - - 293,613 - - 91,300 293,613 (472,958) - 1,260,434 (23,529) (248,850) (1,040,172) 633,757 1,473,160 1,042,791 (312,433) - - - - 633,757 1,473,160 1,042,791 (312,433) 1,894,191$ 1,449,631 $ 793,941 $ (1,352,605)$ Special Revenue Funds
Asset Seizure
Refuse
Collection
Air Quality
Improvement Sanitation
115
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings (loss)
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:
Prinicipal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Lease financing
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Change within reporting entity
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ - $ 141,625$ -$ 3,291,728 - - - - 328 - - 419,032 284,635 29,320 (37,971) - - - - - 19,106 - - 3,710,760 304,069 170,945 (37,971) - - 57,381 - - - 307 - - 408,772 - 1,718,032 387,835 - - - 250,182 - - - - - - - - - - - - - - - - - - - 638,017 408,772 57,688 1,718,032 3,072,743 (104,703) 113,257 (1,756,003) (1,944,610) - (46,695) - - - - - - - - - (1,944,610) - (46,695) - 1,128,133 (104,703) 66,562 (1,756,003) 7,059,954 12,545,793 553,316 (2,122,526) - - - - 7,059,954 12,545,793 553,316 (2,122,526) 8,188,087$ 12,441,090 $ 619,878 $ (3,878,529)$ Special Revenue Funds
Housing
FTV Cable -
PEG Access
Fund SB2 / PLHA Measure M2
116
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings (loss)
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:
Prinicipal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Lease financing
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Change within reporting entity
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
Formerly
Major Fund
-$ - $ - $ -$ 8,187,787 - 674,846 - - - 183,750 - 849,624 20,636 42,977 - - - - - - - - - 9,037,411 20,636 901,573 - 360,753 - 185,451 - - - - - - - - - - - - - - 7 - - - - - - - - - - - - - - - - - - 360,753 7 185,451 - 8,676,658 20,629 716,122 - (7,827,033) - - - - - - - - - - - (7,827,033) - - - 849,625 20,629 716,122 - - 413,343 156,146 205,907 1,425,827 - - - 1,425,827 413,343 156,146 205,907 2,275,452$ 433,972 $ 872,268 $ 205,907 $ Debt Service
Fund Special Revenue Funds
American
Rescue Plan
Act
West Coyote
Hills Endowment
Opioid Litigation
Settlement Fund
Debt Service
Reserve
117
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Investment earnings (loss)
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:
Prinicipal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Lease financing
Subscriptions financing
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Change within reporting entity
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
141,625$
22,086,193
29,588,350
2,614,579
275,251
21,135
54,727,133
722,922
366,322
2,131,120
387,835
12,540,593
16,407,122
111,068
92,721
6,449
32,766,152
21,960,981
(16,340,536)
91,300
293,613
(15,955,623)
6,005,358
37,517,332
1,425,827
38,943,159
44,948,517$
118
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 7,678,878$ 7,678,878 $ 7,950,338 $ 271,460$ Charges for services 35,000 35,000 - (35,000) Investment income 142,836 142,836 520,550 377,714 Total revenues 7,856,714 7,856,714 8,470,888 614,174
EXPENDITURES
Current:
General government 439 439 622 (183) Public works 4,261,058 4,261,058 4,180,070 80,988 Capital outlay 7,000 7,000 8,448 (1,448) Total expenditures 4,268,497 4,268,497 4,189,140 79,357 Excess (deficiency) of revenues
over (under) expenditures 3,588,217 3,588,217 4,281,748 693,531
OTHER FINANCING SOURCES (USES)
Transfers out - - (3,285,631) (3,285,631) Total other financing sources (uses) - - (3,285,631) (3,285,631) Net change in fund balances 3,588,217 $ 3,588,217 $ 996,117 (2,592,100)$ Fund balances-beginning 8,854,938
Fund balances-ending 9,851,055$
119
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 800,000$ 800,000 $ 695,655 $ (104,345)$ Investment income 93,795 93,795 274,926 181,131 Total revenues 893,795 893,795 970,581 76,786
EXPENDITURES
Current:
Public works 303,997 303,997 217,021 86,976 Total expenditures 303,997 303,997 217,021 86,976 Excess (deficiency) of revenues
over (under) expenditures 589,798 589,798 753,560 163,762
OTHER FINANCING SOURCES (USES)
Transfers out - - (1,163,787) (1,163,787) Total other financing sources (uses) - - (1,163,787) (1,163,787) Net change in fund balances 589,798 $ 589,798 $ (410,227) (1,000,025) $ Fund balances-beginning 5,404,560
Fund balances-ending 4,994,333$
120
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Safety
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures 200,000$ 200,000 $ 275,251 $ 75,251$ Total revenues 200,000 200,000 275,251 75,251 Excess (deficiency) of revenues
over (under) expenditures 200,000 200,000 275,251 75,251
OTHER FINANCING SOURCES (USES)
Transfers out - - (275,251) (275,251) Total other financing sources (uses) - - (275,251) (275,251) Net change in fund balances 200,000 $ 200,000 $ - (200,000)$ Fund balances-beginning -
Fund balances-ending -$
121
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Dwelling
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 4,315,180$ 4,315,180 $ 5,685,461 $ 1,370,281$ Investment income 94,928 94,928 190,452 95,524 Total revenues 4,410,108 4,410,108 5,875,913 1,465,805
EXPENDITURES
Current:
General government - - 122 (122) Total expenditures - - 122 (122) Excess (deficiency) of revenues
over (under) expenditures 4,410,108 4,410,108 5,875,791 1,465,683
OTHER FINANCING SOURCES (USES)
Transfers out - - (1,324,571) (1,324,571) Total other financing sources (uses) - - (1,324,571) (1,324,571) Net change in fund balances 4,410,108 $ 4,410,108 $ 4,551,220 141,112 $ Fund balances-beginning 1,608,626
Fund balances-ending 6,159,846$
122
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Seizure
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 515,000$ 515,000 $ 1,598,213 $ 1,083,213$ Investment earnings 10,679 10,679 56,746 46,067 Miscellaneous - - 2,029 2,029 Total revenues 525,679 525,679 1,656,988 1,131,309
EXPENDITURES
Current:
Public safety 131,899 131,899 366,015 (234,116) Capital outlay 250,000 250,000 102,178 147,822 Debt service:
Principal retirement - - 13,212 (13,212) Interest expense - - 6,449 (6,449) Total expenditures 381,899 381,899 487,854 (105,955) Excess (deficiency) of revenues
over (under) expenditures 143,780 143,780 1,169,134 1,025,354
OTHER FINANCING SOURCES (USES)
Lease financing - - 91,300 91,300 Total other financing sources (uses) - - 91,300 91,300 Net change in fund balances 143,780 $ 143,780 $ 1,260,434 1,116,654 $ Fund balances-beginning 633,757
Fund balances-ending 1,894,191$
123
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Refuse Collection
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental -$ - $ 197,029$ 197,029$ Charges for services 16,109,686 16,109,686 15,988,733 (120,953) Investment earnings (loss) 20,000 20,000 (15,725) (35,725) Total revenues 16,129,686 16,129,686 16,170,037 40,351
EXPENDITURES
Current:
General government - - 106 (106) Refuse collection 16,091,808 16,091,808 16,407,122 (315,314) Capital outlay 442 442 442 - Debt service:
Principal retirement - - 79,509 (79,509) Total expenditures 16,092,250 16,092,250 16,487,179 (394,929) Excess (deficiency) of revenues
over (under) expenditures 37,436 37,436 (317,142) (354,578)
OTHER FINANCING SOURCES (USES)
Subscription financing - - 293,613 293,613 Total other financing sources (uses) - - 293,613 293,613 Net change in fund balances 37,436 $ 37,436 $ (23,529) (60,965) $ Fund balances-beginning 1,473,160
Fund balances-ending 1,449,631$
124
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 181,000$ 181,000 $ 186,252 $ 5,252$ Investment earnings 15,600 15,600 42,172 26,572 Total revenues 196,600 196,600 228,424 31,824
EXPENDITURES
Current:
Community development 21,000 21,000 4,316 16,684 Capital outlay - - - - Total expenditures 21,000 21,000 4,316 16,684 Excess (deficiency) of revenues
over (under) expenditures 175,600 175,600 224,108 48,508
OTHER FINANCING SOURCES (USES)
Transfers out - (265,000) (472,958) (207,958) Total other financing sources (uses) - (265,000) (472,958) (207,958) Net change in fund balances 175,600 $ (89,400) $ (248,850) (159,450) $ Fund balances-beginning 1,042,791
Fund balances-ending 793,941$
125
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Sanitation
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 7,200,000$ 7,200,000 $ 7,034,423 $ (165,577)$ Investment earnings (loss) 58,136 58,136 (62,795) (120,931) Total revenues 7,258,136 7,258,136 6,971,628 (286,508)
EXPENDITURES
Current:
General government 55,295 55,295 118,487 (63,192) Public works 8,649,803 8,649,803 7,893,313 756,490 Capital outlay 6,500 6,500 - 6,500 Total expenditures 8,711,598 8,711,598 8,011,800 699,798 Net change in fund balances (1,453,462) $ (1,453,462) $ (1,040,172) 413,290 $ Fund (deficit)-beginning (312,433)
Fund (deficit)-ending (1,352,605)$
126
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M2
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 3,766,231$ 3,766,231 $ 3,291,728 $ (474,503)$ Investment earnings 72,925 72,925 419,032 346,107 Total revenues 3,839,156 3,839,156 3,710,760 (128,396)
EXPENDITURES
Current:
Human and leisure 370,406 370,406 387,835 (17,429) Public works 217,000 217,000 250,182 (33,182) Total expenditures 587,406 587,406 638,017 (50,611) Excess (deficiency) of revenues
over (under) expenditures 3,251,750 3,251,750 3,072,743 (179,007)
OTHER FINANCING SOURCES (USES)
Transfers out - - (1,944,610) (1,944,610) Total other financing sources (uses) - - (1,944,610) (1,944,610) Net change in fund balances 3,251,750 $ 3,251,750 $ 1,128,133 (2,123,617) $ Fund balances-beginning 7,059,954
Fund balances-ending 8,188,087$
127
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services -$ - $ 328$ 328$ Investment earnings 275,350 275,350 284,635 9,285 Miscellaneous - - 19,106 19,106 Total revenues 275,350 275,350 304,069 28,719
EXPENDITURES
Current:
Community development 610,350 610,350 408,772 201,578 Total expenditures 610,350 610,350 408,772 201,578 Net change in fund balances (335,000) $ (335,000) $ (104,703) 230,297 $ Fund balances-beginning 12,545,793
Fund balances-ending 12,441,090$
128
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 200,000$ 200,000 $ 141,625 $ (58,375)$ Investment earnings 16,015 16,015 29,320 13,305 Total revenues 216,015 216,015 170,945 (45,070)
EXPENDITURES
Current:
General government 244,856 244,856 57,381 187,475 Public safety - - 307 (307) Total expenditures 244,856 244,856 57,688 187,168 Excess (deficiency) of revenues
over (under) expenditures (28,841) (28,841) 113,257 142,098
OTHER FINANCING SOURCES (USES)
Transfers out - - (46,695) (46,695) Total other financing sources (uses) - - (46,695) (46,695) Net change in fund balances (28,841) $ (28,841) $ 66,562 95,403 $ Fund balances-beginning 553,316
Fund balances-ending 619,878$
129
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB2 / PLHA
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 590,205$ 590,205 $ - $ (590,205)$ Investment earnings (loss) - - (37,971) (37,971) Total revenues 590,205 590,205 (37,971) (628,176)
EXPENDITURES
Current:
Community development 590,205 590,205 1,718,032 (1,127,827) Total expenditures 590,205 590,205 1,718,032 (1,127,827) Net change in fund balances - $ - $ (1,756,003) (1,756,003) $ Fund (deficit)-beginning (2,122,526)
Fund (deficit)-ending (3,878,529)$
130
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental -$ 210,771$ 8,187,787 $ 7,977,016$ Investment earnings - - 849,624 849,624 Total revenues - 210,771 9,037,411 8,826,640
EXPENDITURES
Current:
General government 197,094 407,865 360,753 47,112 Total expenditures 197,094 407,865 360,753 47,112 Excess (deficiency) of revenues
over (under) expenditures (197,094) (197,094) 8,676,658 8,873,752
OTHER FINANCING SOURCES (USES)
Transfers out - - (7,827,033) (7,827,033) Total other financing sources (uses) - - (7,827,033) (7,827,033) Net change in fund balances (197,094) $ (197,094) $ 849,625 1,046,719 $ Fund balances-beginning 1,425,827
Fund balances-ending 2,275,452$
131
CITY OF FULLERTON, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Projects
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 10,183,610$ 28,182,964 $ 781,556 $ (27,401,408)$ Charges for services - 427,089 4,698 (422,391) Miscellaneous - 431,041 591,210 160,169 Total revenues 10,183,610 29,041,094 1,377,464 (27,663,630)
EXPENDITURES
Current:
Public works 293,628 293,628 543,281 (249,653) Capital outlay 27,035,422 82,518,840 20,557,334 61,961,506 Total expenditures 27,329,050 82,812,468 21,100,615 61,711,853 Excess (deficiency) of revenues
over (under) expenditures (17,145,440) (53,771,374) (19,723,151) 34,048,223
OTHER FINANCING SOURCES (USES)
Transfers in 21,070,440 52,117,657 18,497,579 (33,620,078) Bond proceeds - 244,901 - (244,901) Total other financing sources (uses) 21,070,440 52,362,558 18,497,579 (33,864,979) Net change in fund balances 3,925,000 $ (1,408,816) $ (1,225,572) 183,244 $ Fund (deficit)-beginning (8,441,806)
Fund (deficit)-ending (9,667,378)$
132
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Other Enterprise Funds
June 30, 2025
Total Other
Enterprise
Funds
ASSETS
Current assets:
Cash and investments 1,913,745 $ - $ - $ 1,913,745$ Receivables:
Accounts 49,346 - 637 49,983 Accrued interest 12,330 - - 12,330 Leases 31,996 - - 31,996 Inventory 40,220 - - 40,220 Restricted: - - - Cash held with fiscal agent 269,023 - - 269,023 Total current assets 2,316,660 - 637 2,317,297 Noncurrent:
Leases 797,877 - - 797,877 Capital assets - net of accumulated depreciation/amortization 2,867,332 541,789 25,043 3,434,164 Total noncurrent assets 3,665,209 541,789 25,043 4,232,041 Total assets 5,981,869 541,789 25,680 6,549,338
DEFERRED OUTFLOWS OF RESOURCES
Pension deferrals 107,445 4,415 5,888 117,748 Other post-employment benefits deferrals 16,503 2,074 1,939 20,516 Total deferred outflows of resources 123,948 6,489 7,827 138,264
LIABILITIES
Current liabilities:
Accounts payable 3,017,992 1,234 49,242 3,068,468 Accrued liabilities 9,619 2,214 1,160 12,993 Accrued interest payable 13,205 - 359 13,564 Deposits payable 7,002 - - 7,002 Due to other funds - 442,556 174,269 616,825 Compensated absences - current 30,767 212 1,910 32,889 Bonds, loans, leases, and subscriptions - current 155,000 - 2,747 157,747 Total current liabilities 3,233,585 446,216 229,687 3,909,488 Noncurrent liabilities:
Bonds, loans, leases, and subscriptions 876,343 - 21,630 897,973 Net pension liability 590,375 24,262 32,349 646,986 Net other post-employment benefits liability 55,304 6,952 6,499 68,755 Total noncurrent liabilities 1,522,022 31,214 60,478 1,613,714 Total liabilities 4,755,607 477,430 290,165 5,523,202
DEFERRED INFLOWS OF RESOURCES
Leases 742,321 - - 742,321 Other post-employment benefits deferrals 26,507 3,332 3,115 32,954 Total deferred inflows of resources 768,828 3,332 3,115 775,275
NET POSITION
Net investment in capital assets 1,835,989 541,789 666 2,378,444 Restricted for debt service 269,023 - - 269,023 Unrestricted (1,523,630) (474,273) (260,439) (2,258,342) Total net position 581,382 $ 67,516 $ (259,773)$ 389,125 $ Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
133
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Other Enterprise Funds
For the Year Ended June 30, 2025
Total Other
Enterprise
Funds
OPERATING REVENUES
Sales and service charges 4,480,596$ 8,000 $ 44,885 $ 4,533,481$ Miscellaneous 18,469 - - 18,469 Total operating revenues 4,499,065 8,000 44,885 4,551,950
OPERATING EXPENSES
Maintenance, operations, and administration 5,127,034 45,158 146,485 5,318,677 Depreciation/amortization expense 83,384 - 1,579 84,963 Total operating expenses 5,210,418 45,158 148,064 5,403,640 Operating income (loss) (711,353) (37,158) (103,179) (851,690)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 147,109 (20,364) (7,363) 119,382 Interest expense (53,900) - (359) (54,259) Total nonoperating revenues (expenses) 93,209 (20,364) (7,722) 65,123 Change in net position (618,144) (57,522) (110,901) (786,567) Net position-beginning 1,252,693 130,750 (147,535) 1,235,908 Restatements - change in accounting principle (53,167) (5,712) (1,337) (60,216) Net position-beginning 1,199,526 125,038 (148,872) 1,175,692 Net position-ending 581,382 $ 67,516 $ (259,773)$ 389,125 $ Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
134
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Other Enterprise Funds
For the Year Ended June 30, 2025
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,461,451$ 8,000 $ 44,248 $ 4,513,699$ Payments to suppliers and service providers (4,524,756) (44,467) (97,710) (4,666,933) Payments to employees for salaries and benefits (308,599) (13,960) (7,950) (330,509) Other receipts (payments) 18,469 - - 18,469 Net cash provided by (used for)
operating activities (353,435) (50,427) (61,412) (465,274)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interest paid on on-capital debt (1,895) (1,424) (36) (3,355) Payments from other funds on interfund borrowings - 72,215 71,415 143,630 Net cash provided by (used for)
noncapital financing activities (1,895) 70,791 71,379 140,275
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (389,550) - - (389,550) Principal paid on capital debt (150,000) - - (150,000) Interest paid on capital debt (56,383) - (359) (56,742) Proceeds from sales of assets - - - - Net cash provided by (used for)
capital and related financing activities (595,933) - (359) (596,292)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 152,143 (20,364) (9,608) 122,171 Net cash provided by (used for)
investing activities 152,143 (20,364) (9,608) 122,171 Net increase (decrease) in
cash and cash equivalents (799,120) - - (799,120) Cash and cash equivalents-beginning 2,981,888 - - 2,981,888 Cash and cash equivalents-ending 2,182,768$ - $ - $ 2,182,768$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments 1,913,745$ - $ - $ 1,913,745$ Restricted cash and investments 269,023 - - 269,023 Total cash and cash equivalents 2,182,768$ - $ - $ 2,182,768$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (711,353)$ (37,158) $ (103,179) $ (851,690)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 83,384 - 1,579 84,963 (Increase) decrease in accounts receivable (1,966) - (637) (2,603) (Increase) decrease in leases receivable (19,157) - - (19,157) (Increase) decrease in inventory 16,812 - - 16,812 Increase (decrease) in accounts payable 290,999 691 48,775 340,465 Increase (decrease) in accrued liabilities 2,895 2,011 906 5,812 Increase (decrease) in deposits payable 1,978 - - 1,978 Increase (decrease) in compensated absences (40,133) (6,712) (1,089) (47,934) Increase (decrease) in pension items 44,194 (5,960) (5,800) 32,434 Increase (decrease) in other post-employment benefits items (21,088) (3,299) (1,967) (26,354) Total adjustments 357,918 (13,269) 41,767 386,416 Net cash provided by (used for)
operating activities (353,435)$ (50,427) $ (61,412) $ (465,274) $
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments 14,143 $ (3,262) $ (1,296) $ 9,585 $ Assets acquired through subscription arrangements - - 24,377 24,377 Amortization on bond discount (2,483) - - (2,483)
Business-Type Activities
Brea Dam
Facilities
Recreational
Parking
Facilities
Compressed
Natural Gas
Facility
135
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments 33,580,359 $ 8,546,156 $ 34,163,019$ Receivables:
Accounts - - - Accrued interest 143,997 36,604 146,325 Prepaid costs - 556,980 - Inventory - - - Restricted:
Cash held with fiscal agent 2 - - Total current assets 33,724,358 9,139,740 34,309,344 Noncurrent:
Capital assets - net of accumulated depreciation/amortization 915 12,072,654 - Total noncurrent assets 915 12,072,654 - Total assets 33,725,273 21,212,394 34,309,344
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 318,182 - - Pension deferrals 95,671 - 116,279 Other post-employment benefits deferrals 17,595 - 20,694 Total deferred outflows of resources 431,448 - 136,973
LIABILITIES
Current liabilities:
Accounts payable 36,357 18,393 4,219 Accrued liabilities 5,219 - 5,780 Accrued interest payable 21,386 2,034 - Unearned revenue - - - Due to other funds - - - Claims and judgments - current 3,685,000 - 2,410,000 Bonds, loans, leases, and subscriptions - current 455,000 90,603 - Total current liabilities 4,202,962 111,030 2,419,999 Noncurrent liabilities:
Claims and judgments - noncurrent 15,534,000 - 15,088,000 Bonds, loans, leases, and subscriptions 3,450,000 95,526 - Net pension liability 525,677 - 638,899 Net other post-employment benefits liability 58,961 - 69,348 Total noncurrent liabilities 19,568,638 95,526 15,796,247 Total liabilities 23,771,600 206,556 18,216,246
DEFERRED INFLOWS OF RESOURCES
Other post-employment benefits deferrals 28,260 - 33,238 Total deferred inflows of resources 28,260 - 33,238
NET POSITION
Net investment in capital assets 915 11,886,525 - Unrestricted 10,355,946 9,119,313 16,196,833 Total net position 10,356,861 $ 21,005,838 $ 16,196,833 $ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
136
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
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
Other post-employment benefits deferrals
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
(Continued)
3,082,546$ 5,748,230 $ -$
- 48,981 -
13,203 24,620 -
- - 237,900 - 306,974 -
- - -
3,095,749 6,128,805 237,900
127,708 54,812 11,477,552
127,708 54,812 11,477,552
3,223,457 6,183,617 11,715,452
- - -
204,589 395,930 89,784
31,396 90,341 19,195
235,985 486,271 108,979
30,088 176,218 499,332
16,567 27,745 12,705
3,099 - 56,972
19,032 - -
- - 2,233,525 - - -
14,092 - 951,299
82,878 203,963 3,753,833
- - -
109,318 - 3,553,478
1,124,140 2,175,493 493,327
105,210 302,739 64,324
1,338,668 2,478,232 4,111,129
1,421,546 2,682,195 7,864,962
50,427 145,102 30,830
50,427 145,102 30,830
4,298 54,812 6,972,775
1,983,171 3,787,779 (3,044,136)
1,987,469$ 3,842,591 $ 3,928,639 $
Information
Technology
Group
Insurance
Equipment
Maintenance
137
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
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
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
12,190,764$ 2,476,042 $ 99,787,116$
- - 48,981 50,184 12,522 427,455
- - 794,880 - - 306,974 34,650 - 34,652
12,275,598 2,488,564 101,400,058
132,837 45,685 23,912,163
132,837 45,685 23,912,163
12,408,435 2,534,249 125,312,221
- - 318,182 322,337 - 1,224,590
91,991 - 271,212
414,328 - 1,813,984
206,300 - 970,907
24,714 - 92,730
22,930 - 106,421
- - 19,032 - - 2,233,525 - - 6,095,000 447,113 - 1,958,107
701,057 - 11,475,722
- - 30,622,000 7,196,238 - 14,404,560
1,771,126 - 6,728,662
308,268 - 908,850
9,275,632 - 52,664,072
9,976,689 - 64,139,794
147,752 - 435,609
147,752 - 435,609
132,837 45,685 19,097,847
2,565,485 2,488,564 43,452,955
2,698,322$ 2,534,249 $ 62,550,802 $
Building
Maintenance
Facility
Capital Repair
138
7+,63$*(,17(17,21$//</()7%/$1.
139
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Sales and service charges -$ - $ -$ Interfund service charges 11,182,927 3,298,678 2,426,498 Miscellaneous 9,535 35,843 368,089 Total operating revenues 11,192,462 3,334,521 2,794,587
OPERATING EXPENSES
Maintenance, operations, and administration 5,458,179 150,284 973,502 Claims expense 6,101,441 - 3,128,551 Depreciation/amortization expense 229 1,558,526 2,463 Total operating expenses 11,559,849 1,708,810 4,104,516 Operating income (loss) (367,387) 1,625,711 (1,309,929)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 1,465,334 388,836 1,637,677 Interest expense (130,698) (1,514) - Gain (loss) on disposal of capital assets - (3,113) (7,389) Total nonoperating revenues (expenses) 1,334,636 384,209 1,630,288 Income (loss) before transfers 967,249 2,009,920 320,359 Transfers in - - - Transfers out (79,787) - - Change in net position 887,462 2,009,920 320,359 Net position-beginning 9,469,399 18,995,918 15,876,474 Net position-ending 10,356,861 $ 21,005,838 $ 16,196,833 $ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
140
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Sales and service charges
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 transfers
Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
(Continued)
-$ - $ -$
8,071,217 4,937,391 9,318,878
54,923 139,420 -
8,126,140 5,076,811 9,318,878
7,632,703 4,003,023 7,646,980
- - -
18,257 - 1,260,347
7,650,960 4,003,023 8,907,327
475,180 1,073,788 411,551
142,356 255,608 (83,544)
(3,009) (1,311) (21,071)
- - (18,137) 139,347 254,297 (122,752)
614,527 1,328,085 288,799
- - 1,761,633 - - -
614,527 1,328,085 2,050,432
1,372,942 2,514,506 1,878,207
1,987,469$ 3,842,591 $ 3,928,639 $
Information
Technology
Group
Insurance
Equipment
Maintenance
141
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Sales and service charges
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 transfers
Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
Total Internal
Service
Funds
-$ - $ -$
4,305,992 582,247 44,123,828
583,711 - 1,191,521
4,889,703 582,247 45,315,349
3,042,375 127 28,907,173
- - 9,229,992 3,997 11,198 2,855,017
3,046,372 11,325 40,992,182
1,843,331 570,922 4,323,167
538,456 130,301 4,475,024
(143,360) - (300,963)
- - (28,639) 395,096 130,301 4,145,422
2,238,427 701,223 8,468,589
- - 1,761,633 - (469,785) (549,572)
2,238,427 231,438 9,680,650
459,895 2,302,811 52,870,152
2,698,322$ 2,534,249 $ 62,550,802 $
Building
Maintenance
Facility
Capital Repair
142
7+,63$*(,17(17,21$//</()7%/$1.
143
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 11,182,927$ 3,298,678 $ 2,426,498$ Payments to suppliers and service providers (5,236,805) (1,087,287) (748,823) Payments to employees for salaries and benefits (311,527) - (361,942) Payments of insurance claims (1,116,441) - (2,016,551) Other receipts (payments) 9,535 35,843 368,089 Net cash provided by (used for)
operating activities 4,527,689 2,247,234 (332,729)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - - Transfers to other funds (79,787) - - Principal paid on noncapital debt (450,000) - - Interest paid on noncapital debt (92,215) - - Payments to other funds on interfund borrowings - - - Net cash provided by (used for)
noncapital financing activities (622,002) - -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets - (1,568,716) - Principal paid on capital debt - (90,000) - Interest paid on capital debt - (1,563) - Proceeds from sales of assets - - - Net cash provided by (used for)
capital and related financing activities - (1,660,279) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,430,078 377,977 1,617,779 Net cash provided by (used for)
investing activities 1,430,078 377,977 1,617,779 Net increase (decrease) in
cash and cash equivalents 5,335,765 964,932 1,285,050 Cash and cash equivalents-beginning 28,244,596 7,581,224 32,877,969 Cash and cash equivalents-ending 33,580,361 $ 8,546,156 $ 34,163,019 $
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments 33,580,359$ 8,546,156 $ 34,163,019$ Cash held with fiscal agent 2 - - Total cash and cash equivalents 33,580,361 $ 8,546,156 $ 34,163,019 $ Liability
Insurance
Vehicle
Replacement
Workers'
Comp
144
(Continued)
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
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 to 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
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
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
8,081,052$ 4,935,400 $ 9,346,718$
(5,760,791) (3,275,327) (8,489,508)
(2,019,259) (691,077) (268,117)
- - -
54,923 139,420 -
355,925 1,108,416 589,093
- - 1,761,633 - - -
- - -
- - -
- - (34,385) - - 1,727,248 - (54,812) (3,574,892) (13,249) (215,481) (1,253,114)
(3,509) (5,516) (41,411)
- - 2,636,702 (16,758) (275,809) (2,232,715)
138,244 248,931 (83,626)
138,244 248,931 (83,626)
477,411 1,081,538 -
2,605,135 4,666,692 -
3,082,546$ 5,748,230 $ - $
3,082,546$ 5,748,230 $ -$
- - -
3,082,546$ 5,748,230 $ - $
Equipment
Maintenance
Information
Technology
Group
Insurance
145
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
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 to 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
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
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
4,305,992$ 582,247 $ 44,159,512$
(2,955,347) (127) (27,554,015)
(574,475) - (4,226,397) - - (3,132,992) 583,711 - 1,191,521
1,359,881 582,120 10,437,629
- - 1,761,633 - (469,785) (549,572)
- - (450,000) (1,317) - (93,532)
- - (34,385) (1,317) (469,785) 634,144
(96,093) - (5,294,513) (439,034) - (2,010,878) (143,360) - (195,359)
- - 2,636,702 (678,487) - (4,864,048) 527,610 128,521 4,385,514
527,610 128,521 4,385,514
1,207,687 240,856 10,593,239
11,017,727 2,235,186 89,228,529
12,225,414$ 2,476,042 $ 99,821,768 $
12,190,764$ 2,476,042 $ 99,787,116$
34,650 - 34,652
12,225,414$ 2,476,042 $ 99,821,768 $
Building
Maintenance
Facility
Capital Repair
146
(Continued)
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
Liability
Insurance
Vehicle
Replacement
Workers'
Comp
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (367,387)$ 1,625,711 $ (1,309,929)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 229 1,558,526 2,463 (Increase) decrease in accounts receivable - - - (Increase) decrease in inventories - - - (Increase) decrease in prepaid costs - (192,542) - Increase (decrease) in accounts payable 31,181 (744,461) 1,460 Increase (decrease) in accrued liabilities 909 - 789 Increase (decrease) in unearned revenue - - - Increase (decrease) in claims and judgments 4,985,000 - 1,112,000 Increase (decrease) in pension and related items (111,963) - (122,578) Increase (decrease) in OPEB and related items (10,280) - (16,934) Total adjustments 4,895,076 621,523 977,200 Net cash provided by (used for)
operating activities 4,527,689 $ 2,247,234 $ (332,729) $
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments 247,314 $ 62,868 $ 251,312 $ Amortization on bond discount/(premium) 39,773 - - 147
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
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
475,180$ 1,073,788 $ 411,551$
18,257 - 1,260,347
- (1,991) 27,840
- (50,190) -
28,249 - (139,919)
(22,003) (1,915) (702,609)
3,690 12,599 6,832
9,835 - -
- - -
(99,866) 153,659 (215,849)
(57,417) (77,534) (59,100)
(119,255) 34,628 177,542
355,925$ 1,108,416 $ 589,093 $
22,676$ 42,285 $ - $
- - -
148
(Continued)
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
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)
Totals
Building
Maintenance
Facility
Capital Repair
1,843,331$ 570,922 $ 4,323,167$
3,997 11,198 2,855,017
- - 25,849 - - (50,190) - - (304,212) 87,028 - (1,351,319) 10,674 - 35,493
- - 9,835
- - 6,097,000 (351,321) - (747,918)
(233,828) - (455,093)
(483,450) 11,198 6,114,462$
1,359,881$ 582,120 $ 10,437,629$
86,191$ 21,507 $ 734,153 $
- - 39,773 149
Total Private
Purpose
Trust
Funds
ASSETS
Cash and cash equivalents 3,867,186 $ - $ 3,867,186$ Restricted assets - cash and cash equivalents - 5,710,737 5,710,737 Restricted investments:
Mutual funds 37 - 37 Receivables:
Interest 4,139 - 4,139 Notes and loans 49,769,088 - 49,769,088 Prepaid costs 31,062 - 31,062 Land held for resale 5,240,695 - 5,240,695 Total assets 58,912,207 5,710,737 64,622,944
LIABILITIES
Accounts payable 5,336 - 5,336 Accrued liabilities 667 - 667 Accrued interest 219,214 - 219,214 Noncurrent:
Bonds payable - due within one year 5,045,000 - 5,045,000 Bonds payable - due in more than one year 14,839,240 - 14,839,240 Total liabilities 20,109,457 - 20,109,457
NET POSITION
Restricted for:
Restricted for individuals, organizations, and other governments 38,802,750 5,710,737 44,513,487 Total net position 38,802,750 $ 5,710,737 $ 44,513,487 $
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Private Purpose Trust Funds
June 30, 2025
Successor
Agency of the
Former RDA Other
150
Total Private
Purpose
Trust
Funds
ADDITIONS
Investment earnings:
Investment earnings 674,693 $ - $ 674,693$ Total investment earnings 674,693 - 674,693 Taxes 6,803,908 - 6,803,908 Miscellaneous 924,118 - 924,118 Total additions 8,402,719 - 8,402,719
DEDUCTIONS
Administrative expenses 111,160 - 111,160 Contractual services 11,811 55,389 67,200 Interest expense 779,098 - 779,098 Total deductions 902,069 55,389 957,458 Net increase (decrease) in fiduciary net position 7,500,650 (55,389) 7,445,261 Net position-beginning 31,302,100 5,766,126 37,068,226 Net position-ending 38,802,750$ 5,710,737 $ 44,513,487 $
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Private Purpose Trust Funds
For the Year Ended June 30, 2025
Other
Successor
Agency of the
Former RDA
151
Total
Custodial
Funds
ASSETS
Cash and cash equivalents 1,864,871 $ 70,788 $ 433,597 $ 2,369,256$ Receivables:
Taxes - 23,364 - 23,364 Total assets 1,864,871 94,152 433,597 2,392,620
LIABILITIES
Accounts payable 47,634 - - 47,634 Due to bondholders - 94,152 433,597 527,749 Total liabilities 47,634 94,152 433,597 575,383
NET POSITION
Restricted for:
Restricted for individuals, organizations, and other governments 1,817,237 - - 1,817,237 Total net position 1,817,237 $ - $ - $ 1,817,237$ Community
Facilities
Districts
Assessment
Districts
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2025
Collections
for Other
Governments
152
Total
Custodial
Funds
ADDITIONS
Miscellaneous 1,714,141$ - $ - $ 1,714,141$ Total additions 1,714,141 - - 1,714,141 Net increase (decrease) in fiduciary net position 1,714,141 - - 1,714,141 Net position-beginning 103,096 - - 103,096 Net position-ending 1,817,237 $ - $ - $ 1,817,237$
CITY OF FULLERTON, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
Collections
for Other
Governments
Community
Facilities
Districts
Assessment
Districts
153
7+,63$*(,17(17,21$//</()7%/$1.
154
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 .............................................................................................................................................156 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
Revenue Capacity ..........................................................................................................................................166 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
Debt Capacity .................................................................................................................................................169 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 ......................................................................................................177 These schedules offer demographic and economic i ndicators to help the reader understand the environment within which the government’s financial activities take place.
Operating Information ....................................................................................................................................180
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.
155
City of Fullerton
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
Governmental activities
Net investment in capital assets 384,032 $ 406,560 $ 428,099 $ 450,340 $ 469,893 $ Restricted 26,427 27,704 39,316 42,006 41,568 Unrestricted (122,478) (123,501) (169,976) (170,220) (181,629) Total governmental activities net position 287,981$ 310,763 $ 297,439 $ 322,126 $ 329,832 $ Business-type activities
Net investment in capital assets 93,508 $ 97,142 $ 102,771 $ 108,226 $ 114,443 $ Restricted 279 276 298 300 300 Unrestricted 11,119 14,490 14,223 16,408 18,156 Total business-type activities net position 104,906$ 111,908 $ 117,292 $ 124,934 $ 132,899 $ Primary government
Net investment in capital assets 477,540 $ 503,702 $ 530,870 $ 558,566 $ 584,336 $ Restricted 26,706 27,980 39,614 42,306 41,868 Unrestricted (111,359) (109,011) (155,753) (153,812) (163,473) Total primary government net position 392,887 $ 422,671 $ 414,731 $ 447,060 $ 462,731 $ Source: City of Fullerton Annual Comprehensive Financial Reports Fiscal Year
156
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
2020-21 2021-22 2022-23 2023-24 2024-25
473,537$ 486,642 $ 499,394 $ 519,129 $ 524,206 $ 41,442 42,423 45,654 43,545 53,758 (190,128) (156,105) (149,971) (153,556) (166,113) 324,851$ 372,960 $ 395,077 $ 409,118 $ 411,851 $ 122,811$ 134,468 $ 143,202 $ 163,657 $ 181,047 $ 289 260 286 279 269 27,727 41,377 52,900 52,993 55,664 150,827$ 176,105 $ 196,388 $ 216,929 $ 236,980 $ 596,348$ 621,110 $ 642,596 $ 682,786 $ 705,253 $ 41,731 42,683 45,940 43,824 54,027 (162,401) (114,728) (97,071) (100,563) (110,449) 475,678$ 549,065 $ 591,465 $ 626,047 $ 648,831 $ Fiscal Year
157
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
Expenses
Governmental activities:
General government 1,799 $ 1,594 $ 6,862 $ 5,675 $ 6,368 $ Public safety 57,569 65,249 75,773 76,743 83,042 Community development 5,539 6,687 8,761 10,645 8,524 Human and leisure 11,741 11,670 12,670 13,065 13,574 Public works 23,129 26,948 28,183 24,726 26,077 Refuse collection 10,181 10,384 10,394 10,878 11,716 Interest on long-term debt 431 378 358 391 410 Total governmental activities net expenses 110,389 122,910 143,001 142,123 149,711 Business-type activities:
Airport 1,492 1,526 1,667 1,831 2,493 Brea Dam recreational facilities 2,764 2,857 2,770 2,945 2,679 Water utility 24,991 27,268 30,290 27,806 32,314 Parking facilities 28 28 45 23 104 Sewer enterprise 3,076 3,495 3,735 3,384 4,831 Compressed Natural Gas facility 458 396 274 140 196 Total business-type activities net expenses 32,809 35,570 38,781 36,129 42,617 Total primary government expenses 143,198 $ 158,480 $ 181,782 $ 178,252 $ 192,328 $ Program Revenues
Governmental activities:
Charges for services:
General government 820 $ 778 $ 1,305 $ 1,222 $ 962 $ Public safety 5,035 5,072 5,179 7,209 7,945 Community development 3,810 4,548 4,515 4,850 3,936 Human and leisure 1,547 4,399 1,809 5,387 1,356 Public works 7,300 8,195 9,717 11,587 11,449 Refuse collection 10,569 10,788 10,894 11,661 12,059 Operating grants and contributions 8,473 13,748 8,897 9,035 10,538 Capital grants and contributions 29,053 22,761 23,180 27,752 4,796 Total governmental activities program revenues 66,607 70,289 65,496 78,703 53,041 Source: City of Fullerton Annual Comprehensive Financial Reports Fiscal Year
158
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
2020-21 2021-22 2022-23 2023-24 2024-25
7,814$ 7,941 $ 15,532 $ 15,603 $ 9,437 $ 83,200 74,949 82,073 100,595 107,319 10,123 7,194 7,413 10,688 10,111 11,058 11,134 11,447 13,399 14,934 24,617 24,819 27,870 30,259 36,530 12,862 12,766 13,504 15,649 16,119 336 241 246 244 332 150,010 139,044 158,085 186,437 194,782 1,953 2,227 2,125 4,198 2,461 2,729 3,978 3,730 4,163 5,162 32,167 31,069 29,345 32,755 41,722 97 73 76 13 44
3,412 3,579 5,559 4,719 4,429 170 285 106 62 146 40,528 41,211 40,941 45,910 53,964 190,538
$ 180,255 $ 199,026$ 232,347 $ 248,746 $ 1,857$ 1,593 $ 769 $ 522 $ 1,634 $ 7,095 8,284 10,173 11,111 11,456 4,359 5,977 6,525 4,613 8,499 1,552 1,000 1,190 874 6,785 11,618 11,686 12,023 13,754 13,161 13,107 13,728 14,332 14,087 15,989 13,978 12,589 23,760 36,640 19,839 3,725 20,434 6,924 4,348 5,442 57,291 75,291 75,696 85,949 82,805 Fiscal Year
159
City of Fullerton
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
Business-type activities:
Charges for services:
Airport 1,885 1,823 1,775 1,884 1,849 Brea Dam recreational facilities 2,918 2,725 2,863 2,510 2,448 Water utility 27,041 30,021 33,095 32,715 37,786 Parking facilities 17 24 16 12 8 Sewer enterprise 5,844 5,948 6,390 6,044 5,944 Compressed Natural Gas facility 552 313 421 222 190 Operating grants and contributions - - - - - Capital grants and contributions 420 1,417 189 185 567 Total business-type activities program revenues 38,677 42,271 44,749 43,572 48,792 Primary government program revenues 105,284 $ 112,560 $ 110,245 $ 122,275 $ 101,833 $ Net (Expense)/Revenue
Governmental activities (43,782) $ (52,621) $ (77,505) $ (63,420) $ (96,670) $ Business-type activities 5,868 6,701 5,968 7,443 6,175 Total primary government net expense (37,914) $ (45,920) $ (71,537) $ (55,977) $ (90,495) $ General Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes 37,840 $ 39,738 $ 42,146 $ 44,204 $ 46,258 $ Sales taxes 23,000 21,456 21,834 24,438 23,095 Franchise taxes 4,383 4,181 4,336 4,493 4,358 Other Taxes - - - - - Unrestricted motor vehicle in-lieu taxes 57 64 75 69 113 Use of money and property 4,615 3,976 4,594 8,444 7,453 Miscellaneous 4,823 6,024 5,558 6,459 5,249 Extraordinary item 13,667 - - - 17,850 Gain on sale of capital asset - - 3,150 - - Transfers (36) (36) (290) - - Total governmental activities 88,349 75,403 81,403 88,107 104,376 Business-type activities:
Property taxes 104 110 98 87 107 Use of money and property 41 38 40 45 1,612 Miscellaneous 132 117 166 67 71 Gain on sale of capital asset - 0 0 0 -
Transfers 36 36 290 - - Total business-type activities 313 301 594 199 1,790 Total primary government 88,662 $ 75,704 $ 81,997 $ 88,306 $ 106,166 $ Change in Net Position
Governmental activities 44,567 $ 22,782 $ 3,898 $ 24,687 $ 7,706 $ Business-type activities 6,181 7,002 6,562 7,642 7,965 Total primary government 50,748 $ 29,784 $ 10,460 $ 32,329 $ 15,671 $ Source: City of Fullerton Annual Comprehensive Financial Reports Fiscal Year
160
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
2020-21 2021-22 2022-23 2023-24 2024-25
1,822 1,885 1,922 2,123 2,156 3,958 4,256 4,223 4,184 4,481 44,691 49,901 48,228 50,035 52,266 - - - - 8 6,212 6,061 5,372 5,932 5,325 170 150 - - 45 - 108 - - 3,884 1,302 4,930 339 667 794 58,155 67,291 60,084 62,941 68,959 115,446$ 142,582 $ 135,780 $ 148,890 $ 151,764 $ (92,719)$ (63,753) $ (82,389) $ (100,488) $ (111,977) $ 17,627 26,080 19,143 17,031 14,995 (75,092)$ (37,673) $ (63,246) $ (83,457) $ (96,982) $
50,150$ 50,894$ 53,871$ 57,095 $ 62,307 $ 25,571 30,494 31,876 30,508 30,584 4,382 4,468 4,996 5,716 5,172 - 5,552 5,217 5,258 5,301 104 161 148 178 227 3,271 372 6,414 12,118 13,374 3,898 1,147 1,797 4,106 5,568 - 18,378 - - - - - - - 3 186 396 187 (450) (1,516) 87,562 111,862 104,506 114,529 121,020 88 113 227 124 165 227 (861) 991 3,295 3,363 172 798 101 (359) 347 - 0 8 - -
(186) (396) (187) 450 1,516 301 (346) 1,140 3,510 5,391 87,863$ 111,516$ 105,646$ 118,039$ 126,411 $ (5,157)$ 48,109 $ 22,117 $ 14,041 $ 9,043 $ 17,928 25,734 20,283 20,541 20,386 12,771$ 73,843 $ 42,400 $ 34,582 $ 29,429 $ Fiscal Year
161
City of Fullerton
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
General Fund
Nonspendable 11 $ 68 $ 290 $ 7 $ 3,214$ Restricted - - - 1,386 672 Committed 8,743 9,139 - - - Assigned - - 8,992 15,656 13,958 Unassigned 6,139 1,522 4,999 5,432 217 Total General Fund 14,893 $ 10,729 $ 14,281 $ 22,481 $ 18,061 $ All Other Governmental Funds
Nonspendable
Major special revenue funds - $ - $ - $ - $ - $ Major capital projects funds - - - - - Other governmental funds - - - - - Restricted
Major pecial revenue funds 17,769 17,921 21,355 - - Other governmental funds 8,658 9,783 17,962 40,620 40,897 Committed
Major special revenue funds 10,681 10,473 - - - Other governmental funds 10,227 9,445 - - - Assigned
Major capital projects funds - - - - - Unassigned
Major special revenue funds (39) (77) (172) (189) (327) Major capital projects funds (4,187) (10,441) (3,233) (20,501) (1,391) Other governmental funds - - - - - Total all other governmental funds 43,109$ 37,104 $ 35,912 $ 19,930 $ 39,179 $ Source: City of Fullerton Annual Comprehensive Financial Reports Fiscal Year
162
City of Fullerton
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Major special revenue funds
Major capital projects funds
Other governmental funds
Restricted
Major pecial revenue funds
Other governmental funds
Committed
Major special revenue funds
Other governmental funds
Assigned
Major capital projects funds
Unassigned
Major special revenue funds
Major capital projects funds
Other governmental funds
Total all other governmental funds
2020-21 2021-22 2022-23 2023-24 2024-25
2,908$ 713 $ 313 $ 403 $ 186 $ 1,514 1,519 1,519 1,892 3,578 - 439 1,536 3,278 4,528 16,140 18,570 19,809 22,963 21,749 - 4,034 10,311 10,121 - 20,562$ 25,275 $ 33,488 $ 38,657 $ 30,041 $ -$ - $ - $ - $ 2 $ 170 52 - - - 1 - - - - 55 - - 1,426 - 39,873 40,903 44,135 39,953 50,180 - - - - - - - - - - 1,429 - - - - (1,015)
(2,036) (1,234) (1,861) (403) - (446) (5,850) (8,442) (9,667) (847) (1,473) (613) (2,435) (5,231) 39,666$ 37,000 $ 36,438 $ 28,641 $ 34,881 $ Fiscal Year
163
City of Fullerton
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
Revenues
Taxes 65,275 $ 66,134 $ 68,810 $ 73,901 $ 73,850 $ Franchise fees 4,383 4,181 4,335 4,493 4,145 Licenses and permits 1,877 2,037 2,284 2,784 2,146 Intergovernmental 34,616 31,140 42,575 20,611 37,715 Charges for services 24,449 28,913 26,383 33,008 30,505 Investment income 4,156 3,897 4,399 6,895 5,185 Fines and forfeitures 1,628 1,513 1,674 1,658 1,239 Other 948 1,820 1,624 1,958 1,464 Total revenues 137,332 139,635 152,084 145,308 156,249 Expenditures
Current
General government 5,197 5,230 4,466 4,922 5,870 Public safety 61,631 64,986 65,519 68,958 72,921 Community development 5,746 6,717 6,763 6,601 7,940 Human and leisure 10,047 9,876 9,980 10,480 10,668 Public works 14,337 17,927 15,428 16,590 16,926 Refuse collection 10,183 10,385 10,737 11,166 11,899 Capital outlay 37,338 37,012 38,426 33,636 15,483 Debt service
Principal retirement 712 722 519 806 745 Interest and fiscal charges 103 29 18 13 66 Total expenditures 145,294 152,884 151,856 153,172 142,518 Excess (deficiency) of revenues
over (under) expenditures (7,962) (13,249) 228 (7,864) 13,731 Other Financing Sources (Uses)
Transfers in 8,992 9,460 15,170 10,637 13,711 Transfers out (8,739) (8,853) (14,793) (9,560) (15,513) Lease financing - 2,473 - - - Subscription financing - - - - - Proceeds from sale of capital asset 53 - 3,150 2,411 - Loss on disposition of assets - - (1,395) (3,406) - Total other financing sources (uses) 306 3,080 2,132 82 (1,802) Extraordinary item - - - - 2,900 Net change in fund balances (7,656) (10,169) 2,360 (7,782) 14,829 Fund balances - July 1 65,935 58,002 47,832 50,193 42,411 Restatements (277) - - - - Fund balances - June 30 58,002 $ 47,833 $ 50,192 $ 42,411 $ 57,240 $ Debt service as a percentage of
noncapital expenditures 0.76% 0.65% 0.48% 0.69% 0.64%
Source: City of Fullerton Annual Comprehensive Financial Reports Fiscal Year
164
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)
Transfers in
Transfers out
Lease financing
Subscription financing
Proceeds from sale of capital asset
Loss on disposition of assets
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
2020-21 2021-22 2022-23 2023-24 2024-25
79,279$ 87,136 $ 91,173 $ 93,042 $ 98,333 $ 4,182 4,270 4,787 5,534 5,031 2,406 2,737 3,208 2,293 4,754 23,343 35,760 34,524 42,298 29,508 31,430 32,997 35,088 34,318 44,404 3,013 1,868 5,566 8,747 8,899 1,014 1,692 2,074 2,337 2,008 1,160 1,302 1,530 1,868 4,795 145,827 167,762 177,950 190,437 197,732 7,506 7,462 9,804 7,254 8,647 72,970 76,740 84,499 93,148 102,064 9,780 7,219 7,565 10,219 9,797 8,704 9,307 9,363 10,556 11,958 16,244 17,265
22,470 24,182 24,341
12,714 13,208 13,966 15,548 16,407 14,947 33,289 22,036 30,983 26,833 252 259 295 358 1,054 54 47 42 33 31 143,171 164,796 170,040 192,281 201,132 2,656 2,966 7,910 (1,844) (3,400) 15,573 12,438 14,365 24,317 19,515 (15,418) (13,357) (15,192) (25,253) (22,243) - - 389 - 1,666 - - 179 152 4,984 - - - - 3 - - - - - 155 (919) (259) (784) 3,925 - - - - - 2,811 2,047 7,651 (2,628) 525 57,240 60,228 62,275 69,926 67,298 177 - - - (2,901) 60,228$ 62,275 $ 69,926 $ 67,298 $ 64,922 $
0.24% 0.23% 0.23% 0.24% 0.63%
Fiscal Year
165
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-Exempt Assessed Total Direct Year Property Property Property Property Property Property Value Tax Rate 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 2024-25 20,425,916 2,953,430 2,639,525 - 1,560 - 26,020,431 1.0596 ² Agricultural classification added in FY 21/22
Source: Orange County Assessor, Combined Tax Rolls
¹ Other property includes water, mineral rights, rural, extensions, and unique miscellaneous. Values have changed due to reclassification.
166
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 303,841,926 $ 1 1.11%
Rexford Industrial LLC 222,360,855 2 0.81%
El Dorado Apartments 215,294,253 3 0.79%
Trea Amplifi Apartments LLC 175,261,838 4 0.64% Wilshire Lambert Road Owner LLC 159,120,000 5 0.58% Aspect Acquisition LLC 147,072,266 6 0.54%
Prologis USLV Subreit 3 LLC 136,264,017 7 0.50% FHF I Amerige Pointe LLC 131,782,443 8 0.48%
Uptown Fullerton LLC 112,645,115 9 0.41%
University House Fullerton LLC 104,733,977 10 0.38% Kimberly-Clark Worldwide Inc 179,681,533 $ 1 1.04% University House Fullerton LLC 86,443,550 2 0.50% Corecare III 84,241,205 3 0.49%
Rreef America Reit II Corporation 82,967,479 4 0.48% Hughes Drive Acquisitions Partners LLC 68,136,612 5 0.39% Alcoa Global Fasteners Inc 65,926,490 6 0.38% Amerige Heights Apartments LLC 60,359,525 7 0.35% SFERS Real Estate Corporation 59,324,692 8 0.34% PK I Fullerton Town Center LP 57,468,343 9 0.33% CPT Parkside LP 57,059,701 10 0.33%
1,708,376,690$ 6.24% 801,609,130 $ 4.63%
Source: Orange County Assessor, Combined Tax Rolls and the SBE Non Unitary Tax Roll Excludes government and tax-exempt property owners
Fiscal Year 2024-25 Fiscal Year 2015-16
167
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 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 98.90 246,774 32,627,731 98.90 2025 35,564,794 35,102,921 98.70 N/A 35,102,921 98.70
Note: Property tax totals are net of 1915 act bond assessment district levies.
Source: Orange County Auditor/Controller, Tax Ledger
https://tax.ocgov.com/acledger/index_eGov.asp
Collected within the Fiscal Year of the Levy Total Collections to Date 168
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 Bonds Payable Liability 4 Liability 3 Loans Bonds Payable Liability 4 Loan Government 1 Income 2 Capita 2 2015-16 6,455$ 2,733 $ - $ - $ 2,000$ 8,485 $ - $ - $ 2,059$ 21,732 $ 0.51% 153 2016-17 6,135 4,208 - - 1,500 8,766 - - 1,575 22,184 0.51% 154 2017-18 5,858 4,799 - - 1,000 8,236 - - 1,071 20,964 0.46% 147 2018-19 5,575 3,832 - - 500 7,691 - - 546 18,144 0.38% 128 2019-20 5,283 2,942 - - - 7,017 - - - 15,242 0.30% 109 2020-21 5,649 2,531 - - - 6,606 - - - 14,786 0.28% 104 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% 172 2023-24 4,355 9,167 5,007 561 - 5,257 1,463 11 - 25,821 0.38% 183 2024-25 3,905 8,231 8,789 1,918 - 4,776 1,323 229 - 29,171 0.43% 206 1 Details regarding outstanding debt can be found in the notes to the financial statements. 3 The City implemented GASB Statement No. 87 Leases in Fiscal Year 2021-22. 4 The City implemented GASB Statement No. 96 Subscription-Based Information Technology Arrangements in Fiscal Year 2022-23.
Governmental Activities Business-Type Activities
2 Calculations are based on personal income and population data reported in the Schedule of Demographic and Economic Statistics. Amounts reported in F iscal Year 2024-25 have been updated to align calendar year income and population data with the end of the reported fiscal year. Amounts reported for the current f iscal year are based on estimates.
169
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 Olinda Buena Park La Habra Community Yorba Linda Water Year Direct Rate Schools Schools Schools Schools Schools College Schools District 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 2024-25 1.0000 0.04222 0.07479 0.02667 0.03198 0.03758 0.01735 0.03409 0.00700 N. OC Total
Fiscal City Fullerton Community Direct
Year Direct Rate Schools College Tax Rate
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
2024-25 1.0000 0.04222 0.01735 1.0596
Source: Orange County Assessor, Tax Rate Table
Overlapping Rates
Total Direct Tax Rate
170
City of Fullerton
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
(in Thousands) Estimated
Estimated Share of
Debt Percentage Overlapping
2024-25 Assessed Valuation: $27,786,577,810 Outstanding Applicable 1 Debt
Direct Debt - City of Fullerton
Bonds Payable 3,905$ 100.000 3,905$
Financed Purchases (Loans Payable) 8,231 100.000 8,231 Subscription Liabilities 8,789 100.000 8,789
Lease Liabilities 1,918 100.000 1,918
Total City of Fullerton Direct Debt 2
22,843 22,843
Overlapping Tax and Assessment Debt
Metropolitan Water District 17,155 0.682 117 North Orange County Joint Community College District 275,135 15.377 42,308 Brea-Olinda Unified School District 3,647 0.832 30 Placentia-Yorba Linda Unified School District 189,367 5.549 10,508 Anaheim Union High School District District 424,314 0.010 42 Fullerton Joint Union High School District 292,130 51.749 151,174 Anaheim School District 339,870 0.017 58
Buena Park School District 89,901 5.745 5,165
Fullerton School District 58,070 99.829 57,971
La Habra City School District 52,666 8.961 4,719 City of Fullerton Community Facilities District No. 1 9,370 100.000 9,370 City of Fullerton Community Facilities District No. 2 5,840 100.000 5,840 Total Overlapping Tax and Assessment Debt 1,757,465 287,302 Overlapping General Fund Debt
Orange County General Fund Obligations 429,065 3.427 14,704 Orange County Board of Education Certificates of Participation 9,120 3.427 313 North Orange County Regional Occupation Program Certificates of Participation 6,880 15.815 1,088 Brea-Olinda Unified School District Certificates of Participation 3,715 0.832 31 Placentia-Yorba Linda Unified School District Certificates of Participation 75,175 5.549 4,171 Anaheim Union High School District Certificates of Participation 26,880 0.010 3 Fullerton Joint Union High School District Certificates of Participation 36,895 51.749 19,093 Fullerton School District Certificates of Participation 1,960 99.829 1,957 Total Overlapping General Fund Debt 589,690 41,360 Overlapping Tax Increment Debt (Successor Agency)
Successor Agency to Brea Redevelopment Agency 59,058 3.473 2,051 Successor Agency to Fullerton Redevelopment Agency 19,955 100.000 19,955 Total Overlapping Tax Increment Debt 79,013 22,006 Total Overlapping Debt 3
350,668$
Total Direct and Overlapping Debt 373,511$
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. 2 Includes all long-term debt of the governmental activities, including bonds, notes, loans, leases and SBITA payable. 3 Overlapping debt excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital.
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 that is 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 government.
Source: California Municipal Statistics, Inc. (Overlapping); City of Fullerton Administrative Services Department (Direct) 171
City of Fullerton
Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands)
2015-16 2016-17 2017-18 2018-19 2019-20
Debt limit 2,447,320$ 2,551,702 $ 2,690,433 $ 2,848,240 $ 3,000,332$ Total net debt applicable to limit - - - - - Legal debt margin 2,447,320$ 2,551,702 $ 2,690,433 $ 2,848,240 $ 3,000,332$ 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 2024-25
Assessed value 26,020,431 $
Add back: exempt real property -
Total Assessed Value 26,020,431 $
Debt limit
(15% of total assessed value) 3,903,065$
Debt applicable to limit -
Legal debt margin 3,903,065 $
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.
172
City of Fullerton
Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands)
2020-21 2021-22 2022-23 2023-24 2024-25
3,219,618$ 3,274,641 $ 3,448,604 $ 3,710,199 $ 3,903,065 $ - - - - - 3,219,618$ 3,274,641 $ 3,448,604 $ 3,710,199 $ 3,903,065 $ 0% 0% 0% 0% 0%
Fiscal Year
173
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue 1
Principal Interest Total Coverage
2015-16 4,125,954$ 350,000 $ 273,663 $ 623,663 $ 6.62 2016-17 4,826,465 360,000 263,013 623,013 7.75
2017-18 3,670,038 370,000 252,063 622,063 5.90
2018-19 6,036,975 380,000 240,813 620,813 9.72
2019-20 6,908,323 390,000 231,213 621,213 11.12
2020-21 14,593,816 250,000 222,313 472,313 30.90
2021-22 19,634,918 265,000 212,013 477,013 41.16
2022-23 19,660,261 270,000 201,313 471,313 41.71
2023-24 17,730,945 285,000 190,213 475,213 37.31
2024-25 12,132,308 295,000 177,506 472,506 25.68
1 All water system net available revenue (operating income adjusted by depreciation expenses) Source: City of Fullerton - Fiscal Services Division
Annual Comprehensive Financial Reports
2014 Water Revenue Refunding Bonds
Last Ten Fiscal Years
Debt Service Requirements
174
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue 1
Principal Interest Total Coverage
2015-16 - $ 3,245,000$ 3,371,173 $ 6,616,173 $ - 2016-17 - 3,210,000 3,209,063 6,419,063 - 2017-18 - 3,285,000 3,046,688 6,331,688 - 2018-19 - 3,415,000 2,878,488 6,293,488 - 2019-20 - 3,765,000 2,698,953 6,463,953 - 2020-21 - - - - N/A 2021-22 - - - - N/A 2022-23 - - - - N/A 2023-24 - - - - N/A 2024-25 - - - - N/A Fiscal Gross
Year Revenue 1
Principal Interest Total Coverage
2015-16 - $ 150,000$ 9,540 $ 159,540 $ - 2016-17 N/A - - - N/A 2017-18 N/A - - - N/A 2018-19 N/A - - - N/A 2019-20 N/A - - - N/A 2020-21 N/A - - - N/A 2021-22 N/A - - - N/A 2022-23 N/A - - - N/A 2023-24 N/A - - - N/A 2024-25 N/A - - - N/A Source: City of Fullerton - Fiscal Services Division
Annual Comprehensive Financial Reports
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. 3 These bonds were retired in Fiscal Year 2015-16.
2005 Tax Allocation Revenue Bonds 2,3
Last Ten Fiscal Years
Debt Service Requirements
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. 3 These bonds were completely defeased with the issuance of the 2020A Tax Allocation Refunding Bonds as of June 30, 2021.
Debt Service Requirements
2006 CRA/ERAF Taxable Revenue Bonds 2,3
Last Ten Fiscal Years
175
City of Fullerton
Revenue Bond Coverage
Fiscal Gross
Year Revenue 1
Principal Interest Total Coverage
2015-16 - $ 1,485,000$ 1,310,707 $ 2,795,707 $ - 2016-17 - 1,545,000 1,245,324 2,790,324 - 2017-18 - 1,615,000 1,170,453 2,785,453 - 2018-19 - 1,695,000 1,086,554 2,781,554 - 2019-20 - 1,780,000 994,045 2,774,045 - 2020-21 - - - - N/A 2021-22 - - - - N/A 2022-23 - - - - N/A 2023-24 - - - - N/A 2024-25 - - - - N/A Fiscal Gross
Year Revenue 1 Principal Interest Total Coverage
2015-16 - 105,000 172,226 277,226 - 2016-17 - 110,000 165,400 275,400 - 2017-18 - 115,000 158,250 273,250 - 2018-19 - 120,000 150,776 270,776 - 2019-20 - 125,000 142,976 267,976 - 2020-21 - 125,000 134,850 259,850 - 2021-22 - 135,000 125,162 260,162 - 2022-23 - 140,000 114,700 254,700 - 2023-24 - 145,000 103,850 248,850 - 2024-25 - 150,000 92,612 242,612 - Source: City of Fullerton - Fiscal Services Division
Annual Comprehensive Financial Reports
Debt Service Requirements
Last Ten Fiscal Years
2010 Tax Allocation Housing Revenue Bonds 2,3
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 obligations of 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
1 Total Debt Service Fund revenues for Orangefair and East Fullerton Redevelopment Project Areas. 2 The Redevelopment Agency was dissolved on February 1, 2012. 3 These bonds were completely defeased with the issuance of the 2020B Tax Allocation Refunding Bonds as of June 30, 2021.
2 The Redevelopment Agency was dissolved on February 1, 2012. 1 Total Debt Service Fund revenues for Central and East Fullerton Redevelopment Project Areas. 176
City of Fullerton
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Personal Capita
Fiscal Income 2
Personal Unemployment
Year Population 1
(in thousands) Income 2 Rate 3
2015-16 142,234 4,228,814 29,731 4.60%
2016-17 144,214 4,311,756 29,898 4.50%
2017-18 142,824 4,533,852 31,744 3.00%
2018-19 141,863 4,796,794 33,812 2.90%
2019-20 139,431 5,058,288 36,278 9.60%
2020-21 142,732 5,369,372 37,618 8.50%
2021-22 142,873 6,023,146 42,157 4.30%
2022-23 140,311 6,570,771 46,830 3.30%
2023-24 141,469 6,789,946 47,995 3.95%
2024-25 141,469 6,789,946 47,995 4.20%
Note 4 Note 4 Note 4
Sources:
1 California State Department of Finance
2 U.S. Census Bureau, most recent American Community Survey 3 U.S. Bureau of Labor Statistics
Note: 4 Population and income data is compiled by the County of Orange on a calendar year basis. Data is available through calendar year 2024 (for Fiscal Year 2023-24). Calendar year 2025 (Fiscal Year 2024-25) data is not available at the time of this report's publication; thus, calendar year 2024 data is used as an estimate for Fiscal Year 2024-25. 177
7+,63$*(,17(17,21$//</()7%/$1.
178
City of Fullerton
Principal Employers
Current Year and Nine Years Ago
% of Total % of Total
City City
Employer Employees Rank Employment 2
Employees Rank Employment 1
California State University, Fullerton 3,768 1 5.02% 4,150 1 5.85% St. Jude Medical Center 1,797 2 2.40% 1,000 5 1.41% Fullerton Joint Union High School Dist. 1,452 3 1.94% 870 7 1.23% Raytheon Systems Co. 1,200 4 1.60% 1,320 3 1.86% Fullerton College 1,110 5 1.48% 1,200 4 1.69% Fullerton School District 1,040 6 1.39% 1,481 2 2.09% AJ Kirkwood & Associates, Inc 600 7 0.80%
City of Fullerton 577 8 0.77% 644 9 0.91% Albertson's Regional Corporate 400 9 0.53% 950 6 1.34% Morningside of Fullerton 350 10 0.47%
Alcoa Fastening Systems 750 8 1.06%
St. Jude Heritage Health 604 10 0.85%
Total 12,294 16.40% 12,969 18.29%
1 Based upon U.S. Census Bureau's American Community Survey's estimate of 71,000 residents employed 2 Based upon U.S. Census Bureau's American Community Survey's estimate of 75,000 residents employed Source: Fullerton Public Library - A to Z Databases | Data Axle Reference Solutions Fiscal Year 2024-25 Fiscal Year 2015-16
179
City of Fullerton and Fullerton Successor Agency
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
Department 2015-16 2016-17 2017-18 2018-19 2019-20
City Council 6.0 6.0 6.0 6.0 6.0
City Manager 7.0 7.0 6.5 6.5 7.0
Administrative Services 33.0 33.0 33.0 33.0 35.0
Human Resources 8.9 8.9 8.9 8.9 8.9
Fire 92.0 92.0 92.0 89.0 87.0
Police 212.0 212.0 217.0 218.0 203.0
Community Development 28.0 28.0 28.0 28.0 30.0
Public Works 200.0 200.0 198.0 198.0 194.0
Parks & Recreation 22.0 22.0 21.0 21.0 21.0
Library 23.8 23.8 23.8 23.8 23.8
Subtotal 632.7 632.7 634.2 632.2 615.7
Part-time hours 165,840 165,920 165,255 159,639 160,159 Full-time equivalents 79.7 79.8 79.4 76.7 77.0
Total positions 712.4 712.5 713.6 708.9 692.7
Source: City of Fullerton Final Budget
Fiscal Year
2 City Council implemented budget reduction strategies and removal of unfunded positions beginning in Fiscal Year 2022-
23. 1 Reductions in the non-regular positions in Fiscal Year 2020-21 were due to the COVID-19 pandemic. 180
City of Fullerton and Fullerton Successor Agency
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
2020-21 2021-22 2022-23 2023-24 2024-25
6.0 6.0 5.0 5.0 5.0
7.0 7.0 8.0 8.0 10.0
29.0 30.0 32.0 31.0 31.0
9.0 11.0 11.0 11.0 11.0
86.0 87.0 87.0 88.0 88.0
209.0 209.0 197.0 192.0 197.0
31.0 31.0 31.0 32.5 35.5
195.0 192.0 185.0 196.5 198.5
17.0 21.0 14.0 14.0 21.0
21.8 23.8 20.3 21.3 21.3
610.8 617.8 590.3 599.3 618.3
68,410 1 109,127 71,925 114,488 95,275
32.9 52.5 34.6 55.0 45.8
643.7 670.3 624.9 2 654.3 2 664.1 2
Fiscal Year
181
City of Fullerton
Elementary, High School, and University Enrollment Information Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20
Fullerton Elementary School District 13,544 13,700 13,700 13,700 13,700 Fullerton Joint Union High School District 13,773 13,664 13,649 13,695 13,600 Fullerton College 35,335 23,000 23,000 23,000 23,000
California State University - Fullerton 40,235 40,439 39,343 39,030 39,270 Marshall B. Ketchum University 400 544 500 500 1 500
Hope International University 1,438 2,349 1,752 1,749 1,784
Total enrollment in Fullerton's schools
and universities 104,725 93,696 91,944 91,674 91,854
1 Based on average attendance (actual enrollment data is not available) 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
Fiscal Year
182
City of Fullerton
Elementary, High School, and University Enrollment Information Last Ten Fiscal Years
2020-21 2021-22 2022-23 2023-24 2024-25
12,852 12,141 11,681 11,626 11,439
13,630 13,473 13,431 13,173 12,826
21,785 18,742 18,370 18,572 19,521
41,408 40,087 39,729 41,326 42,999
1 740 1 738 1 1,458 1 661 656
1,531 1,623 1,442 1,491 1,541
91,946 86,804 86,111 86,849 88,982
Fiscal Year
183
City of Fullerton
Operating Indicators by Function
Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20
Police
Calls dispatched 50,628 52,527 52,332 49,647 69,027 Crime reports 17,635 18,059 16,346 15,363 13,539 Moving citations 7,573 3,878 4,078 2,394 2,462 Parking citations 37,613 36,658 27,993 28,980 22,258 Fire
Unit responses 18,813 18,250 17,992 16,132 13,611 Medical calls 8,725 8,298 8,088 8,448 10,300 Annual fire inspections 4,437 3,806 3,717 2,678 3,887 Water
Number of customer accounts 31,307 31,427 31,923 31,913 31,987 Average daily consumption
(millions of gallons) 20.9 20.6 23.2 20.5 20.1 Water samples taken 4,597 4,657 4,604 4,607 3,901 Sewers
Feet of sewer mains root cut/
chemically treated 215,312 236,257 - ¹ - ¹ - ¹ Miles of sewer mains root cut/
hydro jetted - - 363 357 280 Number of chemically or
mechanically treated sewer
laterals 1,711 2,167 2,438 2,222 909 Traffic and General Engineering
Traffic signals maintained 151 151 153 154 154 Infrastructure improvement
projects administered 80 77 68 56 38 Private development
plans reviewed 2,500 2,564 2,988 3,023 2,823 Maintenance
Square ft. graffiti removal 316,667 348,336 327,223 365,246 502,178 Street sweeping miles 36,044 36,864 34,870 35,783 32,231 Trees pruned per year 14,975 14,005 8,436 9,587 8,821 Culture and Recreation
Park event attendance 42,000 45,000 49,500 57,625 48,900 Independence Gym / Park /
Community Center participants 170,000 240,000 250,000 268,000 244,656 Fullerton Museum Center
attendance 29,265 21,734 21,435 23,328 12,500 Source: City of Fullerton Budget Division and various City departments 1 Sewer mains were root cut/hydro jetted rather than root cut/chemically treated. 2 Facilities were temporarily closed in Fiscal Year 2020-21 due to the COVID-19 pandemic. 3 As of Fiscal Year 2021-22, Fullerton Museum Center is no longer operated by the City. 4 Independence Gym has not reopened since the COVID-19 pandemic.
Fiscal Year
Function / Operating Indicator
5 Starting in Fiscal Year 2023-24, the City has discontinued chemical treatment and uses only mechanical cleaning for sewer laterals. 184
City of Fullerton
Operating Indicators by Function
Last Ten Fiscal Years
2020-21 2021-22 2022-23 2023-24 2024-25
45,174 46,825 46,255 42,132 41,618 12,877 12,960 13,117 13,500 13,699 5,331 1,454 2,354 6,129 5,534 31,352 10,275 49,027 72,933 38,566 13,928 15,580 16,189 15,751 17,088 11,160 9,507 11,097 13,105 12,479 2,905 7,277 2,567 3,011 5,453 31,890 31,107 31,176 31,977 31,726
21.1 20.4 18.0 16.9 19.7 4,099 4,139 4,037 4,090 4,116 - ¹ - ¹ 11,354 11,454 11,958 248 332 253 302 303 392 1,578 2,425 3,082 5 1,642 5 154 154 154 154 154 58 62 79 82 85 2,835 2,906 3,050 3,016 2,887 441,146 634,989 739,811 663,894 597,588 34,321 34,666 34,397 34,920 34,405 13,089 11,479 12,715 11,593 12,092 - 2 49,400 52,000 53,000 54,500 56,224 2 146,057 4 153,000 4 180,000 4 211,000 4 - 2 N/A 3 N/A 3 N/A 3 N/A 3
Fiscal Year
185
City of Fullerton
Capital Asset Statistics by Function
Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20
Public Safety
Police stations 1 1 1 1 1
Number of patrol units 34 31 33 32 31
Fire stations 6 6 6 6 6
Number of ladder trucks 2 2 2 2 1
Number of fire engines 11 11 11 11 9
Highways and Streets
Miles of streets 285 285 285 285 294 Traffic Signals 151 151 153 154 154 Streetlights 6,900 6,900 6,700 6,700 6,700 Water
Number of water wells 11 10 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 323.3 320.0 325.0 325.0 320.0 Miles of storm drains 71.2 71.2 71.7 71.7 71.7 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 1 1
Number of library books 210,597 210,597 179,914 212,665 199,196 Source: City of Fullerton Budget Division and various City departments Function / Capital Asset
Fiscal Year
¹ The Hunt Library underwent a major refurbishment and was unavailable to the public from Fiscal Year 2019- 20 until Fiscal Year 2022-23.
186
City of Fullerton
Capital Asset Statistics by Function
Last Ten Fiscal Years
2020-21 2021-22 2022-23 2023-24 2024-25
111 1 1
34 35 44 57 43
666 6 6
112 2 2
9 9 10 10 10
294 298 298 298 298
154 154 154 154 154
6,700 6,700 6,700 6,700 6,700
999 9 11
15 15 15 15 15
423 423 423 423 423
320.0 320.0 320.0 320.0 320.0
71.7 71.7 71.7 71.7 71.0 61 61 61 61 61
683 683 683 683 683
1 1 1 1 1 1 22
132,039 168,280 152,924 163,346 156,751
Fiscal Year
187
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188