Garden Grove City Council
January 9, 2024

This page is intentionally blank.

For the fiscal year ended
June 30, 2023

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

CITY OF GARDEN GROVE
City of Garden Grove, 11222 Acacia Parkway, Garden Grove, CA 92840

FINANCE DEPARTMENT
Patricia Song
Finance Director
This page is intentionally blank.

CITY OF GARDEN GROVE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

PAGEINTRODUCTORY SECTION

Letter of Transmittal....................................................................................................

GFOA Certificate of Achievement for Excellence in Financial Reporting...............................

Organization Chart........................................................................................................

List of Elected Officials................................................................................................. i
x
xi
xii

Required Supplementary Information
Budgetary Comparison Schedules:

General Fund.........................................................................................................

Navigation Center Special Revenue Fund...................................................................

Schedule of Changes in the Net Pension Liability and Related Ratios - Agent Multiple Employer Defined Benefit Pension Plans.......................................................................

Schedule of Contributions - Agent Multiple Employer Defined Benefit Pension Plans...........

Schedule of Changes in Total OPEB Liability and Related Ratios.....................................

Note to Required Supplemental Information.................................................................. 96 97
98 102
106
107

FINANCIAL SECTION
Independent Auditor’s Report. ...................................................................................... ........ 1 Management's Discussion and Analysis (Unaudited)............................................................. 5 Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position........................................................................................ . ....... 24 Statement of Activities. .......................................................................................... ........ 25 Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet. ........................................................................................................ .. 27 Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position.................................................................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances. ...................... ... .... 29 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities....................... .30 Proprietary Funds:

Statement of Net Position........................................................................................ 31 Statement of Revenues, Expenses and Changes in Fund Net Position............................ 32 Statement of Cash Flows......................................................................................... 34 Private-Purpose Trust Fund:

Statement of Fiduciary Net Position.......................................................................... 38 Statement of Changes in Fiduciary Net Position.......................................................... 39 Notes to Basic Financial Statements............................................................................ 40

110
114

118
119
120
121
122
123
124
125
126
127
128
129
130
131
132

134
135
136

138
140
142

145
147

151
153
155
156
157
158
159
160
162
163
164
166
170
171
172
173
174

CITY OF GARDEN GROVE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Other Supplementary Information
Nonmajor Governmental Funds:

Combining Balance Sheet..................................................................................................

Combining Statement of Revenues, Expenditures and Changes in Fund Balances...................

Nonmajor Governmental Funds and Major Capital Projects Fund Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual:

Public Safety Special Revenue Fund................................................................................

State Gas Tax Special Revenue Fund...............................................................................

Developer Fees Special Revenue Fund.............................................................................

Garden Grove Cable Special Revenue Fund......................................................................

Street Lighting Special Revenue Fund..............................................................................

Park Maintenance Special Revenue Fund..........................................................................

Main Street District Special Revenue Fund........................................................................

Air Quality Improvement Special Revenue Fund...........................................................

Garden Grove Tourism Improvement District Special Revenue Fund...................................

Other Grants and Contributions Special Revenue Funds......................................................

Street Rehabilitation Special Revenue Fund......................................................................

Home Grant Special Revenue Fund..................................................................................

Housing Authority Assets Capital Projects Fund.................................................................

Housing Successor Agency Low/Mod Capital Projects Fund.............................................

Public Safety Capital Projects Fund.................................................................................

Nonmajor Enterprise Funds:

Combining Statement of Net Position..................................................................................

Combining Statement of Revenues, Expenses and Changes in Fund Net Position..................

Combining Statement of Cash Flows.................................................................................

Internal Service Funds:

Combining Statement of Net Position..................................................................................

Combining Statement of Revenues, Expenses and Changes in Fund Net Position..................

Combining Statement of Cash Flows.................................................................................

STATISTICAL SECTION (UNAUDITED)
Government-wide Information:

Net Position by Component - Last Ten Fiscal Years..................................................................

Changes in Net Position - Last Ten Fiscal Years.......................................................................

Fund and Other Information:

Balance of Governmental Funds - Last Ten Fiscal Years........................................................

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years.................................

General Government Major Tax Revenues by Source – Last Ten Fiscal Years...........................

Assessed Value and Estimated Actual Values of Taxable Property – Last Ten Fiscal Years..........

Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years...................

Principal Property Tax Payers - Current Year and Ten Years Ago...............................................

Property Tax Levies and Collections - Last Ten Fiscal Years......................................................

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years......................................................

Ratios of General Bonded Debt Outstanding............................................................................

Direct and Overlapping Bonds and Debt.................................................................................

Legal Debt Margin Information - Last Ten Fiscal Years.............................................................

Pledged-Revenue Coverage - Last Ten Fiscal Years..................................................................

Demographic and Economic Statistics - Last Ten Calendar Years...............................................

Principal Employers - Current Year and Ten Years Ago...........................................................

Full-Time and Part-Time City Employees by Department - Last Ten Fiscal Years.......................

Operating Indicators by Function - Last Ten Fiscal Years..........................................................

Capital Asset Statistics by Function - Last Ten Fiscal Years.......................................................

Introductory Section
Introductory
Section
This page is intentionally blank.

CITY OF GARDEN GROVE, CA

i

December 22, 2023

To the Honorable Mayor, City Council, and Citizens of the City Garden Grove:

It is with great pleasure that we present to you the City of Garden Grove’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. The ACFR is published to serve two purposes. First, it outlines accountability for public tax dollars and the services that are funded by these resources. Second, it communicates the results of operations and the City’s financial position to its constituents, and provides a vital framework for future decisions about programs and services.

In order to ensure the reliability of the information contained herein, the City contracted with an independent audit firm, Davis Farr LLP, to perform the annual financial audit. The goal of the audit is to provide reasonable assurance that the City’s financial statements are free from material misstatement. Davis Farr LLP issued an unmodified opinion for the City’s financial statements for the fiscal year ended June 30, 2023.

Management is responsible for both the accuracy of the financial report and the completeness and fairness of the presentation. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects, including all disclosures necessary to enable the reader to gain a reasonable understanding of the City’s financial activities.

The ACFR is prepared using the financial reporting requirements outlined by the Governmental Accounting Standards Board (GASB) statements. Three sections are presented: the Introductory Section, the Financial Section, and the Statistical Section. This transmittal letter is included in the Introductory Section, and is designed to complement and should be read in conjunction with the Management’s Discussion and Analysis (MD&A), which is included in the Financial Section. The MD&A provides an overview of the City’s operations and how we performed financially. The auditor’s opinion letter and a complete set of financial statements are presented in the Financial Section. The Statistical Section presents historical

City of Garden Grove Letter of Transmittal
ii

information about the City’s finances and operations, as well as demographic and economic data.

The independent audit of the financial statements of the City of Garden Grove was part of a broader, federally mandated audit of state and local governments (the “Single Audit”) designed to meet the special needs of federal granting agencies. The standards governing the Single Audit require the auditor to report not only on the fair presentation of the financial statements, but also on the City’s internal controls and compliance with legal requirements. These reports are available in the City of Garden Grove’s separately issued Single Audit Report.

The ACFR is a required component of continuing disclosure to the bond holders as covenanted by certain City bond issues.

Community Profile

The City of Garden Grove incorporated on June 18, 1956. It is located in central Orange County approximately 25 miles southeast of downtown Los Angeles. With a current population of approximately 170,488, it is the fifth largest city in Orange County and the 31st largest in the State of California.

The City spans an area of 17.9 square miles and is a general law city in the State of California. It has a Council-Manager form of government. On May 10, 2016, the City adopted Ordinance No. 2866 changing the City’s at-large system of electing City Council members to a By-District election system and established the boundary lines of the six districts. While the Mayor continues to be elected at-large for a two-year term, the six City Council members are elected by districts for four-year staggered terms. The City Council appoints the City Manager and City Attorney. The City Manager has the responsibility for hiring the department directors and for administering the City's programs in accordance with the policies adopted by the City Council.

City Service and Budgetary Control

Garden Grove is a full service city. The services provided by the City include police safety, street and park maintenance, water, sewer, recreation, traffic/transportation, public improvements, planning, zoning, code enforcement, business license, and other general municipal services. The City began contracting with Orange County Fire Authority to provide fire protection and paramedic services since August 16, 2019.

Also included in the City’s overall operations are the Garden Grove Housing Authority, the Garden Grove Sanitary District, Garden Grove Successor Agency, and the Garden Grove Public Financing Authority. Additional information on these component units is available in the Notes to the Basic Financial Statements.

A key element of the City’s financial management process is the development and approval of a biennial budget. Garden Grove Municipal Code requires the City Manager to prepare and submit the proposed budget and salary plan to the City Council for approval. The City Council conducts multiple public budget review

City of Garden Grove Letter of Transmittal
iii

sessions to obtain taxpayer input, prior to adopting the budget at a public meeting.

The legal level of budgetary control is at the fund level. The City Council may amend the budget to increase or decrease appropriations or move appropriations between funds. The City Manager is authorized to transfer appropriations within a fund between various programs and/or departments.

Demographic and Economic Information

Demographically, the City of Garden Grove has one of the highest population densities in the County. The community is highly diversified with a median age of

39.1 years. With a 2022 population of 169,254, the City is the 5th largest city in the Orange County and 31st largest city in California. The City’s median household income in 2022 was $86,139, slightly above the national average. The City is benefiting from higher education levels of its residents. In 2022, 75.4% of the population completed high school, and 23.5% received bachelor’s degree or higher. This is an increase of

44.1% comparing to 2000.

Between 2016 and 2021, total jobs in the City grew 4.1% to 84,255. The City’s largest employment sector is in office and administrative support, which accounts for

13.1% of total jobs, followed by manufacturing (11.3%), and Accommodation and Food Services (8.9%).

With limited opportunities for large-scale new development, Garden Grove continues to facilitate reinvestment of underutilized commercial properties. Through its ongoing commitment to stimulate the local economy by facilitating business retention and expansion improve essential services, and expand its public safety labor force, the City of Garden Grove will continue to provide excellent services to its constituents and neighboring communities.

Financial Condition of the City

The City’s underlying credit rating was upgraded by two notches to AA by Standard & Poor’s (S&P) in September 2021. The two-notch upgrade is a reflection of the City’s “very strong” (S&P’s highest qualitative category) financial management, liquidity, budgetary flexibility and debt and contingent liabilities. The enhanced credit rating is a direct result of the active actions the City has been taking in strengthening our financial management practices and budget performance. Efforts have been focused in reducing unfunded pension liability, funding for infrastructure gaps, improving operational efficiency, and promoting transparency. In recent years, the City established an Internal Revenue Code Section 115 Trust to reduce unfunded pension liability, adopted an Infrastructure Funding Policy to comprehensively address our infrastructure deficit situation, and implemented an Enterprise Resources Planning (ERP) system to improve budget management and process efficiency.

The financial condition of the City continues to improve along with the overall economic expansion. After a stronger than expected recovery from the pandemic, the economy nationwide has slowed down as financial conditions tighten. Economists believe the economy is not at imminent risk of sliding into a recession in the short

City of Garden Grove Letter of Transmittal
iv

term, however, cities across the State are taking precautionary steps to carefully plan for their spending. Despite the fact that local agencies nationwide received significant resources from the federal government during the pandemic, high inflation and large infrastructure deficits are still threatening the fiscal health of municipalities. Garden Grove is no exception. The American Rescue Plan Act funds were strategically deployed to address both acute and long-standing challenges; the City took the opportunity to plan for several major capital initiatives including the acquisition of a navigation center, the construction of a public safety facility, and the launch of important fiscal policies to address the deferred maintenance issues across City facilities.

The continued robust consumer spending boosted all three primary revenue sources for the City. During Fiscal Year 2022-23, home prices continued to climb. As a result, property tax, the largest revenue source for the City, showed an 11.5% increase over the previous year, reaching $66.4 million. Sales tax increased slightly by $0.4 million from last fiscal year. Tourism demonstrated promising recovery from the pandemic.

In Fiscal Year 2022-23, the City received a record high of $28.0 million in Transient Occupancy Tax.

Budget wise, due to the strong revenue growth in the past couple of years, the City was able to fund 17 new positions and various programs when adopting its Fiscal Years 2023 through 2025 biennial budget in June 2023. A total of $13.1 million additional funding was infused into the adopted General Fund budget. These funding was programmed to address the priorities the City Council established in areas of homelessness, public safety, economic development/support for local businesses, infrastructure, code enforcement and cultural diversity. Additionally, a new Building and Facilities internal service fund was established to systematically collect funds needed for preventative maintenance. A $600,000 annual allocation to this new internal service fund was programmed into the base budget on a continuous basis as one of the budget priorities. These additional funding measures were critical to carry out the promises made to our community for a fiscally and operationally resilient city.

The City continues its efforts in improving fiscal policy, financial management and standard setting, applying best budget practices, and managing spending in a prudent manner to ensure efficient use of resources.

Long-term Financial Planning

The City has consistently demonstrated responsible fiscal management practices. In accordance with the provisions of the City’s municipal code, a five-year forecast covering operating revenue and expenditures, labor usage, and capital improvement plan is incorporated in the biennial budget process. The forecast includes analysis of key revenue and expenditure components, and proposed measures to address any anticipated funding gaps. The City’s biennial budget is developed in the context of the five-year financial forecast.

To foster a culture of long-term fiscal sustainability, the City has started the process of adopting a series of important fiscal policies in recent years. These policies set a

City of Garden Grove Letter of Transmittal
v

framework to ensure a balanced budget, maintain healthy reserves, appropriately fund the City’s pension liabilities, as well as planning for future infrastructure needs.

In August 2019, the City adopted the Pension Funding Policy, formally committing to proactively addressing its unfunded pension liability. With the close of Fiscal Year 2018-19, a General Fund reserve policy was added, setting a standard for a contingency reserve. In June 2021, an Infrastructure Funding Policy was formally adopted by the City Council, establishing a framework to address the City’s infrastructure needs and enable strategic investments to accommodate future growth. Subsequently, a Capital Asset Renewal and Replacement Reserves Policy was approved by the City Council in June 2022.

Together, these important policies will guide the City in formulating its budget responsibly and standardizing practices to achieve best use of City resources. In the future, policies on user fees and cost recovery and cost allocation for administrative and support functions, will also be developed and incorporated into the comprehensive financial policy framework.

Financial Policies and Practices

The City has adopted various critical financial policies and practices with the goal of building a fiscally resilient government over the long-term.

Capital Asset Renewal and Replacement Reserves Policy

The purpose of the Capital Asset Renewal and Replacement Reserves Policy is to ensure adequate funding for the renewal and replacement of the City’s capital assets to protect the public investment and achieve the assets’ maximum useful life. The Policy is intended to promote proactive financial management by increasing awareness of the ongoing need for capital replacement and encouraging long-term capital planning.

Infrastructure Funding Policy

The Infrastructure Funding Policy sets a framework for policy standards and provides direction to systematically address the infrastructure deficit. It calls out several critical fiscal and asset planning or management practices to be developed over the next few years, including a Capital Replacement Reserves Policy, asset management plans for each major infrastructure type, and a comprehensive infrastructure plan.

Pension Funding Policy

The purpose of the Pension Funding Policy is to establish a systematic and disciplined method to accumulate resources to be used towards funding pension liability and future benefit payments, and to provide reasonable assurance that the cost of pension benefits will be funded in an equitable and sustainable manner.

City of Garden Grove Letter of Transmittal
vi

General Fund Reserve Policy

The City is committed to prudent fiscal practices and maintaining adequate General Fund reserves to ensure consistent, uninterrupted municipal services in the event of unexpected temporary revenue shortfalls or unpredicted one-time expenditures, as well as the credit worthiness of the City. In December 2019 the City Council adopted the General Fund Reserve Policy, which established the appropriate level of unassigned fund balance in the General Fund, set conditions warranting its use, and outlined the plan to replenish it if the balance fell below the policy level.

Enterprise Fund Business Principles

The City maintains a set of business principles for managing its enterprise fund operations. These principles are to ensure the funds break even and operate efficiently, maintain two months cash flow and $500,000 in reserves for contingencies, approach 5 percent of system value for replacement sinking funds, and maintain system and facilities up to industry standards by adequately funding new Capital Improvement Programs.

Investment Policy

The City maintains an investment policy that is updated annually and reviewed and approved by the City Council. The City’s investment objectives as outlined in the policy are in the following order: safety of principal, liquidity, and yield. To meet these objectives, the City attempts to obtain the highest yield on its investments consistent with the preservation of principal and liquidity. The yield benchmark for the City is the 24-month moving average of the 2-year Constant Maturity Treasury.

The Investment Policy was certified by the California Municipal Treasurer’s Association in November 2020.

Purchasing Policy

The purpose for the City’s centralized purchasing policy is to procure needed supplies, services, and equipment at the utmost quality, within the required time, and at the best price for the City, in a manner consistent with legal requirements, good business practice, and proper fiscal control. The goal is to serve the public with integrity while maximizing the value of the tax dollar.

Debt Management Policy

In 2017, the City Council adopted a debt management policy in compliance with Senate Bill 1029 to improve public debt financial transparency. The objective of the debt policy is to achieve sound administration of City debt by minimizing debt service and issuance costs, maintaining the highest reasonable credit rating, and ensuring complete financial disclosure and compliance with State and Federal laws.

City of Garden Grove Letter of Transmittal
vii

Major Initiatives

The City’s 2021 Economic Development Strategic Plan identified key priorities and activities that focused on economic recovery and sustainability. The Garden Grove Office of Economic Development was accredited by the International Economic Development Council (IEDC) for its many achievements in these areas. The City was the first agency to receive this prestigious recognition in the State of California.

The City continued to advance its economic development initiatives in areas of local investment, job creation and retention, and small business sustainability. With the help of the Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, the City launched the JOBS 1st Grant and Loan programs, Micro Business Grant program, D1 Small Business Grants, and the JOBS 1st To-Go Program that resulted in nearly 100 jobs created or retained in the past year. Small business retention efforts continued to the second phase with the launch of the Foods of Garden Grove program, which supported over 150 local businesses on several social media platforms. Quite a few new businesses opened during this reporting period from coffee shops to indoor playground.

The City’s housing initiatives are anchored with programs and services designed to improve neighborhoods by leveraging funds from federal and state programs including Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grants, and the CARES Act funds. One of the City’s key initiatives during the year was the acquisition of a building and substantial rehabilitation into a Navigation Center, which is a critical step towards the implementation of the 2021 Comprehensive Strategic Plan to End Homelessness. The City also continues to offer several housing programs that have shown much success in the past, including the First-time Homebuyer Program, the Home Repair Program, Re-Roof Grant Program, and the Homeless Emergency Assistance and Rental Transition (HEART) Program. In areas of affordable housing production, the Garden Brook Senior Village welcomed 400 senior residents by June 2023. Additionally, the City’s first permanent supportive housing project by American Family Housing is near completion. The City approved a preliminary award letter to preserve long-term affordable housing which will include a total of 78 covenanted units with 55-year affordability restrictions.

In 2022, the City launched its Civic Center Community Engagement project that focused efforts on public outreach and community engagement for improvements to civic center area. City staff worked hand-in-hand with Garden Grove residents to explore opportunities in this area to improve public amenities and evaluate the need to replace and modernize the public safety facilities.

Simultaneously, Re-Imagine Garden Grove continued its Phase 1 construction of Cottage Industries, an adaptive reuse of twelve residential properties in the civic center area for retail, restaurants, and outdoor entertainment.

The City’s industrial area observed unprecedented demand with transactions yielding record sales resulting in less than 2% vacancy rates. Prologis secured project

City of Garden Grove Letter of Transmittal
viii

approvals for the construction of a new 148,284 square foot industrial building.

Rexford Industrial is adding another project for a new 97,470 square foot industrial building along with associated site improvements.

In November 2022, the City entered into a Memorandum of Understanding with the cities of Fountain Valley and Westminster to establish, construct, develop, maintain, and operate an overnight shelter to address homelessness in the Central Orange County Service Planning Area (the Central Cities Navigation Center). Property acquisition was completed on November 8, 2022. In December 2022, the City entered into a Memorandum of Understanding with the County of Orange for the rehabilitation and operations of the Central Cities Navigation Center. A total of 85 emergency shelter beds will be provided once the Center is completed.

The City has been consistently investing efforts to revitalize its civic center to make it a more pedestrian friendly place with improved amenities, safe and clean neighborhoods, and high quality public safety services for all current and future residents. In January 2020, a police facility needs assessment was conducted to address current and future needs of the Garden Grove Police Department (GGPD).

The assessment identified deficiencies in the existing GGPD building. In January 2023, the City Council directed staff to advance the public safety facility and civic center revitalization project. In September 2023, the City successfully selected the development team. It is anticipated that the project will break ground in the summer of 2024.

Awards and Acknowledgements

The Government Finance Officers Association (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Garden Grove for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. This was the 38th consecutive year that the City has received this prestigious award. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the award program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of the ACFR on a timely basis was made possible by the efficient and dedicated service of the staff in Finance. Staff members have our sincere appreciation for their contributions to this report. We also acknowledge the assistance of Davis Farr LLP, in completing the ACFR.

We thank the Mayor, City Council, and the City’s executive management team for their strong leadership and support of the financial operations of the City and for maintaining the highest standards of professionalism in managing the City’s finances for the best interest of the citizens of Garden Grove.

City of Garden Grove Letter of Transmittal
ix

Respectfully submitted,

Lisa L. Kim, City Manager Patricia Song, Finance Director

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Garden Grove
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
x
City of Garden Grove

THE PEOPLE OF GARDEN GROVE

MAYOR AND CITY COUNCIL

CITY ATTORNEYCITY MANAGER

INFORMATION

TECHNOLOGY

PUBLIC WORKS

DEPUTY CITY MANAGER
City of Garden Grove

MAYOR AND CITY COUNCIL

CITY ATTORNEYCITY MANAGER

COMMUNITY

AND ECONOMIC

DEVELOPMENT

COMMUNITY

SERVICES
HUMAN

RESOURCES

INFORMATION

TECHNOLOGY FINANCE
POLICE

ASSISTANT CITY MANAGER
xi

CITY OF GARDEN GROVE
George S. Brietigam III
Council Member - District 1
Joe DoVinh
Council Member - District 4
Kim B. Nguyen-Penaloza
Council Member - District 6
John R. O’Neill
Council Member - District 2
Stephanie Klopfenstein
Council Member - District 5
Cindy Ngoc Tran
Mayor Pro Tem - District 3

CITY COUNCIL

CITY OFFICIALS
Steve Jones
Mayor
Lisa Kim
City Manager
Omar Sandoval
City Attorney
John Montanchez
Community Services Director
William Murray
Public Works Director
Patricia Song
Finance Director
Anand Rao
Information Technology Director
Laura Stover
Human Resources Director
Amir El-Farra
Police Chief
Niki Wetzel
Community Development Director
Ursula Luna-Reynosa
Economic Development Director
xii
Financial Section
Financial
Section
This page is intentionally blank.

Independent Auditor’s Report

City Council
City of Garden Grove
Garden Grove, CA

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Garden Grove, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Garden Grove, California, as of June 30, 2023, 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States.

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Garden Grove 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 Matters

During the year ended June 30, 2023, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96. Our opinion is not modified with respect to this matter.

1 Responsibilities of Management for the Financial Statements

The City of Garden Grove’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

2 Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, certain budgetary comparison information, Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of Pension Contributions and the Schedule of Changes in Total OPEB liability and Related Ratios 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.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Garden Grove’s basic financial statements. The combining and individual nonmajor fund financial statements and certain budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and certain budgetary comparison schedules are 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and certain budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated December 22, 2023 on our consideration of the City of Garden Grove’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Garden Grove’s internal control over financial reporting and compliance.

Irvine, California
December 22, 2023

4 CITY OF GARDEN GROVE, CA

5 MANAGEMENT’S DISCUSSION AND ANALYSIS

Fiscal Year Ended June 30, 2023

The City of Garden Grove’s Finance team has prepared this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023, to assist users of this report to gain a better understanding of the City’s financial health and history. The information presented here should be considered in conjunction with additional information furnished in the letter of transmittal and the accompanying financial statements.

FINANCIAL HIGHLIGHTS

The City of Garden Grove’s financial statements prepared for the fiscal year ended June 30, 2023 comply with all applicable statements issued by the Governmental Accounting Standards Board (GASB). GASB Statement No. 96, Subscription-based Information Technology Arrangements (SBITA), was implemented by the City during the fiscal year ended June 30, 2023. The statement established definition for SBITAs and provided guidance for accounting and financial reporting for SBITA related transaction. The implementation of GASB Statement No. 96 enabled consistency in practice. Greater consistency and comparability enhance the value provided by the information reported in financial statements for assessing government accountability and stewardship.

Government-Wide

 The City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2023 by $900.8 million (net position).

 The overall City’s net position increased by $47.3 million from the previous fiscal year due to positive operating results including higher tax revenues and increase in investment income. Combined revenues from governmental activities and business-type activities exceeded government-wide expenses by $47.3 million.

 Total expenses for governmental activities were $184.3 million for fiscal year ended June 30, 2023. The sources for these expenses came from program revenues of $44.6 million, taxes in the amount of $164.0 million, other income of $1.4 million, and investment income of $4.2 million. For the current year, revenues from governmental activities exceeded expenses by $29.9 million, adding a net transfer from business-type activities in the amount of $0.4 million, the net position for governmental activities increased to $690.1 million at June 30, 2023.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
6  For business-type activities, program revenues exceeded expenses by $16.1 million. Among the total program revenue of $106.3 million, $58.8 million was from charges for services, and $47.5 million from operating grants and contributions. Combined with investment earnings of $1.3 million, and a net transfer to governmental activities in the amount of $0.4 million, net position for business-type activities increased by $17.0 million from the previous year to $210.7 million at June 30, 2023.

Fund Based

 As of the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $253.8 million, an increase of $18.0 million from the previous year. The net increase was primarily due to revenues exceeded expenditures for the year by $20.2 million, proceeds from sale of assets and leases in the amount of $1.5 million, net against a net transfer of $3.7 million to internal service funds.

 Among the total fund balance of $253.9 million reported at the close of the fiscal year, $96.5 million, or 38.0% are either non-spendable or restricted for specific purposes. Following best practices for prudent financial management, the City also committed $25.7 million as Stability Reserves in the General Fund. Please refer to Notes to Basic Financial Statements (Note 1) for additional information on the categorization of the governmental funds’ fund balances.

OVERVIEW OF THE FINANCIAL STATEMENTS

Government-Wide Financial Statements

The government-wide financial statements are designed to give users a broad overview of the City’s finances, similar to a private-sector business. They present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting.

There are two statements in the government-wide financial statements, the statement of net position, and the statement of activities. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The net difference between the total of assets and deferred outflows and the total of liabilities and deferred inflows is reported as net position. Increases or decreases in net position over time may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. Other factors to consider are changes in the City’s property tax base and the condition of the City’s infrastructure assets. The statement of activities shows how the City’s net position changed during the fiscal year.

Both government-wide financial statements distinguish between functions that are primarily supported by taxes and intergovernmental revenues, and functions that are intended to recover all or a significant portion of their costs through user fees and

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
7 charges. The first function is identified in the statements as governmental activities, while the latter is reported as business-type activities.

Most of the City’s basic services are reported in the governmental activities category, including fire, police, traffic safety, public right of way, community buildings, community services, economic development, parks and greenbelts, community planning and development, and municipal support functions. Property and sales taxes, transient occupancy tax, business licenses and permits, investment income, and state and federal grants finance these activities. The City operates its sewer utility through its component unit, the Garden Grove Sanitary District, and federal Section 8 housing program through another component unit, the Garden Grove Housing Authority. These activities are reported in the business-type activities category along with water utility and solid waste disposal services.

The government-wide financial statements can be found on the pages immediately following this discussion in the Basic Financial Statements section.

Fund Financial Statements

A fund is a set of related accounts that is used to control resources that have been segregated to carry on specific activities or to attain certain objectives in accordance with special regulations, restrictions, or limitations. The City, like the state and other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All City funds are divided into one of three categories: governmental funds, proprietary funds, or fiduciary funds.

The governmental fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary and fiduciary activities are prepared using the economic resources measurement focus and the accrual basis of accounting.

The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help manage and report money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

Governmental funds
Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the governmental fund financial statements to those in the government-wide financial statements are explained in a

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
8 reconciliation schedule following each governmental fund financial statement. The governmental fund financial statements can be found in the Basic Financial Statements section of this report.

Proprietary funds

When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the statement of net position and the statement of revenues, expenses and changes in fund net position. The City’s enterprise funds are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities – such as the City’s self-insured worker’s compensation and risk management, fleet management, employee benefits, information systems, warehouse operation, and communication replacement funds. The internal service funds are reported with governmental activities in the government-wide financial statements. The proprietary fund financial statements can be found in the Basic Financial Statements section of this report.

Fiduciary funds

The City is the trustee, or fiduciary, for certain funds held to account for activities reported in this category which includes the Successor Agency. The City’s fiduciary activities are reported in separate statements of fiduciary net position and statement of changes in fiduciary net position.

Notes to Basic Financial Statements

Notes to basic financial statements provide additional information that is essential to fully understand the data provided in the government-wide and fund financial statements. They are presented immediately following the Basic Financial Statements section of this report.

Other Information

In addition to the basic financial statements and the accompanying notes, this report also presents certain required supplementary information on the City’s budget process and the General Fund budgetary comparison schedule, the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees.

Combining and individual statements for non-major governmental and proprietary funds, internal service funds and the agency fiduciary fund are also presented in the Supplementary Information section of this report.

CITY OF GARDEN GROVE

Management’s Discussion and Analysis (continued)

June 30, 2023

9 Combining and

individual statements for non
-
major governmental and proprietary
funds, internal service funds and the agency fiduciary fund are

also

presented in the
Supplementary Information

section of this report.

GOVERNMENT
-

WIDE FINANCIAL ANALYSIS

The government
-
wide financial analysis focus on the City’s net position and changes in net position of the governmental a
nd business
-
type activities during
the fiscal year.

As noted earlier, the City’s net position as a whole
in
creased by $
47 .
3 million from
the previous year
.

Despite the decrease in revenues from capital and operating grants in the amount of $21.7 million, overall revenues exceeded expenses by $47.3 million. The decrease in grants and contributions were due to the one -
time fiscal
relief funds received in Fisca
l Year 2021
-

22. Among

the total net position
,
$
765.9

million
represented net

invest
ment

in capital
assets
. These capital assets

are essential for City operations, which

include

land,
buildings, machinery

and equipment,
and infrastructure.

Net position invested in
capital assets

is

not available for spending.

Although the City’s investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidate
d to pay for

the liabilities.

The remaining $
132
.
6 million

of
government
-
wide net position
are
composed of $
7 9
.
5 million
in
restricted
funds and
$
53 .
1 million unrestricted
.

Net position may be
restricted for capital projects, debt payments, and/or special programs such as public
safety and public right of way
.

The graph below
illustrate
s the
various
components of the City’s net position at fiscal
year ended
June 30, 202
3 .

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
10 The schedule below is a condensed version of the City’s statement of net position for fiscal year ended June 30, 2023 with comparative data from the previous fiscal year:

A condensed statement of change in net position with comparative amounts on revenues and expenses for the current and prior year is presented on the following page.

City of Garden Grove's Net Position(in millions)Governmental activities Business-type activities Total2023 2022 2023 2022 2023 2022Current and other assets 401.1$ 366.9$ 114.7$ 107.7$ 515.8$ 474.6$ Capital assets 655.4 639.4 172.8 171.3 828.2 810.7 Total assets1,056.5 1,006.3 287.5 279.0 1,344.0 1,285.3 Deferred unamortized loss on refunding - - 0.1 0.1 0.1 0.1 Deferred OPEB related items 22.2 25.4 3.5 4.0 25.7 29.4 Deferred pension related items 79.2 28.9 9.2 4.3 88.4 33.2 Total deferred outflows101.4 54.3 12.8 8.4 114.2 62.7 Long-term debt 74.8 77.0 41.0 43.2 115.8 120.2 Total OPEB liability 36.1 42.1 5.7 6.6 41.8 48.7 Net pension liability 313.1 195.8 30.1 21.6 343.2 217.4 Other liabilities 21.9 14.3 9.8 11.4 31.7 25.7 Total liabilities445.9 329.2 86.6 82.8 532.5 412.0 Deferred unamortized gain on refunding - - 0.1 0.2 0.1 0.2 Deferred leased related items 3.9 2.6 - - 3.9 2.6 Deferred OPEB related items 15.2 9.7 2.4 1.5 17.6 11.2 Deferred pension related items 2.8 59.4 0.5 9.1 3.3 68.5 Total deferred inflows21.9 71.7 3.0 10.8 24.9 82.5 Net investment in capital assets 633.3 618.1 132.7 129.2 766.0 747.3 Restricted 74.6 77.4 - - 74.6 77.4 Unrestricted (17.8) (35.7) 78.0 64.5 60.2 28.8 Total net position690.1$ 659.8$ 210.7$ 193.7$ 900.8$ 853.5$

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
11 Governmental Business-Type
Activities Activities Total
2023 2022 2023 2022 2023 2022
Revenues:

Program revenues:

Charges for services 17.7 $ 13.3 $ 58.8 $ 61.0 $ 76.5 $ 74.3 $ Operating contributions and grants 24.5 49.3 47.5 43.4 72.0 92.7 Capital contributions and grants 2.4 3.4 - - 2.4 3.4 General revenues:

Taxes:

Property taxes 66.4 59.5 - - 66.4 59.5 Sales and use taxes 60.1 59.7 - - 60.1 59.7 Transient occupancy taxes 28.0 24.5 - - 28.0 24.5 Other taxes 9.5 8.2 - - 9.5 8.2 Investment earnings 4.2 (8.0) 1.3 (3.1) 5.5 (11.1) Other income 1.4 0.3 - - 1.4 0.3 214.2 210.2 107.6 101.3 321.8 311.5 Expenses:

Public safety - Fire 31.2 27.0 - - 31.2 27.0 Public safety - Police 75.1 64.2 - - 75.1 64.2 Traffic safety 5.8 5.8 - - 5.8 5.8 Public right of way 21.1 16.6 - - 21.1 16.6 Community buildings & drainage 7.9 6.4 - - 7.9 6.4 Parks & community services 10.1 7.4 - - 10.1 7.4 Community & economic development 18.1 12.8 - - 18.1 12.8 Municipal support 13.9 7.6 - - 13.9 7.6 Water utility - - 32.6 35.9 32.6 35.9 Sewer utility - - 6.7 8.5 6.7 8.5 Solid waste disposal - - 2.0 1.9 2.0 1.9 Housing program - - 46.7 43.5 46.7 43.5 Golf course - - 2.2 1.8 2.2 1.8 Interest on long-term debt 1.1 1.0 - - 1.1 1.0 Total Expenses 184.3 148.8 90.2 91.6 274.5 240.4 Income (loss) before transfers 29.9 61.5 17.4 9.6 47.3 71.1 Transfers 0.4 - (0.4) - - - Change in net position 30.3 61.5 17.0 9.6 47.3 71.1 Net position - beginning of year 659.8 598.3 193.7 184.1 853.5 782.4 Net position - end of year 690.1 $ 659.8 $ 210.7 $ 193.7 $ 900.8 $ 853.5 $ Total revenues
City of Garden Grove's Changes in Net Position
(in millions)

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
12 Governmental Activities

Total resources available during the year to finance governmental operations were $874.4 million. This amount consists of the beginning net position of $659.8 million, program revenues of $44.6 million and general revenues of $169.6 million. With a total expenses of $184.3 million and a net transfer of $0.4 million from business-type activities, net position for governmental activities increased by $30.3 million and ended at $690.1 million as of June 30, 2023.

The chart below presents governmental activity revenues and expenses for the past five years. Transfers and extraordinary items were not included in the revenues and expenses.

Total revenues from governmental activities was $29.9 million higher than total expenses for the year. Revenues from taxes totaled $164.0 million, representing an increase of $8.6 million from the previous fiscal year. The economy continued to hold strong. Sale tax showed a slight increase of $0.4 million from last year, became the highest on record. Property tax increased by $6.9 million, continued as the largest revenue base for the City. Transient occupancy tax also hit a record high and reached $28.0 million for the year.

Total expenses for governmental activities for fiscal year ended June 30, 2023 increased by 23.9% to $184.3 million from the previous year. In fiscal years 2021 and 2022, the City received a total of $48.4 million from the State and Local Fiscal Relief Fund as part of the America Rescue Plan Act. The City strategically programed several critical infrastructure initiatives leveraging these one-time funding, including the acquisition of a navigation center serving the homeless population in the Central Orange County area, the launch of a citywide street improvement program, and the revitalization of the civic center.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
13 The chart below shows a breakdown of the cost of each major municipal function.

The cost of public safety function (police and fire) totaled $106.3 million, or 57.7% of overall governmental activities’ expenses. Public safety is primarily funded by property taxes, sales tax, transient occupancy tax, and other general revenues. Total public safety spending occupied 49.6% of total governmental revenues.

Traffic safety, public right of way, community buildings and drainage programs are responsible for maintenance and construction of transportation system as well as city facilities, with funding provided by gas tax, Measure M2, various federal, state and local grants, special assessment, as well as other general revenues. The funding source for parks and community services is primarily general revenues and some program fees. Community and economic development functions are funded by development related revenues as well as general revenues such as taxes, fees and investment income. Municipal support services (administration, legal, human resources, financial, and information technology) are primarily funded by charges to the direct operating functions they support through a cost allocation program.

Of the total cost of the governmental activities, the amount the taxpayers ultimately funded was $164.0 million, the remaining balance was paid by various program revenues, including $17.7 million by those who directly benefited from the programs, $24.5 million from other governments and organizations that subsidized certain programs with operating grants and contributions, and $2.4 million from capital grants and contributions. Other income including investment earnings totaled $5.6 million for the current year, also contributed to support the various governmental activities.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
14 The following two charts illustrate the total revenue and expense for the governmental activities, excluding transfers for the fiscal years ended June 30, 2023 and June 30, 2022 respectively.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
15 Highlights of the major revenue sources and expenses for governmental activities are listed below:

 Program revenues represent 20.8% of total revenues generated by governmental activities. Total program revenues for governmental activities in the current year were $44.6 million. Charges for services increased by $4.4 million from the previous year, yet overall program revenue decreased by $19.5 million, due to the one-time fiscal relief funds in the amount of $24.2 million received in Fiscal Year 2021-22.

 Taxes comprised 76.6% of the total revenues from governmental activities. Total tax revenues were $164.0 million for the current year, an increase of $12.1 million from the prior year. Despite high inflation, economy continued to show strong performance, especially in the tourism industry, The City’s transient occupancy tax revenue reached historical high, exceeded $28.0 million. Property tax revenue saw an increase of $6.9 million, continued as the top tax revenue source for the City, representing 40.5% of total taxes. Sales tax contributed a total of $60.1 million for the year. This was a slight increase of $0.4 million from the prior year.

Other taxes included franchise tax, business license tax, and motor vehicle taxes, totaled $9.5 million for fiscal year ended June 30, 2023.

 Total governmental expenses was $184.3 million, demonstrated an increase of $35.5 million or 23.9% from the prior year as the City continued to implement its initiatives in fighting homelessness, revitalize the civic center and improve its infrastructure. The funding sources for these initiatives were made available by the one-time fiscal relief money allocated to the City from the previous years.

 Cost for fire protection and emergency medical response services totaled $31.2 million, representing 16.9% of total governmental expenses. Cost to provide police services was $75.1 million, or 40.7% of overall expenses for governmental activities. Costs on street infrastructure improvement totaled $21.1 million, representing the third largest governmental activity spending, followed by $18.1 million invested in community and economic development efforts.

Business-Type Activities

The City’s net position in the business-type activities increased by $17.0 million. For fiscal year ended on June 30, 2023, revenue in business-type activities exceeded expenses by $17.4 million, net against a $0.4 million transfer to governmental activities, resulted in an overall net position of $210.7 million at the year end.

In the current year, both charges for water and sewer services and the cost of delivery those services decreased during the year reflecting the city’s continued efforts in water conservation.

Housing program is the largest component in the business-type activities by revenue and cost of operations. The Garden Grove Housing Authority reported revenues from operating grants and contributions of $47.5 million, an increase of $4.1 million from

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
16 the previous year. Cost of the Housing Section 8 program also increased by $3.2 million and totaled $46.7 million for the year ended June 30, 2023.

The chart below presents revenues and expenses in the business-type activities for the past five years, excluding transfers and extraordinary items.

The graph below shows the expenses of each business-type function compared to the program revenues generated specifically from its operations.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
17 Total expenses of all business-type activities for the fiscal year ended June 30, 2023 were $90.2 million, a slight decrease of $1.4 million from the prior year. While expenses of the Housing Section 8 program increased by $3.2 million, the cost to deliver water and sewer services declined by $5.1 million. This was largely due to the cost containment efforts implemented while constructing the City’s first water treatment plant to remove per- and polyfluoroalkyl substances (PFAS) from local well water.

As shown in the statement of activities, the amount paid by users of the systems was $58.8 million, reported as charge for services. Revenues from operating grants and contributions were $47.5 million, for the City’s Housing Section 8 program. Total program revenue reported for the year was $106.3 million.

Total resources available during the year to finance business type activities were $301.3 million. This amount consists of net position at July 1, 2022 in the amount of $193.7 million, and total revenues of $107.6 million. After funding total expenses of $90.2 million and a net transfer out of $0.4 million to governmental activities, net position for business-type activities increased by $17.0 million to $210.7 million at June 30, 2023.

FUND FINANCIAL ANALYSIS
General Fund

The General Fund is the primary operating fund of the City. The General Fund accounts for essential municipal services including public safety (police and fire), public works, community planning, economic development, and community and park services. These services are primarily funded by tax revenues and funding is dependent upon revenues collected during the same period the services are provided.

For fiscal year ended June 30, 2023, total revenue reported in the General Fund was $178.6 million. This was a decrease of $4.8 million, in comparison to the previous fiscal year, primarily due to the one-time Coronavirus State and Local Fiscal Recovery Funds received in the prior year in the amount of $24.2 million.

Total revenue from taxes was $159.9 million; property tax, sales and use tax, and transient occupancy tax generated $152.8 million, or 85.7% of total General Fund revenues for fiscal year ended June 30, 2023. Other taxes, in the amount of $7.1 million, included business license tax, franchise tax, and motor vehicle taxes.

Other revenues including licenses and permits, fines, penalties and forfeitures, charges for services, and investment income resulted in a combined total of $18.7 million for fiscal year ended June 30, 2023.

The graph on the next page illustrates General Fund revenues by major sources:

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
18 In comparison to the previous year, property tax and transient occupancy tax demonstrated the largest increases. Property tax increased by $5.9 million or 9.5% from the previous year as a direct result of increased housing market activity.

Transient occupancy tax had an increase of $4.7 million, this was a 19.9% growth from the prior year. Total transient occupancy tax reached a historical high of $28.1 million as the tourism segment of the City’s economy recovered from the aftermath of the COVID pandemic. In Fiscal Year 2021-22, sales and use tax had an increase of $10.4 million from the year before, the highest in the City’s history; in the current year, sales tax held consistent at $59.3 million.

A two-year comparison of each General Fund revenue source for the fiscal years ended June 30, 2023 and June 30, 2022 is presented below:

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
19 For fiscal year ended June 30, 2023, total General Fund expenditure was $159.5 million, of which the largest expenditure categories are Public safety - Fire at $30.9 million, and Police at $72.5 million. Public safety costs combined for the year ended June 30, 2023 was $103.4 million, representing 64.9% of overall General Fund expenditures for the year.

The graph below illustrates General Fund expenditures by category:

A two-year comparison of each General Fund expenditure category is shown below:

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
20 In comparison to the previous fiscal year, overall General Fund expenditures increased by $25.2 million. The largest increase was in the Community and Economic Development category in the amount of $10.6 million. A total of $19.5 million was invested in homelessness prevention and civic center revitalization. Expenditures in the Public Right of Way category had an increase of $4.3 million, as the City continued to carry out its street pavement rehabilitation projects. Police and Fire costs also increased from the previous year by $4.3 million and $3.9 million respectively.

For Fiscal Year 2022-23, General Fund revenues exceeded expenditures by $19.2 million. Combined with beginning balance of $162.2 million, proceeds from sales of assets and leases of $6.3 million, and a net transfer out in the amount of $4.4 million, fund balance increased by $21.1 million for the year, with an ending balance of $183.3 million as of June 30, 2023.

The table below shows a three-year trend analysis on the fund balance of the General Fund. For additional information, please refer to the Notes to Basic Financial Statements.

CAPITAL ASSETS

The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets, buildings and facilities, furniture, machinery and equipment, land, and construction in progress. At June 30, 2023, net capital assets totaled $655.4 million for the governmental activities, and $172.7 million for the business-type activities respectively. Depreciation on capital assets is recognized in the government-wide financial statements. Please refer to Notes to Basic Financial Statements (Note 8) for additional information.

City of Garden Grove's General Fund Fund Balance
Three-Year Trend Information
(in millions)
FY 2022-23 FY 2021-22 FY 2020-21
Fund Balances:

Nonspendable

18.7$ 10.6$ 11.3$
Restricted 7.3 6.2 6.0
Committed 25.7 22.5 22.5
Assigned 2.9 2.7 2.7
Unassigned 128.7 120.2 69.9
Total Fund Balance 183.3$ 162.2$ 112.4$
Fund Balance - Beginning 162.2$ 112.4$ 82.3$
Excess revenues over expenditures 19.2 49.2 29.5 Transfers (4.4) 0.6 0.6
Proceeds of sale of assets & leases 6.3 - - Fund Balance - Ending 183.3$ 162.2$ 112.4$

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
21 The table below presents comparative summary information on the City’s capital assets:

DEBT ADMINISTRATION

The City continued its efforts to reduce its long-term debt obligation. In addition to steadily paying down its outstanding long term obligations, the City implemented a Pension Funding Policy in August 2019 to proactively and effectively manage its unfunded pension liability. An IRC Section 115 Trust was established in November 2019 accordingly.

The schedule of outstanding long-term debt with comparative amounts for the previous fiscal year is presented below. For additional information on the City’s long- term debt, please refer to Notes to Basic Financial Statements (Note 9).

City of Garden Grove's Capital Assets
Net of Depreciation
(in millions)
Governmental
Activities
Business-type
Activities Total
2023 2022 2023 2022 2023 2022
Land 421.1 $ 413.0 $ 5.1 $ 5.1 $ 426.2 $ 418.1 $ Streets 147.1 154.7 - - 147.1 154.7 Storm drainage 22.1 23.6 - - 22.1 23.6 Water system - - 87.9 85.7 87.9 85.7 Sewer system - - 68.3 65.3 68.3 65.3 Buildings and improvements 24.5 23.6 0.4 0.2 24.9 23.8 Furniture, machinery & equipment 16.3 17.1 0.2 0.2 16.5 17.3 SBITA assets* 0.1 0.1 0.2 0.3 0.3 0.4 Construction in progress 23.6 7.3 10.5 14.4 34.1 21.7 Right to use assets 0.6 0.1 0.1 0.4 0.7 0.5 Total Capital Assets 655.4 $ 639.5 $ 172.7 $ 171.6 $ 828.1 $ 811.1 $ * Beginning balances of Subscription-based IT Assets (SBITA) were restated per GASB Statement No. 96.

City of Garden Grove's Outstanding Debt
(in millions)
Governmental
Activities
Business-type
Activities Total
2023 2022 2023 2022 2023 2022
Lease revenue bonds 20.7 $ 21.2 $ - $ - $ 20.7 $ 21.2 $ Capital leases payable 0.6 0.2 0.1 0.4 0.7 0.6 Revenue bonds - - 34.7 35.8 34.7 35.8 Certificates of participation - - 0.9 1.9 0.9 1.9 SBITA payable* 0.1 0.1 0.3 0.3 0.4 0.4 Unamortized bond premium 1.2 1.2 4.0 4.2 5.2 5.4 Total Outstanding Debt 22.6 $ 22.7 $ 40.0 $ 42.6 $ 62.6 $ 65.3 $ * Beginning balances of Subscription-based IT Assets (SBITA) were restated per GASB Statement No. 96.

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
22 GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund appropriations were originally adopted for $162.7 million for Fiscal Year 2022-23. Final appropriations were increased by $1.1 million to $163.8 million. The additional appropriation was to fund for the continuation of certain projects, and certain mandated programs.

Below is a summary of changes made to the adopted budget:

At June 30, 2023, the City’s General Fund concluded the year with a net favorable variance of $28.2 million. The variance is primarily due to higher than expected tax revenues and unforeseen one-time proceeds. Revenues estimates were developed on a conservative basis in June of 2022 as the COVID pandemic and its impact on the economy caused uncertainty on the City’s major tax revenue bases, such as sales and use tax and transient occupancy tax. However, in Fiscal Year 2022-23, these two revenue sources combined generated approximately $9.0 million higher than budget estimates as the economy bounced back stronger than anticipated. Property taxes, which has a direct correlation to the robust housing market performance, were approximately $8.2 million higher than original estimates due to an unanticipated surge in the housing activities. Additionally, the City sold two properties that resulted in $6.0 million in one-time revenue that was not budgeted for.

Table below shows the budget variance in each category, revenue, expenditure and transfers:

The City strives to develop a budget that accurately aligns available resources and operational needs, as unforeseen situations arise during the year, budget variances are carefully reviewed, analyzed, and programmed to address various community needs.

2023
Original Budget 162,745,876 $
Supplemental Changes 1,074,200
Final Budget 163,820,076 $
City of Garden Grove Budget to Actual Comparison
(in millions)
Transfer & Budget
Revenue Expenditure Other Sources Variance
Final Budget 156.6 $ 163.8 $ -
Actual 178.6 159.5 1.9
Favorable/(Unfavorable)
Budget Variance 22.0$ 4.3 $ 1.9 $ 28.2$

CITY OF GARDEN GROVE
Management’s Discussion and Analysis (continued)
June 30, 2023
23 CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need any additional financial information, please contact the City of Garden Grove’s Finance Department at 11222 Acacia Parkway, Garden Grove, California, 92840, phone number 714-741-5060, or e-mail [email protected].

Basic Financial
Statements
Basic Financial
Statements
This page is intentionally blank.

Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 318,225,523 $ 105,609,922 $ 423,835,445 $ Cash and investments with fiscal agents 512,456 6,917,252 7,429,708 Cash and investments with pension trust 3,218,497 - 3,218,497 Taxes receivable 15,034,664 294,892 15,329,556 Accounts receivable 919,663 7,785,629 8,705,292 Interest receivable 800,656 266,055 1,066,711 Intergovernmental receivable 5,656,315 - 5,656,315 Internal balances 6,229,957 (6,229,957) - Inventory 479,976 16,859 496,835 Deposits and prepaid items 3,814,129 55,748 3,869,877 Notes receivable, net 34,222,173 - 34,222,173 Leases receivable 4,039,468 - 4,039,468 Due from Successor Agency 5,054,260 - 5,054,260 Land held for resale 2,819,063 - 2,819,063 Prepaid bond insurance costs 90,889 - 90,889 Capital assets:

Land 421,095,891 5,142,500 426,238,391 Construction in progress 23,630,809 10,487,044 34,117,853 Depreciable capital assets, net 210,685,382 157,105,423 367,790,805 Total assets 1,056,529,771 287,451,367 1,343,981,138

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt - 68,029 68,029 OPEB related items 22,172,832 3,502,576 25,675,408 Pension related items 79,163,750 9,241,845 88,405,595 Total deferred outflows 101,336,582 12,812,450 114,149,032

LIABILITIES
Accounts payable 8,329,423 6,895,008 15,224,431 Accrued liabilities 4,324,859 621,523 4,946,382 Refundable deposits 3,399,054 2,193,823 5,592,877 Interest payable 315,502 57,019 372,521 Unearned revenue 5,508,647 - 5,508,647 Noncurrent liabilities:

Due within one year 15,965,999 3,687,581 19,653,580 Due in more than one year 58,818,039 37,250,168 96,068,207 OPEB liability 36,103,234 5,703,121 41,806,355 Net pension liability 313,155,143 30,134,700 343,289,843 Total liabilities 445,919,900 86,542,943 532,462,843

DEFERRED INFLOWS OF RESOURCES
Unamortized gain on refunding of debt - 139,448 139,448 Lease related 3,917,929 - 3,917,929 OPEB related items 15,207,745 2,402,322 17,610,067 Pension related items 2,756,794 473,125 3,229,919 Total deferred inflows 21,882,468 3,014,895 24,897,363

NET POSITION
Net investment in capital assets 633,327,358 132,656,126 765,983,484 Restricted for:

Public safety 3,730,711 - 3,730,711 Public right of way 13,921,670 - 13,921,670 Drainage 264,186 - 264,186 Community planning and development 46,901,119 - 46,901,119 Community services 9,761,918 - 9,761,918 Unrestricted (17,842,977) 78,049,853 60,206,876 Total net position 690,063,985 $ 210,705,979 $ 900,769,964 $ The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

STATEMENT OF NET POSITION
JUNE 30, 2023
24 Program Revenue
Operating
Charges for Grants and
Functions/programs Expenses Services Contributions
Governmental activities:

Fire 31,187,744 $ 705,488 $ 1,080,718 $
Police 75,052,764 3,324,336 2,064,347 Traffic safety 5,785,833 1,292,697 173,500 Public right of way 21,098,833 372,056 13,690,154 Drainage 1,488,490 - -
Community buildings 6,423,622 - 12,369 Community services 7,101,856 832,758 - Economic development 4,322,614 - 222,599 Parks and greenbelts 2,966,419 857,330 71,859 Community planning and
development 13,836,683 4,885,465 3,335,802 Municipal support 13,926,802 5,435,921 3,882,919 Interest on long term debt 1,106,968 - - Total governmental activities 184,298,628 17,706,051 24,534,267 Business-type activities:

Water utility 32,578,991 40,911,604 -
Sewage collection 6,684,010 11,845,037 - Housing authority 46,706,282 - 47,472,350 Solid waste disposal 2,057,501 4,111,249 - Golf course 2,217,677 2,001,402 -
Total business-type activities 90,244,461 58,869,292 47,472,350 Total 274,543,089 $ 76,575,343$ 72,006,617$
General revenues:

Taxes:

Sales taxes
Property taxes, levied for general purposes
Franchise taxes
Business operation taxes
Transient occupancy taxes
Motor vehicle taxes, unrestricted
Investment income
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
25 Net (Expense) Revenue and
Changes in Net Position
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
-$ (29,401,538) $ - $ (29,401,538) $ - (69,664,081) - (69,664,081) 539,898 (3,779,738) - (3,779,738) - (7,036,623) - (7,036,623) 155,666 (1,332,824) - (1,332,824) - (6,411,253) - (6,411,253) - (6,269,098) - (6,269,098) - (4,100,015) - (4,100,015) 1,696,469 (340,761) - (340,761) - (5,615,416) - (5,615,416) - (4,607,962) - (4,607,962) - (1,106,968) - (1,106,968) 2,392,033 (139,666,277) - (139,666,277) - - 8,332,613 8,332,613 - - 5,161,027 5,161,027 - - 766,068 766,068 - - 2,053,748 2,053,748 - - (216,275) (216,275) - - 16,097,181 16,097,181

2,392,033$ (139,666,277)$ 16,097,181$ (123,569,096)$

60,103,880 - 60,103,880
66,366,493 - 66,366,493
2,863,122 - 2,863,122
6,423,628 - 6,423,628
28,016,033 - 28,016,033
176,351 - 176,351
4,237,702 1,273,307 5,511,009
1,351,612 - 1,351,612
34,415 - 34,415
400,000 (400,000) -
169,973,236 873,307 170,846,543
30,306,959 16,970,488 47,277,447
659,757,026 193,735,491 853,492,517
690,063,985$ 210,705,979 $ 900,769,964 $
26 Navigation Nonmajor Total
General Center Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and cash investments 151,276,764 $ 5,947,608 $ 39,254,465 $ 196,478,837 $ Cash and cash investments with fiscal agents 1,012 - 511,444 512,456 Cash and investments with pension trust 3,218,497 - - 3,218,497 Taxes receivable 13,895,720 - 1,138,944 15,034,664 Accounts receivable 797,197 - 106,095 903,292 Interest receivable 405,395 - 100,889 506,284 Intergovernmental receivable 1,280,576 - 4,375,677 5,656,253 Intercity loans receivable, net 15,401,256 - - 15,401,256 Due from other funds 20,000 - - 20,000 Due from Successor Agency - - 5,054,260 5,054,260 Deposits and prepaid items 3,330,323 - 11,580 3,341,903 Notes receivable, net 2,866,840 - 31,355,333 34,222,173 Leases receivable 4,039,468 - - 4,039,468 Land held for resale 2,300,000 - 519,063 2,819,063 Total assets 198,833,048 $ 5,947,608 $ 82,427,750 $ 287,208,406 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities:

Accounts payable 2,644,936 $ 349,645 $ 4,689,612 $ 7,684,193 $ Accrued liabilities 1,886,182 15,009 688,848 2,590,039 Refundable deposits 3,399,054 - - 3,399,054 Intercity loan payable 2,353,050 - 5,550,000 7,903,050 Unearned revenue - 5,506,019 2,628 5,508,647 Due to other funds 72,399 20,000 3,596 95,995 Total liabilities 10,355,621 5,890,673 10,934,684 27,180,978 Deferred inflows of resources:

Unavailable revenue 1,251,636 - 998,668 2,250,304 Lease related 3,917,929 - - 3,917,929 Total Deferred inflows 5,169,565 - 998,668 6,168,233 Fund balances:

Non-Spendable:

Intercity loan 13,048,206 - - 13,048,206 Prepaid items 3,330,323 - 11,580 3,341,903 Land held for resale 2,300,000 - - 2,300,000 Restricted:

Public safety 37,884 - 3,650,179 3,688,063 Fire protection 56,670 - - 56,670 Public right of way 280 - 14,662,122 14,662,402 Drainage - - 264,186 264,186 Community planning and development 4,841,256 - 42,340,104 47,181,360 Community services 191,941 - 9,569,977 9,761,918 Municipal support and services 40,885 - - 40,885 Pension trust 2,129,403 - - 2,129,403 Committed:

Stability reserve 25,700,000 - - 25,700,000 Assigned:

Post-employment benefits 1,000,000 - - 1,000,000 Building improvements 1,300,000 - - 1,300,000 General plan 576,200 - - 576,200 Unassigned 128,754,814 56,935 (3,750) 128,807,999 Total fund balances 183,307,862 56,935 70,494,398 253,859,195 Total liabilities, deferred inflows of resources, and
fund balances 198,833,048 $ 5,947,608 $ 82,427,750 $ 287,208,406 $ The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2023
27 253,859,195 $
Capital assets 1,011,890,932
Accumulated depreciation (369,596,132)
2,250,304
73,439,347
Long term debt (20,908,422)
Bond premium (1,232,297)
Prepaid bond issuance costs 90,889
Accrued interest payable (313,317)
The pension liability is not due and payable in the current period and, therefore, is not reported in the balance sheet of the governmental funds. Also, deferred inflows and outflows of resources related to pension costs are deferred and amortized in the statement of activities. This amount is the net effect of the treatment of net pension liability, deferred outflows of resources from pension contributions and deferred inflows of resources for the net difference between projected and actual earnings on pension plan investments. (231,519,140)
Net position of governmental activities 690,063,985$
The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:

Certain notes, grants, and accounts receivables are not available to pay for current period expenditures, and therefore are offset by deferred inflows of resources in the governmental funds.

Internal service funds are used by management to charge the costs of various city activities to individual governmental and business-like funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.

The issuance of long term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long term debt and related items.

The OPEB liability is not due and payable in the current period and, therefore, is not reported in the balance sheet of the governmental funds. Also, deferred inflows and outflows of resources related to OPEB costs are deferred and amortized in the statement of activities. This amount is the net effect of the treatment of OPEB liability and deferred outflows of resources from OPEB contributions. (27,897,374)
28 Fund balances - total governmental funds (page 27)
Capital assets used in governmental activities are not current financial resources, and therefore are not reported in the governmental funds balance sheet.

CITY OF GARDEN GROVE

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Navigation Nonmajor Total
General Center Governmental Governmental
Fund Fund Funds Funds
REVENUES:

Taxes 159,930,340 $ - $ 4,127,513 $ 164,057,853 $ Licenses and permits 3,072,537 - 82,861 3,155,398 Fines, forfeits and penalties 2,305,388 - 1,012,430 3,317,818 Investment earnings 709,999 15 1,555,260 2,265,274 Charges for current services 7,724,342 - 4,527,141 12,251,483 From other agencies 2,797,420 2,987,661 19,262,888 25,047,969 Other revenues 2,069,957 56,921 64,114 2,190,992 Total revenues 178,609,983 3,044,597 30,632,207 212,286,787 EXPENDITURES:

Current:

Fire 30,933,358 - - 30,933,358 Police 72,454,478 - 2,679,416 75,133,894 Traffic safety 2,788,572 - 3,394,459 6,183,031 Public right of way 11,102,502 - 11,507,538 22,610,040 Community buildings 4,273,408 6,295,767 - 10,569,175 Community services 5,304,575 - 1,273,395 6,577,970 Economic development 1,756,237 - 2,558,033 4,314,270 Parks and greenbelts 1,427,596 - 1,475,924 2,903,520 Community planning and development 17,793,188 - 8,694,014 26,487,202 Municipal support 9,898,298 - 209,254 10,107,552 Debt service:

Principal retirement 579,320 - 50,568 629,888 Interest 1,150,820 - 1,057 1,151,877 Total expenditures 159,462,352 6,295,767 31,843,658 197,601,777 Excess of revenues
over expenditures 19,147,631 (3,251,170) (1,211,451) 14,685,010 OTHER FINANCING SOURCES (USES):

Sale of capital assets 5,989,694 - 784,917 6,774,611 Proceeds of leases 277,888 - - 277,888 Transfers in 4,719,612 3,308,105 1,184,157 9,211,874 Transfers out (9,092,262) - (3,801,449) (12,893,711) Total other financing (uses) 1,894,932 3,308,105 (1,832,375) 3,370,662 Net change in fund balances 21,042,563 56,935 (3,043,826) 18,055,672 Fund balances, beginning of year 162,265,299 - 73,538,224 235,803,523 Fund balances, end of year 183,307,862 $ 56,935 $ 70,494,398 $ 253,859,195 $ The notes to basic financial statements are an integral part of this statement. 29 Net change in fund balances - total governmental funds 18,055,672 $ Capital outlay 33,919,826
Depreciation expense (12,163,104)
Bond principal payment 848,866
Change in accrued interest 9,000
Proceeds of lease (277,888)
Amortization of bond premium and deferred items 50,537
(616,084)
10,522,657
(2,569,669)
(11,972,854)
Change in net position of governmental activities 35,806,959$ The notes to basic financial statements are an integral part of this statement.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expenses exceeded capital outlays in the current period.

CITY OF GARDEN GROVE

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Amounts reported for governmental activities in the statement of activities are different because:

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Some revenues in statement of activities that do not provide current financial resources are not reported as revenues in the funds.

Internal service funds are used by management to charge the costs of certain activities, such as workers compensation, fleet management, employee benefits, telephones, information systems, risk management and warehouse operations to individual funds. The net expenses of these internal service funds are reported with governmental activities.

OPEB costs do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Pension costs do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 30 This page is intentionally blank.

Governmental
Activities -
Water Sewage Housing Total Nonmajor Total Enterprise Internal Service Utility Collection Authority Funds Funds Funds
ASSETS
Current assets:

Cash and cash investments 38,197,969 $ 48,176,699 $ 2,940,550 $ 16,294,704 $ 105,609,922 $ 121,746,686 $ Cash and cash investments with fiscal agents 6,917,252 - - - 6,917,252 - Taxes receivable - 59,545 - 235,347 294,892 - Accounts receivable 5,415,983 1,840,289 31,290 498,067 7,785,629 16,371 Interest receivable 95,343 123,011 6,857 40,844 266,055 294,372 Intergovernmental receivable - - - - - 62 Due from other funds - - - - - 90,594 Inventory - - - 16,859 16,859 479,976 Deposits and prepaid items 17,497 8,615 13,319 16,317 55,748 472,226 Total current assets 50,644,044 50,208,159 2,992,016 17,102,138 120,946,357 123,100,287 Noncurrent assets:

Intercity loans receivable, net - - - - - 3,554,568 Notes receivable - - - - - - Capital assets:

Land 1,471,805 537,984 - 3,132,711 5,142,500 - Construction in progress 8,362,650 2,104,069 - 20,325 10,487,044 185,277 Depreciable capital assets, net 88,432,870 68,382,261 40,244 250,048 157,105,423 12,932,005 Total noncurrent assets 98,267,325 71,024,314 40,244 3,403,084 172,734,967 16,671,850 Total assets 148,911,369 121,232,473 3,032,260 20,505,222 293,681,324 139,772,137

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 68,029 - - - 68,029 - OPEB related items 1,857,888 426,401 1,005,087 213,200 3,502,576 944,173 Pension related items 4,584,019 2,141,783 1,799,968 716,075 9,241,845 2,261,821 Total deferred outflows 6,509,936 2,568,184 2,805,055 929,275 12,812,450 3,205,994

LIABILITIES
Current liabilities:

Accounts payable 5,815,322 700,266 35,026 344,394 6,895,008 645,230 Accrued liabilities 409,459 140,878 58,175 13,011 621,523 1,734,820 Refundable deposits 539,480 - 144,183 1,510,160 2,193,823 - Interest payable 35,366 21,630 16 7 57,019 2,185 Due to other funds 8,291 2,597 1,325 291 12,504 2,095 Current portion of long-term obligations
Subscription-based IT payable 63,000 - - - 63,000 11,224 Leases payable - - 10,950 25,567 36,517 83,278 Accrued compensated absences 552,427 349,989 - - 902,416 7,609,598 Claims payable - - - - - 7,503,317 Long-term debt 1,933,192 752,456 - - 2,685,648 - Total current liabilities 9,356,537 1,967,816 249,675 1,893,430 13,467,458 17,591,747 Noncurrent liabilities:

Noncurrent portion of long-term obligations:

Subscription-based IT payable 189,000 - - - 189,000 11,586 Leases payable - - 22,090 32,012 54,102 350,373 Accrued compensated absences 17,086 10,825 - - 27,911 235,349 Claims payable - - - - - 36,838,594 Intercity loans payable 9,851,255 - - - 9,851,255 1,201,519 Long-term debt 24,890,720 12,088,435 - - 36,979,155 - Net pension liability 14,947,021 6,983,669 5,869,119 2,334,891 30,134,700 7,375,076 OPEB liability 3,025,133 694,293 1,636,548 347,147 5,703,121 1,537,363 Total noncurrent liabilities 52,920,215 19,777,222 7,527,757 2,714,050 82,939,244 47,549,860 Total liabilities 62,276,752 21,745,038 7,777,432 4,607,480 96,406,702 65,141,607

DEFERRED INFLOWS OF RESOURCES
Unamortized gain on refunding of debt - 139,448 - - 139,448 - OPEB related items 1,274,275 292,457 689,362 146,228 2,402,322 647,583 Pension related items 234,674 109,646 92,147 36,658 473,125 115,792 Total deferred inflows 1,508,949 541,551 781,509 182,886 3,014,895 763,375

NET POSITION
Net investment in capital assets 71,259,442 58,043,975 7,204 3,345,505 132,656,126 12,660,821 Unrestricted 20,376,162 43,470,093 (2,728,830) 13,298,626 74,416,051 64,412,328 Total net position 91,635,604 $ 101,514,068 $ (2,721,626) $ 16,644,131 $ 207,072,177 77,073,149 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 3,633,802 Net position of business-type activities 210,705,979 $
The notes to basic financial statements are an integral part of this statement. - Enterprise Funds

CITY OF GARDEN GROVE

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2023
Business-Type Activities
31 Water Sewage
Utility Collection

Operating revenues:

Charges for services - $ - $
Water sales 40,840,781 -
Section 8 grant revenue - -
Solid waste disposal fees - -
Property assessments - 4,506,286
Sewer user fees - 7,338,273
Other 70,823 478
Total operating revenues 40,911,604 11,845,037

Operating expenses:

Salaries and benefits 6,045,362 2,440,883
Contractual services 6,775,069 1,773,204
Liability claims - -
Materials and supplies 259,244 376,687
Water production expenses 14,276,376 -
Housing - -
Golf course operations - -
Depreciation and amortization 3,892,883 1,883,989 Total operating expenses 31,248,934 6,474,763

Operating income 9,662,670 5,370,274

Nonoperating revenues (expenses):

Investment income 427,156 592,180
Gain on disposal of assets - -
Loss on land held for resale (200,059) -
Other nonoperating revenues (expenses) (561,050) - Interest expense (1,188,517) (466,779)
Total nonoperating (expenses) revenues (1,522,470) 125,401 Income before transfers and capital contributions 8,140,200 5,495,675 Capital contributions - -
Transfers in - -
Transfers out (400,000) -
Change in net position 7,740,200 5,495,675
Total net position (deficit), beginning of year 83,895,404 96,018,393 Total net position (deficit), end of year 91,635,604$ 101,514,068$ Adjustment to reflect the consolidation of internal service fund activities to enterprise funds.

Change in net position of business-type activities.

The notes to basic financial statements are an integral part of this statement. - Enterprise Funds

CITY OF GARDEN GROVE

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Business-Type Activities
32 Governmental
Activities -
Housing Total Nonmajor Total Enterprise Internal Service Authority Funds Funds Funds
-$ 2,001,402 $ 2,001,402 $ 21,670,651 $ - - 40,840,781 - 47,415,365 - 47,415,365 - - 3,011,646 3,011,646 - - 614,055 5,120,341 - - - 7,338,273 - 56,985 485,548 613,834 14,229 47,472,350 6,112,651 106,341,642 21,684,880

2,065,501 609,107 11,160,853 4,879,867 249,853 1,394,363 10,192,489 3,216,350 - - - 5,209,575 66,392 54,031 756,354 529,636 - - 14,276,376 - 44,161,567 - 44,161,567 - - 2,090,835 2,090,835 - 162,728 126,652 6,066,252 2,041,944 46,706,041 4,274,988 88,704,726 15,877,372

766,309 1,837,663 17,636,916 5,807,508

60,775 193,196 1,273,307 1,448,040 - - - 77,001 - - (200,059) - - - (561,050) - (241) (190) (1,655,727) (14,628) 60,534 193,006 (1,143,529) 1,510,413 826,843 2,030,669 16,493,387 7,317,921 - - - 117,990 - - - 5,000,000 - - (400,000) (918,163) 826,843 2,030,669 16,093,387 11,517,748 (3,548,469) 14,613,462 65,555,401

(2,721,626)$ 16,644,131$ 77,073,149$
877,101
16,970,488$
Business-Type Activities
- Enterprise Funds
33 Water Sewage
Utility Collection

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and user departments 40,945,103 $ 11,704,377 $ Payments to suppliers (23,081,422) (2,231,259)
Payments to employees (8,437,067) (3,795,238)
Payments for employee benefits - -
Net cash provided by operating activities 9,426,614 5,677,880

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash received from other funds - -
Cash paid to other funds (1,181,254) (124)
Net cash (used) provided by noncapital financing activities (1,181,254) (124)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (6,011,246) (1,535,552) Proceeds from sale of capital assets - 28,183 Proceeds from leases - -
Principal paid on capital debt (1,518,192) (645,000) Interest paid on capital debt (1,175,191) (551,375)

Net cash (used) by capital and related financing activities (8,704,629) (2,703,744)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 602,568 819,261
Increase (decrease) in fair value of investments (249,132) (321,433) Net cash provided by investing activities 353,436 497,828 Net (decrease) increase in cash and cash equivalents (105,833) 3,471,840 Cash and cash equivalents, beginning of year 45,221,054 44,704,859 Cash and cash equivalents, end of year 45,115,221 $ 48,176,699 $ The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Business-Type Activities
- Enterprise Funds
34 Governmental
Activities -
Housing Total Nonmajor Total Enterprise Internal Service Authority Funds Funds Funds
47,424,390$ 6,723,082 $ 106,796,952 $ 21,694,812 $ (44,531,404) (3,365,059) (73,209,144) (11,439,729) (3,006,114) (577,679) (15,816,098) (6,230,854) - - - 832,387 (113,128) 2,780,344 17,771,710 4,856,616

50 204 254 5,601,874 - - (1,181,378) (1,079,086) 50 204 (1,181,124) 4,522,788

- (144,650) (7,691,448) (1,877,766) - - 28,183 147,757 - - - 433,651 (154,669) (111,461) (2,429,322) (15,976) (225) (197) (1,726,988) (12,443)

(154,894) (256,308) (11,819,575) (1,324,777)

73,609 267,641 1,763,079 1,997,025 (17,919) (106,725) (695,209) (769,206) 55,690 160,916 1,067,870 1,227,819 (212,282) 2,685,156 5,838,881 9,282,446 3,152,832 13,609,548 106,688,293 112,464,240 2,940,550$ 16,294,704 $ 112,527,174 $ 121,746,686 $ (continued)
Business-Type Activities
- Enterprise Funds
35 Water Sewage
Utility Collection
Reconciliation of operating income to net cash
provided by operating activities:

Operating income 9,662,670 $ 5,370,274 $
Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation and amortization expense 3,892,883 1,883,989 Other nonoperating revenues (expenses) (561,050) (28,183) Decrease (increase) in taxes receivable - (13,213) Decrease (increase) in accounts receivable 594,480 (129,935) Decrease (increase) in intergovernmental receivable - - Decrease (increase) in notes receivable - 2,488 Decrease (increase) in inventory - - Decrease (increase) in prepaid expenses (10,997) 14,057 Increase (decrease) in accounts payable (2,056,257) 39,568 Increase (decrease) in subscription-based IT payable 252,000 - Increase (decrease) in accrued compensated absences (59,490) 8,231 Increase (decrease) in accrued liabilities 44,521 (106,810) Increase (decrease) in refundable deposits 69 - Increase (decrease) in other current liabilities - - Increase (decrease) in claims payable - - Increase (decrease) in OPEB liability and related
changes in deferred outflows and inflows of resources 224,891 51,614 Increase (decrease) in net pension liability and related changes in deferred outflows and inflows of resources (2,557,106) (1,414,200) Total adjustments (236,056) 307,606
Net cash provided by operating activities 9,426,614 $ 5,677,880 $ Non-cash capital and related financing activities
Capital assets contributed from other funds - $ - $ The notes to basic financial statements are an integral part of this statement.

CITY OF GARDEN GROVE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS (CONTINUED)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Business-Type Activities
- Enterprise Funds
36 Governmental
Activities-
Internal ServiceTotal EnterpriseTotal NonmajorHousing
FundsFundsFundsAuthority
766,309 1,837,663$ 17,636,916 $ 5,807,508 $ $
162,728 126,652 6,066,252 2,041,944 - - (589,233) - - 141,453 128,240 - (25,724) (27,152) 411,669 9,994 20,952 - 20,952 (62) - - 2,488 - - (4,270) (4,270) (3,948) 6,311 72,824 82,195 (253,016) (61,982) 105,616 (1,973,055) - - - 252,000 - - - (51,259) (310,450) 2,079 3,480 (56,730) (69,662) (43,188) 496,130 453,011 1,064,854 - - - 22,810 - - - (2,135,435) 121,663 25,808 423,976 114,289 (1,062,276) 2,140 (5,031,442) (1,432,210) (879,437) 942,681 134,794 (950,892) (113,128)$ 2,780,344 17,771,710 $ 4,856,616 $ $
- -$ - $ $ $
Business-Type Activities
- Enterprise Funds
-
37 CITY OF GARDEN GROVE

STATEMENT OF FIDUCIARY NET POSITION

CITY OF GARDEN GROVE AS SUCCESSOR AGENCY

TO THE GARDEN GROVE REDEVELOPMENT AGENCY

PRIVATE PURPOSE TRUST FUND
JUNE 30, 2023
ASSETS
Current assets:

Cash and cash investments 13,366,623 $
Cash and cash investments with fiscal agents 4,095,793
Interest receivable 37,446
Total current assets 17,499,862
Noncurrent assets:

Prepaid bond insurance costs 366,046
Land held for resale 849,639
Total noncurrent assets 1,215,685
Total assets 18,715,547

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 216,226
Total deferred outflows 216,226

LIABILITIES
Current liabilities:

Accounts payable 58,431
Accrued liabilities 4,880
Deposits payable 2,672,458
Interest payable 550,400
Current portion of long-term obligations 6,141,557
Total current liabilities 9,427,726
Noncurrent liabilities:

Noncurrent portion of long-term obligations:

Long-term obligations 51,184,450
Total noncurrent liabilities 51,184,450
Total liabilities 60,612,176

NET POSITION
Held in trust for redevelopment dissolution (41,680,403) $ The notes to basic financial statements are an integral part of this statement. 38 CITY OF GARDEN GROVE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CITY OF GARDEN GROVE AS SUCCESSOR AGENCY

TO THE GARDEN GROVE REDEVELOPMENT AGENCY

PRIVATE PURPOSE TRUST FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

ADDITIONS
Taxes 1,126,186 $
Investment earnings 263,886
Other revenues 1,200
Total additions 1,391,272

DEDUCTIONS
Program expenses 831,890
Administrative expenses 404,762
Interest and fiscal agency expenses 1,682,914
Loss on asset disposals 24,371,883
Total deductions 27,291,449
CHANGE IN NET POSITION (25,900,177)
NET POSITION, BEGINNING OF YEAR (15,780,226)
NET POSITION, END OF YEAR (41,680,403)$
The notes to basic financial statements are an integral part of this statement. 39 This page is intentionally blank.

CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Reporting Entity
a.
b.

The City of Garden Grove (the “City”) was incorporated June 18, 1956 as a general law full- service city. The City operates under a council-manager form of government and provides the following services: public safety (police, fire, and paramedics), highways and streets, social services, culture and recreation, parks, planning, zoning, housing, water, solid waste collection and disposal, sewage services and general administration. On May 10, 2016, the City of Garden Grove adopted Ordinance No. 2866 changing the City’s current at-large system of electing City Council Members to a by-district system. It took effect in fiscal year 2016-2017.

The Mayor is elected at-large. City Council members are elected by six districts, and he or she must reside within the designated district boundary.

Accounting principles, generally accepted in the United States of America, require that these financial statements present the City (the primary government) and its component units.

Component units generally are legally separate entities for which a primary government is financially accountable. Financial accountability ordinarily involves meeting both of the following criteria: the primary government is accountable for the potential component unit (e.g. the primary government appoints the voting majority of its board) and the primary government is able to impose its will upon the potential component unit, or there is a possibility that the potential component unit may provide specific financial benefits or impose specific financial burdens on the primary government. The component units discussed in this note are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City.

Blended component units:

The Garden Grove Housing Authority (the “Housing Authority”) was established in October 1975, pursuant to the provisions of the Housing and Community Development Act of 1974 and is reported as an enterprise fund as if it were part of the primary government because the governing board is comprised of the City Council, although acting in a different capacity, and two Housing Authority tenants. The Housing Authority governing board approves the Housing Authority budget and the City provides staffing.

The Garden Grove Sanitary District (the “Sanitary District”) began its operations in 1924 as a special district operating under the authority of the State of California. The Health and Safety Code of California (the Sanitary District Act of 1923) is the governing law.

The Garden Grove Sanitary District provides the City of Garden Grove, a portion of the City of Santa Ana and County of Orange unincorporated areas with sewer maintenance services including cleaning of sewage collection line and inspection of sewage lines built within the district by developers. Garden Grove has an agreement with Republic Services to provide an exclusive franchise for Solid Waste Handling Services for residents and commercial establishments within the Garden Grove Sanitary District. The district became a subsidiary district and component unit of the City of Garden Grove on May 30, 1997. The Sanitary District is reported as two enterprise funds, the Sewage Collection enterprise fund and Solid Waste Disposal enterprise fund as if it were part of the primary government because the City Council, although acting in a different capacity, is the governing board. Council members approve the Sanitary District budget and the City provides staffing.
40 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

1. Reporting Entity (continued)
c.

2. Government-wide and Fund Financial Statements

3. 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 and fiduciary fund financial statements. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

Grant funds received before the revenue recognition criteria have been met are reported as unearned revenues.

The Garden Grove Public Financing Authority (the "Authority") was established on June 22, 1993 as a joint powers agency organized under the laws of the State of California. The Authority was formed to assist in the financing of public and capital improvements. The Authority’s financial data and transactions are included within enterprise funds. The Authority is administered by the Board who are the members of the City Council and the Mayor. Council members approve the Authority budget and the City provides staffing.

Separate reports are not issued for the Garden Grove Housing Authority, the Garden Grove Sanitary District, or the Garden Grove Public Financing Authority.

All components of the reporting entity are reported on a July 1 through June 30 fiscal year.

The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

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. 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, 2) operating grants and contributions that are restricted to meeting the operational requirement of a particular function or segment, and 3) capital grants and contributions that are restricted to meeting the capital requirement of a particular function or segment and other miscellaneous revenues that directly benefit a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and the fiduciary fund. Major governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
41 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2023

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as in accrual accounting. However, debt service expenditures are recorded only when payment is due.

Property taxes, franchise taxes, licenses, revenues from other agencies and interest associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental and enterprise funds:

General Fund

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in other funds.

Navigation Center Fund

This fund was established to account for the City's project to develop and operate a multi-party Central Cities Navigation Center (CCNC). The CCNC will provide emergency housing along with income and healthcare services to help individuals experiencing homelessness.

Water Utility Fund

The purpose of this fund is to account for the City’s water system. Resources of the fund are applied to construction, operation, maintenance and debt service obligations of the water system. Financing is provided by revenue of the water utility.

Sewage Collection Fund

The Garden Grove Sanitary District comprises two funds, the Sewage Collection Fund and the Solid Waste Disposal Fund. Resources of the Sewage Collection Fund are applied to the operation and maintenance of the City’s sewer system.

Housing Authority Fund

The Housing Authority Fund accounts for revenues and expenses pertaining to the Federal Section 8 Housing Program.
42 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3. Additionally, the City reports the following fund types:

The Private-Purpose Trust Fund accounts for the fiduciary responsibilities that are assigned to the Successor Agency pursuant to the Dissolution Act.

As a general rule the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government’s enterprise funds and various other governmental funds. Elimination of these charges would distort the direct costs and program revenues reported for the function concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided; 2) fines, forfeitures and penalties; 3) grants and contributions that are restricted to meeting the operational or capital requirement of a particular function; and 4) other miscellaneous revenues that directly benefit a particular function and do not fit into any other category. General revenues include all taxes, investment income, and gain on sale of assets.

Proprietary funds distinguish operating revenues and expenses from non-operating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.

The principal operating revenues of the enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating 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.

Private-Purpose Trust Fund
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Nonmajor Enterprise Funds
Other nonmajor enterprise funds consists of the Solid Waste Disposal Fund and the Golf Course Fund. The Solid Waste Disposal Fund accounts for the operation of trash and solid waste collections, and disposal services. The Golf Course Fund was established to account for the operations of the Willowick Golf Course.

Internal Service Funds
The internal service funds account for workers’ compensation, fleet management, employee benefits, information systems, warehouse operations, telephone system, risk management, communication replacement services, and building and structure rehabilitation services provided to City departments on a cost reimbursement basis. 43 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance a.
b.
c.

Utility accounts are billed on a bi-monthly basis. Receivables for water and sewer are recorded when consumption is billed. Unbilled receivables are recorded at fiscal year- end to adjust for the billing cycle and are included as accounts receivable in the Water and Sewer Funds. Sanitary refuse collection accounts are billed quarterly by the refuse hauler and payments are received by the refuse hauler.

Taxes Receivable
Property taxes in California are levied in accordance with Article 13A of the State Constitution at one percent of county-wide assessed valuations. This one percent is allocated pursuant to state law to appropriate units of local government. A voter- approved property tax of eight cents per hundred dollars actual value is levied against all property in the City for the purpose of providing emergency medical services.

Furthermore, the voters approved a one-cent sale tax measure that commits 100% of the revenue to the City.

Deposits and Investments
The City pools idle cash from all funds in order to maximize income from investment activities. Investments are recorded on the City’s books at fair value (quoted market price or best available estimate thereof). Interest income on investments is allocated to individual funds on the basis of average quarterly cash and investment balances.

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

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 inter fund loans) or “intercity loan receivable/payable” (i.e., the non-current portion of inter fund 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”.

Intercity loans receivable, as reported in the fund financial statements, are offset by a non-spendable fund balance in applicable governmental funds to indicate that they are not in spendable form.

The City Council adopted a Pension Funding Policy in 2019. Accordingly, an Internal Revenue Services Section 115 Trust was established to prefund pension obligations. The trust is a tax-exempt irrevocable trust, trust assets are to be used exclusive for payment of pension liabilities. Assets held in the trust are reported as restricted cash investments in the General Fund.
44 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) c.

Lien Date: January 1
Levy Date: July 1
Due Date: First Installment - November 1
Second Installment - February 1
Delinquent Date: First Installment - After December 10
Second Installment - After April 10
d.
e.

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.

The City uses the purchase method to record prepaid items.

Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., streets, sidewalks, medians, traffic signals, storm drains) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund and fiduciary fund financial statements. The government defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are capitalized at cost. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Taxes Receivable (continued)
The property tax calendar is as follows:

Inventory, Prepaid Items, and Land Held for Resale
Inventory is valued at cost using the first in, first out (FIFO) method. Inventory in the proprietary funds consists of expendable supplies held for future consumption. The cost is recorded as an expense as inventory items are consumed.

Land held for resale is valued at lower of cost or estimated net realizable value, determined upon execution of a disposition and development agreement, at June 30, 2023 and is located in the General Fund, Housing Successor Agency Capital Projects Fund, and the Successor Agency Trust Fund.

In the governmental fund statements, property tax revenue is recognized in the fiscal year for which taxes have been levied, provided that the revenue is collected in the current period or will be collected within 60 days thereafter. 45 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) e.

Assets Years
Buildings 30
Building improvements 20
Street infrastructure:

Pavement 30
Curbs & gutters 50
Sidewalks 50
Medians 50
Traffic signals 20
Walls 50
Driveways 50
Storm drain infrastructure 50
Water infrastructure:

Fire hydrants 45
Pump stations 10
Reservoirs 65
Water mains 77
Water meters 25
Water pumps & meters 20
Wells 40
Sewer infrastructure 60
Vehicles 3-20
Right-to-use assets varies
Subscription-based IT assets varies
Furniture and equipment 10
f.

Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as projects when constructed. Prior to the implementation of GASB 89, the net interest costs incurred in the financing of projects during the construction period were only capitalized in the enterprise funds. Interest incurred during the construction phase of capital assets of business-type activities is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds of tax-exempt debt over the same period.

Plant, infrastructure, and equipment of the primary government is depreciated using the straight line method over the following estimated useful lives:

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represent a consumption of net assets that applies to future period(s) and so, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three types of items that qualify for reporting in this category. Two of the items are the deferred charge from pension- related items and deferred charges related to OPEB. The other item is the unamortized loss on refunding of debt which is reported in the government-wide statement of net position, proprietary funds’ statement of net position and statement of fiduciary net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 46 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) f.
g.
h.
i. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:

Deferred Outflows/Inflows of Resources (continued)
In addition to liabilities, the statement of net position or balance sheet of governmental funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net assets that applies to a future period(s) and so, will not be recognized as an inflow of resources (revenue) until that time. The City has five types of items which qualify for reporting in this category. Three of the items are deferred items from pension-related items, deferred charges related to OPEB and deferred items from lease- related items. The fourth item, unamortized gain on refunding of debt, is presented on the government-wide statement of net position and on the proprietary funds’ statement of net position. The fifth item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from notes, accounts, and grant receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Accrued Compensated Absences
The City accounts for compensated absences (unpaid vacation, annual leave, comp time and sick leave) in an internal service (Employee Benefits) fund. A calculated fringe benefit rate, which includes accrued compensated absences, is applied to all labor charges. The resulting funds are deposited into the Employee Benefits internal service fund and are set aside for corresponding liabilities.

Long-Term Obligation
In the government-wide financial statements, proprietary fund and fiduciary 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 and fiduciary fund type statements of net position. Bond premiums and discounts, as well as prepaid insurance costs related to bond issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Prepaid insurance costs related to bond issuance costs are reported as prepaid insurance costs and amortized over the term of the related debt.
47 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) i.
•
•
•
j.

1. Government-wide Financial Statements
•
•
•

2. Fund Balances
• Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, and long-term notes receivable.

In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation on these assets and the outstanding principal of related debt reduce this category.

Restricted Net Position – This category consists of restricted assets reduced by liabilities related to those assets.

Unrestricted Net Position – This category represents the net position of the City that are not externally restricted for any project or other purpose.

Restricted resources are used first to fund appropriations.

As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent.

As of June 30, 2023, fund balance for governmental funds are made up of the followings:

Classification of Net Position and Fund Balances
Fair Value Measurements (continued)
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. 48 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) j.

2. Fund Balances (continued)
•
•
•
•
k.
l.

Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

Pensions
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 Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Classification of Net Position and Fund Balances (continued) Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action via an ordinance that imposed the constraint originally.

Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council to which the City Council has delegated the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that reports a positive unassigned fund balance amount.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned. 49 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) l.

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 - June 30, 2022
m.

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 - June 30, 2022
n.

Pensions (continued)
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframe. For this report, the following timeframes are used.

Other Post-Employment Benefits (OPEB)
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and 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 fiduciary net position information within certain defined timeframes. For this report, the following timeframes are used:

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

Leases
At the commencement of the 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 are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term.

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

The City used the estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease receipts included the measurement of the lease receivable is composed of fixed payments from the lessee.
50 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

4. Assets, Liabilities, and Net Position or Fund Balance (continued) o.

B. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

1. Subscription-based Information Technology (IT) Arrangements Budgetary Information
Under Article XIIIB of the California Constitution (the GANN Spending Limitation initiative), the City is restricted as to the amount of annual appropriations, and if certain proceeds of taxes exceed allowed appropriations, the excess must be refunded to the taxpayers either through revised tax rates or revised fee schedules.

The City budget report is prepared under the direction of the City Manager in accordance with generally accepted accounting principles (GAAP) and the requirements of Municipal Code Section 2.08.150. Annual budgets are legally adopted for the General Fund, special revenue funds, and capital projects funds. These funds are budgeted based on the modified accrual basis of accounting and include proposed expenditures and the means of financing them. The City Council approves the total budgeted appropriations and any amendments to total appropriations which may be required during the year. Revenues are budgeted by source, and expenditures are budgeted by program.

The legal level of budgetary control is considered to be at the fund level since management can reassign resources within a fund without special approval from City Council. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by City Council. During the year ended June 30, 2023, the Street Lighting, Park Maintenance and Garden Grove Tourism Improvement District Special Revenue Funds and the Public Safety Capital Project Fund reported expenditure in excess of appropriations of $373,661, $237,323, $603,300, and $495,696 respectively.

The City is a participant in subscription-based IT arrangements as detailed in Note 9.

The City recognizes a subscription-based payable and right-to-use IT assets in the financial statements.

At the commencement of the arrangement, the City initially measures the payable at the present value of payments expected to be paid during the arrangement term.

Subsequently, the payable is reduced by the principal portion of payments made. The right-to-use assets are initially measured at the initial amount of the subscription-based IT payable. Subsequently, the right-to-use assets are amortized over the life of the arrangement term.
51 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

1. Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio* in One Issuer
Securities of the U.S. Government
or its Agencies 5 years None None
Federal Home Loan Bank (FHLB) 5 years None None
Federal National Mortgage Association
(FNMA) 5 years None None
Federal Farm Credit Bank (FFCB) 5 years None None
Local Agency Investment Fund (LAIF) N/A None None
Certificates of Deposits (CD) N/A 30% 5%
Bankers Acceptances 180 days 20% 25%
Negotiated Certificates of Deposit 3 years 20% None
Commercial Paper 270 days 25% ** 10%
Medium Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Mortgage-backed Securities 5 years 20% None
Repurchase Agreement (Overnight) 14 days ** 10% None
Passbook Savings Account N/A None None
Maximum Percentage Investment in
Maturity of Portfolio One Issuer
U.S. Treasury None None None
Money Market Funds N/A None None
Investment Contracts 30 years None None
Securities of the U.S. Government
or its Agencies 5 years None None
Local Agency Investment Fund (LAIF) N/A None None
Provisions of the debt agreements, rather than the City’s investment policy, govern investment of debt proceeds held by bond trustee. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized
Investment Type
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 risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City has no specific limitations with respect to this metric.

Investments Authorized by the Debt Agreements
Cash and Investments (continued)
Authorized
Investment Type
*Excluding amounts held by bond trustee that are not subject to City's investment policy ** Represents where the City's investment policy is more restrictive than the California Government Code The City investment policy allows for other investments that are, or may become, legal investments through the California Government Code
52 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
B. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)

2. Type of Fund
Housing Authority Enterprise
Successor Redevelopment Agency Fiduciary
The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust Fund (RPTTF) for each Successor Agency. The deposit in the RPTTF is used to pay Successor Agency obligations. It is expected that this deficit will be eliminated with future resources obtained from the RPTTF.

The following funds had a deficit at June 30, 2023:

Deficit Fund Balance
The Housing Authority Fund, an enterprise fund, has a deficit fund balance of $2,721,626.

The deficit is due to prior period costs related to the revised allocation of the net pension liability in accordance with GASB 68 and due to prior period costs related to the revised allocation of the OPEB liability in accordance with GASB 75. Until Section 8 administrative revenue granted to the Housing Authority from the Department of Housing and Urban Development increases to enable the Housing Authority to pay down its pension and OPEB liability, there will continue to be a deficit in the Housing Authority Fund.

The City of Garden Grove as Successor Agency to the Garden Grove Redevelopment Agency Private Purpose Trust Fund (Successor Agency), a fiduciary fund, has a deficit balance of $41,680,403. The deficit is due to covenant obligations pursuant to developer disposition agreements and Education Revenue Augmentation Fund and Supplemental Education Revenue Augmentation Fund payables to the Housing Successor Agency.

Fund
Deficit Fund
Balance
(2,721,626)$
(41,680,403)$
53 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS

1. Statement of net position
Cash and investments 423,835,445$
Cash and investments with fiscal agent 7,429,708
Cash and investments for pension trust 3,218,497
434,483,650
Successor Agency (Private Purpose Trust Fund)
Cash and investments 13,366,623
Cash and investments with fiscal agent 4,095,793
17,462,416
Total Cash and Investments 451,946,066$
Cash on hand 44,330$
Deposits with financial institutions 16,145,899
Investments 435,755,837
Total Cash and Investments 451,946,066$
Investments Authorized by the City's Investment Policy
The following table identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provision of the Government Code and City’s investment policy.

Cash and Investments
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
54 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

1. U.S. Treasury 3.60
U.S. Agency Securities
FHLB 1.71
FFCB 2.17
FNMA 2.32
FHLMG 2.96
FM 1.01
FHMTG 2.24
FAMCMT 2.85
Money Market Funds 0.10
Commercial Paper 0.10
Corporate Bonds 3.12
Municipal Bonds 3.12
Supranationals 3.61
Local Agency Investment Fund (LAIF) 0.50
Restricted cash and investments:

Investment Pool (PARS) 0.10
Held by fiscal Agent:

Money Market Funds 0.50
Total
Amount AAA - Aaa AA+ - AA- A - A+ Not Rated
U.S. Treasury 47,990,922 $ N/A 47,990,922 $ - $ - $ - $ - $ U.S. Agency Securities
FHLB 33,172,013 N/A - 33,172,013 - - - FFCB 51,925,098 N/A - 51,925,098 - - - FNMA 7,710,891 N/A - 7,710,891 - - - FHLMG 8,701,866 N/A 8,701,866 -
FM 2,892,960 N/A - 2,892,960 - - - FHMTG 2,722,110 N/A - 2,722,110 - - - FACMTN 3,782,538 N/A - 3,782,538 - - - Money Market Funds 232,929 AAA - 232,929 - - - Commercial Paper 27,180,556 A - A+ - - - 27,180,556 - Corporate Bonds 71,065,408 AA - 14,555,086 33,052,974 23,457,348 - Municipal Bonds 46,900,800 AA+ - 18,573,537 18,550,635 - 9,776,628 Supranationals 17,997,277 Aaa - 17,997,277 - - - Local Agency Investment
Fund (LAIF) 98,736,470 N/A - - - - 98,736,470 Restricted cash and investments:

Investment Pool (PARS) 3,218,497 N/A - - - - 3,218,497 Held by fiscal agent:

Money Market Fund 11,525,502 AAA - 11,525,502 - - - Total 435,755,837 $ 47,990,922 $ 173,791,807 $ 51,603,609 $ 50,637,904 $ 111,731,595 $ 46,900,800
17,997,277
98,736,470
3,218,497
3,782,538
232,929
27,180,556
71,065,408
33,172,013
51,925,098
7,710,891
2,892,960
2,722,110
8,701,866
11,525,502
Disclosures Relating to Credit Risk
Minimum
Legal
RatingInvestment Type
Exempt from
Disclosure
Ratings as of Year End
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type. The column marked “Exempt From Disclosure” identifies those investment types for which GASB No. 40 does not require disclosure as to credit risk:
$435,755,837
Cash and Investments (continued)
Weighted
Average
Maturity
(in years)Authorized Investment Type Amount
$47,990,922
55 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

1. FHLB U.S. Agency Securities
FFCB U.S. Agency Securities
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 share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Cash and Investments (continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Issuer Investment Type Investment Amount
33,172,013$
51,925,098
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 failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment of 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.
56 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

1. Total
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs (Level 3)
U.S. Treasury 47,990,922$ 47,990,922$ -$ -$ Commercial Paper 27,180,556 - 27,180,556 - Corporate Bonds 71,065,408 - 71,065,408 - Municipal Bonds 46,900,800 - 46,900,800 - Supranationals 17,997,277 - 17,997,277 - U.S. Agency Securities
FHLB 33,172,013 - 33,172,013 - FFCB 51,925,098 - 51,925,098 - FNMA 7,710,891 - 7,710,891 - FHLMG 8,701,866 8,701,866
FM 2,892,960 2,892,960
FHMTG 2,722,110 - 2,722,110 - FHMTG 3,782,538 - 3,782,538 - Total 322,042,439 $ 47,990,922 $ 274,051,517 $ - $ The total amount invested by all public agencies in LAIF as of June 30, 2023 was $25.7 billion.

LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2023 had a balance of $178.4 billion.

Cash and Investments (continued)
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.

Investment Type
Quoted Process in
Active Markets for
Identical Assets
(Level 1)
Investment in Pension Trust Pool
The City has established a Section 115 Trust to accumulate resources to stabilize the City's pension liability and offset potential volatility in annual contributions to CalPERS. As of June 30, 2023, the City reported $3,218,497 in cash and investments for pension trust. The pension trust assets are managed by with the City's pension trust administrator, Public Agency Retirement Services (PARS). PARS is an external investment pool, is not rated and is not registered with the Securities Exchange Commission. The City selects the investment strategy and the pool is managed by the PARS Board. The fair value of the City's investments in the pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by PARS for the entire PARS portfolio. 57 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

2. a.
b.
c.
d. Loan from the General Fund to the former redevelopment On February 26, 2002 the City Council approved an agreement between the City and the Agency for Community Development Community Project capital projects fund wherein the City has agreed to advance funds to the Agency for the acquisition and development of certain property within the project areas. The advance is subject to repayment on demand and bears interest at a rate of 6.5%. The Agency is responsible for making payments on the City’s $22,735,000 Certificates of Participation Series A of 2002, (the Certificates), the proceeds of which were used to fund the advances from the City to the Agency. The Agency also reimbursed the City for the $683,739 of issuance costs related to the Certificates of Participation. In accordance with Assembly Bill X1 26, existing agreements between the City and the former redevelopment agency have been invalidated. Therefore, the City has set up 100% allowance for this loan on February 1, 2012. $ 18,970,000 Loan from General Fund to the former redevelopment agency:

On May 21, 1984 the City Council approved an agreement between the City and the Agency for Community Development Community Project capital projects fund wherein the Agency agreed to reimburse the City $2,405,511, plus any accruing unpaid interest at the annual rate of 10%, for capital improvements within the Agency’s redevelopment area which were initially paid for by the General Fund. On March 8, 2011, the City Council authorized a loan amortization schedule. Principal payments ranging from $761,037 to $1,114,235 are due annually. In accordance with Assembly Bill X1 26, existing agreements between the City and the former redevelopment agency have been invalidated. Therefore, the City has set up 100% allowance for this loan on February 1, 2012. 3,048,030 The General Fund has loaned to the former redevelopment agency a total of $2,863,113 to assist in funding the Agency’s operating budget since 2004. The loans accrue interest at a rate of 6.5% per annum. On March 8, 2011, City Council authorized a loan amortization schedule. Principal payments ranging from $699,984 to $900,505 are due annually. In accordance with Assembly Bill X1 26, existing agreements between the City and the former redevelopment agency have been invalidated. Therefore, the City has set up 100% allowance for this loan on February 1, 2012. 2,539,989
Intercity Loans Receivable/Payable at June 30, 2023 consisted of the following:

Loan from General Fund to the Water Utility fund:

On July 1, 1998, the City established an intercity loan between the General Fund and Water Utility Fund in the amount of $14,145,092 for the repayment from the Water Utility Fund to the General Fund for street damage repairs throughout the City that have been a benefit to the Water Utility. The loan accrues interest at 4.1% per annum. Beginning July 1, 2018 monthly payments are $100,208 which includes principal and interest to be paid thru June 2033. $ 9,851,256
Loan from General Fund to the former redevelopment agency:
58 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2022
C. DETAILED NOTES ON ALL FUNDS (continued)

2. e.
f.
g.
h.

Less Allowance
Total Intercity Loans Receivable 44,263,843
(25,308,019)
Total Intercity Loans Receivable, net 18,955,824$
Intercity Loans Receivable/Payable at June 30, 2023 (continued) Loan from Water Utility Fund to the former redevelopment agency:

Loan from Vehicle Replacement Fund to the Communications Replacement Fund:

On January 26, 2016 the City Council approved an agreement between the Vehicle Replacement Fund to the Communications Replacement Fund for the upgrade and purchase of communications equipment for the operation of the 800 MHZ public safety communications system. Current schedule reflects the FY15-16 debt service portfolio rate of 1.26% which will be applied to the FY16-17 debt service. The estimated average portfolio rate will be updated annually once the prior year average portfolio rate is available. The principal will be paid annually in the amount of $400,506 plus interest. The principal may be prepaid without penalty at any time. 1,201,518
Loan from General Fund to Housing Capital Project Fund:

In June 2023, the City Council approved a loan between the Housing Capital Project Fund and the General Fund for $5,500,000 for the purchase of City property for development of affordable housing.

The Housing Authority will pay this amount back to the City in the form of a Promissory Note at a rate of 5% per annum.
5,550,000
The former redevelopment agency has a loan from the Water Utility Fund in the amount of $750,000. Interest is paid monthly at an annual rate of 10% and has no fixed amortization date. In accordance with Assembly Bill X1 26, existing agreements between the City and the former redevelopment agency have been
invalidated. Therefore, the City has set up 100% allowance for this loan on February 1, 2012. 750,000
Loan from Risk Management Fund to the General Fund:

In July 2018, the City Council approved the General Fund to borrow $2,850,550 from the Risk Management Fund to pay for the energy efficiency project. The amount borrowed will cover the cost of the heating, ventilation, and air conditioning systems and lighting retrofit equipment and installation. The General Fund will repay the loan over 19 years at the simple interest rate of 3.6%.
2,353,050
59 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

3. 4.
$ 5,054,260

5. a.

General Fund 20,000$ -$
Navigation Center Fund - 20,000
20,000 20,000
Internal Service Funds 90,594 2,095
General Fund - 72,399
Nonmajor Governmental Funds - 3,596
Water Utility - 8,291
Sewage Collection - 2,597
Housing Authority - 1,325
Nonmajor Enterprise Funds - 291
90,594 90,594
Total 110,594$ 110,594$
Leases Receivable
Due From Successor Agency
Governmental Activities
As of June 30, 2023, the City has five leases; two digital billboards and three building leases located throughout Garden Grove. The interest rate for each lease range from 0.308% to 2.536%. The initial lease agreement term ranges from 29 - 360 months. One building lease has an option to extend for an additional two 12 month periods; and one building lease has an option to extend for nine 60 month periods. The total amount of lease revenue recognized in the current reporting period from leases is $439,558 and the total amount of interest received related to the leases was $17,907. The balance of the lease receivables at June 30, 2023 is $4,039,468. The City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases. The balance of deferred inflow of resources at June 30, 2023 is $3,917,929.

Interfund Receivables, Payables, and Transfers
The composition of interfund receivable/payable balances as of June 30, 2023 Due From
Other Funds
Due To Other
Funds
The former Redevelopment Agency has loans from the Low
Income Housing Assets Capital Project Fund, that were used to make the “Supplemental” Educational Revenue Augmentation (SERAF) payments for the fiscal year 2009-10 ($7,906,610) and 2010-11 ($1,626,274). These loans were due on May 10, 2015 and June 30, 2016, respectively. These loans which were previously invalidated, have been approved as an allowable Recognized Obligation payment by the State of California Department of Finance (DOF).

The amount due from the Successor Agency at June 30, 2023 is $6,054,260, which represents $5,054,260 of SERAF.
60 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

5. b.

General
Fund
Navigation
Center Fund
Nonmajor
Governmental
Funds
Internal
Service Funds Total
General Fund -$ 3,308,105$ 1,184,157$ 4,600,000$ 9,092,262$ Nonmajor Governmental Funds 3,801,449 - - - 3,801,449 Internal Service Funds 918,163 - - - 918,163 Water Utility Fund - - - 400,000 400,000 Total 4,719,612$ 3,308,105$ 1,184,157$ 5,000,000$ 14,211,874$ Transfers from the Housing Successory Agency Fund were made in the amount of $3,000,000 to General Fund in anticipation of the possible purchase and sale agreement between the Garden Grove Housing Authority and the City of Garden Grove, for the property at 11390-11400 Standford Avenue.

Transfer from the General Fund to the Tri-City Navigation Fund was made in the amount of $3,308,105 for the City's share of the acquisition cost for the Navigation Center.

Transfers from the General Fund were made to subsidize the Garden Grove Cable Fund in the amount of $575,952 and to subsidize the Park Maintenance Assessment District in the amount of $234,544. In addition, the General Fund made a transfer to the Street Lighting District Fund in the amount of $373,661 to subsidize the operating costs.

Interfund Receivables, Payables, and Transfers (continued) The composition of interfund transfer balances for the year ended June 30, 2023 is as Transfers out:

Transfers in:
follows:

The interfund payable balances represent routine and temporary cash flow assistance from the General Fund and Workers’ Compensation internal service fund until the amounts receivable are collected to reimburse eligible expenditures. They also include fringe collected from other funds that are due to the Employee Benefit and Workers' Compensation internal service funds.

A transfer from the General Fund was made in the amount of $1,600,000 and $400,000 from the Water Utility Fund to the Workers' Compensation Fund to replenish the fund.

A transfer from the General Fund was made in the amount of $3,000,000 to set up the new Building and Structure Rehabilitation Internal Service Fund.

A transfer from the Neighborhood Stabilization Program Fund to the General Fund was made in the amount of 38,560 due to a HUD adjustment.

Transfers to the General Fund generated by the Garden Grove Tourism Improvement District Special Revenue Fund in the amount of $762,889 were made to fund future City projects.

Transfers from the Employee Benefit Internal Service Fund were made in the amount of $918,163 to the Section 115 Pension Trust Fund to fund future City pension obligations. 61 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

6. a.
b.
c.
d.
e. Single Family Rehab (Deferred Loan) - Other nonmajor governmental funds:

At June 30, 2023 twelve Deferred Loan Agreements remain, which are reflected in the Housing Successor Agency fund. These loans provide up to $20,000 in down payment assistance in the form of a silent loan that requires no payment for 15 or 30 years. The loans carry 3% or 5% interest charges. There are five Homebuyer Assistance Loans that were issues for $50,000 each. These loans have a term of 45 years and bear a simple interest of 3%. At each anniversary, 1/45th of the principal and interest are forgiven. 283,431
CalHome Mortgage Assistance (CalHome) Loan - Other
Grants and Contributions Major Special Revenue Fund:

At June 30, 2023, twenty-seven CalHome Agreements are
reflected in the Other Grants and Contributions Major Special Revenue Fund. These loans provide up to $60,000 in down payment assistance in the form of a silent loan that requires no payment for 30 years. The loans carry 3% interest charges. 1,510,891 Rental rehabilitation – Other nonmajor governmental
funds:

The City has entered into a Housing Rehabilitation Agreement utilizing HOME funds for the purpose of assisting developers in the acquisition, substantial rehabilitation and continued operation of an existing 78-unit multifamily affordable housing project called Sycamore Court. Due to the multiple project funding sources, when completed the project will be subject to new income restrictions, occupancy and other affordable housing covenants.

Disbursement of loan proceeds of $1,200,000 were made in five installment payments commencing on June 2017. The Note bears simple interest at the rate of 3% per annum from the date of initial disbursement. Interest payments of $36,000 are due on an annual basis and no principal payments are required on the loan maturity date of September 30, 2033. 1,298,462 At June 30, 2023, nine MAP agreements are reflected in the Housing Successor Agency fund. These loans provide up to $40,000 in down payment assistance in the form of a silent loan that requires no payment for 5 up to 30 years. The loans carry interest between 0 to 3% annually. 169,626 Notes receivable at June 30, 2023, consisted of the following:

Neighborhood Stabilization Program (NSP) Loan – Other
Grants and Contributions Major Special Revenue Fund:

At June 30, 2023, ten NSP Agreements remain, which are
reflected in the nonmajor governmental funds. These loans provide up to $40,000 in down payment assistance in the form of a silent loan that requires no payment for 30 years. The loans carry 0% interest charges. $ 390,828
Mortgage Assistance Program (MAP) Loan – Other
nonmajor governmental funds:
62 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

6. f.
g.
h.
i.
j. Rental construction – Other nonmajor governmental funds:

The City has entered into a rental construction loan agreement utilizing HOME and Housing Successor Agency funds. The note was for the purpose of assisting the developer with the construction of new low-income housing for City residents. The note bears a simple annual interest rate of 3%. Loan repayment is based on residual receipts and is contingent upon the release of construction covenants for the project. The note commenced upon the initial disbursement of funds HOME in June 2015. An additional $1.6 million was disbursed in June 2017 and is payable to the Housing Successor Agency Fund. Its maturity will be the fifty-fifth anniversary of the date of the Release of Construction Covenants. 4,481,603
Affordable housing agreement – General Fund:

The City has entered into four Affordable Housing Agreements with developers wherein the developers have agreed to comply to certain affordability covenants including the reimbursement to the City of forgone property taxes which would have been payable for the property, increasing at the rate of approximately 2% annually. 2,866,840
The Low and Moderate Income Housing Asset capital projects fund holds six notes related to property rehabilitation loans, which have been used to assist developers in the rehabilitation of multifamily residential buildings located within the City for the purpose of providing adequate low income housing opportunities for City residents. 4,034,236
Rental rehabilitation – Other Grants and Contributions Major Special Revenue Funds and Other nonmajor governmental
funds:

The City has entered into thirteen Housing Rehabilitation Agreements utilizing CDBG funds, which are reflected in the Housing Successor Agency fund and other nonmajor governmental funds. These loans were for the purpose of assisting developers in the rehabilitation and operation of multifamily apartment buildings for the purpose of providing adequate low-income housing to City residents. Many of these buildings had suffered from serious structural deterioration, overcrowding and high crime.
14,868,916
At June 30, 2023, eleven ADDI Agreements utilizing the American Dream Down payment Initiative funds are reflected in nonmajor governmental funds. These loans provide up to $30,000 in down payment assistance in the form of a silent loan that requires no payment for 15 years. The loans carry 0% interest charges. These loans are forgivable if the recipient complies with all conditions. $ 138,683
Notes receivable at June 30, 2023, consisted of the following: (continued) ADDI Down Payment Rehab (ADDI) Loan – Other Grants and
Contributions Major Special Revenue Funds:

Rental rehabilitation - Other nonmajor governmental funds:
63 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

6. k.
l.
m.
1,260,000
n.

Less Allowance
The City has entered into a financed sale agreement for the sale of twelve single-family residential parcels on March 12, 2016. The initial loan amount is $2,709,030. The note bears a simple annual interest rate of 4% in 60 equal monthly interest-only payments in the amount of $9,030 with a balloon payment on the 60th month.

On December 10, 2019 the City Council approved an amendment to defer interest payments for a period of 30 months. The new interest payment of $9,476 will begin on July, 2020. Principal and interest payment of $19,476 will begin on July 1, 2025. A balloon payment in the amount of $2,453,305 will be due at the end of the loan term or the maturity date of December 1, 2029.
3,107,015
Notes receivable at June 30, 2023, consisted of the following: (continued) Conveyance of Property Loan Agreement – Other nonmajor
governmental funds:
(1,451,974)
Affordable housing agreement – Home Fund:

The City has entered into an Affordable Housing Loan Agreement utilizing HOME funds for the purpose of assisting the developer with the construction of new low-income housing for City residents. The note bears an interest rate of 0% and is to be repaid in full at the end of the 55-year affordability period. Loan repayment is based on residual receipts and is contingent upon the release of construction covenants for the project. The loan amount is $1,400,000 and $1,260,000 of the loan was disbursed as of June 30, 2023.

Stipulation for Summary Judgement:

The City has entered into an agreement with a low income housing provider to pay damages due to breech of contract pursuant to a summary judgement. The agreement stipulates that the housing provider will pay a total sum of $271,697 over 5 years with an annual interest rate of 2%. 108,207
Total Notes Receivable 35,674,147
Small Business Assistance Program – General fund and
Other Grants and Contributions Major Special Revenue
The City has entered into loan agreements through the Small Business Assistance Program utilizing CDBG funds as well as General Fund monies for a total loan amount of $1,890,000. The notes bear an interest rate equal to 0% or the highest rate permitted by applicable law compounded annually. 1,155,409 Total Notes Receivable, net 34,222,173$
64 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

7. 8.

Beginning
Balance Increases Decreases
Ending
Balance
Governmental activities
Capital assets, not being depreciated:

Land 412,953,682$ 8,692,980$ (550,771)$ 421,095,891$ Construction in progress 7,287,900 20,176,557 (3,833,648) 23,630,809 420,241,582 28,869,537 (4,384,419) 444,726,700 Capital assets, being depreciated:

Infrastructure
Street system 423,251,586 369,453 - 423,621,039 Storm drain assets 75,851,672 - - 75,851,672 Buildings and park assets 56,137,731 2,433,845 - 58,571,576 Right-to-use asset 262,189 631,020 (122,742) 770,467 SBITA assets* 126,753 - - 126,753 Furniture and equipment 36,152,452 2,197,669 (839,315) 37,510,806 Total capital assets, being depreciated 591,782,383 5,631,987 (962,057) 596,452,313 Less accumulated depreciation for:

Infrastructure
Street system (268,558,574) (7,923,187) - (276,481,761) Storm drain assets (52,266,550) (1,508,180) - (53,774,730) Buildings and park assets (32,527,181) (1,535,838) - (34,063,019) Right to use asset (92,736) (177,029) 122,742 (147,023) SBITA assets - (35,576) - (35,576) Furniture and equipment (19,070,640) (3,025,242) 831,060 (21,264,822) Total accumulated depreciation (372,515,681) (14,205,052) 953,802 (385,766,931) Total capital assets, being depreciated, net 219,266,702 (8,573,065) (8,255) 210,685,382 Governmental activities capital assets, net 639,508,284 $ 20,296,472 $ (4,392,674) $ 655,412,082 $ Business-type activities
Capital assets, not being depreciated:

Land 5,142,500$ -$ -$ 5,142,500$ Construction in progress 14,368,174 7,093,672 (10,974,802) 10,487,044 19,510,674 7,093,672 (10,974,802) 15,629,544 Capital assets, being depreciated:

Building and structures 590,325 167,040 - 757,365 Water system 152,747,997 5,979,020 - 158,727,017 Sewer system 122,698,977 4,888,131 - 127,587,108 Right-to-use asset 631,266 - (467,874) 163,392 SBITA assets* 315,000 - - 315,000 Machinery and equipment 632,468 23,327 - 655,795 Total capital assets, being depreciated 277,616,033 11,057,518 (467,874) 288,205,677 Less accumulated depreciation for:

Building and structures (321,080) (17,794) - (338,874) Water system (67,057,735) (3,802,728) - (70,860,463) Sewer system (57,416,251) (1,871,733) - (59,287,984) Right-to-use asset (270,449) (270,449) 467,874 (73,024) SBITA assets - (63,000) - (63,000) Machinery and equipment (436,361) (40,548) - (476,909) Total accumulated depreciation (125,501,876) (6,066,252) 467,874 (131,100,254) Total capital assets, being depreciated, net 152,114,157 4,991,266 - 157,105,423 Business-type activities capital assets, net 171,624,831 $ 12,084,938 $ (10,974,802) $ 172,734,967 $ * Beginning balance has been restated to reflect the implementation of GASB 96.

Total capital assets, not being depreciated
Total capital assets, not being depreciated
Land Held for Resale
The City and the Successor Agency land held for resale is an inventory of land intended to be sold to developers. The land is carried at the lower of cost or estimated net realizable value, as determined upon execution of a disposition and development agreement.

City land held for resale is comprised of inventory held by the General Fund and the Housing Successor Agency capital projects fund. City and Successor Agency land held for resale balances at June 30, 2023 are $2,819,063 and $849,639, respectively.

Capital Assets
Capital asset activity for the year ended June 30, 2023 was as follows:
65 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

8. Governmental Business-type
Activities Activities
Police Protection 554,201$ -$
Traffic safety 712,164 -
Right of way 7,211,030 -
Drainage 1,508,179 -
Community buildings 1,546,759 -
Municipal support 630,775 -
Water - 3,892,883
Sewage collection - 1,883,989
Golf course - 126,652
Housing Authority - 162,728
Internal service fund 2,041,944 -
Total 14,205,052$ 6,066,252$

9. a.

Beginning
Balance* Additions Reductions Ending Balance
Due Within
One Year
Governmental activities
Lease Revenue Bonds, Series 2015A 21,255,000 $ - $ (540,000) $ 20,715,000 $ 565,000 $ Add: Premium 1,232,297 - (54,367) 1,177,930 54,366 Leases payable 167,990 631,018 (161,027) 637,981 201,535 SBITA payable 126,753 - (60,484) 66,269 32,183 Governmental activities
long-term debt 22,782,040 631,018 (815,878) 22,597,180 853,084 Other non-current liabilities:

Claims payable 46,477,346 2,781,246 (4,916,681) 44,341,911 7,503,317 Compensated absences 7,914,609 8,190,806 (8,260,468) 7,844,947 7,609,598 Governmental activities
long-term liabilities 77,173,995 $ 11,603,070 $ (13,993,027) $ 74,784,038 $ 15,965,999 $ Business-type activities
Water Revenue COP 2015 1,915,000 $ - $ (985,000) $ 930,000 $ 930,000 $ Water Revenue Bond 2020 23,220,000 - (420,000) 22,800,000 890,000 Add: Premium/(Discount) 3,207,104 - (113,192) 3,093,912 113,192 Sewer Revenue Refunding Bond 2017 12,550,000 - (645,000) 11,905,000 680,000 Add: Premium/(Discount) 1,008,347 - (72,456) 935,891 72,456 Leases payable 356,749 - (266,130) 90,619 36,517 SBITA payable 315,000 - (63,000) 252,000 63,000 Other non-current liabilities:

Compensated absences 981,586 812,272 (863,531) 930,327 902,416 Business-type activities
long-term liabilities 43,553,786 $ 812,272 $ (3,428,309) $ 40,937,749 $ 3,687,581 $ Private-purpose trust fund
2016 Tax Allocation Bond 32,665,000 $ - $ (2,055,000) $ 30,610,000 $ 2,160,000 $ Add: Premium/(Discount) 4,059,171 - (360,815) 3,698,356 360,815 2014 Tax Allocation Bond 18,245,000 - (3,015,000) 15,230,000 3,170,000 Add: Premium/(Discount) 2,289,133 - (315,742) 1,973,391 315,742 2008 Subordinate Note 890,000 - (130,000) 760,000 135,000 Loan Payable to City 6,054,260 - (1,000,000) 5,054,260 - Private-purpose trust fund
long-term liabilities 64,202,564 $ - $ (6,876,557) $ 57,326,007 $ 6,141,557 $ * Beginning balance restated due to the implementation of GASB 96.

Capital Assets (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:

Long-term Debt
Following is a summary of long-term debt transactions for the City for the year ended June 30, 2023:
66 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. b.
20,715,000$
Unamortized bond premium 1,177,930
Total lease revenue bonds 21,892,930$
54,243$
453,056
130,682
Total leases payable 637,981
The City entered into two building leases in July 2021. As of June 30, 2023, the value of the lease liability is $54,243. The City is required to make a semi-annual fixed payment of $22,380 and a monthly fixed payment of $957 on the two leases. The leases have an interest rate of 0.218%. The initial lease terms were 12 and 18 months each. Each lease has an optional 12 month extension.

The City entered into nine vehicle leases between the dates of July 2021 through June 2023. As of June 30, 2023, the value of the lease liability is $130,682. The City is required to make monthly fixed payments ranging from $369 to $856. The leases have interest rates ranging from 0.426% to 3.378%. The vehicles lease terms range from 24 months to 60 months.

Long-term Debt
Governmental Long-term Debt at June 30, 2023 consisted of the following:

Lease Revenue Bonds, Series 2015 A
On November 10, 2015, the Garden Grove Public Financing Authority issued $24,790,000 of Lease Revenue Bonds, Series 2015A. The Bonds were issued for the current refunding of $17,100,000 of outstanding Certificates of Participation Series A (2002 Financing Project) and to finance the acquisition/construction of a fire station, police building renovations and other public capital improvements. Principal payments on the Bonds are due annually on March 1 each year, ranging from $515,000 to $1,435,000, and continuing until March 1, 2045. Interest is payable semiannually, beginning on March 1, 2016, with an interest rate ranging from

2.00% to 5.00% over the life of the Bonds. Such bonds are subject to Federal arbitrage regulations, however, no arbitrage liability is reported at June 30, 2023.

Leases Payable - Governmental Activities
The City entered into two equipment leases in July 2022 and May 2023. As of June 30, 2023, the value of the lease liability is $453,056. The City is required to make fixed monthly payments of $578 and $8,728 on the two leases. The initial lease terms were 46 and 60 months. The leases have interest rates of

0.817% and 2.467%.
67 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. 66,269$
Total SBITA payable 66,269
Total Governmental Long Term Debt 22,597,180$
c.
930,000$
Total 2015 refunding revenue bonds 930,000$
These certificates of participation are to be secured and to be serviced from revenues derived by the ownership and operations of the water system including all connection charges and fees collected by the City through the fiscal year 2023. At June 30, 2023 total interest and principal remaining on the certificates is $939,00. The Utility covenants that rates and charges for the water service will be sufficient to yield net revenues equal to 125% of the debt service coming due and payable during the next succeeding bond year. Revenue recognized during the year was $40.912 million against debt service payments of $939,300. The following analysis shows the test result for compliance with this covenant:

As of June 30, 2023, the City has recognized a liability of $66,269 related to these subscription-based IT arrangements. This liability represents the total estimated cost of the remaining subscription period, as determined by the contract terms and usage data.

The City has also recognized an intangible asset of $126,753 representing the right to use the subscription-based IT arrangements for the remaining subscription period, as
determined by the contract terms and usage data.

Long-term Debt
SBITA Payable - Governmental Activities
The City has entered into subscription-based information technology (IT) arrangements with various vendors. These arrangements are governed by Governmental Accounting
Standards Board Statement No. 96, Subscription-Based IT Arrangements.
2015 Revenue Certificates of Participation - Water Utility $8,150,000 Refunding Revenue Bonds, Series 2015 were issued on October 1, 2015, for the current refunding of the remaining outstanding balance of the previously issued $16,845,000 of the Refunding Certificate of Participation Series 2004. The refunding was undertaken to achieve debt service savings. Principal payments for 2015 Revenue certificates range from $930,000 to $985,000 and are due annually each December 15 through 2023.

Interest is payable semi-annually on June 15 and December 15, at rates ranging from 1.0% to 5.0% over the life of the certificate.

Such certificates are subject to Federal arbitrage regulations; however, no arbitrage liability is reported at June 30, 2023.

Proprietary long-term debt at June 30, 2023 consisted of the following items:
68 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. Operating Revenue 40,911,604 $
Non-operating revenues -
Gross revenue 40,911,604
(28,154,739)
Net revenues 12,756,865 $
Debt service requirement for next year:
$939,300 x 125% 1,174,125$
22,800,000$
Unamortized bond premium 3,093,912
Total 2020 revenue bonds 25,893,912$
2020 Revenue Bonds - Water Utility Enterprise Fund
$23,220,000 Refunding Revenue Bonds, Series 2020 were issued on November 3, 2020, for the advance refunding of the remaining outstanding balance of the previously issued $16,625,000 Water Revenue Bonds, Series 2010. The refunding was undertaken to reduce the City's total debt service payments over the next 10 years by $2.7 million. The net proceeds of $15.6 million will be used to finance the acquisition, expansion, construction, and improvement of certain additional water facilities of the water system of the City. Principal payments for 2020 Revenue Bonds range from $420,000 to $1,160,000 and are due annually each December 15 through fiscal year 2051. Interest is payable semi- annually on June 15 and December 15, at rates ranging from 3.0% to

4.0% over the life of the bonds. The refunding resulted in a net present value saving of $1.63 million, or 15.3% of the refunded bonds. Such certificates are subject to Federal arbitrage regulations; however, no arbitrage liability is reported at June 30, 2023.

These bonds are to be secured and to be serviced from revenues derived by the ownership and operations of the water system including all connection charges and fees collected by the City through the fiscal year 2051. At June 30, 2023 total interest and principal remaining on the bonds is $33,476,588. The Utility covenants that rates and charges for the water service will be sufficient to yield net revenues equal to 125% of the debt service coming due and payable during the next succeeding bond year. Revenue recognized during the year was $40.912 million against debt service payments of $1,702,375. The following analysis shows the test result for compliance with this covenant:

Less: Expenses (excluding depreciation
amortization, interest and fiscal charges)
Long-term Debt (continued)
69 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. c.

Operating Revenue 40,911,604 $
Non-operating revenues -
Gross revenue 40,911,604
(28,154,739)
Net revenues 12,756,865 $
Debt service requirement for next year:
$1,702,375 x 125% 2,127,969$
11,905,000$
Unamortized bond premium 935,891
Total 2017 revenue refunding bond 12,840,891$
The certificates are secured and to be serviced from the total revenues for the fiscal year excluding any proceeds of taxes or assessments restricted by law and less the operations and maintenance costs excluding depreciation through the fiscal year 2036.

Long-term Debt (continued)
Proprietary long-term debt at June 30, 2023 consisted of the following items:
(continued)
On March 1, 2017, the Garden Grove Sanitary District issued $15,970,000 in bonds to provide funds to refinance the District’s obligations to the 2006 Sewer Revenue Certificate of Participation.

The Certificates were issued to finance the rehabilitation, replacement and improvement of the wastewater collection system of the Garden Grove Sanitation District. The 2017 Bonds are due in annual principal installments of $615,000 to $1,160,000 beginning June 15, 2017 through 2036. Interest rates range from 2.0% to

5.0% and is payable semiannually on June 15 and December 15.

The net proceeds of the bond issue were used to provide for the prepayment of the 2006 Certificates. The reacquisition price was less than the net carrying amount of the old debt by $206,922.

This amount is being reflected as a deferred inflow of resources and amortized over the life of the refunding debt.
2020 Revenue Bonds - Water Utility Enterprise Fund - Debt Service Coverage (continued)
2017 Refunding Sewer Revenue Bond – Sewage Collection
Less: Expenses (excluding depreciation
amortization, interest and fiscal charges)
70 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. c.

Operating Revenue 11,845,037 $
Non-operating revenues -
Gross revenue 11,845,037
(4,599,376)
Net revenues 7,245,661 $
Debt service requirement for next year:
$1,199,125 x 115% 1,378,994$
33,040$
57,579
Total leases payable 90,619
252,000$
Total SBITA payable 252,000
Total Proprietary Long Term Debt 40,007,422$
The Utility covenants that rates and charges for the sewer service Less: Expenses (excluding depreciation
amortization, interest and fiscal charges)
SBITA Payable - Business-Type Activities
The City has also recognized an intangible asset of $315,000 representing the right to use the subscription-based IT arrangement for the remaining subscription period, as determined by the contract terms and usage data.

Long-term Debt (continued)
Proprietary long-term debt at June 30, 2023 consisted of the following items:
(continued)
2017 Refunding Sewer Revenue Bond – Sewage Collection
Enterprise fund - Debt Service Coverage
The City has entered into subscription-based information technology (IT) arrangements with Nobel Systems Inc.. This arrangement is governed by Governmental Accounting Standards Board Statement No. 96, Subscription-Based IT Arrangements.

Leases Payable - Business-Type Activities
The City entered into two vehicle leases in April 2019. As of June 30, 2023, the value of the lease liability is $33,040. The City is required to make monthly fixed payments of $463 per lease. The leases have an interest rate of 0.577%. The remaining lease term of is three years.

Willowick Golf Management, LLC, through authorization from the City, entered into a lease arrangement in the amount of $108,614 for golf maintenance equipment October 2020. As of June 30, 2023, the value of the lease liability is $57,579. The City is required to make monthly fixed payments of $2,136. The leases have an interest rate of

0.1459%. The estimated remaining lease term is 27 months.

As of June 30, 2023, the City has recognized a liability of $252,000 related to this subscription-based IT arrangement. This liability represents the total estimated cost of the remaining subscription period, as determined by the contract terms and usage data. 71 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. d.
30,610,000$
Unamortized bond premium 3,698,356
Total Tax Allocation Bond Issue of 2016 34,308,356$
15,230,000$
Unamortized bond premium 1,973,391
Total Tax Allocation Bond Issue of 2014 17,203,391$
760,000
On June 1, 2008, the former redevelopment agency for Community Development entered into a note purchase agreement in the amount of $2,015,000, to refund a note issued to Katella Cottages LLC under a Disposition and Development Agreement dated May 11, 2004. The Note has an annual interest rate of 6% with principal payments due annually on October 1 through October 1, 2027.

Principal payments range from $120,000 to $170,000. Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the bonds was transferred to the Successor Agency.

Tax Allocation Bonds Issue of 2016
$42,000,000 Tax allocation bonds were issued on March 17, 2016.

The SRDA issued the “2016 Bonds” in the aggregate principal amount necessary to provide net proceeds of $42,000,000 to fund the Water Park Hotel pursuant to the first amended and restated disposition and development agreement dated April 13, 2010. The bonds are due in annual principal installments of $1,975,000 to $3,450,000. Interest on the bonds will be payable semiannually each April 1 and October 1, commencing October 1, 2016. The rates ranging from 1.0% to 5.0%. The “2016 Bonds” will be payable on a parity with the debt service on the 2014 Bonds to the extent set forth in the 2016 Bond Indenture. Such certificates are subject to federal arbitrage regulations. No arbitrage liability is reported at June 30, 2023.

Long-term Debt (continued)
Private-purpose trust activity long-term debt at June 30, 2023 consisted of the following items:

Tax Allocation Refunding Bonds Issue of 2014
$38,810,000 Tax allocation refunding bonds were issued on July 16, 2014. The bonds were issued for the purpose of refunding the Garden Grove Agency for Community Development’s previously issued $57,025,000 community project tax allocation refunding bonds, Series 2003. Proceeds of the Series 2014 bonds will also be used (i) to fund a debt service reserve fund for the 2014 Bonds and (ii) to pay costs incurred in connection with the issuance, sale, and delivery of the 2014 Bonds.

Principal payments ranging from $1,580,000 to $3,330,000 are due annually through the year 2029. Interest is due semi-annually on October 1 and April 1, at rates ranging from 1.0% to 5.0%. Such bonds are subject to Federal arbitrage regulations; however, no liability is reported at June 30, 2023.

Subordinate Note
72 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. d.
5,054,260
Total Private Purpose Trust Funds Long Term Debt 57,326,007$ e.

Principal Interest Total
2024 565,000$ 939,950$ 1,504,950$ 2025 595,000 911,700 1,506,700 2026 625,000 881,950 1,506,950 2027 655,000 850,700 1,505,700 2028 690,000 817,950 1,507,950 2029-2033 3,980,000 3,561,050 7,541,050 2034-2038 4,860,000 2,673,600 7,533,600 2039-2043 5,945,000 1,584,400 7,529,400 2044-2045 2,800,000 211,750 3,011,750 Total 20,715,000$ 12,433,050$ 33,148,050$ Principal Interest Total
2024 201,535$ 12,508$ 214,043$ 2025 144,924 8,461 153,385 2026 115,840 5,643 121,483 2027 90,626 3,314 93,940 2028 85,056 1,053 86,109 637,981$ 30,979$ 668,960$ Principal Interest Total
2024 32,183$ 1,030$ 33,213$ 2025 22,836 375 23,211 2026 11,250 - 11,250 66,269$ 1,405$ 67,674$ Year
Ending
The former redevelopment agency has five loans from the Low Income Housing Assets capital project fund, that were used to make the fiscal year 2005-06 ($621,376) mandated Educational Revenue Augmentation Fund payments and “Supplemental”
Education Revenue Augmentation Fund payments for the fiscal year 2009-10 ($7,906,610) and 2010-11 ($1,626,274). In
accordance with Assembly Bill X1 26, existing agreements between the City and the former redevelopment agency have previously been invalidated. In fiscal year 2017-18, the California Department of Finance changed its previous
determination and has now approved the repayment of the ERAF and SERAF loans ($13,254,260) as an enforceable obligation. At June 30, 2021 the Successor Agency has repaid $6,200,000 of the loan balance. The amount due to the City at June 30, 2023 is $5,054,260, which represents $5,054,260 of SERAF.

Long-term Debt (continued)
Private-purpose trust activity long-term debt at June 30, 2023 consisted of the following items: (continued)
Loan Payable to City
The scheduled annual requirements to amortize all governmental long-term debt outstanding as of June 30, 2023 including interest payments are as follows:

Year
Ending
SBITA Payable - Governmental Activities
Lease Revenue Bonds 2015A
Year
Ending
Leases Payable - Governmental Activities
73 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. f.

Principal Interest Total
2024 930,000$ 9,300$ 939,300$ Total 930,000 $ 9,300 $ 939,300 $ Principal Interest Total
2024 890,000$ 812,375$ 1,702,375$ 2025 920,000 776,175 1,696,175 2026 960,000 738,575 1,698,575 2027 1,000,000 699,375 1,699,375 2028 1,035,000 658,675 1,693,675 2029-2033 4,380,000 2,682,875 7,062,875 2034-2038 2,930,000 2,063,250 4,993,250 2039-2043 3,525,000 1,444,325 4,969,325 2044-2048 4,280,000 691,713 4,971,713 2049-2051 2,880,000 109,250 2,989,250 Total 22,800,000 $ 10,676,588 $ 33,476,588 $ Principal Interest Total
2024 680,000$ 519,125$ 1,199,125$ 2025 715,000 485,125 1,200,125 2026 750,000 449,375 1,199,375 2027 785,000 411,875 1,196,875 2028 825,000 372,625 1,197,625 2029-2033 4,790,000 1,210,175 6,000,175 2034-2036 3,360,000 238,000 3,598,000 Total 11,905,000 $ 3,686,300 $ 15,591,300 $ Principal Interest Total
2024 36,517$ 229$ 36,746$ 2025 36,618 128 36,746 2026 17,484 38 17,522 Total 90,619$ 395$ 91,014$ Principal Interest Total
2024 63,000$ -$ 63,000$ 2025 63,000 - 63,000 2026 63,000 - 63,000 2027 63,000 - 63,000 Total 252,000 $ - $ 252,000 $ Year Ending
June 30
SBITA Payable - Business Type Activities
Year Ending
June 30
2017 Sewer Refunding Revenue Bonds
Long-term Debt (continued)
The scheduled annual requirements to amortize all proprietary long-term debt outstanding as of June 30, 2023 including interest payments are as follows:

Year Ending
June 30
2015 Refunding Water Revenue Bonds
Year Ending
June 30
2020 Water Revenue Bonds
Year Ending
June 30
Leases Payable - Business Type Activities
74 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

9. g.

Principal Interest Total
2024 2,160,000$ 1,340,500$ 3,500,500$
2025 2,265,000 1,229,875 3,494,875
2026 2,380,000 1,113,750 3,493,750
2027 2,500,000 991,750 3,491,750
2028 2,625,000 863,625 3,488,625
2029-2033 15,230,000 2,194,000 17,424,000 2034 3,450,000 51,750 3,501,750
Total 30,610,000 $ 7,785,250 $ 38,395,250 $ Principal Interest Total
2024 3,170,000$ 682,250$ 3,852,250$
2025 3,330,000 519,750 3,849,750
2026 1,955,000 387,625 2,342,625
2027 1,955,000 289,875 2,244,875
2028 1,610,000 200,750 1,810,750
2029-2030 3,210,000 161,750 3,371,750 Total 15,230,000 $ 2,242,000 $ 17,472,000 $ Principal Interest Total
2024 135,000$ 41,550$ 176,550$
2025 145,000 33,150 178,150
2026 150,000 24,300 174,300
2027 160,000 15,000 175,000
2028 170,000 5,100 175,100
Total 760,000 $ 119,100 $ 879,100 $ Year Ending
June 30
Subordinate Note 2008
Long-term Debt (continued)
The scheduled annual requirements to amortize all the Successor Agencylong- term debt outstanding as of June 30, 2023 including interest payments are as follows:

Year Ending
June 30
Tax Allocation Refunding Bonds Issue of 2016
Year Ending
June 30
Tax Allocation Refunding Bonds Issue of 2014
75 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

10. Compensated Absences
The City accounts for compensated absences (unpaid vacation, annual leave, unused holiday, compensated time off, and sick leave) in the Employee Benefit internal service fund and the enterprise funds. The balance for accrued compensated absences at June 30, 2023 is $8,775,274.

Vacation accrues for all employee groups at 10 hours per month after one year of service, 12 hours per month after nine years, 14 hours per month after 14 years, 17.25 hours per month after 19 years, and 20.50 hours per month after 24 years. The maximum an employee may accumulate is an amount equivalent to two full calendar years of service.

The maximum management may accumulate is an amount equivalent to two full calendar years of service plus 40 hours.

Sick leave is accumulated on the basis of eight hours for each month of service beginning from the date of hire for all employee groups other than police. Police employees accumulate on the basis of 10 hours for each month of service beginning from the date of hire. The City has adopted a policy for payment of unused sick leave benefits at time of retirement. Employees can be paid 50% for all unused hours up to 1,000, police employees 100% of up to 750 unused hours, and management employees 50% of all unused hours. Studies have indicated that only 14.39% of all accumulated sick leave is actually used by employees, therefore, the sick leave liability is estimated at 14.39% of the total accumulated benefit, or $1,975,851 at June 30, 2023.

A calculated fringe benefit rate, which includes accrued compensated absences, workers’ compensation, retirement and medical benefits, is applied to all labor charges. The resulting funds are deposited into internal service funds and are set aside for corresponding liabilities, which are fully funded by sufficient cash and investment in that fund. Compensated absences are liquidated using the employee benefits internal service fund’s available net position.
76 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

10. Compensated Absences (continued)
Governmental funds:

Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
5,979,412$ 7,047,360 $ (6,979,847) $ 6,046,925 $ 5,865,517 $ Sick Leave 1,935,197 1,143,445 (1,280,620) 1,798,022 1,744,081 Total 7,914,609$ 8,190,805$ (8,260,467)$ 7,844,947$ 7,609,598$ Enterprise funds:

Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
775,476$ 553,879 $ (576,857) $ 752,498 $ 729,923 $ Sick Leave 206,110 258,393 (286,674) 177,829 172,493 Total 981,586 $ 812,272 $ (863,531) $ 930,327 $ 902,416 $ Totals 8,896,195$ 9,003,077 $ (9,123,998) $ 8,775,274 $ 8,512,014 $

11. Risk Management
The City also has a self-insured program for its tort and civil liabilities. The City is self-insured for the first $2 million per occurrence. Excess liability insurance is carried thereafter to $33 million per occurrence with commercial insurers. Claims administration and adjusting services are provided by contract with a third-party administrator specializing in public entity liability.

Representation in matters of litigation is performed through the retaining of outside law firms and is supervised by the city attorney. This self-insurance program is accounted for in the Risk Management internal service fund.

The City estimates a general liability for claims outstanding, including claims incurred but not reported, on June 30, 2023, in the amount of $6,860,038 which has been included as liabilities in the Risk Management internal service fund.

The City is a defendant in various lawsuits. Attempts are made to settle these cases or proceed to trial as recommended by the attorney. The City believes that it has meritorious defenses to the allegations contained in the cases. However, the City has accrued and reserved reasonable amounts based on the actuarial analysis and attorney recommendations to cover the potential losses to the extent the exposures are deemed probable and estimable.

Vacation, Annual
Leave, Benefits, and
Comp Time
Vacation, Annual
Leave, Benefits, and
The City utilizes a program to self-insure for workers’ compensation liability for the first $1 million, per occurrence, for injury or occupational illness to City employees pursuant to Workers’ Compensation Laws of the State of California. The City contracts with a third party who administers the program and acts as the representative of the City in claim hearings and litigation. Excess coverage is placed with a joint powers authority for losses from $1 million up to the statutory limit per occurrence. This self-insurance program is accounted for in the Workers’ Compensation internal service fund. There is an estimated liability of $37,481,873 for workers' claims outstanding including claims incurred but not reported on June 30, 2023, which has been included as liabilities in the Workers’ Compensation internal service fund. 77 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

11. Risk Management (continued)
Worker's Compensation 2023 2022
Liability, July 1 39,565,247 $ 35,816,024 $
Cost and claims incurred 2,660,807 8,329,712 Claim payments (4,744,181) (4,580,489)
Liability, June 30 37,481,873$ 39,565,247$
Due within one year 5,010,907 $ 4,832,896 $
Due in more than one year 32,470,966 34,732,351 37,481,873$ 39,565,247$
Risk Management
Liability, July 1 6,912,099 $ 6,741,230 $
Cost and claims incurred 120,439 3,253,369 Claim payments (172,500) (3,082,500)
Liability, June 30 6,860,038$ 6,912,099$
Due within one year 2,492,410$ 2,505,697$
Due in more than one year 4,367,628 4,406,402 6,860,038$ 6,912,099 $
Settled claims have not exceeded any of the City’s coverage amounts in any of the last three fiscal years and there were no reductions in the City’s insurance coverage during the year ended June 30, 2023. Changes in the aggregate liability for claims for fiscal year ended June 30, 2023 and June 30, 2022 are as follows:
78 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. a.
•
•
•
•
Prohibits certain cash payment from being counted as compensation; and Increases retirement age for all new public employees.

Each employee contributes toward his or her retirement based upon the retirement formula. Under PEPRA, the mandated employee contribution rate is one half of the normal cost as determined annually by CalPERS for the City when the actuarial valuation of the plans are performed. Active PEPRA plan members in the Miscellaneous Plan of the City are required to contribute 6.75% of reportable earnings for a 2.0% at 62 retirement plan. Active PEPRA plan members in the Safety Plan of the City are required to contribute 12.75% of reportable earnings for a 2.7% at 57 retirement plan. Active "Classic" plan members in the Miscellaneous Plan of the City are required to contribute 8.00% of reportable earnings for a 2.5% at 55 retirement plan. Active "Classic" plan members in the Safety Plan of the City are required to contribute 9.00% of reportable earnings for a 3.0% at 50 retirement plan.

The required employer contribution rates for fiscal year ended June 30, 2023 under PEPRA are the same as the employer contribution rates for existing miscellaneous employees and public safety employees.

Public Employees' Retirement System
General Information about the Pension Plans
Plan Description - The City of Garden Grove’s defined benefit pension plans, the Miscellaneous Plan of the City of Garden Grove and the Safety Plan of the City of Garden Grove, provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Miscellaneous Plan of the City of Garden Grove and the Safety Plan of the City of Garden Grove are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate Annual Comprehensive Financial Report.

Copies of CalPERS’ annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.

On September 12, 2012, the California Governor signed the California Public Employees’ Pension Reform Act of 2013 (PEPRA) into law. PEPRA took effect January 1, 2013. Key components of the legislation are as follows:

Establishes PEPRA which applies to all public employers and public pension plans on and after January 1, 2013 (except specific exemptions); Establishes new retirement tiers/benefits for new public employees; 79 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. a.

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 52 - 67
Monthly benefits, as a % of eligible
compensation 2.0% to 2.5% 1.0% to 2.5%
Required employee contribution rates 8.00% 6.75%
Required employer contribution rates 43.55% 43.55%
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 - 57
Monthly benefits, as a % of eligible
compensation 3.00% 2.0% to 2.7%
Required employee contribution rates 9.00% 12.75%
Required employer contribution rates 97.53% 97.53%
Misc Safety
Inactive employees or beneficiaries
currently receiving benefits 695 504 Inactive employees entitled to but
not yet receiving benefits 479 163 Active employees 380 172
Total 1,554 839
Employees covered - At June 30, 2021 (actuarial valuation date), the following employees were covered by the benefit terms for each Plan:

Public Employees' Retirement System (continued)
General Information about the Pension Plans (continued) Benefits provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 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, 2023, are summarized as follows:

Miscellaneous
Safety
80 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. a.
b. Net Pension Liability
Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS' membership data for all funds 1 Post Retirement Benefit
Increase
The lessor of contract COLA up to 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 for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include 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 CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Entry Age Actuarial Cost Method
Public Employees' Retirement System (continued)
General Information about the Pension Plans (continued) Contributions - 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.

Actuarial Methods and Assumptions Used to Determine Total The June 30, 2021 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions:
81 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023

C. DETAILED NOTES ON ALL FUNDS (continued)

12. b. Net Pension Liability (continued)
Long-term Expected Rate of Return
Assumed
Asset
Allocation Real Return2

30.00% 4.54%

12.00% 3.84%

13.00% 7.28%

5.00% 0.27%

5.00% 0.50%

10.00% 1.56%

5.00% 2.27%

5.00% 2.48%

5.00% 3.57%

15.00% 3.21%
-5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Discount Rate
Private Debt
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.

Public Employees' Retirement System (continued)
Global Equity - Cap-weighted
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 funds 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:

Private Equity
Real Assets
Leverage
Global Equity - Non-Cap-weighted
Asset Class1
Treasury
Mortgage-backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
82 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023

C. DETAILED NOTES ON ALL FUNDS (continued)

12. b. Net Pension Liability (continued)
Subsequent Events
Amortization of Deferred Outflows and Deferred Inflows of Resources Net Difference between 5 year straight-line amortization projected and actual
earnings on investments
All other amounts
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Public Employees' Retirement System (continued)
The amortization period differs depending on the source of the gain or loss:

Straight-line amortization over the average expected
remaining service lifetime (EARLS) of all members that
are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2023, measurement date. 83 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. Public Employees' Retirement System (continued)
c.

The following table shows the balances related to pension at June 30, 2023:

Miscellaneous Safety
Plan Plan Total
Net Pension Liability 112,796,667$ 230,493,176$ 343,289,843$ Deferred Outflows 34,592,991$ 53,812,604$ 88,405,595$ Deferred Inflows 1,770,950$ 1,458,969$ 3,229,919$ Pension Expense 14,650,034$ 4,591,533$ 19,241,567$ The following table shows the changes in the Net Pension Liability for each plan:

Miscellaneous Plan:

Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Asset)
(c) = (a) - (b)
357,065,376$ 291,752,153 $ 65,313,223 $
Changes in the year:
6,003,691 - 6,003,691 24,841,644 - 24,841,644 Changes in assumptions 11,834,221 - 11,834,221 (2,812,686) - (2,812,686) Contribution - employer - 12,360,011 (12,360,011) Contribution - employee - 2,371,491 (2,371,491) Net Investment income - (22,166,332) 22,166,332 (18,129,856) (18,129,856) -
Administrative expense - (181,744) 181,744 Net changes 21,737,014 (25,746,430) 47,483,444 Balance at June 30, 2022 378,802,390$ 266,005,723 $ 112,796,667 $ refunds of employee
contributions
Balance at June 30, 2021
Changes in Net Pension Liability
Service cost
Interest on the total pension
liability
Difference between actual and
expected experience
Benefit payments, including
Increase (Decrease)
84 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. Public Employees' Retirement System (continued)
c.

Safety Plan:

Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(c) = (a) - (b)
Balance at June 30, 2021 $ 586,839,978 434,809,261 $ 152,030,717 $ Changes in the year:

Service cost 7,909,848 - 7,909,848 Interest on the total pension
liability 40,930,945 - 40,930,945 Changes in assumptions 21,051,324 - 21,051,324 Difference between actual
and expected experience (2,239,626) - (2,239,626) Contribution - employer - 19,491,065 (19,491,065) Contribution - employee - 2,837,409 (2,837,409) Net Investment income - (32,867,582) 32,867,582 Benefit payments, including
refunds of employee
contributions (32,808,974) (32,808,974) -
Administrative Expense - (270,860) 270,860 Net changes 34,843,517 (43,618,942) 78,462,459 Balance at June 30, 2022 $ 621,683,495 391,190,319$ 230,493,176 $ Changes in Net Pension Liability (continued)
Increase (Decrease)
85 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. Public Employees' Retirement System (continued)
c.

Miscellaneous Safety
1% Lower 5.90% 5.90%
Net Pension Liability 164,346,822 $ 316,300,449 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability 112,796,667 $ 230,493,176 $ 1% Higher 7.90% 7.90%
Net Pension Liability 70,406,942 $ 160,647,196 $ d.

Deferred Outflows of
Resources
Deferred Inflows of
Resources
13,424,666$ - $
measurement date
Changes in assumptions 7,451,176 - Differences between expected
and actual experiences 263,080 (1,770,950) Net difference between projected and
actual earnings on pension plan
investments 13,454,069 -
Total 34,592,991$ (1,770,950) $
Miscellaneous Plan
Pension contributions subsequent to
Sensitivity of the Net Pension Liability to Changes in the Discount Rate– The following presents the net pension liability of each Plan, calculated using the discount rate for each Plan, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:

The Net Pension Liabilities for the City’s pension plans have been primarily liquidated by funding from the General, Water, Sewage Collection and Housing Authority funds based on their proportionate personnel costs of the year.

Changes in Net Pension Liability (continued)
Pension expenses and deferred outflows/inflows of resources related to pensions
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports and can be obtained on the CalPERS website.
86 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

12. Public Employees' Retirement System (continued)
d.

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 21,548,966$ -$
Changes in assumptions 12,630,794 -
Differences between expected
and actual experiences 56,003 (1,458,969) Net difference between projected and
actual earnings on pension plan
investments 19,576,841 -
Total 53,812,604 $ (1,458,969) $
Miscellaneous Plan Safety Plan
Measurement Periods Ended June 30
Deferred
Outflow/(Inflows)
of Resources
Deferred
Outflow/(Inflows) of
Resources
2023 5,760,977 $ 10,566,056 $
2024 4,259,548 6,504,715
2025 944,995 1,238,789
2026 8,431,855 12,495,109

12. Other Postemployment Benefits
a. Plan Descriptions
The City administers other post-employment benefit (OPEB) plan which is subject to changes based on the discretion of the Council:

PEMHCA: The City provides an agent multiple-employer defined benefit healthcare plan to retirees through the California Public Employee Retirement System (CalPERS) under the California Public Employees Medical and Hospital Care Act (PEMHCA), commonly referred to as PERS Health.

Pension expenses and deferred outflows/inflows of resources related to pensions (continued)
Safety Plan
The $13,424,666 and $21,548,966 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
87 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
b. Employees Covered
Number of
Participants
Inactive Employees Receiving Benefit Payments 287
-
Participating Active Employees 556
Total Number of Participants 843
c. Contributions
d. Actuarial Methods and Assumptions Used to Determine Total OPEB Liability The City’s total OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

ACTUARIAL METHODS AND ASSUMPTIONS:

ACTUARIAL COST METHOD: GASB 74/75 require use of the entry age actuarial cost method.

Entry age is based on the age at hire for eligible employees. The attribution period is determined as the difference between the expected retirement age and the age at hire.

The APVPBP (Actuarial Present Value of Projected Benefit Payments) and present value of future service costs are determined on an employee by employee basis and then aggregated.

Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled) and are eligible to begin drawing a PERS pension. The benefits are available only to employees who retire from the City.

As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the City plan:

The contributions for the City’s other post-employment benefits are based on pay-as- you-go financing requirements.

The contribution requirements of plan members and the City are established and may be amended by the City Council. The City must agree to make a defined monthly payment towards the cost of each retiree’s coverage. The City’s contribution rates were $151 and $149 per month for each retiree for the calendar years ended 2023 and 2022, respectively.

For the fiscal year ended June 30, 2023, the City contributed $517,951 to the plan.

Inactive Employees Entitled to But Not Yet Receiving Benefit Payments
88 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
d.

MORTALITY
Participant Type Mortality Tables
Police
Firefighters
Miscellaneous
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability (continued)
2017 CalPERS Mortality for Active Safety Employees
2017 CalPERS Mortality for Active Safety Employees
2017 CalPERS Mortality for Active Miscellaneous
Employees
To the extent that different benefit formulas apply to different employees of the same class, the service cost is based on the benefit plan applicable to the most recently hired employees (including future hires if a new benefit formula has been agreed to and communicated to employees). This greatly simplifies administration and accounting; as well as resulting in the correct service cost for new hires.

SUBSTANTIVE PLAN: As required under GASB 74/75 the valuation is based on the substantive plan. The formulation of the substantive plan was based on a review of written plan documents as well as historical information provided by the City regarding practices with respect to employer and employee contribution and other relevant factors.

INFLATION: 2.50% per year. Actuarial standards require using the same rate for OPEB that is used for pension.

PAYROLL INCREASE: 2.75% per year.

ECONOMIC ASSUMPTIONS:

INVESTMENT RETURN/DISCOUNT RATE: 3.54% per year net of expenses. This is based on the Bond Buyer 20 Bond Index. The interest assumption changed from

2.16% to 3.54%.

TREND: 4% per year. The long-term trend assumption is based on the conclusion that, while medical trend will continue to be cyclical, the average increase over time cannot continue to outstrip general inflation by a wide margin. Trend increases in excess of general inflation result in dramatic increases in unemployment, the number of uninsured and the number of underinsured. These effects are nearing a tipping point which will inevitably result in fundamental changes in health care finance and/or delivery which will bring increases in health care costs more closely in line with general inflation. We do not believe it is reasonable to project historical trend vs. inflation differences several decades into the future.

IMPLICIT RATE SUBSIDY: GASB 74/75 require use of claims costs or age-adjusted premiums approximating claims costs to determine the plan's liability. Adjusting premiums for age creates an Implicit Subsidy and is reflected as part of the plan's liability. In addition, the common approach amongst actuaries in California is to include an implicit subsidy as part of the liability and as such the City requested to have reflected age-adjusted premiums in the calculation of the actuarial values.

Implicit Subsidy is considered a benefit and should be included in OPEB valuation and its recognition will increase OPEB liability.
89 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
d.

Future Retirees Post -65
e.

Changes in the Total OPEB Liability (TOL) arising from certain sources are recognized on a deferred basis. Under GASB 74 & 75 OPEB expense includes service cost, interest cost, change in total OPEB liability due to plan changes; all adjusted for deferred inflows and outflows.

General
Retiree liabilities are based on actual retiree premium plus an implicit rate subsidy of

78.3% of non-Medicare medical premium. Liabilities for active participants are based on the first year costs shown below, which include the implicit rate subsidy. Subsequent years' costs are based on first year costs adjusted for trend and limited by any City contribution caps.
100% at 5 Years of Service
100% at 5 Years of Service
100% at 5 Years of Service
Police
Firefighters

COSTS FOR RETIREE COVERAGE
Police Officers
Miscellaneous
Employees
$1,752
PEMHCA Minimum: $1,752
Implicit Subsidy: $13,982
$1,752
PEMHCA Minimum: $1,752
Implicit Subsidy: $9,375
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability (continued)

RETIREMENT RATES
Employee Type
Police Officers 2017 CalPERS 3%@50 Rates for Sworn Police Employees or PEPRA rates, as appropriate
Retirement Rate Tables
2017 CalPERS 3%@50 Rates for Sworn Fire Employees or
PEPRA rates, as appropriate
2017 CalPERS 2.5%@55 Rates for Miscellaneous Employees
or PERPRA rates, as appropriate
Service Requirement Tables
General Employees
Firefighters

SERVICE REQUIREMENT
Employee Type
Recognition of Deferred Outflows and Inflows of Resources $1,752
The participation rates per the actuarial report for all employee types for the group that is less than age 65 (Non-Medicare) and for the group that is more than age 65 (Medicare) is 70 percent.

Participant Type
Fire Fighters PEMHCA Minimum: $1,752
Implicit Subsidy: $13,982
Future Retirees Pre-65
90 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
e.
•
•
•
•
Deferred Outflows of
Resources
Deferred Inflows
of Resources
$ 517,951 $ -
25,157,445 (8,045,663)
Difference between expected and actual
experience 12 (9,564,404) Total $ 25,675,408 $ (17,610,067)
Measurement
Periods Ended
June 30
Deferred
Outflows/(Inflows) of
Resources
2023 $ 1,628,596
2024 1,628,596
2025 1,628,596
2026 1,628,596
2027 1,628,596
Thereafter (595,602)
Investment gains and losses can be deferred five years.

Experience gains and losses can be deferred over the expected average remaining service lives (EARSL) of plan participants. In calculating the EARSL, terminated employees (primarily retirees) are considered to have working lifetime of zero. This often make the EARSL, quite short.

Recognition of Deferred Outflows and Inflows of Resources (continued) The TOL can arise in several ways - e.g., as a result of plan changes or changes in actuarial assumptions. TOL can also arise from actuarial gains and losses. Actuarial gains and losses result from differences between actuarial assumptions and the actual plan experience.

Under GASB 74 and 75, a portion of actuarial gain and losses can be deferred as follows:

Liability changes resulting from changes in economic and demographic assumptions are also deferred based on the average working lifetime.

The $517,951 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as OPEB expense as follows:

OPEB Expense a Deferred Outflow/Inflow of Resources to OPEB Liability changes resulting from plan changes, for example, cannot be deferred.

For the fiscal year ended June 30, 2022, the City recognized OPEB expenses of $4,936,009. As of fiscal year ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

OPEB contributions subsequent to measurement
Changes of assumptions
91 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
f.
g.

Increase (Decrease)
Total OPEB
Liability (TOL)
48,708,347$
Changes recognized for the measurement period:

Service Cost 2,250,612
Interest on TOL 1,056,801
Employer Contributions as Benefits (1,815,415)
Experience (Gains)/Losses 14
Assumption Changes (8,394,004)
Net Changes (6,901,992)
Balance at June 30, 2023 41,806,355 $
h.

Discount Rate
1% Lower Valuation Discount
Rate
Discount Rate
1% Higher
OPEB Liability $47,774,707 $41,806,355 $37,576,368
The following presents the OPEB liability with a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Balance at June 30, 2022
Total OPEB Liability
If actuarial assumptions are borne out by experience, the City will fully accrue retiree benefits by expensing an amount each year that equals the service cost. If no accruals had taken place in the past, there would be a shortfall of many years’ accruals, accumulated interest and forfeitures for terminated or deceased employees. This shortfall is called the Total OPEB Liability (TOL). The TOL is calculated as the APVPBP (Actuarial Present Value of Projected Benefit Payments) minus the present value of future service costs.

Changes in the OPEB Liability
The changes in the OPEB liability for the City are as follows:

Sensitivity of OPEB Liability to Changes in the Discount Rate Changes in Total OPEB Liability as of June 30, 2023
92 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

13. Other Postemployment Benefits (continued)
i.

Trend Rate 1%
Lower Valuation Trend
Trend Rate 1%
Higher
OPEB Liability $35,717,597 $41,806,355 $49,090,207

14. Commitments and Contingencies
a. Grants
b. Construction Commitments
Remaining
Spent-to-date Commitment
Building Improvements 5,749,658 $ 4,311,389 $
Park Improvements 353,653 323,753
Sewer Improvement 2,124,395 3,558,435
Storm Improvements 3,718,381 (218,687)
Street Improvements 12,898,147 3,771,328
Water Improvements 8,362,649 4,956,943
Total 33,206,883 16,703,161
Sensitivity of OPEB Liability to Changes in the Trend Rate The following presents the OPEB liability of the City if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Under the terms of federal, county and state grants, periodic audits are required and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If some expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.

The City has active construction projects as of June 30, 2023. City project commitments includes street improvements, storm drain improvements, building improvements, and park improvements. Proprietary fund project commitments include water main improvements, water reservoir rehabilitation projects and sewer main improvements. At fiscal year-end, the City’s construction project commitments with contractors are as follows:
93 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

14. Commitments and Contingencies (continued)
c. Contract Commitments

15. Joint Venture

16. Tax Abatements
In 2016, the City approved an Amended and Restated Operating Covenant Agreement with California Fuels and Lubricants for business retention purposes pursuant to Senate Bill 562. The Amended Agreement effective July 1, 2016 provides for economic development assistance in form of varying revenue sharing ratios of the amount of sales tax revenue generated in excess of $200,000 annually for a period of 20 years. For Fiscal Year 2022-23, California Fuels and Lubricants received assistance payments of $775,493.

The City entered into an agreement with the Orange County Fire Authority (OCFA) on April 9, 2019 for OCFA to provide fire and emergency medical services to the City starting on August 16, 2019. OCFA will lease specified apparatus at no cost and fire stations at $1 per year per station. Annually, the City will pay its share of OCFA’s vehicle replacement program. The City will also pay a monthly fee of $2,053,896 for the fire and emergency medical services. The monthly amount is subject to change on an annual basis and is due at the beginning of each month.

The City participates in the Anaheim-Garden Grove-Orange Fire Training Facility Authority, a joint powers authority created to finance fire training and dispatching facilities. The City Council of each city appoints one representative to the three- member Board of Directors. The City’s proportionate share is 22.0%. Because the City is not financially accountable, the training facility is not considered part of the City’s reporting entity. Separate financial statements are not issued.

The City of Garden Grove enters into various tax abatement agreements for the purpose of attracting and retaining businesses within the City. The Garden Grove Agency for Community Development also entered into three such agreements specific to hotel developments that are now the enforceable obligations of the Successor Agency pursuant to the 2011 Redevelopment Agency Dissolution Act. 94 CITY OF GARDEN GROVE

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED JUNE 30, 2023
C. DETAILED NOTES ON ALL FUNDS (continued)

16. Tax Abatements (continued)

17. Subsequent Events
In 2010, the Successor Agency entered into an agreement with Garden Grove MXD, LLC for the construction of the Great Wolf Lodge. The performance based assistance began in 2015-16 and is based on the Transient Occupancy Tax rate. If the Transient Occupancy Tax rate charged by the City impacts an agreed upon Transient Occupancy Tax rate differential with a neighboring City, an amount will be rebated to the developer equal to the total room revenue multiplied by that Transient Occupancy Tax differential. The amount of Transient Occupancy Tax rebated to Garden Grove MXD, LLC for the Fiscal Year 2022-23 is $764,600.66. This amount is an approved enforceable obligation of the Successor Agency, and will be paid via the State of California approved Recognized Obligation Payments Schedule.

In 2017, the City entered into an agreement with Garden Grove Automotive, Inc (GGA) to acquire the site and continue to sell Kia automobiles. Subject to the contingency that GGA fulfills the covenants of the agreement and generate enough sales tax revenue during the fiscal year, the City has agreed to pay an amount equal to 35% of the sales tax revenue in excess of $150,000. The amount paid at June 30, 2023 was $37,500.00.

On December 5, 2023, the Garden Grove Public Financing Authority Lease Revenue Bonds, Series 2015A was fully defeased. The Bonds had a balance of $20,715,000 with an unamortized premium of $1,177,930 as of June 30, 2023. A total of $20,828,075 million was deposited in a defeasance escrow account, including a cash contribution of $20,316,616 from the City. The entire outstanding Bonds will be called in 2025. It is estimated a net cash flow savings in the amount of approximately $3.9 million will be achieved by the defeasance.
95 This page is intentionally blank.

Required Supplemental
Information
Required
Supplemental
Information
This page is intentionally blank.

Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Taxes 142,174,000 $ 142,174,000 $ 159,930,340 $ 17,756,340 $ Licenses and permits 3,200,000 3,200,000 3,072,537 (127,463) Fines, forfeits and penalties 1,800,000 1,800,000 2,305,388 505,388 Investment earnings 1,421,358 1,421,358 709,999 (711,359) Charges for current services 4,482,036 4,482,036 7,724,342 3,242,306 From other agencies - - 2,797,420 2,797,420 Other revenues 3,565,704 3,565,704 2,069,957 (1,495,747) Total revenues 156,643,098 156,643,098 178,609,983 21,966,885 EXPENDITURES:

Current:

Fire 31,880,332 31,880,332 30,933,358 946,974 Police 76,397,366 76,397,366 72,454,478 3,942,888 Traffic safety 3,036,178 3,036,178 2,788,572 247,606 Public right of way 8,259,291 8,259,291 11,102,502 (2,843,211) Community buildings 4,602,787 4,602,787 4,273,408 329,379 Community services 5,435,391 5,435,391 5,304,575 130,816 Economic development 1,543,677 1,543,677 1,756,237 (212,560) Parks and greenbelts 1,796,988 1,796,988 1,427,596 369,392 Community planning and development 19,011,305 20,011,305 17,793,188 2,218,117 Municipal support 9,178,641 9,252,841 9,898,298 (645,457) Debt service:

Principal retirement 540,000 540,000 579,320 (39,320) Interest 1,063,920 1,063,920 1,150,820 (86,900) Total expenditures 162,745,876 163,820,076 159,462,352 4,357,724 Excess (deficiency) of revenues
over (under) expenditures (6,102,778) (7,176,978) 19,147,631 26,324,609 OTHER FINANCING SOURCES (USES):

Transfers in - - 4,719,612 4,719,612 Transfers out - - (9,092,262) (9,092,262) Proceeds of leases - - 277,888 277,888 Proceeds from sale of capital assets - - 5,989,694 5,989,694 Total other financing sources (uses) - - 1,894,932 1,894,932 Net change in fund balance (6,102,778) (7,176,978) 21,042,563 28,219,541 Fund balance, beginning of year 162,265,299 162,265,299 162,265,299 - Fund balance, end of year 156,162,521 $ 155,088,321 $ 183,307,862 $ 28,219,541 $

See accompanying note to required supplementary information.

CITY OF GARDEN GROVE

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
96 Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 15 $ 15 $ From other agencies - - 2,987,661 2,987,661 Other revenues - - 56,921 56,921 Total revenues - - 3,044,597 3,044,597 EXPENDITURES:

Current:

Community buildings - 7,000,000 6,295,767 704,233 Total expenditures - 7,000,000 6,295,767 704,233 Excess (deficiency) of revenues
over (under) expenditures - (7,000,000) (3,251,170) 3,748,830 OTHER FINANCING SOURCES (USES):

Transfers in - - 3,308,105 3,308,105 Total other financing sources (uses) - - 3,308,105 3,308,105 Net change in fund balance - (7,000,000) 56,935 7,056,935 Fund balance, beginning of year - - - - Fund balance, end of year - $ (7,000,000) $ 56,935 $ 7,056,935 $

CITY OF GARDEN GROVE

NAVIGATION CENTER SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
97 Measurement Period 2022 2021 2020

TOTAL PENSION LIABILITY
Service cost 6,003,691 $ 5,217,353 $ 5,053,242 $ Interest on total pension liability 24,841,644 24,233,252 23,364,470 Changes of benefit terms - - 2,033,512 Changes of assumptions 11,834,221 - - Difference between expected and actual experience (2,812,686) 1,014,736 (1,623,742) Benefit payments, including refunds of employee contributions (18,129,856) (17,406,313) (17,321,101) Net change in total pension liability 21,737,014 13,059,028 11,506,381 Total pension liability - beginning 357,065,376 344,006,348 332,499,967 Total pension liability - ending (a) 378,802,390$ 357,065,376 $ 344,006,348 $

PLAN FIDUCIARY NET POSITION
Contribution - Employer 12,360,011 $ 11,171,129 $ 10,190,871 $ Contribution - Employee 2,371,491 2,341,219 2,282,163 Net investment income (22,166,332) 54,526,902 11,708,962 Benefit payments, including refunds of employee contributions (18,129,856) (17,406,313) (17,321,101) Net Plan to Plan Resource Movement - - - Administrative Expense (181,744) (241,104) (331,053) Other Miscellaneous Income/(Expense) 1 - - - Net change in fiduciary net position (25,746,430) 50,391,833 6,529,842 Plan fiduciary net position - beginning 2 291,752,153 241,360,320 234,830,478 Plan fiduciary net position - ending (b) 266,005,723$ 291,752,153 $ 241,360,320 $ Plan net pension liability - ending (a) - (b) 112,796,667$ 65,313,223 $ 102,646,028 $ Plan fiduciary net position as a percentage of the total pension liability 70.22% 81.71% 70.16% Covered payroll 3 30,863,494$ 29,694,668 $ 28,436,925 $ Plan net pension liability as a percentage of covered payroll 365.47% 219.95% 360.96% *Historical information is required only for measurement periods for which GASB 68 is applicable 1 2
3 Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21, 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

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: Effective with the June 30, 2021 valuation date (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. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from

7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

CITY OF GARDEN GROVE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Includes any beginning of year adjustment.

AGENT MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS
THE LAST TEN FISCAL YEARS*
Miscellaneous
During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB68). 98 2019 2018 2017 2016 2015 2014
5,475,558$ 5,401,390 $ 5,295,064 $ 4,717,431 $ 4,505,053 $ 4,722,338 $ 22,545,983 21,444,843 20,965,466 20,513,676 19,499,703 18,697,528 - - - - - - - (1,737,101) 17,855,824 - (4,893,202) - 3,673,870 (4,057,535) (5,244,453) 1,501,168 (1,007,886) - (16,224,456) (14,088,814) (13,540,154) (12,581,087) (12,134,038) (11,490,804) 15,470,955 6,962,783 25,331,747 14,151,188 5,969,630 11,929,062 317,029,012 310,066,229 284,734,482 270,583,294 264,613,664 252,684,602 332,499,967$ 317,029,012 $ 310,066,229 $ 284,734,482 $ 270,583,294 $ 264,613,664 $ 9,162,242$ 8,199,628 $ 7,579,342 $ 6,646,792 $ 5,948,472 $ 5,101,581 $ 2,158,717 2,429,785 2,308,262 2,242,990 2,281,790 2,070,127 14,721,760 17,695,861 21,554,042 1,004,774 4,419,750 29,571,239 (16,224,456) (14,088,814) (13,540,154) (12,581,087) (12,134,038) (11,490,804) (10,044) 36,458 (64,848) (69,973) - - (160,695) (330,147) (286,986) (120,179) (221,880) - 522 (626,954) - - - - 9,648,046 13,315,817 17,549,658 (2,876,683) 294,094 25,252,143 225,182,432 211,866,615 194,316,867 197,193,550 196,899,456 171,647,313 234,830,478$ 225,182,432 $ 211,866,525 $ 194,316,867 $ 197,193,550 $ 196,899,456 $ 97,669,489$ 91,846,580 $ 98,199,704 $ 90,417,615 $ 73,389,744 $ 67,714,208 $

70.63% 71.03% 68.33% 68.24% 72.88% 74.41%
30,347,270$ 29,746,612 $ 29,037,915 $ 28,573,176 $ 27,094,801 $ 27,060,561 $ 321.84% 308.76% 338.18% 316.44% 270.86% 250.23%
Miscellaneous
99 Measurement Period 2022 2021 2020 2019

TOTAL PENSION LIABILITY
Service cost 7,909,848 $ 6,799,165 $ 8,470,387 $ 9,117,082 $ Interest on total pension liability 40,930,945 39,978,657 38,866,660 37,632,892 Changes of benefit terms - - 1,572,470 - Changes of assumptions 21,051,324 - - - Difference between expected and actual experience (2,239,626) 280,017 (691,163) 4,129,559 Benefit payments, including refunds of employee contributions (32,808,974) (31,360,647) (31,097,422) (29,007,470) Net change in total pension liability 34,843,517 15,697,192 17,120,932 21,872,063 Total pension liability - beginning 586,839,978 571,142,786 554,021,854 532,149,791 Total pension liability - ending (a) 621,683,495$ 586,839,978 $ 571,142,786 $ 554,021,854 $

Contribution - Employer 19,491,065 $ 17,486,345 $ 15,875,859 $ 15,698,349 $ Contribution - Employee 2,837,409 2,746,214 2,639,127 2,644,271 Net investment income (32,867,582) 81,895,715 17,702,544 22,658,615 Benefit payments, including refunds of employee contributions (32,808,974) (31,360,647) (31,097,422) (29,007,470) Net Plan to Plan Resource Movement - - - 10,044 Administrative Expense (270,860) (364,019) (507,220) (248,366) Other Miscellaneous Income/(Expense) 1 - - - 808 Net change in fiduciary net position (43,618,942) 70,403,608 4,612,888 11,756,251 Plan fiduciary net position - beginning 2 434,809,261 364,405,653 359,792,765 348,036,514 Plan fiduciary net position - ending (b) 391,190,319$ 434,809,261 $ 364,405,653 $ 359,792,765 $ Plan net pension liability - ending (a) - (b) 230,493,176$ 152,030,717 $ 206,737,133 $ 194,229,089 $ Plan fiduciary net position as a percentage of the total pension liability 62.92% 74.09% 63.80% 64.94% Covered payroll 3 23,476,513$ 21,764,291 $ 27,964,303 $ 29,663,516 $ Plan net pension liability as a percentage of covered payroll 981.80% 698.53% 739.29% 654.77% *Historical information is required only for measurement periods for which GASB 68 is applicable 1 2
3 CITY OF GARDEN GROVE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

AGENT MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS
THE LAST TEN FISCAL YEARS*
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: Effective with the June 30, 2021 valuation date (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. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Safety
Includes any beginning of year adjustment.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21, 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB68).
100
2018 2017 2016 2015 2014
8,706,648$ 8,648,153 $ 7,378,575 $ 7,025,519 $ 7,433,857 $ 36,094,312 35,007,255 33,944,797 32,447,673 31,439,433 - - - - - (2,221,006) 29,556,856 - (4,660,010) - (961,074) (2,081,126) 2,203,036 (8,032,852) - (26,226,816) (24,371,140) (22,718,361) (21,846,674) (20,185,546) 15,392,064 46,759,998 20,808,047 4,933,656 18,687,744 516,757,727 469,997,729 449,189,682 444,256,026 425,568,282 532,149,791$ 516,757,727 $ 469,997,729 $ 449,189,682 $ 444,256,026 $ 14,147,727$ 13,302,274 $ 11,468,654 $ 10,155,643 $ 9,427,732 $ 2,873,704 2,823,680 2,915,098 2,611,738 2,439,710 27,492,574 33,837,324 1,532,436 6,960,883 47,553,580 (26,226,816) (24,371,140) (22,718,361) (21,846,674) (20,185,546) (37,788) - - - - (516,231) (452,000) (190,840) (352,473) - (980,332) - - - - 16,752,838 25,140,138 (6,993,013) (2,470,883) 39,235,476 331,283,676 306,143,539 313,136,552 315,607,435 276,371,959 348,036,514$ 331,283,677 $ 306,143,539 $ 313,136,552 $ 315,607,435 $ 184,113,277$ 185,474,050 $ 163,854,190 $ 136,053,130 $ 128,648,591 $

65.40% 64.11% 65.14% 69.71% 71.04%
28,541,707$ 28,636,267 $ 27,481,750 $ 26,325,623 $ 26,592,225 $ 645.07% 647.69% 596.23% 516.81% 483.78%
Safety
101
Schedule of Plan Contributions for the Fiscal Years Ended June 30 2023 2022 2021 2020
Actuarially determined contributions $ 13,424,666 $ 12,359,003 $ 11,167,273 $ 10,190,871 Contributions in relation to the
actuarially determined contributions (13,424,666) (12,359,003) (11,167,273) (10,190,871) Contribution deficiency (excess) $ - $ - $ - $ - Covered payroll $ 32,703,258 $ 30,863,494 $ 29,694,668 $ 28,436,925 Contributions as a percentage of
covered payroll 41.05% 40.04% 37.61% 35.84%
* Historical information is required only for measurement periods for which GASB 68 is applicable Notes to Schedule of Plan Contributions:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period For details, see June 30, 2020 Funding Valuation Report.

Asset valuation method
Inflation
Salary Increases Varies by entry age and service
Payroll growth
Investment rate of return
Retirement age
Mortality
Other information For changes to previous year's information, refer to past GASB 68 reports.

The probabilities of retirement are based on the 2017 CalPERS Experience Study which are incorporated in the current valuation. The pre-retirement mortality non- industrial death rates vary by age and gender. Industrial death rates vary by age.

The non-industrial death rates are used for all plans. The industrial death rates are used for safety plans. Miscellaneous plans usually have industrial death rates set to zero unless the agency has specifically contracted for industrial death benefits. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.

7.00%, net of pension plan investment administrative expenses; includes inflation.

The probabilities of retirement are based on the 2017 CalPERS Experience Study which are incorporated in the current valuation.

CITY OF GARDEN GROVE
6/30/2020

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS

AGENT MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS
THE LAST TEN FISCAL YEARS*
Miscellaneous

2.50%

2.75%
Market value of assets. For details, see June 30, 2022 Funding Valuation Report. 102
2019 2018 2017 2016 2015 2014
$ 9,153,245 $ 8,199,628 $ 7,579,342 $ 6,646,792 $ 5,948,472 $ 5,101,581 (9,153,245) (8,199,628) (7,579,342) (6,646,792) (5,948,472) (5,101,581) $ - $ - $ - $ - $ - $ - $ 30,347,270 $ 29,746,612 $ 29,037,915 $ 28,573,176 $ 27,094,801 $ 27,060,561

30.16% 27.56% 26.10% 23.26% 21.95% 18.85%
Miscellaneous
103
Schedule of Plan Contributions for the Fiscal Years Ended June 30 2023 2022 2021 2020 2019
Actuarially determined contributions $ 21,548,966 $ 19,491,065 $ 17,489,949 $ 15,875,859 15,691,168 $ Contributions in relation to the
actuarially determined contributions (21,548,966) (19,491,065) (17,489,949) (15,875,859) (15,691,168) Contribution deficiency (excess) $ - $ - $ - $ - - $ Covered payroll $ 23,978,722 $ 23,476,513 $ 21,764,291 $ 27,964,303 $ 29,663,516 Contributions as a percentage of
covered payroll 89.87% 83.02% 80.36% 56.77% 52.90%
* Historical information is required only for measurement periods for which GASB 68 is applicable

Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period For details, see June 30, 2020 Funding Valuation Report.

Asset valuation method Market value of assets. For details, see June 30, 2022 Funding Valuation Report.

Inflation
Salary Increases
Payroll growth
Investment rate of return
Retirement age
Mortality
Other information

CITY OF GARDEN GROVE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS

AGENT MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS
THE LAST TEN FISCAL YEARS*
For changes to previous year's information, refer to past GASB 68 reports.

Safety
6/30/2020

2.50%
Varies by entry age and service

2.75%

7.00%, net of pension plan investment administrative expenses; includes inflation.

The probabilities of retirement are based on the 2017 CalPERS Experience Study which are incorporated in the current valuation. The pre-retirement mortality non-industrial death rates vary by age and gender.

Industrial death rates vary by age. The non-industrial death rates are used for all plans. The industrial death rates are used for safety plans. Miscellaneous plans usually have industrial death rates set to zero unless the agency has specifically contracted for industrial death benefits. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.

The probabilities of retirement are based on the 2017 CalPERS Experience Study which are incorporated in the current valuation.
104
2018 2017 2016 2015 2014
$ 14,147,727 $ 13,302,273 $ 11,468,654 $ 10,155,643 $ 9,427,732 (14,147,727) (13,302,273) (11,468,654) (10,155,643) (9,427,732) $ - $ - $ - $ - $ - $ 28,541,707 $ 28,636,267 $ 27,481,750 $ 26,325,623 $ 26,592,225

49.57% 46.45% 41.73% 38.58% 35.45%
Safety
105
2022 2021 2020 2019 2018 2017

TOTAL OPEB LIABILITY
2,250,612Service cost 2,563,528 $ 1,831,165 $ 627,266 $ 669,889 $ 651,960 $ $ 1,056,801Interest on Total OPEB Liability 1,219,928 1,596,249 695,181 695,599 610,096 -Employer Contributions - - (467,790) (420,642) - -Expected Minus Actual Benefit Payments - - 22,763 - - 14Experience (Gains)/Losses (11,665,240) (94,837) (216,121) - - (8,394,004)Changes in Assumptions 3,457,450 8,191,623 26,892,575 (922,346) - (1,815,415)Benefit payments (2,112,394) (2,036,122) - - (391,489) (6,901,992) (6,536,728) 9,488,078 27,553,874 22,500 870,567 48,708,347 55,245,075 45,756,997 18,203,123 18,180,623 17,310,056 41,806,355 48,708,347$ 55,245,075 $ 45,756,997 $ 18,203,123 $ 18,180,623 $ $

0.00%0.00%0.00%0.00%0.00%0.00%Plan fiduciary net position as a percentage of the total OPEB liability 58,884,749 56,905,216 56,638,122 55,122,260 55,704,304 57,674,182

31.52%32.68%83.01%97.54%85.60%71.00%Total OPEB liability as a percentage of covered-employee payroll Notes to Schedule:

Measurement Period

CITY OF GARDEN GROVE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS for the Measurement Periods Ended June 30
THE LAST TEN FISCAL YEARS*
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered-employee payroll
*Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. ** Liabilities reflect an implicit rate subsidy for Pre-Medicare retirees. GASB 74 and 75 require use of claims costs or age-adjusted premiums approximating claims costs to determine the plan's liability. Adjusting premiums for age creates Implicit Subsidy and is reflected as part of the plan's liability. 106

CITY OF GARDEN GROVE

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations, and if certain proceeds of taxes exceed allowed appropriations, the excess must be refunded to the taxpayers either through revised tax rates or revised fee schedules.

The City budget report is prepared under the direction of the City Manager in accordance with generally accepted accounting principles (GAAP) and the requirements of Municipal Code Section 2.08.150. Annual budgets are legally adopted for the general fund, special revenue funds, and capital projects funds. These funds are budgeted based on the modified accrual basis of accounting and include proposed expenditures and the means of financing them. The City Council approves the total budgeted appropriations and any amendments to total appropriations which may be required during the year. Revenues are budgeted by source, and expenditures are budgeted by program.

The legal level of budgetary control is considered to be at the fund level since management can reassign resources within a fund without special approval from City Council. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by City Council.
107
Other Supplemental
Information
Other
Supplemental
Information
This page is intentionally blank.

CITY OF GARDEN GROVE

SPECIAL REVENUE FUNDS
Public Safety Fund
Revenues received from the City's share of drug forfeit and seizure money, revenues received from the state under SB172, and various police grants are accounted for in this fund. These funds are used to help support the City's public safety operations.

State Gas Tax Fund
State gasoline taxes received by the City are accounted for in this fund. Revenue received is used for street maintenance, construction, and/or right of way acquisition.

Developer Fees Fund
Traffic mitigation and developer fees used to alleviate traffic and sewer problems caused by new development, cultural art fees to be used for City cultural arts projects and programs, park fees which are to be used for park development, drainage fees which are to be used to alleviate City drainage problems are some of the fees that are accounted for in the fund.

Garden Grove Cable Fund
This fund represents a grant from a private cable corporation of 2% and its cable usage revenue.

Expenditures are for public, educational, and governmental access.

Street Lighting Fund
The purpose of this fund is to provide an accounting for the installation, operation, and maintenance of street lighting within the City. Revenues for this fund are received from property taxes collected by the County of Orange.

Park Maintenance
The purpose of this fund is to provide an accounting for the maintenance of parks within the City.

Revenues for this fund are received from property taxes collected by the County of Orange.

Main Street District Fund
This fund is used to account for the maintenance of improvements on Main Street in downtown Garden Grove. Revenue for this fund are received from a property tax levy on the main street area.

Air Quality Improvement Fund
This fund is used to account for revenue received from the South Coast Air Quality Management District for the primary purpose of establishing a ride share program for City employees.

Other Grants and Contributions
The City is the recipient of numerous other federal, state, and county grants, plus contributions from other sources. These grants and contributions are accounted for in this fund. 108

CITY OF GARDEN GROVE

SPECIAL REVENUE FUNDS (CONTINUED)
Garden Grove Tourism Improvement District
This fund is used to account for the tourism marketing efforts through the Anaheim/Orange County Visitors and Convention Bureau and other activities and improvements that promote tourism in the Garden Grove Tourism Improvement District area.

Street Rehabilitation Fund
This fund is used to account for revenues received and expenditures made for various street rehabilitation projects.

HOME Grant Special Revenue Fund
The HOME Grant special revenue fund is used to account for the revenues received and expenditures made for the housing assistance program, which is funded by the U.S. Department of Housing and Urban Development.

CAPITAL PROJECTS FUNDS
Housing Authority Assets Fund
Capital projects with the Civic Center area are accounted for in this fund.

Housing Successor Agency Low/Mod Fund
Capital projects for low and moderate income housing are accounted for in this fund.

Public Safety Fund
Capital projects with Public Safety are accounted for in this fund. 109
Public State Developer Garden Grove
Safety Gas Tax Fees Cable
ASSETS
Cash and investments 3,456,729 $ 7,692,257 $ 13,345,433 $ 8,478 $ Cash with fiscal agents - - - - Taxes receivable 74,250 726,564 - - Accounts receivable - - - 5,867 Interest receivable 8,505 19,424 32,565 - Due from Successor Agency - - - - Deposits and prepaid items 4,646 - - 6,875 Intergovernmental receivable - 328,228 - - Notes receivable, net - - - - Land held for resale - - - - Total assets 3,544,130 $ 8,766,473 $ 13,377,998 $ 21,220 $

Liabilities:

Accounts payable 373,600 $ 1,927,775 $ 149,880 $ 10,691 $ Accrued liabilities 4,818 297,421 99,349 7,341 Unearned revenue - - - - Due to other funds 288 1,957 - 63 Intercity loan payable - - - - Total liabilities 378,706 2,227,153 249,229 18,095 Deferred Inflows of Resources:

Unavailable revenue - - - - Total deferred inflows - - - - Fund balances:

Non-Spendable:

Deposits and Prepaid items 4,646 - - 6,875 Restricted:

Public safety 3,160,778 - - - Public right of way - 6,539,320 1,848,109 - Drainage - - 264,186 - Community planning and development - - 1,690,943 - - - 9,325,531 - Unassigned - - - (3,750) Total fund balances 3,165,424 6,539,320 13,128,769 3,125 Total liabilities and fund balances 3,544,130 $ 8,766,473 $ 13,377,998 $ 21,220 $

CITY OF GARDEN GROVE

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Special Revenue Funds
Community services

LIABILITIES AND FUND BALANCES
110
Street Park Main Street Air Quality
Lighting Maintenance District Improvement
266,746$ 82,310 $ 204,108 $ 472,233 $ - - - - 15,922 7,122 - - - - - - 69 - 527 1,156 - - - - - - - - - - - 56,873 - - - - - - - - 282,737$ 89,432 $ 204,635 $ 530,262 $ 140,087$ 3,996 $ 1,793 $ 165 $ 3,019 7,577 - 2,548 - - - - 53 439 - 28 - - - - 143,159 12,012 1,793 2,741 - - - - - - - - - - - - - - - - 139,578 - 202,842 527,521 - - - - - 77,420 - - - - - - - - - - 139,578 77,420 202,842 527,521 282,737$ 89,432 $ 204,635 $ 530,262 $ Special Revenue Funds
111
GG Tourism Other
Improvement Grants and Street
District Contributions Rehabilitation
ASSETS
Cash and investments 307,435 $ 3,014,661 $ 3,383,686 $ Cash with fiscal agents - - - Taxes receivable 315,086 - - Accounts receivable 10,576 49,329 - Interest receivable - 9,165 9,589 Due from Successor Agency - - - Deposits and prepaid items - 59 - Intergovernmental receivable - 2,643,344 1,340,247 Notes receivable, net - 3,722,555 - Land held for resale - - - Total assets 633,097 $ 9,439,113 $ 4,733,522 $

Liabilities:

Accounts payable 335,922 $ 1,610,828 $ 80,318 $ Accrued liabilities - 140,604 82,518 Unearned revenue - 2,628 - Due to other funds - 764 - Intercity loan payable - - - Total liabilities 335,922 1,754,824 162,836 Deferred Inflows of Resources:

Unavailable revenue - 998,668 - Total deferred inflows - 998,668 - Fund balances:

Non-Spendable:

Prepaid items - 59 - Restricted
Public safety - - - Public right of way - 834,066 4,570,686 Drainage - - -
297,175 5,607,050 -
- 244,446 -
Unassigned - - - Total fund balances 297,175 6,685,621 4,570,686 Total liabilities and fund balances 633,097 $ 9,439,113 $ 4,733,522 $

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
Community services

CITY OF GARDEN GROVE
Special Revenue Funds

LIABILITIES AND FUND BALANCES
Community planning and development
112
Total
HOME Grant Housing Housing Nonmajor
Special Revenue Successor Successor Agency Public Governmental Fund Agency Low/Mod Safety Funds
214,358$ 686,402 $ 6,081,842 $ 37,787 $ 39,254,465 $ - - - 511,444 511,444 - - - - 1,138,944 31,106 1,714 7,503 - 106,095 - 1,741 18,148 - 100,889 - - 5,054,260 - 5,054,260 - - - - 11,580 6,985 - - - 4,375,677 19,002,426 2,001,824 6,628,528 - 31,355,333 - - 519,063 - 519,063 19,254,875$ 2,691,681 $ 18,309,344 $ 549,231 $ 82,427,750 $

27,970$ - $ 9,778 $ 16,809 $ 4,689,612 $ - - 632 43,021 688,848 - - - - 2,628 - - 4 - 3,596 - - 5,550,000 - 5,550,000 27,970 - 5,560,414 59,830 10,934,684 - - - - 998,668 - - - - 998,668 - - - - 11,580 - - - 489,401 3,650,179 - - - - 14,662,122 - - - - 264,186 19,226,905 2,691,681 12,748,930 - 42,340,104 - - - - 9,569,977 - - - - (3,750) 19,226,905 2,691,681 12,748,930 489,401 70,494,398 19,254,875$ 2,691,681 $ 18,309,344 $ 549,231 $ 82,427,750 $ Capital Project Funds
113

Public State Developer Garden Grove
Safety Gas Tax Fees Cable
REVENUES:

Taxes 794,800 $ - $ - $ - $ Licenses and permits - - 82,861 - Fines, forfeits and penalties 399,602 - - - Investment earnings 38,378 86,520 159,286 - Charges for current services - - 2,421,221 - From other agencies 536,119 8,185,204 - - Other revenues - - - 38,816 Total revenues 1,768,899 8,271,724 2,663,368 38,816 EXPENDITURES:

Current:

Police 1,080,240 - - - Traffic safety - 64,267 1,184,314 - Public right of way - 7,467,350 1,211 - Community services - - - 580,424 Economic development - - - - Parks and greenbelts - - 523,922 - Community planning and development - - 188,353 - Municipal support - - 1,800 - Debt service:

Principal - - - 39,940 Interest and fiscal charges - - - 1,035 Total expenditures 1,080,240 7,531,617 1,899,600 621,399 Excess (deficiency) of revenues
over (under) expenditures 688,659 740,107 763,768 (582,583) OTHER FINANCING SOURCES (USES):

Gain (loss) of sale of capital assets - - - - Transfers in - - - 575,952 Transfers out - - - - Total other financing sources (uses) - - - 575,952 Net change in fund balances 688,659 740,107 763,768 (6,631) Fund balance, beginning of year 2,476,765 5,799,213 12,365,001 9,756 Fund balance, end of year 3,165,424 $ 6,539,320 $ 13,128,769 $ 3,125 $ Special Revenue Funds

CITY OF GARDEN GROVE

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
114
Street Park Main Street Air Quality
Lighting Maintenance District Improvement
-$ - $ - $ - $ - - - - - - - - 109 (74) 2,606 5,825 1,371,435 707,865 26,620 -
- - - 225,103 - - - - 1,371,544 707,791 29,226 230,928 - - - - 1,704,089 - - -
- - 36,534 - - - - - - - - - - 952,002 - - - - - 15,998 25,780 - - 181,674 - - - - - - - - 1,729,869 952,002 36,534 197,672 (358,325) (244,211) (7,308) 33,256 - - - - 373,661 234,544 - -
- - - - 373,661 234,544 - -
15,336 (9,667) (7,308) 33,256 124,242 87,087 210,150 494,265 139,578$ 77,420 $ 202,842 $ 527,521 $ Special Revenue Funds
115
GG Tourism Other
Improvement Grants and Street
District Contributions Rehabilitation HOME Grant
REVENUES:

Taxes 3,332,713 $ - $ - $ - $ Licenses and permits - - - - Fines, forfeits and penalties - 612,828 - - Investment earnings - 437,832 42,272 349,962 Charges for current services - - - - From other agencies - 5,356,325 4,428,713 531,424 Other revenues - 25,298 - - Total revenues 3,332,713 6,432,283 4,470,985 881,386 EXPENDITURES:

Current:

Police - 1,103,480 - - Traffic safety - 441,789 - - Public right of way - 2,182,221 1,820,222 - Community services - 552,724 140,247 - Economic Development 2,558,033 - - - Parks and greenbelts - - - - Community planning and development - 2,393,348 - 342,058 Municipal support - - - - Debt service:

Principal - 10,628 - - Interest and fiscal charges - 22 - - Total expenditures 2,558,033 6,684,212 1,960,469 342,058 Excess (deficiency) of revenues
over (under) expenditures 774,680 (251,929) 2,510,516 539,328 OTHER FINANCING SOURCES (USES):

Gain (loss) of sale of capital assets - - - - Transfers in - - - - Transfers out (762,889) (38,560) - - Total other financing sources (uses) (762,889) (38,560) - - Net change in fund balances 11,791 (290,489) 2,510,516 539,328 Fund balance, beginning of year 285,384 6,976,110 2,060,170 18,687,577 Fund balance, end of year 297,175 $ 6,685,621 $ 4,570,686 $ 19,226,905 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Special Revenue Funds
116
Total
Housing Housing Nonmajor
Authority Successor Agency Public Governmental
Assets Low/Mod Safety Funds
-$ - $ - $ 4,127,513 $ - - - 82,861 - - - 1,012,430 88,260 344,241 43 1,555,260 - - - 4,527,141 - - - 19,262,888 - - - 64,114 88,260 344,241 43 30,632,207 - - 495,696 2,679,416 - - - 3,394,459 - - - 11,507,538 - - - 1,273,395 - - - 2,558,033 - - - 1,475,924 - 5,754,257 - 8,694,014 - - - 209,254 - - - 50,568 - - - 1,057 - 5,754,257 495,696 31,843,658 88,260 (5,410,016) (495,653) (1,211,451) - 784,917 - 784,917 - - - 1,184,157 - (3,000,000) - (3,801,449) - (2,215,083) - (1,832,375) 88,260 (7,625,099) (495,653) (3,043,826) 2,603,421 20,374,029 985,054 73,538,224 2,691,681$ 12,748,930 $ 489,401 $ 70,494,398 $ Capital Project Funds
117
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Taxes 935,605 $ 935,605 $ 794,800 $ (140,805) $ Fines, forfeits and penalties - - 399,602 399,602 Investment earnings (loss) - - 38,378 38,378 From other agencies - - 536,119 536,119 Total revenues 935,605 935,605 1,768,899 833,294 EXPENDITURES:

Current:

Police 798,875 798,875 1,080,240 (281,365) Total expenditures 798,875 798,875 1,080,240 (281,365) Net change in fund balance 136,730 136,730 688,659 551,929 Fund balance, beginning of year 2,476,765 2,476,765 2,476,765 - Fund balance, end of year 2,613,495 $ 2,613,495 $ 3,165,424 $ 551,929 $

CITY OF GARDEN GROVE

PUBLIC SAFETY SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
118
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 86,520 $ 86,520 $ From other agencies 8,950,838 8,950,838 8,185,204 (765,634) Total revenues 8,950,838 8,950,838 8,271,724 (679,114) EXPENDITURES:

Current:

Traffic safety 199,115 199,115 64,267 134,848 Public right of way 8,003,491 8,003,491 7,467,350 536,141 Total expenditures 8,202,606 8,202,606 7,531,617 670,989 Net change in fund balance 748,232 748,232 740,107 (8,125) Fund balance, beginning of year 5,799,213 5,799,213 5,799,213 - Fund balance, end of year 6,547,445 $ 6,547,445 $ 6,539,320 $ (8,125) $

CITY OF GARDEN GROVE

STATE GAS TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
119
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Licenses and permits 90,032 $ 90,032 $ 82,861 $ (7,171) $ Investment earnings (loss) - - 159,286 159,286 Charges for current services 1,364,368 1,364,368 2,421,221 1,056,853 Total revenues 1,454,400 1,454,400 2,663,368 1,208,968 EXPENDITURES:

Current:

Traffic safety 1,485,000 1,485,000 1,184,314 300,686 Public right of way - - 1,211 (1,211) Parks and greenbelts 2,875,000 2,875,000 523,922 2,351,078 Community planning and development 223,817 223,817 188,353 35,464 Municipal support 3,528 3,528 1,800 1,728 Total expenditures 4,587,345 4,587,345 1,899,600 2,687,745 Net change in fund balance (3,132,945) (3,132,945) 763,768 3,896,713 Fund balance, beginning of year 12,365,001 12,365,001 12,365,001 - Fund balance, end of year 9,232,056 $ 9,232,056 $ 13,128,769 $ 3,896,713 $

CITY OF GARDEN GROVE

DEVELOPER FEES SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
120
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Other revenues 31,636 $ 31,636 $ 38,816 $ 7,180 $ Total revenues 31,636 31,636 38,816 7,180 EXPENDITURES:

Current:

Community services 597,373 597,373 580,424 16,949 Debt service:

Principal retirement - - 39,940 (39,940) Interest 41,084 41,084 1,035 40,049 Total expenditures 638,457 638,457 621,399 17,058 Excess (deficiency) of revenues
over (under) expenditures (606,821) (606,821) (582,583) 24,238 OTHER FINANCING SOURCES (USES):

Transfers in - - 575,952 575,952 Total other financing sources (uses) - - 575,952 575,952 Net change in fund balance (606,821) (606,821) (6,631) 600,190 Fund balance, beginning of year 9,756 9,756 9,756 - Fund balance, end of year (597,065) $ (597,065) $ 3,125 $ 600,190 $

CITY OF GARDEN GROVE

GARDEN GROVE CABLE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
121
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 109 $ 109 $ Charges for current services 1,346,099 1,346,099 1,371,435 25,336 Total revenues 1,346,099 1,346,099 1,371,544 25,445 EXPENDITURES:

Current:

Traffic safety 1,328,621 1,328,621 1,704,089 (375,468) Municipal support 27,587 27,587 25,780 1,807 Total expenditures 1,356,208 1,356,208 1,729,869 (373,661) Excess (deficiency) of revenues
over (under) expenditures (10,109) (10,109) (358,325) (348,216) OTHER FINANCING SOURCES (USES):

Transfers in - - 373,661 373,661 Total other financing sources (uses) - - 373,661 373,661 Net change in fund balance (10,109) (10,109) 15,336 25,445 Fund balance, beginning of year 124,242 124,242 124,242 - Fund balance, end of year 114,133 $ 114,133 $ 139,578 $ 25,445 $

CITY OF GARDEN GROVE

STREET LIGHTING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
122
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ (74) $ (74) $ Charges for current services 708,284 708,284 707,865 (419) Total revenues 708,284 708,284 707,791 (493) EXPENDITURES:

Current:

Parks and greenbelts 714,679 714,679 952,002 (237,323) Total expenditures 714,679 714,679 952,002 (237,323) Excess (deficiency) of revenues
over (under) expenditures (6,395) (6,395) (244,211) (237,816) OTHER FINANCING SOURCES (USES):

Transfers in - - 234,544 234,544 Total other financing sources (uses) - - 234,544 234,544 Net change in fund balance (6,395) (6,395) (9,667) (3,272) Fund balance, beginning of year 87,087 87,087 87,087 - Fund balance, end of year 80,692 $ 80,692 $ 77,420 $ (3,272) $

CITY OF GARDEN GROVE

PARK MAINTENANCE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
123
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 2,606 $ 2,606 $ Charges for current services 27,200 27,200 26,620 (580) Total revenues 27,200 27,200 29,226 2,026 EXPENDITURES:

Current:

Public right of way 34,411 34,411 36,534 (2,123) Total expenditures 34,411 34,411 36,534 (2,123) Net change in fund balance (7,211) (7,211) (7,308) (97) Fund balance, beginning of year 210,150 210,150 210,150 - Fund balance, end of year 202,939 $ 202,939 $ 202,842 $ (97) $

CITY OF GARDEN GROVE

MAIN STREET DISTRICT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
124
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 5,825 $ 5,825 $ From other agencies 287,922 287,922 225,103 (62,819) Total revenues 287,922 287,922 230,928 (56,994) EXPENDITURES:

Current:

Community planning and development 18,873 18,873 15,998 (2,875) Municipal support 269,049 269,049 181,674 (87,375) Total expenditures 287,922 287,922 197,672 (90,250) Excess (deficiency) of revenues
over (under) expenditures - - 33,256 (147,244) Net change in fund balance - - 33,256 (147,244) Fund balance, beginning of year 494,265 494,265 494,265 - Fund balance, end of year 494,265 $ 494,265 $ 527,521 $ (147,244) $

CITY OF GARDEN GROVE

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
125
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Taxes 2,745,000 $ 2,745,000 $ 3,332,713 $ 587,713 $ Total revenues 2,745,000 2,745,000 3,332,713 587,713 EXPENDITURES:

Current:

Economic development 1,954,733 1,954,733 2,558,033 (603,300) Total expenditures 1,954,733 1,954,733 2,558,033 (603,300) Excess (deficiency) of revenues
over (under) expenditures 790,267 790,267 774,680 (15,587) OTHER FINANCING SOURCES (USES):

Transfers out - - (762,889) (762,889) Total other financing sources (uses) - - (762,889) (762,889) Net change in fund balance 790,267 790,267 11,791 (778,476) Fund balance, beginning of year 285,384 285,384 285,384 - Fund balance (deficit), end of year 1,075,651 $ 1,075,651 $ 297,175 $ (778,476) $

CITY OF GARDEN GROVE

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
126
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Fines, forfeits and penalties 700,000 $ 700,000 $ 612,828 $ (87,172) $ Investment earnings (loss) - - 437,832 437,832 From other agencies 11,015,573 10,532,553 5,356,325 (5,176,228) Other revenues - - 25,298 25,298 Total revenues 11,715,573 11,232,553 6,432,283 (4,800,270) EXPENDITURES:

Current:

Police 808,962 1,034,495 1,103,480 (68,985) Traffic safety 460,186 460,186 441,789 18,397 Public right of way 9,835,257 10,435,256 2,182,221 8,253,035 Community services 521,098 521,098 552,724 (31,626) Community planning and development 764,285 764,285 2,393,348 (1,629,063) Debt service:

Principal retirement - - 10,628 (10,628) Interest - - 22 (22) Total expenditures 12,389,788 13,215,320 6,684,212 6,531,108 Excess (deficiency) of revenues
over (under) expenditures (674,215) (1,982,767) (251,929) 1,730,838 OTHER FINANCING SOURCES (USES):

Transfers out - - (38,560) (38,560) Total other financing sources (uses) - - (38,560) (38,560) Net change in fund balance (674,215) (1,982,767) (290,489) 1,692,278 Fund balance, beginning of year 6,976,110 6,976,110 6,976,110 - Fund balance, end of year 6,301,895 $ 4,993,343 $ 6,685,621 $ 1,692,278 $

CITY OF GARDEN GROVE

OTHER GRANTS AND CONTRIBUTIONS SPECIAL REVENUE FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
127
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 42,272 $ 42,272 $ From other agencies 3,369,869 3,369,869 4,428,713 1,058,844 Total revenues 3,369,869 3,369,869 4,470,985 1,101,116 EXPENDITURES:

Current:

Public right of way 2,742,370 2,742,370 1,820,222 922,148 Community services 205,000 205,000 140,247 64,753 Total expenditures 2,947,370 2,947,370 1,960,469 986,901 Net change in fund balance 422,499 422,499 2,510,516 2,088,017 Fund balance, beginning of year 2,060,170 2,060,170 2,060,170 - Fund balance, end of year 2,482,669 $ 2,482,669 $ 4,570,686 $ 2,088,017 $

CITY OF GARDEN GROVE

STREET REHABILITATION SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
128
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 349,962 $ 349,962 $ From other agencies 982,912 982,912 531,424 (451,488) Total revenues 982,912 982,912 881,386 (101,526) EXPENDITURES:

Current:

Community planning and development 982,912 982,912 342,058 640,854 Total expenditures 982,912 982,912 342,058 640,854 Net change in fund balance - - 539,328 539,328 Fund balance, beginning of year 18,687,577 18,687,577 18,687,577 - Fund balance, end of year 18,687,577 $ 18,687,577 $ 19,226,905 $ 539,328 $

CITY OF GARDEN GROVE

HOME GRANT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
129
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 88,260 $ 88,260 $ Total revenues - - 88,260 88,260 EXPENDITURES:

Current:

Economic development - - - - - - - - Net change in fund balance - - 88,260 88,260 Fund balance, beginning of year 2,603,421 2,603,421 2,603,421 - Fund balance, end of year 2,603,421 $ 2,603,421 $ 2,691,681 $ 88,260 $

CITY OF GARDEN GROVE

HOUSING AUTHORITY ASSETS CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
130
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings (loss) - $ - $ 344,241 $ 344,241 $ Other revenues 133,871 133,871 - (133,871) Total revenues 133,871 133,871 344,241 (210,370) EXPENDITURES:

Current:

Community planning and development 305,797 305,797 5,754,257 (5,448,460) Total expenditures 305,797 305,797 5,754,257 5,448,460 Excess (deficiency) of revenues
over (under) expenditures (171,926) (171,926) (5,410,016) 5,238,090 OTHER FINANCING SOURCES (USES):

Gain (loss) on sale of capital assets - - 784,917 (784,917) Transfers out - - (3,000,000) 3,000,000 Total other financing sources (uses) - - (2,215,083) 2,215,083 Net change in fund balance (171,926) (171,926) (7,625,099) 7,453,173 Fund balance, beginning of year 20,374,029 20,374,029 20,374,029 - Fund balance, end of year 20,202,103 $ 20,202,103 $ 12,748,930 $ 7,453,173 $

CITY OF GARDEN GROVE

HOUSING SUCCESSOR AGENCY LOW/MOD CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
131
Variance with
Original Final Final Budget
Budgeted Budgeted Actual Positive
Amounts Amounts Amounts (Negative)
REVENUES:

Investment earnings - $ - $ 43 $ 43 $ Total revenues - - 43 43 EXPENDITURES:

Current:

Police - - 495,696 (495,696) Total expenditures - - 495,696 (495,696) Net change in fund balance - - (495,653) (495,653) Fund balance, beginning of year 985,054 985,054 985,054 - Fund balance, end of year 985,054 $ 985,054 $ 489,401 $ (495,653) $

CITY OF GARDEN GROVE

PUBLIC SAFETY CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
132

CITY OF GARDEN GROVE

NONMAJOR ENTERPRISE FUNDS
Solid Waste Disposal Fund
The Solid Waste Disposal fund accounts for the operation of trash and solid waste collections and disposal services.

Golf Course Fund
The fund was established to account for operations of the Willowick Golf Course. 133
Solid Waste Golf Total Nonmajor
Disposal Course Enterprise Funds
ASSETS
Current Assets:

Cash and cash investments 16,143,059 $ 151,645 $ 16,294,704 $ Taxes receivable 235,347 - 235,347 Accounts receivable 484,727 13,340 498,067 Interest receivable 40,665 179 40,844 Inventory - 16,859 16,859 Prepaid Items - 16,317 16,317 Total current assets 16,903,798 198,340 17,102,138 Noncurrent Assets:

Capital assets
Land - 3,132,711 3,132,711 Construction in progress - 20,325 20,325 Depreciable capital assets, net - 250,048 250,048 Total noncurrent assets - 3,403,084 3,403,084 Total assets 16,903,798 3,601,424 20,505,222

DEFERRED OUTFLOWS OF RESOURCES
OPEB related 213,200 - 213,200 Pension related 716,075 - 716,075 Total Deferred Outflows 929,275 - 929,275

LIABILITIES
Current Liabilities:

Accounts payable 220,019 124,375 344,394 Accrued liabilities 13,011 - 13,011 Interest payable - 7 7 Refundable deposits 1,510,160 - 1,510,160 Due to other funds 291 - 291 Current portion of long term liabilities
Leases payable - 25,567 25,567 Total current liabilities 1,743,481 149,949 1,893,430 Noncurrent liabilities:

Leases payable - 32,012 32,012 Net pension liability 2,334,891 - 2,334,891 OPEB liabilitiy 347,147 - 347,147 Total noncurrent liabilities 2,682,038 32,012 2,714,050 Total liabilities 4,425,519 181,961 4,607,480

DEFERRED INFLOWS OF RESOURCES
OPEB related 146,228 - 146,228 Pension related 36,658 - 36,658 Total Deferred Inflows 182,886 - 182,886

NET POSITION
Net investment in capital assets - 3,345,505 3,345,505 Unrestricted 13,224,668 73,958 13,298,626 Total net position 13,224,668 $ 3,419,463 $ 16,644,131 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2023
134
Solid Waste Golf Total Nonmajor
Disposal Course Enterprise Funds

Operating revenues:

Charges for services - $ 2,001,402 $ 2,001,402 $ Solid waste disposal fees 3,011,646 - 3,011,646 Property assessments 614,055 - 614,055 Other 485,548 - 485,548 Total operating revenues 4,111,249 2,001,402 6,112,651

Operating expenses: -
Salaries and benefits 609,107 - 609,107 Contractual services 1,394,363 - 1,394,363 Materials and supplies 54,031 - 54,031 Golf course operations - 2,090,835 2,090,835 Depreciation - 126,652 126,652 Total operating expenses 2,057,501 2,217,487 4,274,988

Operating income (loss) 2,053,748 (216,085) 1,837,663

Nonoperating revenues:

Investment income (loss) 191,964 1,232 193,196 Interest expense - (190) (190) Total nonoperating revenue 191,964 1,042 193,006 Change in net position 2,245,712 (215,043) 2,030,669 Total net position, beginning of year 10,978,956 3,634,506 14,613,462 Total net position, end of year 13,224,668$ 3,419,463 $ 16,644,131 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2023
135
Solid Waste Golf Total Nonmajor
Disposal Course Enterprise Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,716,426 $ 2,006,656 $ 6,723,082 $ Payments to suppliers (1,347,461) (2,017,598) (3,365,059) Payments to employees (577,679) - (577,679) Net cash provided (used) by operating
activities 2,791,286 (10,942) 2,780,344

CASH FLOWS FROM NON CAPITAL -

FINANCING ACTIVITIES
Cash paid to other funds 204 - 204 Net cash provided (used) by non capital
financing activities 204 - 204

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Purchases of capital assets - (144,650) (144,650) Principal payments on capital debt - (111,461) (111,461) Interest paid on capital debt - (197) (197) Net cash (used) by capital and
related financing activities - (256,308) (256,308)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 266,023 1,618 267,641 Increase (decrease) in fair value of investments (106,258) (467) (106,725) Net cash provided by investing activities 159,765 1,151 160,916 Net increase (decrease) in cash and
cash equivalents 2,951,255 (266,099) 2,685,156 Cash and cash equivalents, beginning of year 13,191,804 417,744 13,609,548 Cash and cash equivalents, end of year 16,143,059 $ 151,645 $ 16,294,704 $ Reconciliation of operating income (loss)
to net cash provided (used) by operating
activities:

Operating income (loss) 2,053,748 $ (216,085) $ 1,837,663 $ Adjustments to reconcile operating
income (loss) to net cash provided (used)
by operating activities:

Depreciation expense - 126,652 126,652 Changes in assets and liabilities:
(Increase) decrease in taxes receivable 141,453 - 141,453 (Increase) decrease in accounts receivable (32,406) 5,254 (27,152) (Increase) decrease in inventory - (4,270) (4,270) (Increase) decrease in prepaid expense - 72,824 72,824 Increase (decrease) in accounts payable 100,933 4,683 105,616 Increase (decrease) in accrued liabilities 3,480 - 3,480 Increase (decrease) in refundable deposits 496,130 - 496,130 Increase (decrease) in OPEB liability and related
changes in deferred outflows and inflows of resources 25,808 - 25,808 Increase (decrease) in net pension liability and related changes in deferred outflows and inflows of resources 2,140 - 2,140 Total adjustments 737,538 205,143 942,681 Net cash provided (used) by operating
activities 2,791,286 $ (10,942) $ 2,780,344 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
136
This page is intentionally blank.

CITY OF GARDEN GROVE

INTERNAL SERVICE FUNDS

Workers’ Compensation Fund
The City’s self-funded workers’ compensation program, which is accounted for in this fund, is financed by charges to all City departments based on number and classification of employees. Expenses include operating costs and all payments relating to injured employees.

Fleet Management Fund
The costs of operating and maintaining City owned vehicles and other gasoline-powered equipment are accounted for in this fund. The fund is financed by charges to the various City departments for actual cost plus a contributory sum for vehicles/equipment replacement. Actual costs include depreciation, maintenance and other factors necessary for the provision of the service.

Employee Benefits Fund
This fund encompasses all other employee benefits such as retirement contributions, health, dental, disability, life insurance, and sick leave, vacation, and other paid leaves. Revenues for this fund are derived from periodic charges to all departments based on the number of employees, length of service, and insurance coverage. Funds are used to pay actual expenses and to accrue existing liabilities.

Information Systems Fund
This fund encompasses the cost of operating and maintaining the City's computer system. The fund is financed by charges to the various City departments based on computer usage.

Warehouse Operations Fund
This fund is used to account for the provision of materials and supplies to the various City departments. Financing is provided by the user City departments by payment of costs of material and supplies plus an overhead charge.

Telephone System Fund
This fund accounts for the operation of the City’s telephone system. The financing comes from charges to the various City departments based on actual toll charges and the lease cost prorated on the number of instruments.

Risk Management Fund
This fund is used to account for the City’s self-insured liability program and for the purchase of various types of property and casualty insurance protection as required by the City. The funds are used to pay any liability losses, program operating costs, insurance premiums and insurance deductibles.

Revenues for this fund are generated from assessments made to all City departments for their pro-rata share of the total costs of the insurance administration program.

Communication Replacement Fund
This fund is used to account for both the operating and capital costs of the City’s communication system in relation to the county-wide 800MHZ backbone project. Funds are used to pay for the City’s backbone costs and the capital costs incurred to upgrade its communications equipment to integrate with the county-wide communications system. The financing comes from charges to the various City departments based on an allocation of actual costs. Actual costs include depreciation and maintenance.

Building and Structure Rehabilitation Fund
This fund accounts for various City building and structure repairs and rehabilitation projects. Revenue into the fund is derived from charges to City Departments based on occupied square footage. 137
Workers' Fleet Employee Information
Compensation Management Benefits Systems
ASSETS
Current Assets:

Cash and cash investments 36,719,505 $ 42,262,191 $ 21,165,815 $ 4,963,040 $ Accounts receivable, net - - 15,142 - Interest receivable 93,245 107,377 47,765 12,594 Intergovernmental receivable 62 - - - Due from other funds 90,594 - - - Inventory - 76,790 - 166 Prepaid items 16,939 4,087 207,552 226,469 Total current assets - 36,920,345 42,450,445 21,436,274 5,202,269 Noncurrent Assets:

Intercity loans receivable - 1,201,518 - - Capital assets:

Construction in progress - 185,277 - - Depreciable capital assets, net - 11,121,932 - 508,494 Total noncurrent assets - 12,508,727 - 508,494 Total assets 36,920,345 54,959,172 21,436,274 5,710,763

DEFERRED OUTFLOWS OF RESOURCES
OPEB related - 304,572 - 639,601 Pension related - 686,949 - 1,574,872 Total Deferred Outflows - 991,521 - 2,214,473

LIABILITIES
Current Liabilities:

Accounts payable - 486,618 7,101 77,331 Accrued liabilities 23,509 23,609 1,634,005 39,097 Interest payable - - - 2,185 Due to other funds - 1,393 - 285 Current portion of long term liabilities
Subscription-based IT payable - - - 11,224 Leases payable - - - 83,278 Accrued compensated absences - - 7,609,598 - Claims payable 5,010,907 - - - Total current liabilities 5,034,416 511,620 9,250,704 213,400 Noncurrent liabilities:

Accrued compensated absences - - 235,349 - Claims payable 32,470,966 - - - Subscription-based IT payable - - - 11,586 Leases payable - - - 350,373 Intercity loans payable - - - - Net pension liability - 2,239,921 - 5,135,155 OPEB liability - 495,923 - 1,041,440 Total noncurrent liabilities 32,470,966 2,735,844 235,349 6,538,554 Total liabilities 37,505,382 3,247,464 9,486,053 6,751,954

DEFERRED INFLOWS OF RESOURCES
OPEB related - 208,898 - 438,685 Pension related - 35,168 - 80,624 Total Deferred Inflows - 244,066 - 519,309

NET POSITION
Net investment in capital assets - 11,307,209 - 52,033 Unrestricted (585,037) 41,151,954 11,950,221 601,940 Total net position (585,037) $ 52,459,163 $ 11,950,221 $ 653,973 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2023
138
Building and
Warehouse Telephone Risk Communication Structure
Operations System Management Replacement Rehab Total
683,554$ 1,906,514 $ 9,532,673 $ 1,513,394 $ 3,000,000 $ 121,746,686 - - 1,229 - - 16,371 1,660 4,839 23,188 3,704 - 294,372 - - - - - 62 - - - - - 90,594 403,020 - - - - 479,976 - - 17,179 - - 472,226 1,088,234 1,911,353 9,574,269 1,517,098 3,000,000 123,100,287 - - 2,353,050 - - 3,554,568 - - - - - 185,277 - - - 1,301,579 - 12,932,005 - - 2,353,050 1,301,579 - 16,671,850 1,088,234 1,911,353 11,927,319 2,818,677 3,000,000 139,772,137 - - - - - 944,173 - - - - - 2,261,821 - - - - - 3,205,994 49,293 14,287 10,600 - - 645,230 4,661 3,220 6,719 - - 1,734,820 - - - - - 2,185 348 22 47 - - 2,095 - - - - - 11,224 - - - - - 83,278 - - - - - 7,609,598 - - 2,492,410 - - 7,503,317 54,302 17,529 2,509,776 - - 17,591,747 - - - - - 235,349 - - 4,367,628 - - 36,838,594 - - - - - 11,586 - - - - - 350,373 - - - 1,201,519 - 1,201,519 - - - - - 7,375,076 - - - - - 1,537,363 - - 4,367,628 1,201,519 - 47,549,860 54,302 17,529 6,877,404 1,201,519 - 65,141,607 - - - - - 647,583 - - - - - 115,792 - - - - - 763,375 - - - 1,301,579 - 12,660,821 1,033,932 1,893,824 5,049,915 315,579 3,000,000 64,412,328 1,033,932$ 1,893,824 $ 5,049,915 $ 1,617,158 $ 3,000,000 $ 77,073,149 $ 139
Workers' Fleet Employee Information
Compensation Management Benefits Systems

Operating revenues:

Charges for services 4,750,466 $ 5,310,754 $ 3,923,390 $ 3,148,154 $ Other - - - 13,000 Total operating revenues 4,750,466 5,310,754 3,923,390 3,161,154

Operating expenses:

Salaries and benefits 1,343,299 708,224 36,596 1,963,994 Contractual services 30,539 1,927,773 2,137 450,365 Liability claims 3,396,375 - - - Materials and supplies - 288,856 - 238,870 Depreciation - 1,684,206 - 56,241 Total operating expenses 4,770,213 4,609,059 38,733 2,709,470

Operating income (loss) (19,747) 701,695 3,884,657 451,684

Nonoperating revenues (expenses):

Investment income (loss) 476,372 542,662 116,562 65,275 Gain (loss) on disposal of assets - 139,503 - (62,502) Interest expense - - - (1,802) Total nonoperating revenue
(expenses) 476,372 682,165 116,562 971 Income (loss) before
transfers and capital contributions 456,625 1,383,860 4,001,219 452,655 Capital contributions - 117,990 - - Transfers in 2,000,000 - - - Transfers out - - (918,163) - Change in net position 2,456,625 1,501,850 3,083,056 452,655

Total net position, beginning of year (3,041,662) 50,957,313 8,867,165 201,318 Total net position, end of year (585,037)$ 52,459,163 $ 11,950,221 $ 653,973 $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2023
140
Building and
Warehouse Telephone Risk Communication Structure
Operations System Management Replacement Rehab Total
382,066$ 430,392 $ 3,125,421 $ 600,008 $ - $ 21,670,651 $ - - 1,229 - - 14,229 382,066 430,392 3,126,650 600,008 - 21,684,880 257,703 168,985 401,066 - - 4,879,867 27,145 193,583 584,476 332 - 3,216,350 - - 1,813,200 - - 5,209,575 - - 1,910 - - 529,636 - - - 301,497 - 2,041,944 284,848 362,568 2,800,652 301,829 - 15,877,372

97,218 67,824 325,998 298,179 - 5,807,508

8,182 23,801 196,784 18,402 - 1,448,040 - - - - - 77,001 - - - (12,826) - (14,628) 8,182 23,801 196,784 5,576 - 1,510,413 105,400 91,625 522,782 303,755 - 7,317,921 - - - - - 117,990 - - - - 3,000,000 5,000,000 - - - - - (918,163) 105,400 91,625 522,782 303,755 3,000,000 11,517,748 928,532 1,802,199 4,527,133 1,313,403 - 65,555,401 1,033,932$ 1,893,824 $ 5,049,915 $ 1,617,158 $ 3,000,000 $ 77,073,149 $ 141
Workers' Fleet Employee Information
Compensation Management Benefits Systems

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from user departments 4,750,452 $ 5,310,754 $ 3,934,565 $ 3,161,154 $ Payments to suppliers (5,526,390) (1,957,864) (2,137) (1,275,733) Payments to employees (1,343,299) (1,367,533) (69,662) (2,622,606) Payments for employee benefits - - 832,387 - Net cash (used) provided by operating
activities (2,119,237) 1,985,357 4,695,153 (737,185)

CASH FLOWS FROM NON CAPITAL -

FINANCING ACTIVITIES
Cash received from other funds 2,000,605 518,537 - - Cash paid to other funds - - (678,469) (110) Net cash (used) provided by non capital
financing activities 2,000,605 518,537 (678,469) (110)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Purchases of capital assets - (1,346,845) - (530,921) Proceeds from sale of capital assets - 147,757 - - Proceeds from leases - - - 433,651 Principal paid on capital debt - - - (15,976) Interest paid on capital debt - - - 383 Net cash (used) by capital and
related financing activities - (1,199,088) - (112,863)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 649,986 741,834 206,783 89,278 Increase (decrease) in fair value of investments (243,652) (280,579) (124,812) (32,909) Net cash provided by investing activities 406,334 461,255 81,971 56,369 Net increase (decrease) in cash and
cash equivalents 287,702 1,766,061 4,098,655 (793,789) Cash and cash equivalents, beginning of year 36,431,803 40,496,130 17,067,160 5,756,829 Cash and cash equivalents, end of year 36,719,505 $ 42,262,191 $ 21,165,815 $ 4,963,040 $ Reconciliation of operating income (loss)
to net cash provided (used) by operating
activities:

Operating income (loss) (19,747) $ 701,695 $ 3,884,657 $ 451,684 $ Adjustments to reconcile operating
income (income) to net cash (used) provided
by operating activities:

Depreciation expense - 1,684,206 - 56,241 Changes in assets and liabilities:
(Increase) decrease in accounts receivable 48 - 11,175 - (Increase) decrease in intergovernmental receivable (62) - - - (Increase) decrease in inventory - 16,946 - (166) (Increase) decrease in prepaid expense (16,939) (3,949) (176,766) (72,540) Increase (decrease) in accounts payable (2,773) 245,168 (21,265) (525,678) Increase (decrease) in compensated absences - - (69,662) - Increase (decrease) in accrued liabilities 3,610 600 1,067,014 (10,924) Increase (decrease) in refundable deposits - - - 22,810 Increase (decrease) in claims payable (2,083,374) - - - changes in deferred outflows and inflows of resources - 36,867 - 77,422 changes in deferred outflows and inflows of resources - (696,176) - (736,034) Total adjustments (2,099,490) 1,283,662 810,496 (1,188,869) Net cash (used) provided by operating
activities (2,119,237) $ 1,985,357 $ 4,695,153 $ (737,185) $

CITY OF GARDEN GROVE

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
142
Building and
Warehouse Telephone Risk Communication Structure
Operations System Management Replacement Rehab Total
382,066$ 430,392 $ 3,125,421 $ 600,008 $ - $ 21,694,812 $ (49,741) (184,044) (2,443,469) (351) - (11,439,729) (257,703) (168,985) (401,066) - - (6,230,854) - - - - - 832,387 74,622 77,363 280,886 599,657 - 4,856,616 10 - 82,722 - 3,000,000 5,601,874 - (2) - (400,505) - (1,079,086) 10 (2) 82,722 (400,505) 3,000,000 4,522,788

- - - - - (1,877,766) - - - - - 147,757 - - - - - 433,651 - - - - - (15,976) - - - (12,826) - (12,443)

- - - (12,826) - (1,324,777)

11,247 32,768 239,910 25,219 - 1,997,025 (4,339) (12,646) (60,590) (9,679) - (769,206) 6,908 20,122 179,320 15,540 - 1,227,819 81,540 97,483 542,928 201,866 3,000,000 9,282,446 602,014 1,809,031 8,989,745 1,311,528 - 112,464,240 683,554$ 1,906,514 $ 9,532,673 $ 1,513,394 $ 3,000,000 $ 121,746,686 $ 97,218$ 67,824 $ 325,998 $ 298,179 $ - $ 5,807,508 $ - - - 301,497 - 2,041,944 - - (1,229) - - 9,994 - - - - - (62) (20,728) - - - - (3,948) - - 17,178 - - (253,016) (2,129) 9,483 (13,237) (19) - (310,450) - - - - - (69,662) 261 56 4,237 - - 1,064,854 - - - - - 22,810 - - (52,061) - - (2,135,435) - - - - - 114,289 - - - - - (1,432,210) (22,596) 9,539 (45,112) 301,478 - (950,892) 74,622$ 77,363 $ 280,886 $ 599,657 $ - $ 4,856,616 $

143
This page is intentionally blank.

Statistical Section
Statistical
Section
This page is intentionally blank.

Financial Trends
Schedule I - Net Position by Component
Schedule II - Changes in Net Position
Schedule III - Balance of Governmental Funds
Schedule IV - Changes in Fund Balances of Governmental Funds Schedule V - General Government Major Tax Revenues by Source Revenue Capacity
Schedule VI - Assessed Value and Estimated Actual Value of Taxable Property Schedule VII - Property Tax Rates Direct and Overlapping Governments Schedule VIII - Principal Property Tax Payers
Schedule IX - Property Tax Levies and Collections
Debt Capacity
Schedule X - Ratios of Outstanding Debt by Type
Schedule XI - Ratios of General Bonded Debt Outstanding Schedule XII - Direct and Overlapping Bonds and Debt
Schedule XIII - Legal Debt Margin Information
Schedule XIV - Pledged-Revenue Coverage
Demographics and Economic Information
Schedule XV - Demographic and Economic Statistics
Schedule XVI - Principal Employers
Operating Information
Schedule XVII - Full-Time and Part-Time City Employees by Department Schedule XVIII - Operating Indicators by Function
Schedule XIX - Capital Assets Statistics by Function
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

The City implemented GASB 34 in FY 2002; the government-wide schedules include information beginning in that year.

The City implemented GASB 54 in FY 2011; the balance of governmental funds schedule include information beginning in that year.

The City implemented GASB 65 in FY 2013; as a result, effective FY 2013, the names of Schedule I and Schedule II are changed to "Net Position by Component" and "Changes in Net Position", respectively.

The City implemented GASB 68 in FY 2015; the government-wide schedules include information beginning in that year.

Provides service and infrastructure information to assist readers using the City's financial statement to understand how it relates to the services and activities performed by the City.

This part of the City of Garden Grove Comprehensive Annual Financial Report provides detailed information to better understand information presented within the Financial Statements, note disclosures, and required supplementary information say about the City’s overall financial health.

Statistical Section
These schedules contain trend information to assist the reader understand and assess how the City’s financial position has changed over time.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

This information is intended to assist the user in understanding and assessing the affordability of the City's outstanding debt and the City's ability to issue additional debt.

This information assists the reader in understanding the socioeconomic environment within which the City's financial activities take place.
144

SCHEDULE I

CITY OF GARDEN GROVE

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
(In Thousands)
2014 2015 2016 2017
Governmental activities:

Net investment in
capital assets 644,220$ 642,786$ 641,661$ 631,964$ Restricted 22,150 17,848 21,967 24,613 Unrestricted 117,646 (83,857) (88,223) (86,633) Total governmental
activities net position 784,016$ 576,777$ 575,405$ 569,944$ Business-type activities:

Net investment in
capital assets 107,299$ 111,947$ 117,488$ 118,371$ Restricted - - - - Unrestricted 44,291 29,703 26,011 28,288 Total business-type
activities net position 151,590$ 141,650$ 143,499$ 146,659$ Primary government:

Net investment in
capital assets 751,519$ 754,733$ 759,149$ 750,335$ Restricted 22,150 17,848 21,967 24,613 Unrestricted 161,937 (54,154) (62,212) (58,345) Total primary government
net position 935,606$ 718,427$ 718,904$ 716,603$ Source: Finance Department, City of Garden Grove
Fiscal Year
The City of Garden Grove implemented GASB 63 and GASB 65 for the fiscal year ended June 30, 2013, and GASB 68 for the fiscal year ended June 30, 2015. 145
Fiscal Year
2018 2019 2020 2021 2022 2023
622,932$ 621 ,163$ 619 ,138$ 617 ,316$ 618 ,070$ 633 ,327$ 65,456 69 ,820 72 ,470 75 ,669 77 ,360 74 ,580 (111,538) (104,976) (108,833) (94,620) (35,673) (17,843) 576,850$ 586,007 $ 582,775 $ 598,365 $ 659,757 $ 690,064 $ 119,954$ 125 ,805$ 132 ,671$ 120 ,399$ 129 ,173$ 132 ,656$ - - - - - - 29,677 32 ,485 37 ,725 63 ,654 64 ,562 78 ,050 149,631$ 158,290 $ 170,396 $ 184,053 $ 193,735 $ 210,706 $ 742,886$ 746 ,968$ 751 ,809$ 737 ,715$ 747 ,243$ 765 ,983$ 65,456 69 ,820 72 ,470 75 ,669 77 ,360 74 ,580 (81,861) (72,491) (71,108) (30,966) 28 ,889 60 ,207 726,481$ 744,297 $ 753,171 $ 782,418 $ 853,492 $ 900,770 $ 146

SCHEDULE II

CITY OF GARDEN GROVE

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
(In Thousands)
2014 2015 2016 2017
Expenses:

Governmental activities:

Fire 20,876$ 21,939$ 20,700$ 23,934$
Police 49,289 50,837 47,309 53,783
Traffic safety 3,872 3,517 3,001 4,425 Public right of way 14,051 16,903 16,917 18,456 Drainage 1,284 1,445 1,453 1,438
Community buildings 4,504 4,973 4,691 4,998 Community services 4,679 4,797 4,606 5,184 Economic Development - 1,944 2,333 4,271 Parks and greenbelts 1,973 2,146 1,957 1,861 Community planning and development 8,491 7,837 5,633 6,989 Municipal support 7,112 7,609 6,151 8,434 Interest on long-term debt 1,305 862 1,962 1,212 Total governmental activities
expenses 117,436 124,809 116,713 134,985
Business-type activities:

Water 26,761 30,003 26,982 31,109
Sanitary District 7,092 8,128 8,095 8,709 Mobile home parks/RV park - - - - Housing authority 30,489 30,707 36,947 30,390 Golf course -
Total business-type activities expenses 64,342 68,838 72,024 70,208 Total primary government expenses 181,778 193,647 188,737 205,193 Program revenues:

Governmental activities:

Charges for services:

Fire 1,422 1,011 1,683 1,347
Police 3,169 3,019 2,717 3,150
Traffic safety 1,349 1,351 1,347 1,356 Public right of way 358 272 391 394 Drainage - - - - Community buildings - - - 401 Community services 859 986 768 1,015 Economic development - - - 108 Parks and greenbelts 1,282 1,264 1,226 1,265 Community planning and development 2,128 1,839 2,320 2,031 Municipal support 2,693 2,656 3,109 3,555 Operating grants and contributions 13,277 13,295 15,819 14,868 Capital grants and contributions 5,435 6,032 3,569 497 Total governmental activities program
revenues 31,972 31,725 32,949 29,987
Business-type activities:

Charges for services:

Water 35,186 33,145 29,158 32,130
Sanitary District 12,051 12,095 12,339 12,939 Mobile home parks - - - - Golf course - - - -
Operating grants and contributions 30,656 30,726 31,730 31,379 Capital grants and contributions - - - - Total business-type activities program
revenues 77,893 75,966 73,227 76,448
Total primary government program
revenues 109,865 107,691 106,176 106,435
Net revenues (expenses):

Governmental activities (85,464) (93,084) (83,764) (104,998) Business-type activities 13,551 7,128 1,203 6,240 Total net revenues (expenses) (71,913)$ (85,956)$ (82,561)$ (98,758)$

Fiscal Year
147
2018 2019 2020 2021 2022 2023
27,428$ 27,053$ 32,910$ 29,810$ 27,035$ 31,188$ 64,245 62,965 76,176 78,689 64,172 75,053 5,088 5,214 5,734 5,947 5,839 5,786 18,952 19,108 17,499 18,389 16,553 21,099 1,561 1,464 1,396 1,547 1,589 1,488 5,096 4,552 4,802 4,958 4,780 6,423 5,677 5,684 6,268 5,250 5,090 7,102 3,099 3,235 2,950 2,595 3,595 4,323 5,628 2,367 2,190 2,161 2,295 2,966 9,590 8,235 9,352 10,521 9,248 13,837 8,721 10,812 9,914 9,360 7,595 13,927 1,133 1,049 1,112 1,083 1,058 1,107 156,218 151,738 170,303 170,310 148,849 184,299 35,410 34,062 37,937 36,220 35,862 32,579 9,671 9,554 9,509 8,984 10,424 8,741 - - - - - - 33,130 34,218 37,038 39,631 43,524 46,706 1,479 1,589 1,763 2,218
78,211 77,834 85,963 86,424 91,573 90,244 234,429 229,572 256,266 256,734 240,422 274,543 1,830 1,329 698 596 740 705 3,599 3,293 3,470 3,058 2,889 3,324 1,355 1,350 1,352 1,356 1,365 1,293 406 450 362 272 429 372 - - - - - - 510 508 230 444 1,145 1,446 761 682 968 833 - - - - - 834 678 776 754 577 857 3,605 4,360 3,275 4,252 4,118 4,885 3,730 3,646 3,256 3,456 1,806 5,436 14,771 21,660 22,125 49,746 49,242 24,534 2,329 3,739 3,036 1,906 3,442 2,392 33,604 42,461 39,619 66,308 66,020 44,631 35,595 36,966 38,575 42,246 43,256 40,912 12,837 14,002 14,413 13,959 15,966 15,956 - - - - - - - - 1,243 1,837 1,744 2,001 31,461 34,417 37,376 41,155 43,400 47,472 - - - - - - 79,893 85,385 91,607 99,197 104,366 106,341 113,497 127,846 131,226 165,505 170,386 150,972 (122,614) (109,277) (130,684) (104,002) (82,829) (139,666) 1,682 7,551 5,644 12,773 12,793 16,097 (120,932)$ (101,726)$ (125,040)$ (91,229)$ (70,036)$ (123,569)$ (Continued)
Fiscal Year
148

SCHEDULE II

CITY OF GARDEN GROVE
CHANGES IN NET POSITION (Continued)

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
(In Thousands)
2014 2015 2016 2017
General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales taxes 20,285$ 19,251$ 22,052$ 21,793$
Property taxes 35,286 36,972 40,574 42,113 Transient occupancy taxes 16,443 17,217 20,897 25,121 Other taxes 7,438 7,761 8,214 8,314 Motor vehicle taxes, levied
for general purposes 75 72 71 79 Investment income 1,945 2,005 3,344 1,337 Other general revenues 297 534 7,270 488 Gain/(Loss) on sale of capital assets (1,002) 5 3 5 2,774 5 - Transfers - (7) - 292 Capital Contribution - - - - Special Item - - - - Total governmental activities 80,767 83,808 105,196 99,537 Business-type activities:

Investment income 715 523 428 142 Gain/(Loss) on sale of capital assets 41 169 59 - Other general revenues 169 29 159 182 Discontinued operations - - - - Transfers - 7 - (292) Total business-type activities 925 728 646 32 Total primary government 81,692 84,536 105,842 99,569 Changes in net position
Governmental activities (4,697) (9,276) 21,432 99,537 Business-type activities 14,476 7,856 1,849 32 Total primary government 9,779$ (1,420)$ 23,281$ 99,569$ 1 2
3 4
5 FY12-13: The $2.3 million capital contribution was related to the transfer of land from the Successor Agency Trust fund to the General fund.

FY13-14: The $1.0 million loss in governmental activities represents a one-time loss due to the disposal of land.

Source: Finance Department, City of Garden Grove
The City of Garden Grove implemented GASB 63 and GASB 65 for the fiscal year ended June 30, 2013.

Fiscal Year
FY11-12: The $18.9 million loss in governmental activities represents a one-time loss as a result of the dissolution of Redevelopment Agency in 2012.

FY11-12: The $2.9 million loss in business-type activities represents a one-time loss due to the transfer of the remaining net position of RV Park enterprise fund to the Successor Agency Trust fund.

FY11-12: The $20.4 million was primarily related to the $19.6 million transfer from the Mobile Home Park enterprise fund to the General fund as a result of the discontinuance of operations of the Mobile Home Park fund.
149
2018 2019 2020 2021 2022 2023
20,737$ 24,612$ 43,122$ 49,305$ 59,703$ 60,104$ 47,033 49,356 50,765 55,004 59,509 66,366 25,983 26,285 18,277 7,136 24,509 28,016 8,660 8,350 8,010 5,866 8,027 9,287 93 85 139 128 199 176 1,870 7,666 9,067 1,739 (8,007) 4,238 622 766 1,672 233 242 34 - - - - - 1,352 581 1,000 50 178 39 400 - - - - - - 30,058 - - - - - 135,637 118,120 131,102 119,589 144,221 169,973 410 1,917 2,658 253 (3,072) 1,273 - - - - - - 208 191 204 810 - - - - - - - - (581) (1,000) (50) (178) (39) (400) 37 1,108 2,812 885 (3,111) 873 135,674 119,228 133,914 120,474 141,110 170,846 13,023 8,843 418 15,589 61,392 30,307 1,719 8,659 8,456 13,657 9,682 16,970 14,742 17,502 8,874$ 29,246$ 71,074$ 47,277$ Fiscal Year
150

SCHEDULE III

CITY OF GARDEN GROVE

BALANCE OF GOVERNMENTAL FUNDS

THE LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
(In Thousands)
2014 2015 2016 2017
General fund:

Reserved -$ -$ -$ -$ Non-Spendable:

Agency reimbursement agreement - - - - COP reimbursement agreement - - - - Intercity loan 13,375 13,375 13,375 13,414 Land held for resale - - - - Prepaid items - - 13 10 Deposits - - - - Restricted:

Public safety - - - 103 Public right of way - - - - Community services - - - 161 Community planning and development - - - 7 Municipal support - - - 15 Pension Trust - - - - Committed:

Post-Employment Benefits - - - - Community planning and development - - - - Stability reserve - - - - Assigned:

Post-Employment Benefits 1,000 1,000 1,000 1,000 Garden Grove tourism improvement 231 231 314 404 Property tax lawsuit 500 500 500 500 Building improvements 1,300 1,300 1,300 1,300 General Plan 223 273 239 325 Paramedic Tax - - - - Other purposes - - - - Unreserved - - - - Unassigned 16,217 16,330 18,331 22,629 Total general fund 32,846$ 33,009$ 35,072$ 39,868$ All other governmental funds:

Reserved -$ -$ -$ -$ Non-Spendable:

Intercity loan - - - - Land held for resale - - - - Prepaid items - - - - Deposits - - - - Restricted:

Fire - - - -
Police 2,814 1,754 9,260 9,521 Public right of way 3,665 5,358 7,639 8,434 Drainage 569 647 754 529 Community services - 180 196 945 Community planning and development 12,695 10,385 16,712 18,080 Municipal support 304 - 755 - Committed:

Community planning and development - - - - Assigned:

Post-Employment Benefits - - - - Property tax lawsuit - - - - Building improvements - - - - Other purposes - - - - Unreserved, reported in:

Special revenue funds - - - - Debt service funds - - - - Capital projects funds - - - - Unassigned (551) (755) (4) 466 Total all other governmental funds 19,496$ 17,569$ 35,312$ 37,975$ Source: Finance Department, City of Garden Grove
The City of Garden Grove implemented GASB 54 for the fiscal year ended June 30, 2011.

Fiscal Year
151
2018 2019 2020 2021 2022 2023
-$ - $ - $ - $ - $ - $ - - - - - - - - - - - - 13,456 12 ,793 12 ,102 8 ,873 8 ,197 13 ,048 - - 2 ,300 2 ,300 2 ,300 2 ,300 17 21 40 90 85 3 ,330 - - - - - 84 90 90 90 90 95 - - - - - - 166 177 177 177 177 192 2,764 3 ,469 4 ,039 4 ,039 4 ,261 4 ,841 35 57 57 48 48 41 - - 662 1 ,635 1 ,635 2 ,129 - - - - - - - - - - - - 22 ,500 22 ,500 22 ,500 25 ,700 1,000 1 ,000 1 ,000 1 ,000 1 ,000 1 ,000 - - - - - 500 500 500 - - 1,300 1 ,300 1 ,300 1 ,300 1 ,300 1 ,300 301 262 357 428 428 576 617 - - - - - - - - - - - - - - - - - 29,428 47 ,448 37 ,206 69 ,951 120 ,244 128 ,755 49,668$ 67,117 $ 82,330 $ 112,431 $ 162,265 $ 183,307 $ -$ - $ - $ - $ - $ - $ - - - - - - - - - 519 - - - - 195 238 31 12 - - - - - - - - - - 5,336 3 ,210 4 ,103 4 ,064 3 ,682 3 ,650 9,021 11 ,502 10 ,355 12 ,195 12 ,347 14 ,662 412 273 76 129 107 264 2,370 4 ,505 5 ,841 6 ,401 8 ,166 42 ,340 48,376 48 ,098 44 ,971 45 ,947 47 ,945 9 ,570 - - - - 1 ,264 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (40) (59) (18) (4) 53 65,515$ 67,548 $ 65,482 $ 69,475 $ 73,538 $ 70,551 $ Fiscal Year
152

SCHEDULE IV

CITY OF GARDEN GROVE

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
(In Thousands)
2014 2015 2016
Revenues:

Taxes 80,010$ 81,823$ 92,268$
Licenses and permits 1,405 1,139 1,554 Fines, forfeitures and penalties 2,755 2,629 2,222 Investment earnings 1,780 1,546 1,285 Charges for current services 10,267 9,528 9,943 From other agencies 12,857 15,945 15,991 Other revenues 1,991 2,079 11,071
Total revenues 111,065 114,689 134,334
Expenditures
Current:

Fire 20,143 21,672 23,195
Police 47,027 49,389 51,942
Traffic safety 3,105 3,102 2,959
Public right of way 5,662 6,886 7,515 Drainage - - -
Community buildings 3,086 3,408 3,317 Community services 4,562 4,793 5,470 Economic development - 1,944 2,333 Parks and greenbelts 2,019 2,247 2,217 Community planning and
development 8,156 7,359 7,229
Municipal support 7,215 7,600 8,012 Capital outlay 14,956 9,032 7,371
Debt service:

Principal retirement 2,036 1,937 2,097 Interest 1,280 1,199 939
Total expenditures 119,247 120,568 124,596 Excess (deficiency) of revenues
over (under) expenditures (8,182) (5,879) 9,738 Other financing sources (uses):

Transfers in 3,232 7,761 11,783
Transfers out (1,181) (3,558) (11,683) Issuance of debt - - 25,962 Proceeds of leases - - -
Gain/(Loss) on sale of capital
assets 1,307 22 1,735
Contribution to Housing
Authority - - -
Extraordinary Gain/(Loss) - - - Payment to bond escrow agent - - (17,462) Total other financing
sources (uses) 3,358 4,225 10,335
Special Item
Net change in fund balances (4,824)$ (1,654)$ 20,073$ Debt service as a percentage of
noncapital expenditures 3.2% 2.8% 2.6%
Source: Finance Department, City of Garden Grove
Fiscal Year
153
2017 2018 2019 2020 2021 2022 2023
98,042$ 103,090$ 114,078$ 119,853$ 118,044$ 150,869$ 164,058$ 1,687 2,005 2,645 2,647 2,419 2,763 3,155 2,622 3,134 2,850 3,157 2,859 2,546 3,318 1,275 1,846 4,344 6,402 793 (4,594) 2,265 10,041 11,945 15,122 11,180 11,670 13,301 12,252 11,640 12,047 13,599 17,884 47,729 45,322 25,048 3,847 4,193 3,940 4,386 3,003 3,494 2,191 129,154 138,260 156,578 165,509 186,517 213,701 212,287 23,707 25,067 24,483 27,975 28,470 26,975 30,933 53,168 56,128 56,282 64,770 68,032 71,121 75,134 4,215 3,925 4,282 4,471 4,997 5,663 6,183 7,257 7,197 7,107 7,155 17,543 19,057 22,610 - 66 - - - - 3,185 3,421 3,007 2,781 3,164 3,713 10,569 4,852 4,687 4,855 5,333 4,839 5,767 6,578 2,757 3,099 3,212 2,950 2,609 3,592 4,314 1,939 2,325 2,300 2,057 2,607 2,952 2,904

6,497 7,982 7,124 8,130 10,588 11,095 26,487 7,903 7,626 9,353 8,467 8,684 9,011 10,108 6,754 10,938 13,635 14,021 - - 3,342 573 580 495 494 592 630 1,184 1,087 1,064 1,137 1,112 1,094 1,152 126,760 134,121 137,284 149,742 153,139 160,632 197,602 2,394 4,139 19,294 15,767 33,378 53,069 14,685 1,396 2,826 1,403 4,380 1,346 2,275 9,212 (1,296) (1,253) (1,303) (7,357) (629) (1,448) (12,894) - - - - - - - - - - - - - 278 4,965 - - 874 - - 6,775 - - - - - - - - - - - - - - - - - - - - - 5,065 1,573 100 (2,103) 717 827 3,371 30,029 - - -
7,459$ 35,741$ 19,394$ 13,664$ 34,095$ 53,896$ 18,056$

3.8% 1.3% 1.3% 1.2% 1.1% 1.1% 1.0%

Fiscal Year
154
Business Transient Motor
Fiscal Sales Property Franchise Operation Occupancy Vehicle Year Tax Tax Tax Tax Tax Tax Total
2014 20,285,111 35,286,424 2,483,878 4,953,958 16,442,817 74,506 79,526,694 2015 19,251,431 36,972,309 2,532,706 5,228,239 17,216,510 71,970 81,273,165

2016 22,051,778 40,574,176 2,577,292 5,636,389 20,897,283 70,518 91,807,436 2017 21,792,872 42,113,373 2,532,462 5,781,098 25,121,419 79,429 97,420,653 2018 20,736,558 47,032,917 2,408,395 6,251,994 25,982,696 92,789 102,505,349 2019 29,371,450 49,355,823 2,404,867 5,945,451 26,285,461 84,911 113,447,963 2020 43,122,113 50,764,849 2,414,897 5,595,421 18,277,467 138,627 120,313,374 2021 49,305,114 55,004,385 2,331,476 3,534,201 7,136,525 128,205 117,439,906 2022 59,702,605 59,508,746 2,538,622 5,489,432 24,508,840 199,254 151,947,499 2023 60,103,880 66,366,493 2,863,122 6,423,628 28,016,033 176,351 163,949,507 Source: Finance Department, City of Garden Grove

SCHEDULE V

CITY OF GARDEN GROVE

GENERAL GOVERNMENT MAJOR TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
155
City Successor Agency
Fiscal Year Taxable Taxable Total
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value Secured 1 Unsecured 1 Value 1 Rate 2014 9,933,103 308,944 10,242,047 2,785,756 295,259 3,081,015 1.140% 2015 10,538,784 356,435 10,895,219 2,897,658 328,394 3,226,052 1.145% 2016 10,568,876 234,280 10,803,156 3,070,910 317,449 3,388,359 1.151% 2017 12,226,724 364,776 12,591,500 3,579,711 363,489 3,943,200 1.150% 2018 12,873,943 335,785 13,209,728 3,797,471 366,576 4,164,047 1.189% 2019 12,373,687 263,636 12,637,323 3,801,697 361,772 4,163,469 1.183% 2020 13,000,870 232,485 13,233,355 3,913,862 391,616 4,305,478 1.184% 2021 14,167,631 252,597 14,420,228 4,270,427 468,777 4,739,204 1.185% 2022 15,071,294 278,284 15,349,578 4,359,480 446,933 4,806,413 1.094% 2023 16,030,786 364,320 16,395,106 4,635,798 475,012 5,110,810 1.178% 1 The Redevelopment Agency was dissolved in February 2012.

The Successor Agency was created to close out the Redevelopment Agency.

Source: Orange County Assessor's Office/HdL Coren & Cone

NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

SCHEDULE VI

CITY OF GARDEN GROVE

ASSESSED VALUE AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(In Thousands)
156
Metropolitan Sanitation
Fiscal Basic City Water Orange and School
Year Levy Paramedic District County Water Services Other Total 2014 1.0000 0.07000 0.00350 - - 0.06602 - 1.13952 2015 1.0000 0.07000 0.00350 - - 0.07163 - 1.14513 2016 1.0000 0.07000 0.00350 - - 0.07748 - 1.15098 2017 1.0000 0.07000 0.00350 - - 0.07603 - 1.14953 2018 1.0000 0.08000 0.00350 - - 0.10599 - 1.18949 2019 1.0000 0.08000 0.00350 - - 0.09900 - 1.18250 2020 1.0000 0.08000 0.00350 - - 0.10022 - 1.18372 2021 1.0000 0.08000 0.00350 - - 0.10137 - 1.18487 2022 1.0000 0.08000 0.00350 - - 0.01004 - 1.09354 2023 1.0000 0.08000 0.00350 - - 0.09430 - 1.17780 Section 135.

Source: Orange County Tax Rates Book
Property tax in California is levied in accordance with Article 13A of the State Constitution at $1 per $100 county-wide assessed valuations plus other voter approved debt. Rates shown above are $100 of assessed valuation. The one percent is allocated pursuant to State law to the appropriate units of local government.

SCHEDULE VII

CITY OF GARDEN GROVE

PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Assessed values are expressed as 100% of "full value" as prescribed by California Revenue and Taxation Code 157
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
GWGG LLC 250,494,041$ 1.20%
Investel Harbor Resorts LLC 136,199,694 0.66%
House Foods Holding USA INC 36,245,400 0.17%
Landmark Hotel LLC 87,693,395 0.42%
Rexford Industrial Realty LP 82,783,568 0.40%
New Age Brookhurst LLC 81,862,665 0.39%
Christ Catholic Cathedral 57,805,296 0.28%
Khanna Enterprises Limited 60,150,533 0.29%
SPS Techonolgies LLC 2,865,051 0.01%
TNA Distributions LLC 61,518,043 0.30%
Landmark Marriott Suites 99,542,060 0.97%
American Lodging 56,316,887 0.55%
Chatham Rigg LLC 42,624,653 0.42%
Newage Garden Grove 42,590,097 0.42%
HGGA Promedade 42,022,116 0.41%
Ohi Resort Hotels 40,579,806 0.40%
Walton CWCA Garden Grove 29,546,615 0.29%
Swedlow Inc. 25,786,166 0.25%
Car Noa GGT 25,194,000 0.25%
CRP-2 Monarch 25,097,993 0.25%
857,617,686$ 4.13% 429,300,393 $ 4.19%
BB Promenade
Source: Hdl Coren & Cone The City of Garden Grove Top Ten Property Taxpayers

SCHEDULE VIII

CITY OF GARDEN GROVE

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND TEN YEARS AGO
2023 2013
158
City Percent Ratio of Ratio of
Tax of Total Tax Delinquent
Rate Total Current Current Delinquent Total Collections Outstanding Taxes Fiscal (Per Tax Tax Taxes Tax Tax to Total Delinquent to Total Year $100) Levied Collections Collected Collections Collections Tax Levy Taxes Tax Levy 2014 0.0030 20,112,895 19,256,287 95.7 281,184 19,537,471 97.1 231,857 1.2% 2015 0.0025 21,411,687 20,704,013 96.7 237,945 20,941,958 97.8 230,751 1.1% 2016 0.0025 22,611,366 21,721,987 96.1 213,997 21,935,984 97.0 517,198 2.3% 2017 0.0025 23,155,878 22,914,391 99.0 206,984 23,121,375 99.9 326,133 1.4% 2018 0.0025 26,376,092 25,752,153 97.6 174,164 25,926,316 98.3 134,739 0.5% 2019 0.0025 26,866,637 26,606,288 99.0 202,200 26,808,488 99.8 176,785 0.7% 2020 0.0025 28,019,537 27,164,413 96.9 567,147 27,731,560 99.0 248,420 0.9% 2021 0.0025 30,281,268 26,169,198 86.4 3,616,591 29,785,789 98.4 197,557 0.7% 2022 0.0025 31,282,250 30,586,260 97.8 305,759 30,892,019 98.8 1,817,047 5.8% 2023 0.0025 34,509,263 33,301,324 96.5 255,498 33,556,822 97.2 1,960,347 5.7% Source: Orange County Property Tax Ledger
Finance Department, City of Garden Grove

SCHEDULE IX

CITY OF GARDEN GROVE

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
In implementing Article XIIIa of the State Constitution, the Revenue and Taxation Code provides for a single Basic Tax Rate Levy for County/City/School/Special Districts and other rates necessary to retire bonded and other indebtedness. 159
This page is intentionally blank.

TotalTaxLeaseCertificatesFiscal Year
GovernmentalCapitalAllocationRDA 2008Revenueof ParticipationEnded June 30 2002 1 Bonds 2 Bonds 3
Bonds 4 Loans 5 6 Leases 7
Activities
2014 17,830,000 - - - 5,276,879 817,516 23,924,395 2015 17,210,000 - - - 4,128,913 812,176 22,151,089 2016 - 25,568,492 - - 2,895,399 546,422 29,010,313 2017 - 25,104,126 - - 69,826 622,676 25,796,628 2018 - 24,624,760 - - 23,732 589,293 25,237,785 2019 - 24,120,394 - - - 373,317 24,493,711 2020 - 23,601,028 - - - 229,928 23,830,956 2021 - 23,056,662 - - - 113,963 23,170,625 2022 - 22,487,297 - - - 167,990 22,655,287 2023 - 21,892,930 - - - 637,981 22,530,911 1 2
3 4
5 6
7 8
9 10
11 Source: Finance Department, City of Garden Grove
The City entered into various capital leases for energy retrofitting, mail machines, copiers, and telephones.

The City issued $16,625,000 Water Revenue Bond in 2010.

The City issued $21,845,000 Sewer COP in 2006; and refunded the 2006 Sewer COPs in 2017. 1993 COP was issued to finance acquisition of real property by the Garden Grove Housing Authority.

These ratios are calculated using personal income and population for the prior calendar year.

The City refunded the 2002 COP in 2015 with the 2015A Lease Revenue Bonds and upsized with additional issuance of approximately $8,500,000.

The former Redevelopment Agency entered into a subordinate note purchase agreement in the amount of $2,015,000 in June 2008 to refund a note issued to Katella Cottages. After dissolution, this liability is the responsibility of the State of California.

Since dissolution in February 2012, the RDA 2008 Bonds (above) no longer report the Katella Cottages Loan.

The City refunded the $52,325,000 tax allocation bonds in 2003.

The former Redevelopment Agency borrowed $32,000,000 from Union Bank in 2008. After dissolution this liability is the responsibility of the State of California. Since dissolution in February 2012, Loans (above) no longer report the Union Bank loan.

The Housing Authority refunded the $9,010,000 HUD Section 108 loan, of which $7,660,000 borrowed from HUD in 2008 was paid off in fiscal year 2015-2016.

SCHEDULE X

CITY OF GARDEN GROVE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Governmental Activities
160
DebtPercentageTotalTotalSewerWater
Perof PersonalPrimaryBusiness-typeCertificates ofRevenueRevenue Bonds 8 COP 9 Participation 10
GovernmentActivities Income 11 Capita 11
25,382,945 19,769,567 - 45,152,512 69,076,907 0.15% 397 23,884,150 19,220,388 - 43,104,538 65,255,627 0.13% 373 20,775,000 18,365,000 - 39,140,000 68,150,313 0.14% 384 19,571,107 16,740,627 - 36,311,734 62,108,362 0.12% 352 18,039,382 16,148,171 - 34,187,553 59,425,338 0.11% 336 16,381,152 15,535,716 - 31,916,868 56,410,579 0.10% 322 14,667,922 14,908,260 - 29,576,182 53,407,138 0.09% 306 29,697,566 14,406,843 - 44,104,409 67,275,034 0.11% 390 28,342,104 13,558,347 - 41,900,451 64,555,738 0.10% 379 26,823,912 12,840,891 - 39,664,803 62,195,714 0.09% 363 Business-type Activities
161

SCHEDULE XI

CITY OF GARDEN GROVE
Percent ofTaxLeaseFiscal Year
Ended Certificates of Revenue Allocation Assessed Per
TotalBondsBondsParticipationJune 30 Value 1
Capita
2014 17,830 - - 17,830 0.13% 102 2015 17,210 - - 17,210 0.12% 98 2016 - 25,568 - 25,568 0.18% 144 2017 - 25,104 - 25,104 0.15% 142 2018 - 24,625 - 24,625 0.14% 139 2019 - 24,120 - 24,120 0.14% 138 2020 - 23,601 - 23,601 0.13% 135 2021 - 23,057 - 23,057 0.12% 134 2022 - 22,487 - 22,487 0.11% 132 2023 - 21,893 - 21,893 0.10% 128

Source: Finance Department, City of Garden Grove
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(In Thousands, except Per Capita)
Outstanding General Bonded Debt
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
162

SCHEDULE XII

CITY OF GARDEN GROVE
2022-23 Assessed Valuation: 19,305,133,053
City's Share ofTotal Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/23 Metropolitan Water District 19,215,000 107,220 0.006
Coast Community College District 920,781,084 56,996,349 6.190 North Orange County Joint Community College District 324,914,503 7,417,798 2.283 Rancho Santiago Community College District 176,539,286 11,106,086 6.291 16,216,51710.824149,820,000Rancho Santiago Community College District School Facilities Improvement District No. 1 Garden Grove Unified School District 524,835,000 303,648,53857.856 Orange Unified School District 277,865,000 3,306,594 1.190 Anaheim Union High School District 245,578,955 194,007 0.079 Huntington Beach Union High School District 151,029,998 1,922,612 1.273 Anaheim School District 270,656,858 265,244 0.098
Magnolia School District 18,728,305 42,513 0.227
Westminster School District 137,049,559 9,881,273 7.210 411,104,751TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
12,637,1320.028451,165,000Orange County General Fund Obligations 304,1892.80110,860,000Orange County Board of Education General Fund Obligations 2,1810.0287,790,000North Orange Regional Occupation Program Certificates of Participation 91,6126.1901,480,000Coast Community College District General Fund Obligations 85,4226.1901,380,000Coast Community College District Pension Obligation Bonds 154,0531.19012,945,618Orange Unified School District Certificates of Participation 696,9831.19058,570,000Orange Unified School District Benefit Obligations 23,3680.07929,580,000Anaheim Union High School District Certificates of Participation 701,2461.27355,086,090Huntington Beach Union High School District Certificates of Participation 28,3780.22712,501,268Magnolia School District General Fund Obligations 1,865,5887.21025,875,000Westminster School District Certificates of Participation 20,715,000City of Garden Grove General Fund Obligations 100.000 20,715,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 37,305,152 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 52,590,000 100% 46,600,000 20,715,000TOTAL DIRECT DEBT
TOTAL OVERLAPPING DEBT 474,294,903
COMBINED TOTAL DEBT 495,009,903 (2)
(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) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2021-22 Assessed Valuation:

2.03%Total Overlapping Tax and Assessment Debt
1 Total Direct Debt
20,715,000

0.10%
2 Combined Total Debt

2.44%
Ratios to Redevelopment Successor Agencies Incremental Valuation 4,372,730,035 Total Overlapping Tax Increment Debt 1.05%

Source: California Municipal Statistics, Inc. / MuniServices, LLC

CITY OF GARDEN GROVE

DIRECT AND OVERLAPPING BONDS AND DEBT
JUNE 30, 2023
163

SCHEDULE XIII

CITY OF GARDEN GROVE

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year
2014 1 2015 2016 2017
Assessed valuation 10,242,047$ 10,895,219$ 10,803,156$ 12,591,500$ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 2,560,512 2,723,805 2,700,789 3,147,875 Debt limit percentage 15% 15% 15% 15%
Debt limit 384,077 408,571 405,118 472,181 Total net debt applicable to limit:

General obligation bonds - - - - Legal debt margin 384,077$ 408,571$ 405,118$ 472,181$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
1 Source: Finance Department, City of Garden Grove
Orange County Tax Assessor's Office
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.
164
Fiscal Year
2018 2019 2020 2021 2022 2023
13,209,728$ 12,637,323$ 13,233,355$ 14,420,228$ 15,349,578$ 16,395,106$ 25% 25% 25% 25% 25% 25%
3,302,432 3,159,331 3,308,339 3,605,057 3,837,395 4,098,777 15% 15% 15% 15% 15% 15%
495,365 473,900 496,251 540,759 575,609 614,816 - - - - - - 495,365$ 473,900$ 496,251$ 540,759$ 575,609$ 614,816$

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
165
Resources
Fiscal Gross Available for
RevenueYear Expenses 1
CoverageTotalInterestPrincipalDebt Service
2014 35,721,417 22,876,255 12,845,162 1,375,000 1,286,725 2,661,725 4.83 2015 33,573,575 25,146,241 8,427,334 1,430,000 1,225,677 2,655,677 3.17 2016 29,519,804 25,781,906 3,737,898 1,490,000 1,165,202 2,655,202 1.41

2017 32,345,481 26,404,580 5,940,901 1,515,000 861,491 2,376,491 2.50 2018 35,946,867 30,301,866 5,645,001 1,570,000 817,465 2,387,465 2.36 2019 37,832,009 28,891,265 8,940,744 1,600,000 775,290 2,375,290 3.76 2020 39,490,046 31,574,927 7,915,119 1,655,000 724,740 2,379,740 3.33 2021 40,621,520 31,439,166 9,182,354 1,705,000 899,621 2,604,621 3.53 2022 43,256,322 31,628,164 11,628,158 955,000 894,825 1,849,825 6.29 2023 40,911,604 28,154,739 12,756,865 1,405,000 875,425 2,280,425 5.59 Source: Finance Department, City of Garden Grove
1 2
Debt Service Requirement

SCHEDULE XIV

CITY OF GARDEN GROVE

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
Water Revenue Bonds
In FY 16/17 the City refunded 2006 Sewer COP with the issuance of the Garden Grove Sanity District, Revenue Refunding bonds, Series 2017.

The City entered into a sewer revenue bond agreement on April 1, 2006; the first year's interest was prorated from bond commencement. The debt amortization started in FY09-10 with an annual principal repayment on June 15.

Total operating expense less depreciation and amortization. 166
Resources
Fiscal Gross Available for
Year Revenue Expenses Debt Service Principal 2 Interest 2 Total Coverage
2014 10,361,393 3,264,411 7,096,982 515,000 948,541 1,463,541 4.85 2015 10,242,532 3,814,961 6,427,571 535,000 927,941 1,462,941 4.39 2016 10,521,214 3,880,996 6,640,218 560,000 906,541 1,466,541 4.53

2017 10,356,150 4,424,966 5,931,184 580,000 884,141 1,464,141 4.05 2018 10,641,504 5,009,287 5,632,217 520,000 676,575 1,196,575 4.71 2019 11,951,932 5,152,423 6,799,509 540,000 660,975 1,200,975 5.66 2020 12,673,629 4,993,491 7,680,138 555,000 639,375 1,194,375 6.43 2021 10,868,065 4,113,918 6,754,147 590,000 611,625 1,201,625 5.62 2022 12,025,031 5,958,254 6,066,777 615,000 582,125 1,197,125 5.07 2023 11,845,037 4,599,376 7,245,661 645,000 551,375 1,196,375 6.06 (Continued)
Sewer Revenue Bond
Debt Service Requirement
167

SCHEDULE XIV

CITY OF GARDEN GROVE
PLEDGED-REVENUE COVERAGE (Continued)

LAST TEN FISCAL YEARS
Fiscal Tax
Year Increment 1
Principal Interest Total Coverage
2014 20,205,156 2,105,000 2,232,756 4,337,756 4.66 2015 20,526,084 2,195,000 2,130,406 4,325,406 4.75 2016 15,837,862 2,360,000 1,526,300 3,886,300 4.08 2017 18,484,197 2,430,000 1,454,450 3,884,450 4.76 2018 17,693,119 2,505,000 1,380,425 3,885,425 4.55 2019 17,445,206 2,380,000 1,295,250 3,675,250 4.75 2020 18,868,786 2,685,000 1,193,950 3,878,950 4.86 2021 11,170,386 2,795,000 1,084,350 3,879,350 2.88 2022 3,301,040 2,905,000 514,225 3,419,225 0.97 2023 1,126,186 3,015,000 836,875 3,851,875 0.29 Source: Finance Department, City of Garden Grove

2014 Tax Allocation Refunding Bonds
Debt Service Requirement
1 Due to the dissolution of the Redevelopment Agency in February 2012, the Tax Increment is now deposited in the City of Garden Grove RPTTF project area. 168

SCHEDULE XIV

CITY OF GARDEN GROVE
PLEDGED-REVENUE COVERAGE (Continued)

LAST TEN FISCAL YEARS
Fiscal Tax
Year Increment 1
Principal Interest Total Coverage
2013 -
2014 -
2015 -
2016 -
2017 18,484,197 1,716,504 1,716,504 10.77
2018 17,693,119 1,652,250 1,652,250 10.71
2019 17,445,206 1,652,250 1,652,250 10.56
2020 18,868,786 1,652,250 1,652,250 11.42
2021 11,170,386 1,900,000 1,614,250 3,514,250 3.18 2022 3,301,040 1,975,000 1,536,750 3,511,750 0.94 2023 1,126,186 2,055,000 1,445,875 3,500,875 0.32 Source: Finance Department, City of Garden Grove

2016 Tax Allocation Bonds
Debt Service Requirement
1 Due to the dissolution of the Redevelopment Agency in February 2012, the Tax Increment is now deposited in the City of Garden Grove RPTTF project area. 169
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (in thousands) Income Rate
2014 173,953 4,747,258 27,429 6.5% 2015 174,774 4,924,023 28,307 4.2% 2016 177,303 4,999,605 28,606 4.4% 2017 176,277 5,087,579 28,694 4.8% 2018 176,896 5,243,712 29,747 3.4% 2019 175,155 5,490,131 31,344 3.3% 2020 174,801 5,763,401 32,971 14.9% 2021 172,476 5,972,287 34,627 7.7% 2022 170,526 6,275,992 36,804 3.6% 2023 171,183 6,723,012 39,274 3.6% Source: State Employment Development Department
California Department of Finance
Center for Demographic Research / Fullerton.edu / Ycharts.com

SCHEDULE XV

CITY OF GARDEN GROVE

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
170

SCHEDULE XVI

CITY OF GARDEN GROVE

PRINCIPAL EMPLOYERS

CURRENT YEAR AND TEN YEARS AGO
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Great Wolf Lodge Southern California 700 0.83%
Air Industries Company 625 0.74% 465 0.60%
Garden Grove Hospital Medical Center 516 0.61%
Hyatt Regency Orange County 424 0.50% 350 0.45%
GKN Aerospace Transparency Systems Inc 409 0.49% 331 0.43% Safran Cabin Inc 350 0.42%
Costco #126 323 0.38%
Full Clip 310 0.37%
Walmart #4171 272 0.32%
Saint Gobain Performance Plastics Corp. 226 0.27%
Saint Gobain Performance Plastics 363 0.47%
Prime Healthcare Services 516 0.67%
Driessen Aircraft Interior Systems 370 0.48%
Office Max Inc. 360 0.47%
American Apparel Knit & Dye 500 0.47%
C&D Zodiac 286 0.37%
NBTY Acquisition, LLC 298 0.39%

Total employment as used above represents the total employment of all employers located within City limits.

Source: Business Tax Division, City of Garden Grove
2023 2013
171
Department 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City Manager 9 9 10 29 29 30 35 33 33 44 Community Development 58 58 53 37 37 35 37 37 31 22 Community Services 157 151 147 146 153 157 116 106 97 115 Economic Development - - - - - - - - - Finance 40 40 41 38 38 37 36 33 31 34 Fire 109 111 111 106 106 103 - * - * - * * Information Technology 19 19 19 20 20 20 20 18 17 19 Personnel 9 9 10 11 11 12 12 11 11 11 Police 268 273 272 289 293 263 282 281 260 264 Public Works 195 194 196 198 198 186 184 176 150 153 Total 864 864 859 874 885 843 722 695 630 662 Full time employees 623 633 632 640 641 642 560 538 510 519 Part time employees 241 231 227 234 244 201 162 157 120 143 Source: Budget Division, City of Garden Grove
* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA).

SCHEDULE XVII

CITY OF GARDEN GROVE

FULL-TIME AND PART-TIME CITY EMPLOYEES

BY DEPARTMENT

LAST TEN FISCAL YEARS
172
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Arrests Report 6,423 6,478 5,468 6,358 7,476 6,112 5,436 4,439 4,921 5,250 Traffic citations issued 10,903 9,604 9,890 9,114 11,114 8,598 7,403 3,921 6,264 6,575 Fire:

Number of emergency calls 26,785 26,785 14,627 15,134 15,297 15,142 13,092 * 13,557 * 14,936 * 15,476 * Public Right-of-Way:

Parking citations issued 25,919 28,017 25,500 27,127 33,797 34,508 28,430 45,931 35,746 34,520 Permits issued 501 605 546 482 566 563 560 700 757 665
Community Services:

Number of recreation classes 2,016 2,416 1,918 1,947 1,701 2,057 1,932 977 1,038 1,590 Housing vouchers 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,325 Community Planning and Development
Building permits issued 2,808 2,041 2,259 2,233 3,066 3,986 3,954 4,723 5,133 6,488 Water:

Number of accounts 33,807 33,834 33,870 33,892 33,893 33,911 34,054 34,150 34,292 34,376 Average daily consumption 22,024 20,391 17,563 17,946 20,249 18,298 18,038 18,669 17,815 16,927 (thousands of gallons)
Solid Waste Disposal:

Number of accounts 34,136 33,658 33,968 33,966 33,786 33,700 33,542 33,213 33,720 33,853 Drainage:

Channels cleaned (miles) 5 5 5 5 5 5 5 5 5 5
Municipal Support:

Passports issued 1 507 247 N/A N/A N/A N/A N/A N/A N/A N/A Source: City of Garden Grove
1 Passport services discontinued as of July 1, 2015.
* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA).

SCHEDULE XVIII

CITY OF GARDEN GROVE

OPERATING INDICATORS

BY FUNCTION

LAST TEN FISCAL YEARS
173
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Stations 1 1 1 1 1 1 1 1 1 1 Fire:

Fire stations 7 7 7 7 7 7 7 7 7 * 7 * Public Right-of-Way:

Streets (miles) 305 305 305 305 305 305 305 305 305 305 Community Services:

Parks 16 16 19 19 20 19 19 19 19 19 Park acreage 142 142 137 137 140 124 124 124 124 124 Community centers 2 2 2 2 2 9 9 9 9 9 Water:

Water mains (miles) 433 433 433 433 433 433 433 433 433 433 Number of connections 34,257 34,294 34,313 34,336 34,347 34,380 34,459 34,447 34,447 34,689 Sewage Collection:

Sanitary sewers (miles) 320 320 320 320 320 320 320 320 320 320 Drainage:

Storm drains (miles) 35 35 35 35 35 35 35 35 35 35 Source: City of Garden Grove

* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA). However, the City retains the ownership of the Fire stations and OCFA leases for $1 per year for each facility.

SCHEDULE XIX

CITY OF GARDEN GROVE

CAPITAL ASSETS STATISTICS

BY FUNCTION

LAST TEN FISCAL YEARS
174