January 13, 2026 | 1
AGENDA
REGULAR MEETING
LA PALMA CITY COUNCIL
TUESDAY, JANUARY 13, 2026
Nitesh P. Patel
Mayor
Debbie S. Baker
Mayor Pro Tem
Janet Keo Conklin
Council Member
Vikesh P. Patel
Council Member
Mark I. Waldman
Council Member
5:30 PM Closed Session
6:30 PM Open Session
La Palma City Hall
Council Chambers
7822 Walker Street, La Palma
CALL TO ORDER
CLOSED SESSION
CS-1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Name of Case: David Casey, et al. v. City of Buena Park, et al.
Case No. OCSC 30-2025-01497184-CU-PA-NJC
CS-2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Name of Case: Ross Byer v. City of La Palma
Case No. OCSC 30-2024-01394359-CU-OE-CJC
January 13, 2026 | 2
CS-3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Claim Received December 9, 2025, from Hoa Jessie Cao Regarding Vehicle Damage
CS-4. CONFERENCE WITH REAL PROPERTY NEGOTIATIONS
(Pursuant to Government Code Section 54956.8)
Property: 8415 Meadowlark, La Palma, California
90623
Agency Negotiator: Peter Kim, City Manager
Joseph Cisneros, Deputy City Manager
Negotiating Parties: AT&T
Under Negotiations: Price and/or terms of a lease
OPEN SESSION TO BEGIN AT 6:30 P.M.
PLEDGE OF ALLEGIANCE
Mayor Pro Tem Debbie Baker
INVOCATION
Reverend Nader Hanna, King of the Nations Ministries
Council Member Janet Keo Conklin
ROLL CALL
PRESENTATIONS
● Proclamation in Recognition of Korean-American Day
● Recognition of Honey Pharmacy as "Business of the Quarter" ● Recognition of Radiant Futures
January 13, 2026 | 3
● Recognition of John F. Kennedy High School Girls Golf, Girls Cross Country, Girls Tennis, and Boys Water Polo Teams for Achieving League Championship Titles
● Presentation of Employee of the Year to Ricardo Gonzalez, Police Officer ● Presentation of Supervisor of the Year to Justin Braasch, Police Sergeant ● Introduction of Jason Hong as La Palma’s new Community Services Supervisor and Colby Deterding as La Palma’s new Recreation Coordinator ORAL COMMUNICATIONS (Time Limit: 5 Minutes Each)
Time has been reserved at this point in the Agenda for persons wishing to speak on any item that is not listed on the Agenda. By law, the City Council is prohibited from taking action on such oral comments. The matter will be automatically referred to staff for appropriate response or action or will be placed on the Agenda of a future meeting.
Matters listed on the Agenda may be addressed either at this time or at the time they are before the City Council for discussion.
CONSENT CALENDAR
All matters listed under Consent Calendar will be acted upon by one motion affirming the action recommended on the Agenda. There will be no separate discussion on these items prior to voting unless members of the City Council, Staff, or the public request that specific items be removed from the Consent Calendar for separate action. Any member of the public who wishes to discuss a Consent Calendar item should come forward to the microphone and, upon recognition by the Mayor, state their name, address, and the item number.
1. Waive the Reading of All Ordinances
Waive the reading of all Ordinances in their entirety and read by title only.
2. Approval of Council Minutes
Approve the December 9, 2025, City Council Meeting Minutes.
3. Approval of Register of Demands
Adopt a Resolution approving the Registers of Demands for December 16, 2025, and January 6, 2026.
January 13, 2026 | 4
4. Approve the Placement of Ron and Elfriede Mac Iver in the Community Commemorative Area
Approve the placement of Ron and Elfriede Mac Iver in the Community Commemorative Area.
5. Adopt the 2026 State and Federal Legislative Platform Adopt the City of La Palma's 2026 State and Federal Legislative Platform.
6. Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2025
Receive and file the Annual Comprehensive Financial Report (ACFR) of the City of La Palma for the Fiscal Year ending June 30, 2025.
7. First Quarter Operating Report, Fiscal Year 2025-26
Receive and file the First Quarter Operating Report, Fiscal Year 2025-26.
8. Resolution Approving a Side Letter Between the City and La Palma General Employees Association
Adopt a Resolution amending the Memorandum of Understanding for the La Palma General Employees Association and authorize the City Manager, or designee, to sign the Side Letter on behalf of the City.
9. Resolution Approving a Side Letter Between the City and La Palma Police Association
Adopt a Resolution approving a Side Letter Amendment with the La Palma Police Association regarding hiring bonuses and authorize the City Manager or designee to sign the Side Letter on behalf of the City.
10. Resolution Amending the Salary for Part-Time Employees Adopt a Resolution amending salaries for certain part-time positions.
11. Award of Contract for Professional Services to Gladwell Governmental Services, Inc. for the update of the City’s Records Management Policy and Schedule
Authorize the City Manager to execute an agreement with Gladwell Governmental Services, Inc., (GGS) to provide professional consulting services to update the Citywide Records Management Policy and Schedule for an amount not to exceed $13,200.
January 13, 2026 | 5
12. Amendment to Agreement with Casc Engineering, Inc. for NPDES and FOG Programs
Authorize the City Manager to execute a contract amendment with Casc Engineering Inc., for the management of the National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Program and the countywide Fats, Oils, and Grease (FOG) Program for an amount not to exceed $112,800.
PUBLIC HEARINGS
No Public Hearing Items
REGULAR ITEMS
13. Council Member Request — Discuss Moving La Palma's Annual Tree Lighting Ceremony Date
It is recommended that the City Council discuss and provide direction to staff.
COUNCIL MEMBER AB1234 REPORTS, REPORTS FROM CITY-AFFILIATED
COMMITTEES, AND COUNCIL REMARKS
CITY MANAGER REMARKS
CITY ATTORNEY REMARKS
ADJOURNMENT
NOTE: As a general rule, staff reports or other written documentation have been prepared or organized with respect to each item of business listed on the agenda. Copies of these materials and other disclosable public records distributed to all or a majority of the members of the City Council in connection with an open session item on the agenda are on file and available for inspection with the Office of the City Clerk, City Hall, 7822 Walker Street, during regular business hours 7:30 A.M. to 6:30 P.M., Monday through Thursday. If such writings are distributed to members of the Council on the day of a City Council meeting, the writings will be available at the entrance to the City Council Chambers. If you have any questions regarding any item of business on the agenda for this meeting, any of the staff reports, or other documentation relating to any agenda item, please contact the City Clerk at (714) 690-3334.
January 13, 2026 | 6
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the City Clerk at (714) 690-3334. Notification 48 hours prior to the meeting will enable the City to make reasonable accommodations to ensure accessibility to this meeting.
Agenda Item No. 1 January 13, 2026 | 1
City of La Palma
Agenda Item No. 1
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Norma I. Alley, City Clerk
AGENDA TITLE: Waive Reading of All Ordinances
RECOMMENDED ACTION:
Waive the reading of all Ordinances in their entirety and read by title only.
SUMMARY:
This is a regular agenda item and acts as a reminder of an action that Council Members should take to waive the reading of any Ordinance before them in its entirety, and instead read it by title only. This action helps to expedite the processing of Ordinances and contributes to the efficiency of City Council meetings.
FISCAL IMPACT:
None.
ATTACHMENTS:
None
Agenda Item No. 2 January 13, 2026 | 1
City of La Palma
Agenda Item No. 2
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Norma I. Alley, City Clerk
AGENDA TITLE: Approval of Council Minutes
RECOMMENDED ACTION:
Approve the December 9, 2025, City Council Meeting Minutes.
FISCAL IMPACT:
None
ATTACHMENTS:
1. CC MIN 2025-1209
City Council Meeting Minutes
December 9, 2025
MINUTES OF THE REGULAR MEETING
OF THE LA PALMA CITY COUNCIL
December 9, 2025
CALL TO ORDER
Mayor Pro Tem N. Patel called the Regular Meeting of the La Palma City Council to order at 5:32 p.m. in the Council Chambers of La Palma City Hall, 7822 Walker Street, La Palma, California.
CLOSED SESSION
CS-1. CONFERENCE WITH LABOR NEGOTIATORS
(Pursuant to Government Code Section 54957.6)
Agency Designated Representative: Peter Kim, City Manager Employee Organizations: La Palma General Employees Association La Palma Police Association
La Palma Professional Employees Association
Unrepresented Employees: Executive Management
CS-2. PERFORMANCE REVIEW
(Pursuant to California Government Code Section 54957(b)(1)) Position Title: City Attorney
CS-3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Name of Case: David Casey, et al. v. City of Buena Park, et al.
Case No. OCSC 30-2025-01497184-CU-PA-NJC
CS-4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION, SIGNIFICANT
EXPOSURE
(Pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9)
Demand Letter from Suren N. Weerasuriya on behalf of Asharie Cooks (available upon request)
CS-5. CONFERENCE WITH REAL PROPERTY NEGOTIATIONS
(Pursuant to Government Code Section 54956.8)
Property: 8415 Meadowlark, La Palma, California 90623
Agency Negotiator: Peter Kim, City Manager
Joseph Cisneros, Deputy City Manager
Negotiating Parties: AT&T
Under Negotiations: Price and/or terms of a lease
CS-6. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION, INITIATION OF
LITIGATION
(Pursuant to Government Code Section 54956.9(D)(4)): One case
City Council Meeting Minutes
December 9, 2025
Mayor Pro Tem N. Patel recessed the Open Session and convened the Closed Session at 5:32 p.m.
Mayor Waldman adjourned Closed Session at 6:09 p.m. It was noted for the record that Mayor Waldman arrived at 5:35 p.m.
OPEN SESSION TO BEGIN AT 6:30 P.M.
Mayor Waldman reconvened in Open Session at 6:30 p.m. and asked for a report out of Closed Session. City Attorney Ajit Thind reported there was no reportable action for Items CS-1, CS-2, CS-3, CS-5 and CS-6. He reported on Item CS-4, the City Council voted 5 Yes/0 No to authorize an issuance of a rejection letter due to failure of a timely notice to the City.
PLEDGE OF ALLEGIANCE
Council Member V. Patel led the Pledge of Allegiance.
INVOCATION
La Palma Police Department Chaplain Steve Bland conducted the Invocation.
ROLL CALL
Council Members Present: Council Member Baker, Council Member Keo Conklin, Mayor Pro Tem N. Patel, Council Member V. Patel, and Mayor Waldman (arrived at 5:35 p.m.)
City Officials Present: Peter Kim, City Manager
Ajit Thind, City Attorney
Joe Cisneros, Deputy City Manager
Jake Chavira, Acting Community Development & Public Works Director Jesse Amend, Interim Police Chief
Norma I. Alley, City Clerk
PROCEDURAL ITEMS
PI-1 City Council Reorganization
The City Council conducted its annual reorganization by selecting the positions of Mayor and Mayor Pro Tem.
City Clerk Alley opened the floor to nominations for Mayor.
Council Member Baker nominated Mayor Pro Tem N. Patel for Mayor.
The motion nominating Mayor Pro Tem N. Patel for Mayor carried on the following vote:
AYES: Council Member Baker, Council Member Keo Conklin, Mayor Pro Tem Nitesh Patel, Council Member Vikesh Patel, and Mayor Waldman
NOES: None
City Council Meeting Minutes
December 9, 2025
City Clerk Alley passed the nominations for Mayor Pro Tem over to newly appointed Mayor N. Patel.
Mayor N. Patel opened the floor to nominations for Mayor Pro Tem.
Council Member Waldman nominated Council Member Debbie Baker for Mayor Pro Tem.
Council Member Keo Conklin nominated herself for Mayor Pro Tem.
The motion for Council Member Debbie Baker for Mayor Pro Tem carried on the following vote:
AYES: Council Member Baker, Mayor Nitesh Patel, Council Member Vikesh Patel, and Council Member Waldman
NOES: Council Member Keo Conklin
PI-2 Presentations to Mayor Mark I. Waldman for his Service in 2024-2025 Mayor N. Patel presented outgoing Mayor Waldman with a gavel and street sign to honor his service as Mayor during 2024-2025 and spoke of Mayor Waldman’s highlights and accomplishments under his leadership and tenure on the Council and as Mayor. Mayor N. Patel also expressed appreciation to Linda Waldman’s support and contributions to the City and community.
Mayor N. Patel presented Certificates of Recognition from Senator Strickland’s Office.
Assemblywoman Quirk-Silva’s Field Representative Anthony Monroy presented a Certificate of Recognition.
Mr. Jack Amsell spoke highlighting Mayor Waldman’s great service to the City of La Palma and expressed his appreciation of his dedication, hard work, and accomplishments during his tenure on the Council and as Mayor.
Mayor N. Patel called a recess for a light reception and celebrations.
PRESENTATIONS
There were no presentations.
ORAL COMMUNICATIONS
Mayor N. Patel called for public comment. Seeing no one come forward, Mayor N. Patel closed public comment.
CONSENT CALENDAR
1. Approve Council Minutes: Approved the Minutes of November 4, 2025, City Council Meeting Minutes.
2. Approve Register of Demands: Adopted Resolution No. 2025-51 approving the Registers of Demands for November 18, 2025, and December 2, 2025.
City Council Meeting Minutes
December 9, 2025
3. Authorize the City Manager to execute a Second Amendment to extend the contract with Greentech Landscape, Inc.
4. Authorize the City Manager to execute a Second Amendment to extend the contract with Sierra Analytical Labs, Inc., for water analysis services.
Mayor Pro Tem Baker made a motion to approve Consent Calendar Items. The motion was seconded by Council Member Waldman and carried on the following vote:
AYES: Mayor Pro Tem Baker, Council Member Keo Conklin, Mayor Nitesh Patel, Council Member Vikesh Patel, and Council Member Waldman
NOES: None
PUBLIC HEARINGS
There were no Public Hearing items for consideration.
REGULAR ITEMS
5. Appointments to External Committees and Internal Subcommittees Mayor N. Patel called for Council discussion regarding the Committee appointments pursuant to Council Policy 1: City Council Code of Conduct. Discussion ensued amongst the Council and appointments to the committees were as follows:
The Orange County Fire Authority (OCFA) Board of Directors representative to be Mayor N. Patel with no alternate.
Council Member Waldman made a motion to approve Resolution No. 2025-52 designating and appointing Mayor N. Patel as a Director to the Orange County Fire Authority Board of Directors for 2026. The motion was seconded by Mayor Pro Tem Baker and carried on the following vote:
AYES: Mayor Pro Tem Baker, Council Member Keo Conklin, Mayor Nitesh Patel, Council Member Vikesh Patel, and Council Member Waldman
NOES: None
The Orange County Mosquito and Vector Control District (OCMVCD) Board of Trustees representative with no alternate for a two-year appointment to serve 2026-2027.
Council Member V. Patel and Council Member Keo Conklin expressed their interest in serving as the representative for the OCMVCD Board of Trustees.
Mayor N. Patel called for a vote on the nominations. City Clerk Alley conducted a roll call vote by order nominations were received with note that the first Council Member receiving the majority of votes would be appointment and voting would cease. First vote was taken for Council Member V. Patel. The vote carried on the following vote:
City Council Meeting Minutes
December 9, 2025
AYES: Mayor Pro Tem Baker, Mayor Nitesh Patel, Council Member Vikesh Patel, and Council Member Waldman
NOES: Council Member Keo Conklin
The Orange County Mosquito and Vector Control District (OCMVCD) Board of Trustees representative to be Council Member V. Patel for a two-year appointment to serve 2026-2027, with no alternate.
The Orange County Sanitation District (OC San) Board of Directors representative to be Mayor Pro Tem Baker and Council Member Vikesh Patel as the alternate.
The California Joint Powers Insurance Authority (CJPIA) Board of Directors representative to be Mayor N. Patel and Council Member Waldman as the alternate.
The Bridges at Kraemer Place Community Advisory Board (BCAB) representative to be Mayor N. Patel, with no alternate, to finish serving out the remaining two-year term to end in December 2026.
The Municipal Water District of Orange County (MWDOC) Elected Officials Forum representative to be Council Member Keo Conklin and Council Member Waldman as the alternate.
The Orange County Library Advisory Board (OCLAB) representative to be Council Member V. Patel, with no alternate.
The Southern California Association of Governments (SCAG) Regional Conference and General Assembly representative to be Council Member Baker, with no alternate. City Manager Kim noted Mayor Pro Tem’s appointment was by default due to her election to serve as the Regional Council Member.
The Business Task Force representatives to be Mayor N. Patel and Mayor Pro Tem Baker; The Public School Liaison representatives to be Mayor N. Patel and Mayor Pro Tem Baker; The Council Policy Subcommittee representatives to be Mayor N. Patel and Mayor Pro Tem Baker; The Business Engagement Ad Hoc Committee representatives to be Mayor N. Patel and Mayor Pro Tem Baker; and
The Economic Development/Land Use Advisory Ad Hoc Committee representatives to be Mayor N.
Patel and Mayor Pro Tem Baker.
Council Member V. Patel made a motion to approve the committee appointments as discussed. The motion was seconded by Council Member Baker and carried on the following vote:
AYES: Mayor Pro Tem Baker, Council Member Keo Conklin, Mayor Nitesh Patel, Council Member Vikesh Patel, and Council Member Waldman
NOES: None
City Council Meeting Minutes
December 9, 2025
COUNCIL MEMBER AB1234 REPORTS, REPORTS FROM CITY-AFFILIATED COMMITTEES, AND
COUNCIL REMARKS
Council Member V. Patel reported he attended the Scouting America Scout-O-Rama, Veterans Day Ceremony, Holiday Tree Lighting Ceremony, Annual Employee Recognition Luncheon; recognized staff for their hard work for the year; congratulated the Mayor and Mayor Pro Tem for their appointments; and expressed appreciation to Council Member Waldman for his service as Mayor.
Council Member Waldman reported he attended the Veterans Day Ceremony, Holiday Tree Lighting Ceremony, OCSAN Operations Committee Meeting, and the Annual Employee Recognition Luncheon; and congratulated the Mayor and Mayor Pro Tem for their appointments.
Council Member Keo Conklin provided accolades to all involved with the accomplishments of the City over the last year, thanked Council Member Waldman for approving the Veterans Day Ceremony during his tenure as Mayor, reported she attended the Veteran’s Celebration and the Holiday Tree Lighting Ceremony, noted her favor of installation of an audio/visual system in the Council Chambers for future meetings, congratulated the Mayor and Mayor Pro Tem for their appointments, and expressed appreciation to Council Member Waldman for his service as Mayor.
Mayor Pro Tem Baker reported she attended the Orange County Sanitation District (OC San) Operations Committee Meeting; Southern California Association of Governments (SCAG) Community, Economic, and Human Development (CEHD) Policy Committee Meeting and Regional Council (RC) Meeting; Veterans Event; League of California Cities (Cal Cities) Mayors and Council Members Department Officers Orientation; Cal Cities League Leaders Webinar; Cal Cities Orange County Division Board of Directors Meeting; Cal Cities M/CM Roundtable; Association of California CitiesOrange County (ACC-OC) Annual Business Meeting; OC San Board of Directors Meeting; Orange County Council of Governments (OCCOG) Board of Directors Meeting; Orange County Mosquito and Vector Control District (OCMVCD) Board of Trustees Meeting; Regional Military Affairs Committee (RMAC) Meeting; Cal Cities League Leaders Workshop and Board of Directors Meeting; Cal Cities Orange County Division Executive Committee Meeting; and the Annual Employee Recognition Luncheon. She congratulated Mayor N. Patel for his election to the Association of California Cities Orange County (ACC-OC) Board’s 1st District Representative; congratulated the employees that were recognized, provided service awards, and selected as Employee of the Year and Supervisor of the Year awards; congratulated Mayor N. Patel for being appointed as Mayor; thanks the Council for their support appointing her as Mayor Pro Tem; expressed appreciation and thanked Council Member Waldman for his service as Mayor; and wished everyone a Merry Christmas and Holiday Season.
Mayor N. Patel reported he attended the Veterans Day Ceremony, La Palma Community Foundation Meeting, OCFA Budget and Finance Audit Meeting, OC City Selection Committee Meeting, ACC-OC Annual Business Meeting, Iron Workers Training Facilities Tour, Holiday Tree Lighting Ceremony, attended a meeting with Assembly Member Chen, and the Annual Employee Recognition Luncheon; noted his family provided meals and gifts to 50 homeless families from JFK High School and shared the need to help others in our community; thanked Mayor Pro Tem for her support at the ACC-OC Business Meeting regarding his election to 1st District Representative; expressed appreciation and thanked Council Member Waldman for his service as Mayor; provided kudos to the Community Activities and Beautification Committee and staff for their hard work with the Polar Express and Holiday Tree Lighting Ceremony; and congratulated staff for their awards and recognitions received at the Annual Employee Recognition Luncheon.
City Council Meeting Minutes
December 9, 2025
CITY MANAGER REMARKS
City Manager Kim thanked Council Member Waldman for his service as Mayor, congratulated Mayor N. Patel and Mayor Pro Tem Baker for their appointments, announced there was a giving tree set-up at City Hall if anyone would like to participate, announced the Holiday Closure schedule, and wished everyone a safe and wonderful Holiday Season.
CITY ATTORNEY REMARKS
City Attorney Thind had nothing to report.
ADJOURNMENT
Mayor N. Patel adjourned the Regular Meeting of the La Palma City Council at 7:32 p.m. _________________________
Nitesh P. Patel, Mayor
ATTEST:
__________________________
Norma I. Alley, MMC, City Clerk
Agenda Item No. 3 January 13, 2026 | 1
City of La Palma
Agenda Item No. 3
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Approval of Register of Demands
RECOMMENDED ACTION:
Adopt a Resolution approving the Registers of Demands for December 16, 2025, and January 6, 2026.
SUMMARY:
The laws of the State of California governing General Law Cities and the La Palma Municipal Code Sec. 14-30 provide that the City Council shall approve all payments made by the City. A Register of Demands is provided at each City Council Meeting describing each payment made or to be made by the City during the specified period.
FISCAL IMPACT:
Sufficient funds are available to process all payments.
ATTACHMENTS:
1. Resolution
2. Warrant Register 12/16/2025
3. Warrant Register 01/06/2026
Resolution No. 2026-XX
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA PALMA APPROVING THE REGISTERS OF DEMANDS
FOR DECEMMBER 16, 2025 AND JANUARY 6, 2026
WHEREAS, the laws of the State of California governing General Law Cities and the La Palma Municipal Code §14-30 provide that the City Council shall approve all payments made by the City; and
WHEREAS, certain financial obligations are due and payable by the City of La Palma, a General Law City, as of December 16, 2025 and January 6, 2026; and WHEREAS, the laws of the State of California governing General Law Cities and the Municipal Code of La Palma provide that the City Council of a General Law City shall approve all payments by said City from the various established funds of said City; and WHEREAS, the City Manager and the City Council of the City of La Palma have ascertained that the following lists of obligations as submitted by the City of La Palma are paid or legally due and payable by the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of La Palma hereby approves the attached Registers of Demands dated December 16, 2025, and January 6, 2026, incorporated herein by reference.
APPROVED AND ADOPTED by the City Council of the City of La Palma at a Regular Meeting held on the 13th day of January 2026.
________________________________
Nitesh Patel
Mayor
ATTEST:
______________________________
Norma I. Alley, MMC
City Clerk
Resolution No. 2026-XX
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF LA PALMA )
I, NORMA I. ALLEY, MMC, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 13th day of January, 2026, and that it was so adopted by called vote as follows:
AYES:
NOES:
________________________________
Norma I. Alley, MMC
City Clerk
12/15/2025 11:20:41 AM Page 1 of 10
Warrant Register
City of La Palma, CA By Vendor Name
Payment Dates 12/3/2025 - 12/16/2025
Approval
Reviewed by
Joseph Cisneros - Deputy City Manager
Peter Kim - City Manager
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 2 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount Vendor: 01007 - A E S WATER INC
SEISMIC VALVE CONST 1,450.00
MAINT/WTR
12/16/2025 2066 A E S WATER INC
Vendor 01007 - A E S WATER INC Total: 1,450.00
Vendor: 01037 - ADMIRAL PEST CONTROL INC
12/16/2025 2332763 ADMIRAL PEST CONTROL INC 11/26 GOPHER CONTROL/CP 175.00 Vendor 01037 - ADMIRAL PEST CONTROL INC Total: 175.00
Vendor: 01047 - AFLAC
12/16/2025 272404 AFLAC DEC'25 Aflac Ins Prem W/H 133.44 Vendor 01047 - AFLAC Total: 133.44
Vendor: 01064 - ALL CITY MANAGEMENT SVC INC
11/16-11/29 CROSSING 6,158.04
GUARD SVC/PD
12/16/2025 105085 ALL CITY MANAGEMENT SVC I
Vendor 01064 - ALL CITY MANAGEMENT SVC INC Total: 6,158.04 Vendor: 04248 - ALL PRO JETTING & PLUMBING
12/16/2025 INV2796 ALL PRO JETTING & PLUMBIN 12/2 RESTROOM RPR/CH 360.00 Vendor 04248 - ALL PRO JETTING & PLUMBING Total: 360.00 Vendor: 05522 - ANDREW DELGADO
12/16/2025 INV0025891 ANDREW DELGADO 11/17-21 FTO TRNG/PD 115.00 Vendor 05522 - ANDREW DELGADO Total: 115.00
Vendor: 05695 - ANGEL AN
12/16/2025 13372 ANGEL AN 11/1-11/29 KOREAN DANCE 65.00 Vendor 05695 - ANGEL AN Total: 65.00
Vendor: 05989 - ANTHONY QUEZADA
11/22 COMM CTR DEPOSIT 500.00
RFD
12/16/2025 1014093002 ANTHONY QUEZADA
Vendor 05989 - ANTHONY QUEZADA Total: 500.00
Vendor: 01015 - AT&T
10/20-11/19 800MHZ 1,215.24
OCSD/PD - BAN 9391064973
12/16/2025 24399282 AT&T
11/25#826-6272 63.59
TELEMETRY/WTR BAN
9391033974
12/16/2025 24418226 AT&T
12/1#995-1569 WALKER ST 32.59
SYNCH - BAN 9391033976
12/16/2025 24452044 AT&T
DEC'25 DISPATCH PHONE 138.36
SERV/PD-BAN 9391084360
12/16/2025 24480924 AT&T
Vendor 01015 - AT&T Total: 1,449.78
Vendor: 01208 - BLUE RIBBON TROPHY CO
12/16/2025 2920 BLUE RIBBON TROPHY CO (4)NAMEPLATES/CC 123.05 12/16/2025 2925 BLUE RIBBON TROPHY CO 2025 City Tile Plates/(4)EOY 125.22 12/16/2025 2975 BLUE RIBBON TROPHY CO 2025 (2)EOY PLAQ ENGRVNG 62.60 Vendor 01208 - BLUE RIBBON TROPHY CO Total: 310.87
Vendor: 01241 - BUENA PARK POSTMASTER
12/16/2025 INV0025919 BUENA PARK POSTMASTER BULK MAIL PERMIT #49/REC 370.00 Vendor 01241 - BUENA PARK POSTMASTER Total: 370.00
Vendor: 04842 - CALIFORNIA MUNICIPAL STATISTICS, INC.
FY25 ACFR DEBT 600.00
STATMENT/FIN
12/16/2025 25111711 CALIFORNIA MUNICIPAL STATI
Vendor 04842 - CALIFORNIA MUNICIPAL STATISTICS, INC. Total: 600.00 Vendor: 05886 - CATALYST DIVING, INC.
12/16/2025 120120251 CATALYST DIVING, INC. WTR TANK CLEAN & RPR/WTR 8,200.00 12/16/2025 120120252 CATALYST DIVING, INC. WTR TANK CLEAN & RPR/WTR 1,425.00 Vendor 05886 - CATALYST DIVING, INC. Total: 9,625.00
Vendor: 01252 - CFP INC
12/16/2025 3075 CFP INC (4)NOV'25 BLOOD TESTS/PD 607.72 Vendor 01252 - CFP INC Total: 607.72
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 3 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount Vendor: 02669 - CHARTER COMMUNICATIONS
12/11-1/10 Internet SVC/CH- 424.67
ACCT NO.188679701
12/16/2025 188679701120725 CHARTER COMMUNICATIONS
Vendor 02669 - CHARTER COMMUNICATIONS Total: 424.67
Vendor: 05455 - CHARTER COMMUNICATIONS
12/11-1/10 INTERNET 1,618.21
SVC/CY&CH-ACCT
NO.188679101
12/16/2025 188679101120725 CHARTER COMMUNICATIONS
Vendor 05455 - CHARTER COMMUNICATIONS Total: 1,618.21
Vendor: 05456 - CHARTER COMMUNICATIONS
12/11-1/10 INTERNET 719.00
SVC/WW-ACCT NO. 18867880
12/16/2025 188678801120725 CHARTER COMMUNICATIONS
Vendor 05456 - CHARTER COMMUNICATIONS Total: 719.00
Vendor: 03604 - CINTAS CORPORATION
12/16/2025 4251365241 CINTAS CORPORATION 11/26 UNIFORM SVC/PW 70.82 12/16/2025 4251365241 CINTAS CORPORATION 11/26 UNIFORM SVC/PW 70.82 12/16/2025 4251365241 CINTAS CORPORATION 11/26 UNIFORM SVC/PW 57.44 12/16/2025 4251904998 CINTAS CORPORATION 12/4 UNIFORM SVC/PW 70.82 12/16/2025 4251904998 CINTAS CORPORATION 12/4 UNIFORM SVC/PW 70.82 12/16/2025 4251904998 CINTAS CORPORATION 12/4 UNIFORM SVC/PW 57.44 Vendor 03604 - CINTAS CORPORATION Total: 398.16
Vendor: 01342 - CINTAS DOCUMENT MANAGEMENT
12/16/2025 4251904831 CINTAS DOCUMENT MANAGE 12/4 MAT RENTAL/REC 156.82 Vendor 01342 - CINTAS DOCUMENT MANAGEMENT Total: 156.82 Vendor: 01356 - CITY OF LA PALMA FLEXIBLE
Flexible Spending 215.52
ContribuƟons - Medical
12/11/2025 INV0025924 CITY OF LA PALMA FLEXIBLE
Vendor 01356 - CITY OF LA PALMA FLEXIBLE Total: 215.52
Vendor: 01357 - CITY OF LA PALMA PETTY CASH
12/16/2025 INV0025876 CITY OF LA PALMA PETTY CAS 11/24 SUPPLIES/EMPL RECOG 6.80 11/18 COURT SUBPOENA 20.00
PARK FEE/PD
12/16/2025 INV0025876 CITY OF LA PALMA PETTY CAS
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS 11/6 SUPPLIES/REC 65.79 12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS 10/26 SUPPLIES/HALLOWEEN 100.00 11/30 TREE LIGHTING 61.06
SUPPLIES/CAB
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS
11/18 TREE LIGHTING 58.06
SUPPLIES/CAB
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS
11/30 TREE LIGHTING 20.16
SUPPLIES/CAB
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS
12/2 TREE LIGHTING 13.38
SUPPLIES/CAB
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS
12/2 TREE LIGHTING 6.59
SUPPLIES/CAB
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS
12/16/2025 INV0025923 CITY OF LA PALMA PETTY CAS 11/6 SUPPLIES/TT 56.58 Vendor 01357 - CITY OF LA PALMA PETTY CASH Total: 408.42 Vendor: 01368 - CIVICPLUS
NOV'25 CC MTG CLOSED 221.64
CAPTIONING/ADM
12/16/2025 357436 CIVICPLUS
Vendor 01368 - CIVICPLUS Total: 221.64
Vendor: 05899 - COLLEEN HENEHAN
Fall '25 TuiƟon 1,025.00
Reimbursement/PD
12/16/2025 BAM110 COLLEEN HENEHAN
Vendor 05899 - COLLEEN HENEHAN Total: 1,025.00
Vendor: 04388 - CROSSTOWN ELECTRICAL & DATA INC
12/16/2025 545625011 CROSSTOWN ELECTRICAL & D NOV '25 SIGNAL MAINT/PW 1,270.50 Vendor 04388 - CROSSTOWN ELECTRICAL & DATA INC Total: 1,270.50 Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 4 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount Vendor: 01472 - DEPT OF JUSTICE
Oct '25 Fingerprint/PW Eng 32.00
Cont (1)
12/16/2025 1050 DEPT OF JUSTICE
Oct '25 Fingerprint/(1)ADM IT 32.00
CONT
12/16/2025 1050 DEPT OF JUSTICE
12/16/2025 1050 DEPT OF JUSTICE Oct '25 Fingerprint/CS Inst (1) 32.00 Vendor 01472 - DEPT OF JUSTICE Total: 96.00
Vendor: 04387 - DOG WASTE DEPOT
11/26 (4)CASES DOG WASTE 173.96
BAGS/PW
12/16/2025 792939 DOG WASTE DEPOT
Vendor 04387 - DOG WASTE DEPOT Total: 173.96
Vendor: 01611 - FEDERAL EXPRESS CORPORATION
12/16/2025 908388298 FEDERAL EXPRESS CORPORATI 11/20 PRIORITY MAIL/PD 23.59 Vendor 01611 - FEDERAL EXPRESS CORPORATION Total: 23.59 Vendor: 01625 - FLORENCE CALLANTA
12/16/2025 1014390.002 FLORENCE CALLANTA 11/23 COMM CTR DEP RFD 300.00 Vendor 01625 - FLORENCE CALLANTA Total: 300.00
Vendor: 01631 - FRANCHISE TAX BOARD
12/11/2025 INV0025904 FRANCHISE TAX BOARD State Tax Withholding 2.45 12/11/2025 INV0025913 FRANCHISE TAX BOARD State Tax Withholding 109.66 12/11/2025 CM0000271 FRANCHISE TAX BOARD State Tax Withholding -16.11 12/11/2025 INV0025946 FRANCHISE TAX BOARD State Tax Withholding 10,487.75 Vendor 01631 - FRANCHISE TAX BOARD Total: 10,583.75
Vendor: 04597 - GREENTECH LANDSCAPE INC
NOV'25 MEDIAN MAINT, 5,016.66
MOWING, VINE TRIM
12/16/2025 63297 GREENTECH LANDSCAPE INC
NOV'25 MEDIAN MAINT, 39.58
MOWING, VINE TRIM
12/16/2025 63297 GREENTECH LANDSCAPE INC
NOV'25 MEDIAN MAINT, 1,600.00
MOWING, VINE TRIM
12/16/2025 63297 GREENTECH LANDSCAPE INC
NOV'25 MEDIAN MAINT, 3,260.42
MOWING, VINE TRIM
12/16/2025 63297 GREENTECH LANDSCAPE INC
SEP'25 MOWING, VINE TRIM, 39.58
MEDIAN MAINT
12/16/2025 63397 GREENTECH LANDSCAPE INC
Vendor 04597 - GREENTECH LANDSCAPE INC Total: 9,956.24
Vendor: 05303 - HEALTH AND HUMAN RESOURCES CENTER INC
12/16/2025 E0359099 HEALTH AND HUMAN RESOU JAN'26 EAP 129.60 Vendor 05303 - HEALTH AND HUMAN RESOURCES CENTER INC Total: 129.60 Vendor: 02642 - HOME DEPOT
12/16/2025 1550314 HOME DEPOT 11/26 SUPPLIES/PW 99.35
12/16/2025 1622079 HOME DEPOT 11/26 SUPPLIES/CY 75.43
12/16/2025 1622080 HOME DEPOT 11/26 SUPPLIES/WW 82.75
12/16/2025 2184899 HOME DEPOT 11/25 SUPPLIES/PW -258.51 12/16/2025 2510881 HOME DEPOT 11/25 SUPPLIES/PW 258.50
12/16/2025 2523445 HOME DEPOT 11/25 SUPPLIES/PW 331.99
12/2 TREE LIGHTING 124.68
SUPPLIES/CAB
12/16/2025 5512367 HOME DEPOT
12/16/2025 5632437 HOME DEPOT 12/2 SUPPLIES/PW 43.57
Vendor 02642 - HOME DEPOT Total: 757.76
Vendor: 01764 - INTERNAL REVENUE SERVICE
12/11/2025 INV0025903 INTERNAL REVENUE SERVICE Federal Tax Withholding 11.48 12/11/2025 INV0025905 INTERNAL REVENUE SERVICE Medicare 3.80 12/11/2025 INV0025908 INTERNAL REVENUE SERVICE Federal Tax Withholding 4.06 12/11/2025 INV0025909 INTERNAL REVENUE SERVICE Medicare 1.08 12/11/2025 INV0025912 INTERNAL REVENUE SERVICE Federal Tax Withholding 260.72 12/11/2025 INV0025914 INTERNAL REVENUE SERVICE Medicare 36.96 12/11/2025 CM0000270 INTERNAL REVENUE SERVICE Federal Tax Withholding -35.03 12/11/2025 INV0025915 INTERNAL REVENUE SERVICE Medicare 0.96 12/11/2025 INV0025945 INTERNAL REVENUE SERVICE Federal Tax Withholding 26,308.41 Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 5 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount 12/11/2025 INV0025947 INTERNAL REVENUE SERVICE Medicare 6,951.06 Vendor 01764 - INTERNAL REVENUE SERVICE Total: 33,543.50 Vendor: 01775 - IRON MOUNTAIN
12/16/2025 KXHM318 IRON MOUNTAIN DEC'25 RECORDS STORAGE 305.49 Vendor 01775 - IRON MOUNTAIN Total: 305.49
Vendor: 03277 - JAMES ROCHE JR
12/16/2025 INV0025917 JAMES ROCHE JR 12/5 Vision CLM 400.00 Vendor 03277 - JAMES ROCHE JR Total: 400.00
Vendor: 05481 - JASON HONG
11/20 TREE LIGHTING 39.31
SUPPLIES REIMB/REC SUPV
12/16/2025 INV0025847 JASON HONG
11/20 TREE LIGHTING 91.48
SUPPLIES REIMB/REC SUPV
12/16/2025 INV0025847 JASON HONG
11/20 TREE LIGHTING 92.51
SUPPLIES REIMB/REC SUPV
12/16/2025 INV0025847 JASON HONG
Vendor 05481 - JASON HONG Total: 223.30
Vendor: 03559 - JEFF JENKINS SERVICE TECHNICIAN
9/25 EMG INSTL(4)CHLORINE 8,097.88
ANALYZERS/WTR
12/09/2025 INV 2230 JEFF JENKINS SERVICE TECHNI
Vendor 03559 - JEFF JENKINS SERVICE TECHNICIAN Total: 8,097.88 Vendor: 01846 - JENNA MACIAS
12/16/2025 1014645.002 JENNA MACIAS 2/7 COMM CTR DEPOSIT RFD 350.00 Vendor 01846 - JENNA MACIAS Total: 350.00
Vendor: 05991 - JESSICA HARDAWAY
12/16/2025 1014469002 JESSICA HARDAWAY 11/22 GAZEBO DEPOSIT RFD 100.00 Vendor 05991 - JESSICA HARDAWAY Total: 100.00
Vendor: 01801 - JHM SUPPLY INC
12/16/2025 1115473 JHM SUPPLY INC 11/25 SUPPLIES/PW 298.27 12/16/2025 K115473 JHM SUPPLY INC 11/26 SUPPLIES/PW 51.08 Vendor 01801 - JHM SUPPLY INC Total: 349.35
Vendor: 04039 - JOSEPH CISNEROS
12/16/2025 INV0025961 JOSEPH CISNEROS 11/11-14 MMASC CONF/DCM 176.40 12/16/2025 INV0025962 JOSEPH CISNEROS 10/25-29 ICMA CONF/DCM 751.36 Vendor 04039 - JOSEPH CISNEROS Total: 927.76
Vendor: 03684 - JUSTIN BRAASCH
2025 SUPERVISOR OF THE 500.00
YEAR
12/16/2025 120825JB JUSTIN BRAASCH
Vendor 03684 - JUSTIN BRAASCH Total: 500.00
Vendor: 05331 - KIDZ TALENT ACADEMY
12/16/2025 13318 KIDZ TALENT ACADEMY 11/4-11/25 BASKETBALL SKILL 256.75 12/16/2025 13321 KIDZ TALENT ACADEMY 11/4-11/25 BASKETBALL SKILL 205.40 11/4-11/25 GYMNASTICS & 154.05
TUMBLING
12/16/2025 13327 KIDZ TALENT ACADEMY
Vendor 05331 - KIDZ TALENT ACADEMY Total: 616.20
Vendor: 01975 - L P G E A
12/11/2025 INV0025925 L P G E A LPGEA Dues Withheld 198.00 Vendor 01975 - L P G E A Total: 198.00
Vendor: 01988 - LA PALMA POLICE ASSN
12/11/2025 INV0025926 LA PALMA POLICE ASSN LPPA Dues Withheld 1,444.59 Vendor 01988 - LA PALMA POLICE ASSN Total: 1,444.59
Vendor: 04657 - LISA AMSELL
12/16/2025 13335 LISA AMSELL 11/1-11/29 MARTIAL ARTS 130.00 Vendor 04657 - LISA AMSELL Total: 130.00
Vendor: 01976 - LPPEA
12/11/2025 INV0025927 LPPEA LPPEA Dues Withheld 90.00
Vendor 01976 - LPPEA Total: 90.00
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 6 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount Vendor: 02632 - MARATHON PETROLEUM COMPANY LP
JUL-SEP'25 OPERATING 100,916.77
CONVENANT
12/16/2025 INV0025897 MARATHON PETROLEUM CO
Vendor 02632 - MARATHON PETROLEUM COMPANY LP Total: 100,916.77 Vendor: 01752 - MISSION SQUARE - PLAN 302549
12/11/2025 INV0025934 MISSION SQUARE - PLAN 302 Deferred Comp 1,550.00 12/11/2025 INV0025935 MISSION SQUARE - PLAN 302 Deferred Comp 705.00 12/11/2025 INV0025936 MISSION SQUARE - PLAN 302 Deferred Comp 4,357.94 Vendor 01752 - MISSION SQUARE - PLAN 302549 Total: 6,612.94 Vendor: 03268 - MOTOROLA SOLUTIONS INC
12/18-12/17/26 IBR MAINT 1,731.08
SVC/PD
12/16/2025 8230545715 MOTOROLA SOLUTIONS INC
12/16/2025 8282184150 MOTOROLA SOLUTIONS INC 8/15 BWC SHIPPING CHRG/P 7.12 12/16/2025 8282185783 MOTOROLA SOLUTIONS INC 8/9 BWC SHIPPING CHRG/PD 7.12 Vendor 03268 - MOTOROLA SOLUTIONS INC Total: 1,745.32
Vendor: 02248 - OCCUPATIONAL HEALTH CENTERS OF CA
12/16/2025 89072708 OCCUPATIONAL HEALTH CENT 12/2 EMPL PHYS/(1)PD Vol 270.00 Vendor 02248 - OCCUPATIONAL HEALTH CENTERS OF CA Total: 270.00 Vendor: 02290 - PACIFIC TELEMANAGEMENT SVCS
12/16/2025 2148147 PACIFIC TELEMANAGEMENT S 12/1#739-9846 PAYPHONE/P 78.00 Vendor 02290 - PACIFIC TELEMANAGEMENT SVCS Total: 78.00 Vendor: 05992 - PAULA HUDSON
11/16 COMM CTR DEPOSIT 300.00
RFD
12/16/2025 1014391002 PAULA HUDSON
Vendor 05992 - PAULA HUDSON Total: 300.00
Vendor: 02279 - PERS RETIREMENT
CalPERS Employee 2.84
ContribuƟon
12/11/2025 INV0025906 PERS RETIREMENT
12/11/2025 INV0025907 PERS RETIREMENT CalPERS Employer ContribuƟo 2.92 CalPERS Employee 89.20
ContribuƟon
12/11/2025 INV0025910 PERS RETIREMENT
12/11/2025 INV0025911 PERS RETIREMENT CalPERS Employer ContribuƟo 230.90 CalPERS Employee 1,749.80
ContribuƟon
12/11/2025 INV0025928 PERS RETIREMENT
12/11/2025 INV0025929 PERS RETIREMENT CalPERS Employer ContribuƟo 3,519.26 CalPERS Employee 1,946.46
ContribuƟon
12/11/2025 INV0025930 PERS RETIREMENT
12/11/2025 INV0025931 PERS RETIREMENT CalPERS Employer ContribuƟo 2,833.47 CalPERS Employee 4,072.90
ContribuƟon
12/11/2025 INV0025932 PERS RETIREMENT
12/11/2025 INV0025933 PERS RETIREMENT CalPERS Employer ContribuƟo 4,183.26 CalPERS Employee 1,227.14
ContribuƟon
12/11/2025 INV0025938 PERS RETIREMENT
12/11/2025 INV0025939 PERS RETIREMENT CalPERS Employer ContribuƟo 4,001.85 CalPERS Employee 456.87
ContribuƟon
12/11/2025 INV0025940 PERS RETIREMENT
12/11/2025 INV0025941 PERS RETIREMENT CalPERS Employer ContribuƟo 1,182.64 CalPERS Employee 8,729.33
ContribuƟon
12/11/2025 INV0025942 PERS RETIREMENT
12/11/2025 INV0025943 PERS RETIREMENT CalPERS Employer ContribuƟo 8,848.18 Employee Survivor 46.50
ContribuƟon Amount
12/11/2025 INV0025944 PERS RETIREMENT
Vendor 02279 - PERS RETIREMENT Total: 43,123.52
Vendor: 05396 - RICARDO GONZALEZ
12/16/2025 INV0025956 RICARDO GONZALEZ 2025 EMPLOYEE OF THE YEAR 500.00 Vendor 05396 - RICARDO GONZALEZ Total: 500.00
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 7 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount Vendor: 05732 - RING CENTRAL INC
CITYWIDE PHONE SYSTEM & 2,191.75
SUPPORT - DEC'25
12/16/2025 CD_001294967 RING CENTRAL INC
Vendor 05732 - RING CENTRAL INC Total: 2,191.75
Vendor: 05993 - ROBERT GOTINGCO
11/15 COMM CTR DEPOSIT 500.00
RFD
12/16/2025 1014216002 ROBERT GOTINGCO
Vendor 05993 - ROBERT GOTINGCO Total: 500.00
Vendor: 04859 - SIERRA ANALYTICAL LABS INC
12/16/2025 5K12001 SIERRA ANALYTICAL LABS INC OCT'25 WATER SAMPLES 2,913.83 Vendor 04859 - SIERRA ANALYTICAL LABS INC Total: 2,913.83 Vendor: 02703 - SPOK
12/16/2025 J7888466X SPOK DEC'25 PAGER SVC/MAINT 27.67
12/16/2025 J7888466X SPOK DEC'25 PAGER SVC/WTR 27.68
Vendor 02703 - SPOK Total: 55.35
Vendor: 02568 - STAPLES BUSINESS ADVANTAGE
12/16/2025 6043756626 STAPLES BUSINESS ADVANTAG 9/30 Office Supplies/CC 30.44 12/16/2025 6043756628 STAPLES BUSINESS ADVANTAG 9/30 Office Supplies/CC 18.69 12/16/2025 6044333658 STAPLES BUSINESS ADVANTAG 10/2 OFFICE SUPPLIES/REC 198.73 12/16/2025 6044333659 STAPLES BUSINESS ADVANTAG 10/2 OFFICE SUPPLIES/REC 25.92 12/16/2025 6044409341 STAPLES BUSINESS ADVANTAG 10/3 OFFICE SUPPLIES/REC 45.11 12/16/2025 6044491432 STAPLES BUSINESS ADVANTAG 10/4 Office Supplies/CC 212.21 12/16/2025 6048695030 STAPLES BUSINESS ADVANTAG 11/25 OFFICE SUPPLIES/PW 38.29 12/16/2025 6049639980 STAPLES BUSINESS ADVANTAG 12/2 OFFICE SUPPLIES/PD 56.02 12/16/2025 6049640000 STAPLES BUSINESS ADVANTAG 12/2 OFFICE SUPPLIES/PD 96.79 Vendor 02568 - STAPLES BUSINESS ADVANTAGE Total: 722.20 Vendor: 02576 - STEP SAVER INC
11/24 WTR TREATMENT 186.91
SUPPLIES/CY
12/16/2025 377736 STEP SAVER INC
11/24 WTR TREATMENT 126.38
SUPPLIES/WW
12/16/2025 377737 STEP SAVER INC
Vendor 02576 - STEP SAVER INC Total: 313.29
Vendor: 05988 - STEPHANIE DE MAGGIO
12/16/2025 1014586002 STEPHANIE DE MAGGIO 13182 COMPUTER RFD 154.00 Vendor 05988 - STEPHANIE DE MAGGIO Total: 154.00
Vendor: 01620 - STEVE A. FILARSKY ATTORNEY AT LAW
12/16/2025 INV0025893 STEVE A. FILARSKY ATTORNEY 11/03-11/18 Labor Atty Svcs 1,728.00 Vendor 01620 - STEVE A. FILARSKY ATTORNEY AT LAW Total: 1,728.00 Vendor: 02590 - SUN BADGE COMPANY
12/16/2025 425167 SUN BADGE COMPANY 8/25 DEPT AWARDS/PD 1,275.00 12/16/2025 425167 SUN BADGE COMPANY 8/25 DEPT AWARDS/PD 710.28 Vendor 02590 - SUN BADGE COMPANY Total: 1,985.28
Vendor: 04620 - TANGRAM
12/16/2025 26791 TANGRAM INTERIOR FURNISHINGS/CS 13,375.00 Vendor 04620 - TANGRAM Total: 13,375.00
Vendor: 04630 - T-MOBILE USA INC
10/21-11/20 UAS DATA 33.00
PLAN/PD - Acct. 971557340
12/16/2025 INV0025883 T-MOBILE USA INC
Vendor 04630 - T-MOBILE USA INC Total: 33.00
Vendor: 05525 - TOWNSEND PUBLIC AFFAIRS INC
GRANT WRITING / FUNDING 2,200.00
CONSULTING SERVICES
12/16/2025 24351 TOWNSEND PUBLIC AFFAIRS I
GRANT WRITING / FUNDING 1,925.00
CONSULTING SERVICES
12/16/2025 24351 TOWNSEND PUBLIC AFFAIRS I
GRANT WRITING / FUNDING 1,375.00
CONSULTING SERVICES
12/16/2025 24351 TOWNSEND PUBLIC AFFAIRS I
GRANT WRITING / FUNDING 2,200.00
CONSULTING SERVICES
12/16/2025 24512 TOWNSEND PUBLIC AFFAIRS I
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Warrant Register Payment Dates: 12/3/2025 - 12/16/2025
12/15/2025 11:20:41 AM Page 8 of 10
Payment Date Payable Number Vendor Name Description (Item) Amount GRANT WRITING / FUNDING 1,925.00
CONSULTING SERVICES
12/16/2025 24512 TOWNSEND PUBLIC AFFAIRS I
GRANT WRITING / FUNDING 1,375.00
CONSULTING SERVICES
12/16/2025 24512 TOWNSEND PUBLIC AFFAIRS I
Vendor 05525 - TOWNSEND PUBLIC AFFAIRS INC Total: 11,000.00 Vendor: 02706 - U S BANK INSTITUTIONAL TRUST-WESTERN REGION PARS Part Time ReƟrement 9.86
ContribuƟons
12/11/2025 INV0025902 U S BANK INSTITUTIONAL TRU
PARS Part Time ReƟrement 761.92
ContribuƟons
12/11/2025 INV0025937 U S BANK INSTITUTIONAL TRU
Vendor 02706 - U S BANK INSTITUTIONAL TRUST-WESTERN REGION Total: 771.78 Vendor: 02712 - UNDERGROUND SERVICE ALERT
12/16/2025 1120250404 UNDERGROUND SERVICE ALE (112)DIG-ALERT NOTICES/PW 117.00 12/16/2025 1120250404 UNDERGROUND SERVICE ALE (112)DIG-ALERT NOTICES/PW 117.00 12/16/2025 25261748 UNDERGROUND SERVICE ALE NOV'25 CA STATE FEES 15.79 12/16/2025 25261748 UNDERGROUND SERVICE ALE NOV'25 CA STATE FEES 15.79 Vendor 02712 - UNDERGROUND SERVICE ALERT Total: 265.58
Vendor: 02742 - VERIZON WIRELESS
11/11-12/10 DATA 45.01
ACCESS/ENG TECH
12/16/2025 6128222554 VERIZON WIRELESS
12/16/2025 6128704747 VERIZON WIRELESS 11/16 CELL PHONES/REC 29.94 12/16/2025 6128704747 VERIZON WIRELESS 11/16 ENGR TECH IPAD 841.58 12/16/2025 6128704747 VERIZON WIRELESS 11/16 MACHINE TO MACHINE 150.19 12/16/2025 6128704747 VERIZON WIRELESS 11/16 ENG'R TECH IPAD 420.79 12/16/2025 6128704747 VERIZON WIRELESS 11/16 ENGR TECH IPAD 420.79 10/17-11/16 DATA 140.14
ACCESS/WTR
12/16/2025 6128704748 VERIZON WIRELESS
11/17-12/16 SEDARU DATA 46.20
PLAN/WTR
12/16/2025 6128704748 VERIZON WIRELESS
Vendor 02742 - VERIZON WIRELESS Total: 2,094.64
Vendor: 03987 - WEX HEALTH INC
12/16/2025 2272430IN WEX HEALTH INC Nov'25 Flex Adm Svc 50.00 Vendor 03987 - WEX HEALTH INC Total: 50.00
Vendor: 02788 - WRIGHT EXPRESS
12/03/2025 109068960 WRIGHT EXPRESS 11/30 GASOLINE/PD 3,100.63 12/03/2025 109068960 WRIGHT EXPRESS 11/30 GASOLINE/PW 131.98 12/03/2025 109068960 WRIGHT EXPRESS 11/30 GASOLINE REBATE -20.56 12/03/2025 109068960 WRIGHT EXPRESS 11/30 GASOLINE/WTR 1,520.11 Vendor 02788 - WRIGHT EXPRESS Total: 4,732.16
Vendor: 05990 - YARLENE QUINTANA PONCE
12/16/2025 1014407002 YARLENE QUINTANA PONCE 11/22 PAVILION DEPOSIT RFD 100.00 Vendor 05990 - YARLENE QUINTANA PONCE Total: 100.00
Grand Total: 294,207.17
Docusign Envelope ID: AFB60BC4-8B4C-4FF8-91AE-2B2917D51C38
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Docusign Envelope ID: AA38DC6E-55EA-480F-8D5B-6541172F3118
Agenda Item No. 4 January 13, 2026 | 1
City of La Palma
Agenda Item No. 4
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Norma I. Alley, City Clerk
AGENDA TITLE: Approve the Placement of Ron and Elfriede Mac Iver in the Community Commemorative Area
RECOMMENDED ACTION:
Approve the placement of Ron and Elfriede Mac Iver in the Community Commemorative Area.
BACKGROUND:
Michael Mac Iver submitted an application for long-time residents and La Palma historians Ronald R.
Mac Iver and Elfriede H. Mac Iver to be memorialized in the City’s Community Commemorative Area.
Ronald R. Mac Iver and Elfriede H. Mac Iver were residents of La Palma since 1965. Married for 62 years, they raised five children in the city and were proud grandparents of seven grandchildren and nine great-grandchildren. Ronald was a veteran of the Korean War who served in the United States Marine Corps and later worked in aerospace, while Elfriede was an elementary school teacher in Orange County. Ronald R. Mac Iver and Elfriede H. Mac Iver were very active in the City of La Palma, serving as local historians and authors of the city's history, including authoring Images of America, La Palma in 2008. During the early years of the city, Ronald designed the logo for the city, which was used for decades as the welcome sign into the community. They also participated and volunteered in civic parades and community events to help make the city stronger and more vibrant. Ronald R. Mac Iver and Elfriede H. Mac Iver were deeply committed to the City of La Palma throughout their lives.
Their commitment to the success of the city and its history can be seen in the many ways they participated in the community, but especially in preserving its history to support civic pride and community involvement.
Council Policy No. 4: Recognition provides for Guidelines for Memorial Plaques in the Community Commemorative Area in honor of residents and employees who have made tangible contributions to La Palma which transcend time and benefit the community as a whole. The criteria for selection are as follows:
1. Nominee must be deceased.
2. Nominee shall be an individual who resided in or was employed by the City of La Palma.
Agenda Item No. 4 January 13, 2026 | 2
3. Nominee shall have devoted their time and effort to the betterment of the community and its residents.
4. Nominee’s contributions may have been in cultural arts, humanitarian or social concerns, economic well being, leisure and recreation, improving quality of life, or the history and development of La Palma.
5. Nominee’s contributions should be well known throughout the community.
Mr. and Mrs. Mac Iver's history as long-time devoted La Palma residents, their involvement in humanitarian and civic volunteering over the years, dedication to the betterment of the city for residents, and well-known community contributions, meets the criteria required to receive a paver.
FISCAL IMPACT:
Sufficient funds are available in the Adopted Fiscal Year 2025-2026 Budget (001-310-7400-00000).
ATTACHMENTS:
1. Mac Iver Community Commemorative Area Nomination Form
Suggestions for Community Commemorative Nominees shall be evaluated on the basis of the following criteria and upon appropriate documentation.
Person Making Nomination:
Address:
Contact Phone Number:
E-mail:
Nominee Information
Name & Biographical Information:
Civic Involvement:
Reason for Nomination:
Additional Comments (additional information may be attached):
Signature Date
Date Received by City Clerk:
COMMUNITY COMMEMORATIVE AREA
NOMINEE SUBMITTAL FORM
MICHAEL MAC IVER
5171 DEL SOL CIRCLE, LA PALMA, CA 90623
714 273-3066
[email protected]
RONALD R. MAC IVER AND ELFRIEDE H. MAC IVER, WERE
RESIDENTS OF LA PALMA SINCE 1965. MARRIED FOR 62 YEARS, RAISED FIVE CHILDREN IN THE CITY AND WERE PROUD GRANDPARENTS OF SEVEN GRANDCHILDREN AND NINE GREAT-GRANDCHILDREN. RONALD WAS A
VETERAN OF THE KOREAN WAR WHO SERVED IN THE UNITED STATES MARINE CORPS AND LATER WORKED IN AEROSPACE, WHILE ELFRIEDE WAS AN ELEMENTARY SCHOOL TEACHER IN ORANGE COUNTY.
RONALD R. MAC IVER AND ELFRIEDE H. MAC IVER WERE VERY ACTIVE IN THE CITY OF LA PALMA THROUGH PARTICIPATION AS LOCAL HISTORIANS AND AUTHORS OF THE CITY 'S HISTORY. DURING
THE EARLY YEARS OF THE CITY, RONALD DESIGNED THE LOGO FOR THE CITY WHICH WAS USED FOR DECADES AS THE WELCOME SIGN INTO THE COMMUNITY. THEY ALSO PARTICIPATED IN CIVIC PARADES AND COMMUNITY EVENTS TO HELP MAKE THE CITY STRONGER AND MORE VIBRANT.
RONALD R. MAC IVER AND ELFRIEDE H. MAC IVER WERE DEEPLY COMMITED
TO THE CITY OF LA PALMA THROUGHOUT THEIR LIVES AND THEIR COMMITMENT TO THE SUCCESS OF THE
CITY AND ITS HISTORY CAN BE SEEN IN THE MANY WAYS THAT THEY PARTICIPATED IN THE COMMUNITY, BUT ESPECIALLY IN PRESERVING IT'S HISTORY TO SUPPORT CIVIC PRIDE AND COMMUNITY INVOLVMENT.
MICHAEL MAC IVER APRIL 22, 2025
Agenda Item No. 5 January 13, 2026 | 1
City of La Palma
Agenda Item No. 5
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Alisha Farnell, Assistant to the City Manager AGENDA TITLE: Adopt the 2026 State and Federal Legislative Platform RECOMMENDED ACTION:
Adopt the City of La Palma's 2026 State and Federal Legislative Platform.
SUMMARY:
A legislative platform is a tool adopted by the City Council to communicate official positions on legislative issues and to guide advocacy efforts throughout the year. Current Council policy requires the City Council to adopt a legislative platform before January 31 each year.
The legislative platform is developed and maintained to provide guidance when evaluating pending legislation and allow the City to determine if responsive action is warranted. Responsive action may include letters of support or opposition regarding pending legislation or regulations authored by the Mayor, Mayor Pro Tem, or City Manager to enable the City to participate actively in the often timesensitive legislative process.
Pending legislation or regulations that do not clearly fall within the adopted legislative platform or are highly politicized will continue to be brought to the City Council for consideration and action on a caseby-case basis.
The draft 2026 City of La Palma State and Federal Legislative Platform is divided into two sections:
Guiding Principles and Policy Statements. Guiding Principles are broad statements and values that guide the organization regardless of changes in goals and strategies. The Legislative Platform includes four Guiding Principles:
• Preserve Local Control
• Promote Fiscal Stability
• Promote Economic Development
• Support Funding Opportunities
The second section of the Legislative Platform consists of specific Policy Statements covering topics including elections, school district boundaries, revenue, housing, parks and recreation, water and utilities, and public safety.
Agenda Item No. 5 January 13, 2026 | 2
The 2026 State and Federal Legislative Platform is consistent with prior editions and is aligned with the League of California Cities. The proposed changes include the removal of a policy statement related to COVID-19 reimbursements, the addition of a policy statement supporting the City’s right to continue collecting Transient Occupancy Tax, and minor clerical revisions.
ATTACHMENTS:
1. 2026 Legislative Platform - Red Line
2. 2026 Legislative Platform - Clean Copy
City of La Palma
20265 State and Federal Legislative Platform
Adopted by the City Council on January 1413, 20265
The Mayor, Mayor Pro Tem, and City Manager are authorized to submit advocacy letters on behalf of the City if the State or Federal legislation clearly follows the City’s adopted legislative platform.
GUIDING PRINCIPLES
I. PRESERVE LOCAL CONTROL
• Preserve and protect the City’s powers, duties, and prerogatives to enact legislation and policy direction concerning local affairs.
• , and oOppose legislation that preempts local authority. • Local agencies should preserve and enhance authority and accountability for revenues raised and services provided.
II. PROMOTE FISCAL STABILITY
• Support measures that promote fiscal stability, predictability, and financial independence.
• Support measures that preserve the City’s revenue base and local control over local government budgeting, recognizing that economic cost is a determinate determinant in considering the merits and/or impacts of any proposed legislation or regulation. • Oppose measures that make cities more dependent on the County, State, or Federal Governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits. • Oppose measures that shift local funds to the County, State, or Federal Governments, without offsetting benefits.
III. PROMOTE ECONOMIC DEVELOPMENT
• Support legislation and regulatory reforms that provide the City with the necessary tools and opportunity to continue to grow its economy and enhance economic development efforts.
• Support measures that provide the City with the capability to attract and retain businesses, as well as encourage current businesses to expand and retain jobs locally.
IV. SUPPORT FUNDING OPPORTUNITIES
• Support opportunities that allow the City to compete for its fair share of regional, state, and federal funding.
• Support funding for programs including, but not limited to, economic development, transportation projects, utility undergrounding, public works, water infrastructure, parks and recreation, and public safety, and COVID-19 business and government recovery.
City of La Palma
2025 2026 State and Federal Legislative
Platform Page 2 of 4
POLICY STATEMENTS
GENERAL GOVERNMENT
1. Support legislation that preserves the ability of local governments to determine the appropriate type of election for their jurisdiction. A 2018 community survey found that 70% of residents indicated that they want to be able to vote for all five city council members.
2. Continue to support legislation that allows La Palma children to have a choice of attending schools within La Palma. Since the City is served by five school districts, the City has been actively advocating for La Palma children to be able to attend La Palma schools for some time. Due to the location of school district boundaries, some La Palma children are not eligible to attend a school located within the City limits and have to attend a school that is miles from their home.
3. Support legislation maintaining that advocates for maximum local flexibility in across all areas of the City’s responsibilityies and operations, and oppose legislation that imposes intrusive, unnecessary, or unfunded state-imposed mandates, is unnecessarily intrusive, or preempts local authority in on the City or its residents or preempts local authorityoperations.
4. Oppose legislation that creates unnecessary regulations, and/or restricts the City’s capability ability to choose the most cost-efficient and effective form of providing essential services.
ADMINISTRATIVE SERVICES
Finance
1. Oppose State or Federal efforts to “borrow” local revenues and encourage the State to find other methods of balancing its budget.
2. Support legislation that includes state, federal, and regional funding formulas that ensure equitable distribution of funds at the local level.
3. Support efforts that ensure the retention of existing local revenue sources.
3.4. Support the City’s right to continue collecting Transient Occupancy Tax from hotels and short-term rentals, including from online intermediaries.
4. Support the reimbursement of local governments and businesses for COVID-19 related expenses.
Human Resources
1. Oppose measures that reduce local control over employee relations issues.
2. Oppose legislation mandating new or enhanced local government employee benefits.
3. Support efforts to further reform pension benefits administered by California Public Employees’ Retirement System (CalPERS) that would help protect the long-term solvency of local entities and CalPERS.
4. Support changes in state law or judicial precedent to allow employers to negotiate plan changes with classic CalPERS members.
City of La Palma
2025 2026 State and Federal Legislative
Platform Page 3 of 4
COMMUNITY DEVELOPMENT
Economic Development
1. Support efforts that are designed to provide local governments with the tools necessary to bolster economic development.
2. Support legislation and regulatory streamlining initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.
Housing & Land Use
1. Oppose legislation that imposes regional, state, or federal growth, development, or land use planning standards within the City.
2. Oppose legislation that penalizes local governments for noncompliance with their housing element, or regional housing needs assessment requirements.
3. Support efforts to strengthen the legal and fiscal capability of local agencies to prepare, adopt, and implement plans for orderly growth, development, and conservation of local planning areas.
4. Support State and Federal legislation that would provide resources for the City to meet its housing needs as described in the Housing Element of the General Plan.
5. Support measures that provide municipalities with increased input in the development of the Regional Housing Needs Assessment (RHNA).
Regional Governance
1. Support proposals encouraging regional, sub-regional, or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed-upon goals.
2. Support measures to achieve fair and proportionate representation on countywide and regional boards.
COMMUNITY SERVICES
Parks and Recreation
1. Support legislation and funding for youth-related prevention and intervention programs, including after school educational and recreational programs.
2. Support efforts to provide an expedited process for the fair distribution of State bond funds and other grant opportunities.
City of La Palma
2025 2026 State and Federal Legislative
Platform Page 4 of 4
Public Works
1. Support legislation that would increase funding for local transportation projects.
2. Support legislation that affords local agencies greater discretionary authority to expend available transportation funds and affords local jurisdictions greater flexibility over transportation-related issues.
3. Support legislation that would require public utilities to underground power lines and support funding for undergrounding of utilities.
Solid Waste
1. Support measures that maintain and enhance local authority and economic flexibility to regulate solid waste and recyclables.
Water Supply
1. Support legislation that encourages strong water efficiency standards and increased water conservation strategies.
2. Support legislation that would increase the availability of, and funding for, water reuse technologies, water recycling, local water storage, and other water supply technologies.
3. Support measures to increase water supply and improve water quality in the region, including drought relief legislation.
PUBLIC SAFETY
1. Support measures that encourage community safety and well-being.
2. Support legislation and implementation of State programs and policies that promote pedestrian and bicycling safety.
3. Support legislation to provide a greater share of asset forfeiture funds and increased latitude for spending local funds.
4. Support legislative efforts to increase the amount of grant funding for local law enforcement operations, including school resource officers, body-worn camera system, and disaster preparedness initiatives.
5. Support legislation that discourages drivers from operating motor vehicles while under the influence of drugs or alcohol and maintain state funding to conduct sobriety checkpoints.
6. Support initiatives involving County, State, and Federal governments to reduce and prevent homelessness.
City of La Palma
2026 State and Federal Legislative Platform
Adopted by the City Council on January 13, 20265
The Mayor, Mayor Pro Tem, and City Manager are authorized to submit advocacy letters on behalf of the City if the State or Federal legislation clearly follows the City’s adopted legislative platform.
GUIDING PRINCIPLES
I. PRESERVE LOCAL CONTROL
• Preserve and protect the City’s powers, duties, and prerogatives to enact legislation and policy direction concerning local affairs.
• Oppose legislation that preempts local authority.
• Local agencies should preserve and enhance authority and accountability for revenues raised and services provided.
II. PROMOTE FISCAL STABILITY
• Support measures that promote fiscal stability, predictability, and financial independence.
• Support measures that preserve the City’s revenue base and local control over local government budgeting, recognizing that economic cost is a determinant in considering the merits and/or impacts of any proposed legislation or regulation. • Oppose measures that make cities more dependent on the County, State, or Federal Governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits.
• Oppose measures that shift local funds to the County, State, or Federal Governments, without offsetting benefits.
III. PROMOTE ECONOMIC DEVELOPMENT
• Support legislation and regulatory reforms that provide the City with the necessary tools and opportunity to continue to grow its economy and enhance economic development efforts.
• Support measures that provide the City with the capability to attract and retain businesses, as well as encourage current businesses to expand and retain jobs locally.
IV. SUPPORT FUNDING OPPORTUNITIES
• Support opportunities that allow the City to compete for its fair share of regional, state, and federal funding.
• Support funding for programs including, but not limited to, economic development, transportation projects, utility undergrounding, public works, water infrastructure, parks and recreation, and public safety.
City of La Palma
2026 State and Federal Legislative Platform
POLICY STATEMENTS
GENERAL GOVERNMENT
1. Support legislation that preserves the ability of local governments to determine the appropriate type of election for their jurisdiction.
2. Continue to support legislation that allows La Palma children to have a choice of attending schools within La Palma. Since the City is served by five school districts, the City has been actively advocating for La Palma children to be able to attend La Palma schools for some time. Due to the location of school district boundaries, some La Palma children are not eligible to attend a school located within the City limits and have to attend a school that is miles from their home.
3. Support legislation that advocates for maximum local flexibility across all City responsibilities and operations, and oppose legislation that imposes unfunded mandates, is unnecessarily intrusive, or preempts local authority in City operations.
4. Oppose legislation that creates unnecessary regulations, and/or restricts the City’s ability to choose the most cost-efficient and effective form of providing essential services.
ADMINISTRATIVE SERVICES
Finance
1. Oppose State or Federal efforts to “borrow” local revenues and encourage the State to find other methods of balancing its budget.
2. Support legislation that includes state, federal, and regional funding formulas that ensure equitable distribution of funds at the local level.
3. Support efforts that ensure the retention of existing local revenue sources.
4. Support the City’s right to continue collecting Transient Occupancy Tax from hotels and shortterm rentals, including from online intermediaries.
Human Resources
1. Oppose measures that reduce local control over employee relations issues.
2. Oppose legislation mandating new or enhanced local government employee benefits.
3. Support efforts to further reform pension benefits administered by California Public Employees’ Retirement System (CalPERS) that would help protect the long-term solvency of local entities and CalPERS.
4. Support changes in state law or judicial precedent to allow employers to negotiate plan changes with classic CalPERS members.
City of La Palma
2026 State and Federal Legislative Platform
COMMUNITY DEVELOPMENT
Economic Development
1. Support efforts that are designed to provide local governments with the tools necessary to bolster economic development.
2. Support legislation and regulatory streamlining initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.
Housing & Land Use
1. Oppose legislation that imposes regional, state, or federal growth, development, or land use planning standards within the City.
2. Oppose legislation that penalizes local governments for noncompliance with their housing element, or regional housing needs assessment requirements.
3. Support efforts to strengthen the legal and fiscal capability of local agencies to prepare, adopt, and implement plans for orderly growth, development, and conservation of local planning areas.
4. Support State and Federal legislation that would provide resources for the City to meet its housing needs as described in the Housing Element of the General Plan.
5. Support measures that provide municipalities with increased input in the development of the Regional Housing Needs Assessment (RHNA).
Regional Governance
1. Support proposals encouraging regional, sub-regional, or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed-upon goals.
2. Support measures to achieve fair and proportionate representation on countywide and regional boards.
COMMUNITY SERVICES
Parks and Recreation
1. Support legislation and funding for youth-related prevention and intervention programs, including after school educational and recreational programs.
2. Support efforts to provide an expedited process for the fair distribution of State bond funds and other grant opportunities.
City of La Palma
2026 State and Federal Legislative Platform
Public Works
1. Support legislation that would increase funding for local transportation projects.
2. Support legislation that affords local agencies greater discretionary authority to expend available transportation funds and affords local jurisdictions greater flexibility over transportation-related issues.
3. Support legislation that would require public utilities to underground power lines and support funding for undergrounding of utilities.
Solid Waste
1. Support measures that maintain and enhance local authority and economic flexibility to regulate solid waste and recyclables.
Water Supply
1. Support legislation that encourages strong water efficiency standards and increased water conservation strategies.
2. Support legislation that would increase the availability of, and funding for, water reuse technologies, water recycling, local water storage, and other water supply technologies.
3. Support measures to increase water supply and improve water quality in the region, including drought relief legislation.
PUBLIC SAFETY
1. Support measures that encourage community safety and well-being.
2. Support legislation and implementation of State programs and policies that promote pedestrian and bicycling safety.
3. Support legislation to provide a greater share of asset forfeiture funds and increased latitude for spending local funds.
4. Support legislative efforts to increase the amount of grant funding for local law enforcement operations, including school resource officers, body-worn camera system, and disaster preparedness initiatives.
5. Support legislation that discourages drivers from operating motor vehicles while under the influence of drugs or alcohol and maintain state funding to conduct sobriety checkpoints.
6. Support initiatives involving County, State, and Federal governments to reduce and prevent homelessness.
Agenda Item No. 6 January 13, 2026 | 1
City of La Palma
Agenda Item No. 6
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2025
RECOMMENDED ACTION:
Receive and file the Annual Comprehensive Financial Report (ACFR) of the City of La Palma for the Fiscal Year ending June 30, 2025.
SUMMARY:
The attached ACFR describes in detail the financial position and financial activity of the City of La Palma for the fiscal year ended June 30, 2025. The City’s financial statements were audited and found to be in conformance with Generally Accepted Accounting Principles (GAAP). As a result, city staff has every reason to expect that this year’s ACFR will receive the Government Finance Officers Association of the United States and Canada’s Certificate of Achievement for Excellence in Financial Reporting. The City Manager’s letter of Transmittal and the Management Discussion and Analysis contained in the ACFR highlight the report’s contents.
FISCAL IMPACT:
None.
ATTACHMENTS:
1. FY 2024-25 Annual Comprehensive Financial Report
CITY OF LA PALMA, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
Prepared by: Administrative Services Department
CITY OF LA PALMA
Annual Comprehensive Financial Report
June 30, 2025
Table of Contents
Page
Introductory Section
Letter of Transmittal .................................................................................................................................. i City Officials ............................................................................................................................................ v Organizational Chart ............................................................................................................................... vi Certificate of Achievement for Excellence in Financial Reporting ........................................................ vii Financial Section
Independent Auditor’s Report .................................................................................................................. 1 Management’s Discussion and Analysis (Unaudited) .............................................................................. 4 Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position ................................................................................................................ 19 Statement of Activities ..................................................................................................................... 20 Fund Financial Statements:
Balance Sheet – Governmental Funds ............................................................................................. 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................................................................................................................... 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................... 32 Proprietary Funds:
Statement of Net Position ................................................................................................................ 34 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................... 35 Statement of Cash Flows ................................................................................................................. 36 Fiduciary Funds:
Statement of Fiduciary Net Position ................................................................................................ 40 Statement of Changes in Fiduciary Net Position ............................................................................. 41 Notes to Basic Financial Statements ...................................................................................................... 45 Required Supplementary Information
Schedule of the Proportionate Share of Net Pension Liability- CalPERS Miscellaneous Pension Plan ........................................................................................................ 88 Schedule of Pension Contributions- Miscellaneous Cost Sharing Plan ........................................... 90 Schedule of the Proportionate Share of Net Pension Liability- CalPERS Safety Pension Plan ................................................................................................................................ 92 Schedule of Pension Contributions- Safety Cost Sharing Plan ........................................................ 94
CITY OF LA PALMA
Annual Comprehensive Financial Report
June 30, 2025
Table of Contents
Page
Financial Section (Continued)
Required Supplementary Information (Continued)
Schedule of Changes in the Net OPEB Liability and Related Ratios .............................................. 96 Schedule of Plan Contributions – OPEB ....................................................................................... 100 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budgetary Comparison Schedule - General Fund ..................................................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budgetary comparison Schedule - Housing Special Revenue Fund ......................................... 103 Notes to Required Supplementary Information ............................................................................. 104 Combining and Individual Fund Financial Statements and Schedules Non-major Special Revenue Funds:
Combining Balance Sheet ......................................................................................................... 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................. 112 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Streets Fund .................................................................................................................................... 114 Measure M Fund ............................................................................................................................ 115 Park Development Fund ................................................................................................................. 116 Air Quality Improvement Fund ...................................................................................................... 117 Supplemental Law Enforcement Service Fund .............................................................................. 118 Public Safety Augmentation Fund ................................................................................................. 119 Abandoned Vehicles Fund ............................................................................................................. 120 Asset Seizure Fund ......................................................................................................................... 121 PEG Fund ....................................................................................................................................... 122 BSCC Local Law Enforcement Grant Fund .................................................................................. 123 Road Maintenance and Rehabilitation Account Fund .................................................................... 124 North OC Public Safety Task Force Grant Fund ........................................................................... 125 Internal Service Funds
Combining Statement of Net Position ............................................................................................ 128 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ...................... 130 Combining Statement of Cash Flows ............................................................................................. 132
CITY OF LA PALMA
Annual Comprehensive Financial Report
June 30, 2025
Table of Contents
Page
Statistical Section (Unaudited)
Overview of the Statistical Section ....................................................................................................... 137 Financial Trends
Net Position by Component – Last Ten Fiscal Years ........................................................................ 138 Changes in Net Position – Last Ten Fiscal Years .............................................................................. 140 Fund Balances of Governmental Funds – Last Ten Fiscal Years ...................................................... 144 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................... 146 Revenue Capacity
Net Taxable Assessed Value of Taxable Property – Last Ten Fiscal Years ..................................... 148 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .............................................. 149 Top Ten Property Tax Payers – Current and Ten Years Ago ........................................................... 150 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 151 Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ......................................................... 152 Direct and Overlapping Bonded Debt – Last Ten Fiscal Years ...................................................... 153 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................. 154 Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Calendar Years ................................................. 155 Operating Information
Operating Indicators by Function – Last Ten Fiscal Years .............................................................. 156 Capital Asset Statistics by Function – Last Ten Fiscal Years .......................................................... 157 Principal Employers – Last Ten Fiscal Years................................................................................... 158 Full-Time Budgeted Positions by Function – Last Ten Fiscal Years ............................................... 159
www.lapalmaca.gov PHONE
714 690 3300
7822 Walker Street
La Palma, CA 90623-1771
i
December 9, 2025
To the Members of the City Council and Residents of the City of La Palma:
We are pleased to present the Annual Comprehensive Financial Report of the City of La Palma for the fiscal year ended June 30, 2025. The purpose of this report is to provide the City Council, residents, general public, and other interested parties with a broad financial outlook of the City, as well as to comply with state law.
The Annual Comprehensive Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) using the guidelines set forth by the Government Accounting Standards Board, and it has been audited by Moss, Levy & Hartzheim, LLP, a certified public accounting firm. For the year ended June 30, 2025, these financial statements received an unmodified opinion by Moss, Levy & Hartzheim, LLP. The independent auditor's report is presented at the beginning of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report from the independent auditors.
This report consists of management's representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, the management of the City has established a comprehensive internal control framework that is designed both to protect the City'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 GAAP. 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.
As a recipient of Federal, State, and County financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. Under the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance"), the City is not required to have a single audit for the fiscal year ended June 30, 2025.
Members of the City Council and Residents of the City of La Palma December 9, 2025
ii
Profile of the Government
The City, incorporated in 1955, is located in the northwest corner of Orange County. The City currently occupies a land area of approximately two square miles and serves a population of 15,062. The City is empowered to levy a property tax on both real and personal properties located within its boundaries.
The City has operated under the council-manager form of government since 1955. Policy making and legislative authority are vested in a City Council consisting of the Mayor and four other Council Members. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, hiring the City Manager, and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the day-to-day operations of the City, and appointing department directors. The City Council is elected on a non-partisan basis. Councilmembers serve four-year staggered terms. The Mayor serves a one-year term and is selected for the position annually by the City Council as a whole.
The City provides a full range of services, including police protection; the construction and maintenance of highways, streets, and other infrastructure; recreational and cultural activities; water and sewer services; building and safety, land use planning, and zoning control services. In addition, there are the standard internal support services such as payroll, accounts payable, human resources, risk management, budget and financial reporting, and general accounting, which are essential to the success of the City's overall operations.
Budgeting and Financial Planning
As a general law city within the State of California, the City of La Palma is required to adopt a budget. The annual budget serves as the foundation for the City's financial planning and control.
The budget development process generally begins in January, guided by annual goals established by the City Council as well as the current and long-term fiscal prognosis of the City. Budget development proceeds through the spring with budget adoption typically in June.
The City Manager utilizes the City Council goals and the strategic planning process as the starting point for developing a proposed budget for the subsequent fiscal year. All departments of the City are required to submit requests for appropriations to the City Manager each year. After a series of study sessions and public meetings with the community and the City Council, the City Manager formally presents the proposed budget to the City Council. The City Council holds a public hearing on the proposed budget and adopts a final budget prior to July 1, the beginning of the City's fiscal year.
The appropriated budget is prepared by fund (e.g., General Fund, Gas Tax Fund) and department (e.g., Police, Community Services), with further demarcation of appropriations by program (e.g., Code Enforcement, City Clerk). Department directors may make transfers of appropriations within a department, within the same fund. Transfers of appropriations between departments, however, require the approval of the City Manager. At no time can any budget adjustments increase total appropriations without prior City Council approval.
Members of the City Council and Residents of the City of La Palma December 9, 2025
iii
Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and the Housing Special Revenue Fund, this comparison is presented as part of the required supplementary information section in the accompanying financial statements. For all other governmental funds that have appropriated annual budgets, this comparison is presented in the supplementary section of the accompanying financial statements.
Factors Affecting the City's Financial Condition
As a vibrant City, La Palma's economic outlook is influenced by various factors, including local businesses, employment opportunities, industry trends, and government initiatives. La Palma's economy thrives on diverse industries, including technology, healthcare, retail, and professional services. This diversity helps to mitigate the risks associated with reliance on a single sector and promotes resilience in the face of economic fluctuations. The City maintains a prudent philosophy regarding its spending, which has led to healthy reserves. Lessons from prior years indicate that the economy can fluctuate from growth to recession and back again.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the year ended June 30, 2024. This was the twenty-sixth year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of only one year. We believe that our current annual comprehensive financial report (for the year ended June 30, 2025) continues to meet the Certificate of Achievement Program's requirements.
The preparation of this report would not have been possible without the dedicated services of the staff of the Administrative Services Department. Their dedicated efforts in the preparation of the final financial documents are reflected in the quality of this report. We would also like to thank our independent auditing firm, Moss, Levy & Hartzheim, LLP, for their expertise and advice in the preparation of this year's financial report.
In closing, a thank you is also due to our City Council for their interest and support in planning and overseeing the City’s financial operations in a responsible and progressive manner.
Respectfully submitted,
Peter L. Kim
City Manager
iv
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CITY OF LA PALMA
City Officials
v
City Council
Mark Waldman, Mayor
Nitesh Patel, Mayor Pro Tem
Debbie Baker, Council Member
Janet Keo Conklin, Council Member
Vikesh Patel, Council Member
Administrative Officials
Peter Kim, City Manager
Joe Cisneros, Deputy City Manager
Jesse Amend, Interim Police Chief
Jake Chavira, Acting Public Works & Community Development Director
CITY OF LA PALMA
ORGANIZATIONAL CHART
vi
Citizens of La Palma
City Council
City Manager City Attorney
Management Services
Department
Administrative Services
Department
Police Department Community Services
Department
Public Works Community Development
Department
City Manager's Office Fiscal Services Operations Recreation Citywide Maintenance Building & Safety City Clerk's Office Human Resources & Risk
Management
Support Services Special Events Utilities Code Enforcement & Business Licenses
Information Technology Engineering Planning
CITY OF LA PALMA
Certificate of Achievement for Excellence in Financial Reporting vii
Government Finance Officers Association
Certificate of
Achievement for
Excellence in
Financial Reporting
Presented to
City of La Palma
California
For its Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Executive Director/CEO
FINANCIAL SECTION
PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 8383 WILSHIRE BLVD., SUITE 800 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90211 CULVER CITY, CA 90230 ADAM V GUISE, CPA TEL: 310.670.2745 TEL: 310.670.2745
TRAVIS J HOLE, CPA FAX: 310.670.1689 FAX: 310.670.1689
WILSON LAM, CPA www.mlhcpas.com www.mlhcpas.com
1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of La Palma
La Palma, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Palma, California (City) as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 14, the Schedule of the Proportionate Share of the Net Pension Liability – CalPERS Miscellaneous Pension Plan, Schedule of Pension Contributions – CalPERS Miscellaneous Cost Sharing Plan, Schedule of the Proportionate Share of the Net Pension Liability – CalPERS Safety Pension Plan, Schedule of Pension Contributions – CalPERS Safety Cost Sharing Plan, the Schedule of Changes in the Net OPEB Liability and Related Ratios, Schedule of Plan Contributions – Other Postemployment Benefit Plan, Budgetary Comparison Schedule for the General Fund, and the Budgetary Comparison Schedule for the Housing Special Revenue Fund on pages 88 through 103 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.
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining Balance Sheet, Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, and the individual Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual of the Major Capital Project Fund, and Non-major Governmental Funds; the Combining Statement of Net Position, the Combining Statement of Revenues, Expenses, and Changes in Fund Net Position, and Combining Statement of Cash Flows – Internal Service Funds listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. Such information is the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the 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 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 Balance Sheet, Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, and the individual Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual of the Major Capital Project Fund, and Non-major Governmental Funds; the Combining Statement of Net Position, the Combining Statement of Revenues, Expenses, and Changes in Fund Net Position, and Combining Statement of Cash Flows – Internal Service Funds are fairly stated, in all material respects in relation to the basic financial statements taken as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or provide any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Moss, Levy & Hartzheim, LLP
Culver City, California
November 15, 2025
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
4 As management of the City of La Palma (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal and the City’s basic financial statements.
This Annual Comprehensive Financial Report consists of the following sections:
Introductory Section – contains the City’s transmittal letter and organizational information about the City. Financial Section – contains the independent auditors’ report, Management’s Discussion & Analysis, Basic Financial Statements, Notes to the Basic Financial Statements, Required Supplementary Information, and Other Supplementary Schedules.
Statistical Section – contains information on the financial health of the City including schedules pertaining to financial trends, revenue capacity, debt capacity, demographic, economic, and operating information.
The discussion and analysis presented herein is intended to serve as an introduction to the City’s basic financial statements. The comparisons in the discussion and analysis are between FY 2023-24 and FY 2024-25. All increases and decreases are expressed relative to FY 2023-24 amounts.
FINANCIAL HIGHLIGHTS
Government-wide Statements:
Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of the fiscal year ended June 30, 2025, by $65.3 million (net position). Of this amount, $27.4 million is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. The City’s total net position increased by $3.6 million over the prior fiscal year.
Fund Statements:
Governmental Funds
As of June 30, 2025, the City’s governmental funds reported a combined ending fund balance of $35.2 million. Of this amount, $7.9 million is unassigned and is available for spending at the City’s discretion.
Fund balance increased by $0.3 million over the prior fiscal year. As of June 30, 2025, the General fund reported an ending fund balance of $19.7 million. Of this amount, $7.9 million is unassigned and is available for spending at the City’s discretion. Fund balance increased by $1.3 million over the prior fiscal year.
Proprietary Funds
As of June 30, 2025, the Water and Sewer Enterprise funds reported ending net position of $13.4 million.
Of this amount, $8.3 million is unrestricted and is available for spending at the City’s discretion on enterprise activities. Net position increased by $26 thousand from the prior fiscal year. As of June 30, 2025, the Internal Service funds reported ending net position of $5.6 million. Of this amount, $5.1 million is unrestricted and is available for spending at the City’s discretion. Net position increased by $0.5 million over the prior fiscal year.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
5 OVERVIEW OF THE FINANCIAL STATEMENTS
Basic Financial Statements: The City’s Basic Financial Statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also includes required supplementary information and other supplementary information. The following table summarizes the major features of the City's basic financial statements, including the portion of the City government they cover and the types of information they contain.
Major Features of the City's Government-wide and Fund Financial Statements Government-wide
Statements Governmental Funds
Fund Statements
Proprietary Funds Fiduciary Funds
Scope Entire City
government (except
fiduciary funds)
and the component
units
The activities of the
City that are not
proprietary or
fiduciary
Activities the City
operates similar to
private businesses
Where the City is the
trustee or agent for the
private purpose trust
Required financial
statements
Statement of
net position
Statement of
activities
Balance sheet
Statement of
revenues,
expenditures,
and changes in
fund balances
Statement of fund
net position
Statement of
revenues,
expenses, and
changes in net
position
Statement of cash
flows
Statement of
fiduciary net
position
Statement of
changes in
fiduciary net
position
Accounting basis
and measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and
current financial
resources focus
Accrual accounting
and economic
resources focus
Accrual accounting and
economic resources
focus
Type of asset/
liability
information
All assets, deferred
outflows of
resources,
liabilities, and
deferred inflows of
resources: both
financial and
capital and shortterm and long-term
Only assets that are
available to be used
and liabilities that
come due during
the year or soon
thereafter; includes
deferred inflows of
resources which
reflect unavailable
revenues; no capital
assets or long-term
debt included
All assets, deferred
outflows of resources,
liabilities, and deferred
inflows of resources:
both financial and
capital and short-term
and long-term
All assets and liabilities,
both short-term and
long-term; although
allowed, the City's
fiduciary funds do not
currently contain capital
assets
Type of inflow/
outflow
information
All revenues and
expenses during the
year, regardless of
when cash is
received or paid
Revenues for which
cash is received
during or soon after
the end of the year;
expenditures when
goods or services
have been received
and payment is due
during the year or
soon thereafter
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
All revenues and
expenses during year,
regardless of when cash
is received or paid
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
6 Government-wide Financial Statements - Reporting the City as a Whole The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. One of the most important questions about the City's finances is, “How is the City as a whole doing financially when compared with the prior fiscal year?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that help answer this question. These statements include all assets and liabilities using the accrual basis of accounting whereby all of the current fiscal year's revenues and expenses are taken into account regardless of when cash is received or paid. Since the January 2012 dissolution of redevelopment agencies, the financial activities and position of the Successor Agency are reported within the fiduciary fund statements and not within the government-wide statements.
These two statements report the City's net position and the changes in them. The City's net position – assets and deferred outflows of resources less liabilities and deferred inflows of resources – is one way to measure the City's financial health, or financial position. Over time, increases and decreases in the City's net position can be an indicator of whether its financial health is improving or deteriorating. However, other nonfinancial factors such as legislation passed by the State affecting the treatment of revenue and the City’s ability to retain assets, changes in the City's property tax base, or the condition of the City's infrastructure, should be considered in order to truly assess the overall health of the City.
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, recreation, and community development. The City’s business-type activities are comprised of water and sewer functions.
The government-wide financial statements are in this report’s financial section immediately following the Management’s Discussion and Analysis.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of La Palma, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at year-end. 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. Fund balance is categorized into a hierarchy of five classifications: non-spendable, restricted, committed, assigned, and unassigned. These categories facilitate analysis of the City’s commitment of financial resources.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are part of the basic financial statements and immediately follow the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
7 The City maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Successor Housing Fund, and the Capital Outlay Reserve Fund, all of which are considered to be major funds. Data from all other governmental funds are combined into a single, aggregated column that is titled, “Nonmajor Governmental Funds.” Individual fund data for each of these non-major governmental funds is provided in the optional supplementary information section of this report.
The City adopts an annual appropriated budget for the General Fund and generally for each of the Special Revenue Funds. No annual budget is adopted for the Capital Outlay Reserve Fund. A budgetary comparison statement has been provided for the General Fund and each major Special Revenue fund to demonstrate compliance with the budget. These budgetary comparison statements are found within the Required Supplementary Information Section.
The basic governmental fund financial statements can be found in the financial section of this report immediately following the government-wide financial statements.
Proprietary Funds consist of both enterprise and internal service 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 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 Activities. In fact, the City's enterprise funds (a component of proprietary 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, for the proprietary funds. Internal service funds (the other component of proprietary funds) are used to report activities that primarily provide supplies and services for the City's other programs and activities.
The City has two enterprise funds – the Water Fund and the Sewer Fund. The internal service funds are for Risk Management, Employee Benefits, Facility Maintenance, Vehicle Replacement, and Technology Replacement. The basic proprietary fund financial statements are found immediately following the governmental fund financial statements.
Fiduciary Funds are used to account for resources held for, and under the control of, other organizations and individuals. The City's fiduciary activities are reported in a separate Statement of Fiduciary Net Position. These activities are excluded from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The fiduciary fund financial statements are found immediately following the proprietary fund financial statements.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes are found immediately following the fiduciary fund financial statements.
Other Information
This report presents certain required supplementary information such as the comparison of budget to actual results for the general and major special revenue funds. Required supplementary information is found immediately following the notes to the basic financial statements.
Optional supplementary information is also presented in this report. This supplementary information consists of combining and individual fund statements for non-major governmental funds and for the internal service funds.
This information is found immediately following the required supplementary information.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
8 GOVERNMENT-WIDE FINANCIAL ANALYSIS
A summary of the government-wide Statement of Net Position as of June 30, 2025, and June 30, 2024, is as follows:
Condensed Statement of Net Position
(In Millions)
Over time, net position may serve as a useful indicator of a City’s financial position. At June 30, 2025, the City’s assets and deferred outflows exceeded liabilities and deferred inflows by $65.3 million.
A large portion of the City’s net position ($27.8 million or 42.5%) is its investment in capital assets (e.g. land, infrastructure, buildings, and equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City’s net position ($10.1 million or 15.5%) represents resources that are subject to external restrictions on how they may be used. The remaining balance is unrestricted net position ($27.4 million or 42.0%) which may be used to meet the City’s ongoing obligations to citizens and creditors.
Business- BusinessGovernmental Type Governmental Type
Activities Activities Total Activities Activities Total June 30, 2025 June 30, 2024
Current and other assets $ 55.1 11.1$ 66.2$ $ 52.0 10.1$ 62.1$ Capital assets 23.1 5.0 28.1 20.4 5.0 25.4
Total Assets 78.2 16.1 94.3 72.4 15.1 87.5
Deferred Outflows 6.3 0.5 6.8 9.3 0.7 10.0
Long-term debt outstanding 22.7 1.7 24.4 23.0 1.7 24.7
Other liabilities 7.2 1.3 8.5 7.6 0.5 8.1
Total Liabilities 29.9 3.0 32.9 30.6 2.2 32.8
Deferred Inflows 2.7 0.2 2.9 2.8 0.2 3.0
Net Position:
Net investment in capital assets 22.8 5.0 27.8 19.9 5.0 24.9 Restricted 10.0 0.1 10.1 9.8 0.1 9.9
Unrestricted 19.1 8.3 27.4 18.6 8.3 26.9
Total Net Position $ 51.9 13.4$ 65.3$ $ 48.3 13.4$ 61.7$
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
9 A summary of the government-wide Statement of Activities for the fiscal years ending June 30, 2025, and June 30, 2024, is as follows:
Condensed Statement of Activities
(In Millions)
Governmental Activities
Governmental Activities increased the City’s net position by $3.6 million in contrast to the prior fiscal year’s increase of $2.2 million. Key elements of this net increase of $1.4 million include the following:
Overall revenues were $2.3 million higher when compared with the previous fiscal year. Sales Tax actually decreased by $0.3 million primarily due to some 22/23 taxes in the amount of $230 thousand that were received in 23/24. In 24/25, there were no similarly delayed payments received. The large increase was an additional $1.8 million Federal Grant for the citywide medians project. Expenses increased by $0.9 million when compared to the previous fiscal year. The main reasons for the difference was the pension adjustments due to GASB Stmt No. 68. For fiscal year 24/25, the pension adjustments increased expenses by $340 thousand primarily because CalPERS earned a negative 6.1% during Business- BusinessGovernmental Type Governmental Type
Activities Activities Total Activities Activities Total June 30, 2025 June 30, 2024
Revenues:
Program revenues:
Charges for services $ 1.2 4.4$ 5.6$ $ 1.1 4.0$ 5.1$
Operating contributions
and grants 1.8 - 1.8 1.6 - 1.6
Capital contributions
and grants 2.3 - 2.3 0.4 - 0.4
General revenues:
Property taxes 5.3 - 5.3 5.1 - 5.1
Sales taxes 4.4 - 4.4 4.7 - 4.7
Utility users taxes 1.3 - 1.3 1.2 - 1.2
Other taxes 1.2 - 1.2 1.1 - 1.1
Other general revenues 3.0 0.4 3.4 2.9 0.3 3.2
Total Revenues 20.5 4.8 25.3 18.1 4.3 22.4
Expenses:
Program expenses:
General government 5.5 - 5.5 4.8 - 4.8
Public safety 7.0 - 7.0 6.6 - 6.6
Public works 2.5 - 2.5 2.6 - 2.6
Recreation 1.6 - 1.6 1.6 - 1.6
Community development 1.1 - 1.1 1.1 - 1.1
Interest Exp - - - - - -
Water - 3.5 3.5 - 3.3 3.3
Sewer - 0.5 0.5 - 0.6 0.6
Total Expenses 17.7 4.0 21.7 16.7 3.9 20.6
Excess before transfers 2.8 0.8 3.6 1.4 0.4 1.8
Transfers 0.8 (0.8) - 0.8 (0.8) -
Change in net position 3.6 0.0 3.6 2.2 (0.4) 1.8
Beginning net position 48.3 13.4 61.7 46.1 13.8 59.9
Ending net position $ 51.9 13.4$ 65.3$ $ 48.3 $ 13.4 61.7$
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
10 the measurement period ending June 30, 2022 (first reflected in the City’s 22/23 ACFR). The pension increases are being phased in over five years, so the City anticipates additional increases in the next few years. General inflation added about 4% to costs to various departments.
The following two charts illustrate the revenues by source and expenses by function of the City’s Governmental Activities.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
11 General revenues such as property tax, utility users tax, and sales and transaction use taxes are not shown by program since they are effectively used to support program activities citywide. Program revenues mainly consist of charges for services and program-related grants and contributions. Without regard for program, taxes are the largest single source of governmental revenue for the City (59.4% of total revenue), followed by grants and contributions (19.8% of total revenue), other general revenue (14.7% of total revenue), and charges for services (6.1% of total revenue).
Business-type Activities
Business-type activities are financed primarily by fees charged to external parties for goods and services. Businesstype activities increased the City’s net position by $26,000 in FY 2024-25; in comparison, the prior fiscal year’s activities decreased net position by $368,000. In the prior fiscal year, program expenses for water and sewer activities totaled $3.9 million and were able to be fully funded by program revenue of $4.0 million and general revenues of $0.4 million. Also, $0.8 million was transferred to governmental activities. In the current fiscal year, program expenses for water and sewer activities totaled $4.0 million and were able to be fully funded by program revenue of $4.4 million and general revenues of $0.4 million. Current fiscal year transfers to governmental activities totaled $0.8 million.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
12 FINANCIAL ANALYSIS OF THE CITY'S FUNDS
The City uses fund accounting to provide proper financial management of the City's resources and to demonstrate compliance with finance-related legal requirements (i.e., accounting for the receipt and expenditure of restricted funds). At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $35.2 million, an increase of $0.3 million over the fiscal prior year’s ending fund balance of $34.9 million.
Revenues of $18.4 million is exceeded by expenditures of $18.9 million. Net transfers in from proprietary funds for administration costs totaled $0.8 million.
Major Governmental Funds – The General Fund is the chief operating fund of the City and comprises approximately 71% of the current fiscal year’s total governmental expenditures. At the end of the current fiscal year, the “spendable” portion of the General Fund’s fund balance (i.e., Committed, Assigned, and Unassigned fund balance) was $19.6 million. As a measure of the General Fund's liquidity, it may be useful to compare this “spendable” portion of fund balance to total General Fund expenditures. Using this metric, total General Fund “spendable” fund balance represents 146.3% of the fiscal year’s total General Fund expenditures. The General Fund’s Unassigned fund balance was $7.9 million at June 30, 2025, and represents 58.7% of total General Fund expenditures.
The City’s General Fund had a net increase to fund balance of $1.3 million in FY 2024-25 in comparison to a net increase of $2.8 million in FY 2023-24. The primary reasons for the net $1.5 million year-to-year change is as follows:
Tax revenues were fractionally higher than in the prior fiscal year. Sales tax was down primarily because $230 thousand of prior year sales tax was received in FY 2023-24, but there was no similar amount in FY 2024-25, and underlying sales tax was unchanged. Property taxes were up $220 thousand which is about a
4.5% increase (normal annual increase).
The CalPERS pension unfunded liability payment increased by $340 thousand over the prior year amount.
This is the result of the phased increase from the FY 2021-22 investment losses at CalPERS. The City also transferred another $1.0 million to the Capital Outlay Reserve fund to fund future (not yet identified) capital projects. This was in addition to the normal annual $400 thousand transfer from the General Fund.
The Housing Fund was created as part of the dissolution of redevelopment during the 2011-12 fiscal year. This fund is used to record the non-cash assets formerly held by the former Community Development Commission’s Low and Moderate Income Housing Fund as well as the proceeds from the operation of a senior apartment complex per a 1998 agreement. This fund ended the fiscal year with a fund balance of $4.6 million, which is $176 thousand lower than the prior fiscal year’s ending balance. All of this fund’s fund balance is restricted for housing activities.
The Capital Outlay Reserve Fund is used to account for the financial resources segregated for City capital improvement projects. This fund ended the fiscal year with a fund balance of $7.3 million, which is all assigned for capital projects. There is a $2.0 million grant receivable that has yet to be received, so it is not considered available for inclusion in the fund balance.
Major Enterprise Funds. At the end of the fiscal year, unrestricted fund net position of the Water Fund totaled $3.0 million and the Sewer Fund totaled $5.3 million. The combined increase in fund net position from operations and transfers was $26,000 in FY 2024-25, as explained previously in the Business Activities of the Governmentwide section of this analysis.
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
13 GENERAL FUND BUDGETARY HIGHLIGHTS
In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopted General Fund budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of additional revenues. Revenue budget adjustments totaled a net decrease of $21,500 as revenue trends were re-evaluated. Expenditure budget adjustments were minor and totaled a net increase of $191,600.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets (Net of Accumulated Depreciation)
(In Millions)
The City's investment in capital assets for its Governmental and Business-type Activities as of June 30, 2025, totaled $28.1 million (net of accumulated depreciation and net of capital related debt (direct borrowings)). This investment in capital assets includes land, buildings and improvements, equipment, vehicles, furniture and fixtures, and infrastructure. Additional information on the City's capital assets can be found in Note 6 of the Notes to the Basic Financial Statements.
Long-term Liabilities
(In Millions)
The amount of general obligation debt a City may issue is limited by state statutes to a maximum of 15% of the City’s total assessed value. The City currently has no general obligation debt, and, therefore, has no debt that is applicable to the limit. Additional information on the City's long-term liabilities can be found in Notes 7, 8, and 10 of the Notes to the Basic Financial Statements.
Business- BusinessGovernmental Type Governmental Type
Activities Activities Total Activities Activities Total June 30, 2025 June 30, 2024
Land $ 8.0 0.8$ 8.8$ $ 8.0 0.8$ 8.8$
Construction in process 3.4 - 3.4 0.7 - 0.7
Buildings and improvements 6.1 0.7 6.8 5.8 0.8 6.6
Equipment 1.6 1.7 3.3 1.7 1.5 3.2
Vehicles 0.7 - 0.7 0.6 - 0.6
Intangible right-to-use 0.1 - 0.1 0.2 - 0.2
Infrastructure 3.2 1.8 5.0 3.4 1.9 5.3
Total Capital Assets $ 23.1 5.0$ 28.1$ $ 20.4 $ 5.0 25.4$ Business- BusinessGovernmental Type Governmental Type
Activities Activities Total Activities Activities Total June 30, 2025 June 30, 2024
Direct Borrowings $ 0.3 -$ 0.3$ $ 0.3 -$ 0.3$
SBITAs 0.1 - 0.1 0.2 - 0.2
Net pension liability 21.6 1.7 23.3 21.9 1.7 23.6
Compensated absences 0.7 - 0.7 0.6 - 0.6
Total Long-term
Liabilities $ 22.7 1.7$ 24.4$ $ 23.0 1.7$ 24.7$
CITY OF LA PALMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS, CONTINUED
JUNE 30, 2025
14 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
The City of La Palma has achieved consistent economic growth while fostering a conducive environment for its residents. This has been accomplished through actively promoting business development, strategic infrastructure investments, and staying abreast of industry trends. As these measures persist, they will further augment prosperity and elevate the overall quality of life within the community.
The economic outlook for La Palma, the State of California, and the country is uncertain. The National Debt is setting records as a percentage of GDP, so inflation persists. The Federal Reserve has been lowering interest rates while National unemployment is extremely low and inflation is well above their 2% annual inflation target. The retail sales in California has been stagnant. One of the most vulnerable segments includes discretionary spending as consumers closely monitor their finances. We continue to closely monitor fluctuating key indicators that have led many experts to draw mixed conclusions regarding the fluid economic outlook. The City has managed economic volatility effectively due to its strong reserves, and it has not needed to draw on those reserves in many years as a result of consistent and disciplined fiscal management. For the FY 2025-26 budget, the City Council directed that core services remain without adding unnecessary ongoing costs.
As a vibrant City, La Palma's economic outlook is influenced by various factors, including local businesses, employment opportunities, industry trends, and government initiatives. La Palma's economy thrives on diverse industries, including technology, healthcare, retail, and professional services. This diversity helps to mitigate the risks associated with reliance on a single sector and promotes resilience in the face of economic fluctuations. The City maintains a prudent philosophy regarding its spending, which has led to healthy reserves. Lessons from prior fiscal years indicate that the economy can fluctuate from growth to recession and back again.
REQUESTS FOR INFORMATION
This financial report is designed to provide the City’s citizens, taxpayers, customers, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Administrative Services Department, City of La Palma, 7822 Walker Street, La Palma, California 90623, 714-690-3300. This report can also be found on the City’s website at www.lapalmaca.gov.
15 BASIC FINANCIAL STATEMENTS
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17 GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF LA PALMA
Statement of Net Position
June 30, 2025
Governmental Business-Type
Assets Activities Activities Total
Cash and investments 41,219,616 $ 8,716,597 $ 49,936,213 $ Receivables
Accounts 405,135 902,014 1,307,149
Interest 416,986 - 416,986
Loans 2,253,146 - 2,253,146
Due from other governmental units 3,141,469 - 3,141,469 Prepaid items 52,100 - 52,100
Net OPEB asset 924,798 115,470 1,040,268
Due from redevelopment successor agency 5,249,273 1,300,528 6,549,801 Leases receivable 1,426,798 - 1,426,798
Capital assets:
Not being depreciated 11,427,134 754,000 12,181,134
Being depreciated, Net 11,688,910 4,273,802 15,962,712
Total assets 78,205,365 16,062,411 94,267,776
Deferred outflows of resources
OPEB related 189,963 23,718 213,681
Pension related 6,079,152 511,247 6,590,399
Total deferred outflows of resources 6,269,115 534,965 6,804,080 Liabilities
Accounts payable 502,917 1,318,594 1,821,511
Unearned revenue 5,352,262 - 5,352,262
Other accrued liabilities 1,357,720 - 1,357,720
Noncurrent liabilities:
Due within one year 721,025 - 721,025
Due in more than one year 399,288 - 399,288
Net pension liability 21,572,595 1,677,415 23,250,010
Total liabilities 29,905,807 2,996,009 32,901,816
Deferred inflows of resources
OPEB related 365,004 45,574 410,578
Pension related 852,328 108,005 960,333
Leases 1,426,798 - 1,426,798
Total deferred inflows of resources 2,644,130 153,579 2,797,709 Net position
Net investment in capital assets 22,725,647 5,027,802 27,753,449 Restricted for:
Public information 429,840 - 429,840
Capital projects 2,278,363 - 2,278,363
Public safety 971,156 - 971,156
Affordable housing 5,359,038 - 5,359,038
OPEB 924,798 115,470 1,040,268
Unrestricted 19,235,701 8,304,516 27,540,217
Total net position 51,924,543 $ 13,447,788 $ 65,372,331 $ The notes to the financial statements are an integral part of this statement. 19
CITY OF LA PALMA
Statement of Activities
Fiscal Year Ended June 30, 2025
Charges Operating Capital
for grants and grants and
Functions/Programs Expenses services contributions contributions Governmental activities:
General government 5,514,232 $ 345,716 $ - $ - $
Public safety 6,959,141 15,745 665,690 -
Public works 2,491,980 66,202 1,127,199 2,259,936
Recreation 1,590,068 356,866 - -
Community development 1,087,684 460,429 - -
Interest on long term debt 10,660 - - -
Total governmental activities 17,653,765 1,244,958 1,792,889 2,259,936 Business-type activities
Water 3,525,903 3,797,228 - -
Sewer 469,399 574,173 - -
Total Business-type activities 3,995,302 4,371,401 - -
Total 21,649,067 $ 5,616,359 $ 1,792,889 $ 2,259,936 $
(Continued)
`
Program revenues
The notes to the financial statements are an integral part of this statement. 20
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:
General government (5,168,516) $ - $ (5,168,516) $
Public safety (6,277,706) - (6,277,706)
Public works 961,357 - 961,357
Recreation (1,233,202) - (1,233,202)
Community development (627,255) - (627,255)
Interest (10,660) - (10,660)
Total governmental activities (12,355,982) - (12,355,982) Business-type activities
Water - 271,325 271,325
Sewer - 104,774 104,774
Total Business-type activities - 376,099 376,099
Total (12,355,982) 376,099 (11,979,883)
General revenues and transfers:
Taxes:
Property taxes 5,290,259 - 5,290,259
Sales taxes 4,424,726 - 4,424,726
Utility users tax 1,281,102 - 1,281,102
Franchise tax 483,645 - 483,645
Transient occupancy tax 673,963 - 673,963
Investment earnings 2,134,142 432,973 2,567,115
Other revenue 883,739 41 883,780
Transfers 782,900 (782,900) -
Total general revenues and
transfers 15,954,476 (349,886) 15,604,590
Change in net position 26,213 3,598,494 3,624,707
Net position - beginning of fiscal year 48,326,049 13,421,575 61,747,624 Net position - end of fiscal year $ 13,447,788 51,924,543 $ 65,372,331 $ Net (expense) revenue and
changes in net position
The notes to the financial statements are an integral part of this statement. 21
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23 FUND FINANCIAL STATEMENTS
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CITY OF LA PALMA
Governmental Funds
Fiscal Year Ended June 30, 2025
25 General Fund
The general fund has been classified as a major fund and is used to account for all of the general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City. The general fund is used to account for all resources not required to be accounted for in another fund.
Special Revenue Funds
Special revenue funds are used to account for and report the proceeds of specific revenues that are restricted or committed to expenditures for specified purposes. The following has been classified as a major special revenue fund:
Housing Fund – Used to account for the restricted housing assets of the former Community Development Commission (CDC), which were transferred to the Successor Agency Private Purpose Trust Fund and then transferred to the Housing Fund upon acceptance of the Housing Successor role by the City.
Capital Project Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.
Capital Outlay Reserve Fund – Used to account for the financial resources of the City, segregated for City capital improvement projects.
Nonmajor Governmental Funds
Nonmajor governmental funds include all special revenue funds except for the housing fund, and the capital outlay reserve fund- capital projects fund. Assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures of these funds do not exceed 10% of total governmental funds and 5% of total governmental and enterprise funds and thus, do not meet the criteria to be classified as major funds.
Special Capital
Revenue Project
Capital
Outlay
General Housing Reserve
Assets Fund Fund Fund
Cash and investments 24,857,847 $ 1,767,421 $ 5,941,744 $ Receivables:
Accounts 357,116 41,668 -
Interest 416,986 - -
Loans 1,788 2,251,358 -
Due from other governments 872,237 - 2,000,000
Prepaid items 52,100 - -
Lease receivable 1,426,798 - -
Due from other funds 21,729 - -
Due from Redevelopment Successor Agency - 1,309,960 3,939,313 Total assets 28,006,601 $ 5,370,407 $ 11,881,057 $
Liabilities, Deferred Inflow of Resources,
and Fund Balances
Liabilities:
Accounts payable 397,662 $ - $ 26,882 $
Other accrued liabilities 1,204,799 - 152,921
Due to other funds - - -
Unearned revenue 5,284,935 11,369 -
Total liabilities 6,887,396 11,369 179,803
Deferred inflow of resources:
Lease revenue 1,426,798 - -
Unavailable revenue - 794,698 4,389,818
Total deferred inflow of resources 1,426,798 794,698 4,389,818 Fund balances:
Nonspendable 53,888 - -
Restricted - 4,564,340 -
Committed 10,253,982 - -
Assigned 1,500,000 - 7,311,436
Unassigned 7,884,537 - -
Total fund balances 19,692,407 4,564,340 7,311,436
Total liabilities, deferred inflow of resources, and
fund balances 28,006,601 $ 5,370,407 $ 11,881,057 $
June 30, 2025
CITY OF LA PALMA
Balance Sheet
Governmental Funds
The notes to the financial statements are an integral part of this statement. 26
Nonmajor Total
Governmental Governmental
Funds Funds
$ 36,113,572 3,546,560 $
405,135 6,351
416,986 -
2,253,146 -
3,141,469 269,232
52,100 -
1,426,798 -
21,729 -
5,249,273 -
$ 49,080,208 3,822,143 $
$ 489,641 65,097 $
1,357,720 -
21,729 21,729
5,352,262 55,958
142,784 7,221,352
1,426,798 -
5,184,516 -
6,611,314 -
53,888 -
8,243,699 3,679,359
10,253,982 -
8,811,436 -
7,884,537 -
35,247,542 3,679,359
$ 49,080,208 3,822,143 $
The notes to the financial statements are an integral part of this statement. 27
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CITY OF LA PALMA
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2025
Fund balances for governmental funds $ 35,247,542
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and therefore are not reported in the fund financial statements. This amount does not include $779,338 of internal service funds net capital assets included below.
Capital assets 38,500,841
Accumulated depreciation (16,164,135)
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the statement of net position. These amounts do not include $289,134 of direct borrowing already included in the internal service funds total below. Balances at the end of the fiscal year are:
Subscriptions payable (101,263)
Compensated absences (729,916)
Pension related debt and other postemployment benefit debt applicable to the City governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the statement of net position as the changes in these amounts effects only the government-wide statements for governmental activities.
Deferred outflows of resources for pensions 6,079,152
Deferred outflows of resources for OPEB 189,963
Deferred inflows of resources for pensions (852,328)
Deferred inflows of resources for OPEB (365,004)
Pension liability (21,572,595)
Net OPEB asset 924,798
Unavailable revenue - resource inflows that do not qualify for recognition as revenue in governmental funds because they are not yet considered available. 5,184,516 Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position:
Net position of internal service funds 5,582,972
Net position of governmental activities $ 51,924,543
The notes to the financial statements are an integral part of this statement. 29
Special Capital
Revenue Project
Capital
Outlay
General Housing Reserve
Fund Fund Fund
Revenues:
Taxes 12,153,694 $ - $ - $
Intergovernmental - 40,200 -
Licenses and permits - 568,881 -
Fines and forfeitures - 75,407 -
Investment income 1,185,883 257,659 240,622
Charges for services - 600,668 -
Rental income - 579,042 -
Miscellaneous 94,128 - 187,621
Total revenues 15,297,903 257,659 428,243
Expenditures:
Current:
General government - 4,697,142 -
Public safety - 5,674,464 -
Public works 1,079,407 - -
Recreation - 1,219,626 -
Community development 433,782 546,925 -
Capital outlay - 76,354 2,608,519
Debt service
Principal 117,005 - -
Interest and fiscal charges - 10,660 -
Total expenditures 13,421,583 433,782 2,608,519
Excess (deficiency) of revenues
over (under) expenditures (176,123) 1,876,320 (2,180,276) Other financing sources (uses):
Transfers in - 782,900 1,400,000
Transfers out - (1,400,000) -
Total other financing sources (uses) - (617,100) 1,400,000 Net change in fund balances (176,123) 1,259,220 (780,276) Fund balance - beginning of fiscal year 18,433,187 4,740,463 8,091,712 Fund balance - end of fiscal year $ 4,564,340 19,692,407 $ 7,311,436 $
CITY OF LA PALMA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Fiscal Year Ended June 30, 2025
The notes to the financial statements are an integral part of this statement. 30
Nonmajor Total
Governmental Governmental
Funds Funds
$ 12,153,694 - $
2,217,862 2,177,662
568,881 -
75,407 -
1,903,088 218,924
600,668 -
579,042 -
304,700 22,951
18,403,342 2,419,537
4,697,142 -
6,225,860 551,396
1,502,128 422,721
1,219,626 -
980,707 -
4,128,185 1,443,312
117,005 -
10,660 -
18,881,313 2,417,429
(477,971) 2,108
2,182,900 -
(1,400,000) -
782,900 -
304,929 2,108
34,942,613 3,677,251
$ 35,247,542 3,679,359 $
The notes to the financial statements are an integral part of this statement. 31
CITY OF LA PALMA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Fiscal Year Ended June 30, 2025
Net changes in fund balances for governmental funds $ 304,929 Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures, However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as a depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decreases by the amount of depreciation expense charged for the fiscal year.
Capital outlay 4,128,185
Capital outlays deemed repairs and maintenance (756,888) Depreciation expense (not including ISF depreciation of $149,402) (781,595) Loss on asset disposal (not including ISF loss of $1,043) (64,149) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Change in net pension liability and related deferred inflows and outflows (1,760,744) Change in compensated absences (160,571)
Change in OPEB obligation and related inflows and outflows 188,524 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,834,963 The amounts below, included in the Statement of Activities do not provide current financial resources and, therefore, are not report as revenue.
Repayment of principal 117,005
Internal service funds are used by management to charge the costs to certain activities to individual funds. The changes in net position of the internal service funds are reported with the governmental activities 548,835 Change in net position of governmental activities $ 3,598,494 The notes to the financial statements are an integral part of this statement. 32
CITY OF LA PALMA
Proprietary Funds
Fiscal Year Ended June 30, 2025
33 Enterprise Funds
Enterprise funds are used for operations that are financed and operated in a manner similar to private business enterprise – where the intent of the governing body is that the costs of providing goods or services to the general public be financed or recovered primarily through user charges.
The following have been classified as major enterprise funds:
Water Fund – To account for revenues and expenses for the operations for the City’s water utility. All activities necessary to provide this service are accounted for in this fund, including administration, operations, maintenance, billing collection, and depreciation.
Sewer Fund – To account for the revenues and expenses for the maintenance, repair, and depreciation of the sewers within the City.
Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one department or agency of the City to other departments or agencies on a cost reimbursement basis.
CITY OF LA PALMA
Statement of Fund Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities
Internal
Water Sewer Service
Fund Fund Total Funds
Assets
Current assets:
Cash and investments 3,867,760 $ 4,848,837 $ 8,716,597 $ 5,106,044 $ Accounts receivables 776,097 125,917 902,014 -
Total current assets 4,643,857 4,974,754 9,618,611 5,106,044 Noncurrent assets:
Capital assets
Capital assets not being depreciated - 754,000 754,000 - Capital assets being depreciated,
net of depreciation 902,096 3,371,706 4,273,802 779,338 Due from Redevelopment Successor
Agency 650,264 650,264 1,300,528 -
Net OPEB asset 16,124 99,346 115,470 -
Total noncurrent assets 4,875,316 1,568,484 6,443,800 779,338 Total assets 9,519,173 6,543,238 16,062,411 5,885,382
Deferred outflows of resources
Related to OPEB 20,406 3,312 23,718 -
Related to pensions 53,815 457,432 511,247 -
Total deferred outflows of resources 57,127 477,838 534,965 - Liabilities
Current liabilities:
Accounts payable 202,136 1,116,458 1,318,594 13,276
Enterprise leases payable - - - 63,132
Total current liabilities 202,136 1,116,458 1,318,594 76,408 Noncurrent liabilities:
Enterprise leases payable - - - 226,002
Net pension liability 1,500,845 176,570 1,677,415 -
Total noncurrent liabilities 1,500,845 176,570 1,677,415 226,002 Total liabilities 2,617,303 378,706 2,996,009 302,410
Deferred inflows of resources
Related to OPEB 39,210 6,364 45,574 -
Related to pensions 11,369 96,636 108,005 -
Total deferred inflows of resources 17,733 135,846 153,579 - Net position
Net investment in capital assets 902,096 4,125,706 5,027,802 490,204 Restricted for OPEB 99,346 16,124 115,470 -
Unrestricted 5,285,706 3,018,810 8,304,516 5,092,768
Total net position $ 6,203,926 7,243,862 $ 13,447,788 $ 5,582,972 $ Business-Type Activities
Enterprise Funds
The notes to the financial statements are an integral part of this statement. 34
Governmental
Activities
Internal
Water Sewer Service
Fund Fund Total Funds
Operating revenues
Charges for services 3,797,228 $ 574,173 $ 4,371,401 $ 1,483,599 $ Miscellaneous 41 - 41 56,364
Total operating revenue 574,173 3,797,269 4,371,442 1,539,963 Operating expenses
Personnel services 693,201 65,117 758,318 -
Maintenance and operations 2,203,737 319,856 2,523,593 182,589 Contractual services 332,221 32,915 365,136 -
Depreciation 42,802 183,812 226,614 149,402
Settlement claims and insurance 41,700 5,400 47,100 889,148 Administration 36,917 3,309 40,226 -
Total operating expenses 3,491,588 469,399 3,960,987 1,221,139 Operating income 104,774 305,681 410,455 318,824
Nonoperating revenues (expenses)
Investment income 190,938 242,035 432,973 231,054
Loss on disposal of capital assets (34,315) - (34,315) (1,043) Total nonoperating revenues (expenses) 156,623 242,035 398,658 230,011 Income before transfers 346,809 462,304 809,113 548,835 Transfers
Transfers out (100,000) (682,900) (782,900) -
Change in net position 246,809 (220,596) 26,213 548,835 Net position - beginning of fiscal year 5,957,117 7,464,458 13,421,575 5,034,137 Net position - end of fiscal year $ 6,203,926 7,243,862 $ 13,447,788 $ 5,582,972 $ Enterprise Funds
CITY OF LA PALMA
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
Fiscal Year Ended June 30, 2025
Business-Type Activities
The notes to the financial statements are an integral part of this statement. 35
CITY OF LA PALMA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2025
Governmental
Activities
Internal
Water Sewer Service
Fund Fund Total Funds
Cash flows from operating activities
Receipts from customers and user
departments 3,606,212 $ 565,733 $ 4,171,945 $ - $
Receipts from internal users - - - 1,483,599
Payments to suppliers for goods and
services (1,984,493) (174,356) (2,158,849) (1,069,822)
Payments to employees for salaries and
benefits (582,702) (53,020) (635,722) -
Miscellaneous operating receipts 41 - 41 56,364
Net cash provided (used) by operating activities 1,039,058 338,357 1,377,415 470,141 Cash flows from noncapital financing
activities
Cash paid to other funds - transfers (682,900) (100,000) (782,900) - Cash flows from capital and related
financing activities
Proceeds of direct borrowing payable - - 68,683 -
Payments of principal - - (54,999) -
Acquisition of capital assets (298,293) - (298,293) (317,920) Net cash used by capital and related
financing activities (298,293) - (298,293) (304,236)
Cash flows from investing activities
Interest received 250,561 301,657 552,218 231,054
Net cash provided by investing activities 250,561 301,657 552,218 231,054 Net increase (decrease) in cash and
cash equivalents 540,014 308,426 848,440 396,959
Cash and cash equivalents - beginning of
fiscal year 3,559,334 4,308,823 7,868,157 4,709,085
Cash and cash equivalents - end of
fiscal year $ 4,848,837 3,867,760 $ 8,716,597 $ 5,106,044 $ Reconciliation of cash and cash
equivalents to the proprietary
fund statement of net position
Cash and investments 3,867,760 $ 4,848,837 $ 8,716,597 $ 5,106,044 $ Non-cash transactions
Loss on disposal of capital assets (34,315) $ - $ (34,315) $ (1,043) $ Business-Type Activities
Enterprise Funds
The notes to the financial statements are an integral part of this statement. 36
CITY OF LA PALMA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2025
Governmental
Activities
Internal
Water Sewer Service
Fund Fund Total Funds
Reconciliation of operating income
(loss) to net cash provided (used)
by operating activities
Operating income (loss) 305,681 $ 104,774 $ 410,455 $ 318,824 $ Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 183,812 42,802 226,614 149,402 (Increase) decrease in operating assets
and deferred outflows of resources:
Accounts receivable (191,016) (8,440) (199,456) -
Deferred outflows of resourcesOPEB 23,645 3,838 27,483 - Deferred outflows of resourcespension related 180,359 21,220 201,579 - Increase (decrease) in operating liabilities
and deferred inflows of resources:
Accounts payable and accrued
liabilities 630,082 187,124 817,206 1,915
Net OPEB asset (34,395) (5,582) (39,977) -
Net pension liability (24,604) (2,895) (27,499) -
Deferred inflows of resourcesOPEB (9,503) (1,542) (11,045) - Deferred inflows of resourcespension related (25,003) (2,942) (27,945) - Total adjustments 733,377 233,583 966,960 151,317
Net cash provided (used) by
operating activities $ 338,357 1,039,058 $ 1,377,415 $ 470,141 $ Business-Type Activities
Enterprise Funds
The notes to the financial statements are an integral part of this statement. 37
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CITY OF LA PALMA
Fiduciary Funds
Fiscal Year Ended June 30, 2025
39 Redevelopment Successor Agency Private-Purpose Trust Fund This fund accounts for the assets, liabilities, and activities of the former Community Development Commission (CDC) of the City in a trustee capacity to pay enforceable obligations of the former Commission. On February 1, 2012, in accordance with Assembly Bill (AB 1X 26 and 1484), all redevelopment agencies in the state of California were dissolved. All assets and liabilities were transferred to the Successor Agency Private-Purpose Trust Fund which is used to account for assets held by the City of La Palma’s former CDC.
CITY OF LA PALMA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Redevelopment
Successor Agency
Private-Purpose
Trust Fund
Assets
Cash and investments $ 1,581,310
Total assets 1,581,310
Liabilities
Advances from City of La Palma 6,549,801
Total liabilities 6,549,801
Net position
Held in trust for other governments $ (4,968,491)
The notes to the financial statements are an integral part of this statement. 40
CITY OF LA PALMA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Fiscal Year Ended June 30, 2025
Redevelopment
Successor Agency
Private-Purpose
Trust Fund
Additions
Taxes $ 694,538
Interest income 53,031
Total additions 747,569
Deductions
Program expenses 10,000
Interest and fiscal expenses 103,052
Total deductions 113,052
Change in net position 634,517
Net position - beginning of fiscal year (5,603,008)
Net position - end of fiscal year $ (4,968,491)
The notes to the financial statements are an integral part of this statement. 41
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43 NOTES TO BASIC FINANCIAL STATEMENTS
44 THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
45 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying basic financial statements of the City of La Palma, California (the City) have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.
The significant City accounting policies are described below.
A. Description of Reporting Entity
The City was incorporated on October 26, 1955, under the general laws of the State of California. The City operates under an elected Council/City Manager form of government. The City has no component units for which it is financially accountable.
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The City’s basic financial statements are composed of the following:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Basic Financial Statements
Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. In the government-wide financial statements, the governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government’s enterprise funds.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. 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. Accrual 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 are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Revenues from property taxes are recognized as revenues in the fiscal year that the tax is levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Special assessments are recorded as revenues when earned. Unbilled receivables are recorded as revenue when services are provided.
The statements of activities demonstrate the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.
The types of transactions reported as program revenues for the City are reported in three categories:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
46 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Government-Wide Financial Statements (Continued)
Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenses. Proceeds of long-term debt are recorded as a liability in the governmentwide financial statement, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. However, interfund services provided and used are not eliminated in the process of consolidation.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and the nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary fund statements include financial information for fiduciary funds. Fiduciary funds for the City represent assets held by the private-purpose trust fund for the successor agency of the former Community Development Commission (CDC).
During the course of operations, the City has activity between funds for various purposes. Any residual balances outstanding at fiscal year-end are reported as due to/from other funds and advances to/from other funds.
Further, certain activity occurs during the fiscal year involving transfers of resources between funds. In fund financial statements, these are reported at gross amounts as transfers in/out.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized when they become both measurable and available. Revenues are considered to be available when they are collected within 60
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
47 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under leases are reported as other financing sources.
Sales taxes, property taxes, and utility user taxes are all considered to be susceptible to accrual and have been recognized as revenues in the current fiscal period to the extent normally collected within the availability period (within 60 days of fiscal year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met and the amount is received during the period or within the availability period for this revenue source (within six months of fiscal year-end). Other revenue items are considered to be measurable and available when cash is received by the government.
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Noncurrent portions of long-term receivables between governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources,” since they do not represent available resources. Noncurrent portions of long-term receivables in the general fund are offset by nonspendable fund balance.
Proprietary Funds
Proprietary fund types are accounted for using the economic resources measurement focus and accrual basis of accounting. This means that all assets, deferred outflows or resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with the activity are included on the statement of net position. Their reported fund equity presents total net position. The operating statement of the proprietary fund presents increases (revenues) and decreases (expenses) in total net position. Revenues are recognized when they are earned and expenses are recognized when the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s water and sewer funds are charges to customers for sales and services. Operating expenses for proprietary funds include all costs of sales and services, administrative expenses, and depreciation on capital
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
48 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary Funds (Continued)
assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary funds’ financial statements, rather than reported as expenses. Proceeds of long-term debt are recorded as a liability in the proprietary funds’ financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as an expense.
Fiduciary Funds
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary private-purpose trust fund is accounted for using the economic resources measurement focus and accrual basis of accounting. The private-purpose trust fund accounts for the assets held by the City for the Successor Agency to the La Palma Community Development Commission.
Because this fund is not available for use by the City, it is not included in the government-wide statements.
C. Fund Classifications
The City reports the following major governmental funds:
General Fund – This fund is used to account for all of the general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City, except those required to be accounted for in another fund. Housing Special Revenue Fund – This fund is used to account for the restricted housing assets of the City. Revenues are from housing activities and are restricted for housing purposes. Capital Outlay Reserve Capital Projects Fund – This fund accounts for the financial resources of the City segregated for city capital improvement projects other than those financed by proprietary funds.
The City reports the following major enterprise funds:
Water Fund – This fund is used to account for revenues and expenses of the operations for the City’s water utility. All activities necessary to provide this service are accounted for in this fund, including administration, operations, maintenance, billing, collection, and depreciation. Sewer Fund – This fund is used to account for the revenues and expenses for the maintenance, repair, and depreciation of the sewers within the City.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
49 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Classifications (Continued)
Additionally, the City reports the following fund types:
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes. Internal Service Funds are used to account for the financing of goods or services provided by one department of the City to other departments on a cost-reimbursement basis. The City’s internal service funds account for risk management activity, costs of the City’s employee benefit plans, and workers’ compensation insurance, as well as maintenance and replacement costs of City facilities, vehicles, and technology items.
Private-Purpose Trust Fund accounts for the activities of the Successor Agency of the former La Palma Community Development Commission in a trustee capacity to pay enforceable obligations.
D. Implementation of New Accounting Pronouncements
GASB Statement No. 101, “Compensated Absences” - This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave.
The implementation of this Statement did not have a material financial impact on the City for the fiscal year ended June 30, 2025.
The provisions of Statement Number 102 “Certain Risk Disclosures”. The implementation did not have a material financial impact on the City for the fiscal year ended June 30, 2025.
E. Future Accounting Pronouncements
GASB Statements listed below will be implemented in future financial statements.
The provisions of Statement Number 103 “Financial Reporting Model Improvements” are effective for fiscal years beginning after June 15, 2025.
The provisions of Statement No. 104 “Disclosure of Certain Capital Assets” are effective for fiscal years beginning after June 15, 2025.
F. Cash and Investments
Investments are reported in the accompanying basic financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Investments in external pools are valued based on the stated fair value represented by the external pool.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
50 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Cash and Investments (Continued)
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, which may result in negative investment earnings in the accompanying financial statements.
Investment income includes interest earning, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.
Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
G. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity date of three months or less. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The consumption method is used by the City to report prepaids.
I. Leases Receivable
The City’s lease receivables are measured at the present value of payments expected to be received during the lease term. Under the lease agreements, the City receives variable lease payments as each lease has an annual increase in payment of 3% or $500 per month.
J. Right to Use Lease Assets
Right to use assets are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right to use lease assets are amortized on a straightline basis over the life of the related lease. The City has no right to use lease assets as of June 30, 2025.
K. Intangible Right to Use Subscription Asset
Intangible right to use assets are initially measured as an amount equal to the initial measurement of the related software subscription liability plus any software subscription payments made prior to the software subscription term, less software subscription incentives, and plus ancillary charges necessary to place the software subscription into service. The intangible right to use software subscription assets are amortized over the life of the related software subscription liability. See notes 6 and 7 for more details regarding the City’s intangible right to use subscription assets and associated debt.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
51 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Capital Assets
Acquisitions of capital assets (including infrastructure) are recorded at historical cost at the time of purchase.
Donated capital assets are recorded at acquisition value at the time received. Generally, capital asset acquisitions in excess of $5,000 (general capital assets) and $25,000 (infrastructure) are capitalized if they have an expected useful life of one year or more. Capital assets include intangible right-to-use lease and subscription assets and public domain (infrastructure), capital assets consisting of certain improvements, including streets (pavement, medians, curbs/gutters, sidewalks, traffic signals, monument signs, and bridges), storm drains, and water/sewer systems and improvements.
Capital assets used in operations are depreciated in the government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation of such assets is computed using the straight-line method over the estimated useful lives noted below and charged to operations:
M. Deferred Outflows and 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, represents a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditures) until that time. This City has the following items that qualify for reporting in this category:
Deferred outflows related to pension and OPEB plans equal to employer contributions made after the measurement date of the net pension and OPEB liabilities.
Nonpolice vehicles 12 years
Police patrol vehicles 4 years
Police unmarked vehicles 8 years
Trucks and utility vehicles 12 years
Specialty vehicles 12 years
Furniture and fixtures 10 to 15 years
IT machinery and equipment 5 years
NonIT machinery and equipment 10 years
Building and building improvements 50 years
Sewer system and other improvements 75 years
Water system and other improvements 75 years
Infrastructure - street network 30 to 80 years
Infrastructure - storm drains 75 years
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
52 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Deferred Outflows and Inflows of Resources (Continued) Deferred outflows related to pension and OPEB plans for differences between actual and expected experiences, and changes in employer’s proportion and differences between employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB benefits through the plans.
Deferred outflows related to pension and OPEB plans resulting from the net differences between projected and actual earnings on the plan investments. These amounts are amortized over five years.
In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: grants and accrued, unpaid interest on long-term loans and advances. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred inflows related to pension and OPEB plans for differences between actual and expected experiences, changes of assumptions, and changes in employer’s proportion and differences between employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB benefits through the plan. Deferred inflows related to leases. These amounts are deferred and recognized as an inflow in the period that the amount becomes available.
N. Compensated Absences
A liability is recorded for compensated absences (unpaid vacation, sick leave, and compensatory time) since the employees’ entitlement to these balances is attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. Compensated absences are primarily liquidated in the City’s general fund.
O. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas.
Accordingly, the City accrues only those taxes that are received from the County of Orange (County) within 60 days after fiscal year-end:
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
53 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Property Taxes (Continued)
The City participates in a program called the “Teeter Plan,” whereby the County distributes 100% of the City’s portion of the secured tax levy during each fiscal year. In exchange, the City waives the right to collect interest and penalties on any delinquent tax collections received by the County on the secured rolls in future years.
P. Claims and Judgments
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to fiscal year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. In the fund financial statements, these liabilities are recorded in the Internal Service Funds that account for the City’s insurance activities.
Q. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water fund and internal service fund are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
R. Net Position
The government-wide financial statements, proprietary fund statements, and fiduciary fund statements utilize a net position presentation. Net position is classified in the following categories:
Net Investment in Capital Asset – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, or laws or regulations of other governments). Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position”.
Lien Date: January 1
Levy Date: July 1
Due Dates: November 1 - 1st Installment
February 1 - 2nd Installment
Collection Dates: December 10 - 1st Installment
April 10 - 2nd Installment
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
54 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) R. Net Position (Continued)
The government-wide statement of net position reports $8,304,516 of business-type unrestricted net position, of which $ 6,458,393 has been designated, in accordance with City Code. The designation is for emergency replacement of utility fixed assets within the Water fund in the amount of $3,451,707 (5% of the replacement value of certain capital assets) and within the Sewer fund in the amount of $3,006,686 (10% of the replacement value of certain capital assets).
S. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose for both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by the City Council.
T. Fund Balances
Fund balances are reported in the fund statements in the following classifications:
Nonspendable Fund Balance – This includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments). Noncurrent portions of long-term receivables in the General Fund are offset by nonspendable fund balance.
Restricted Fund Balance – This includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, or creditors as imposed by law through constitutional provisions or enabling legislation. City Council imposed restrictions do not create a restricted fund balance, unless the legal document that initially authorized the revenue (associated with that portion of fund balance) also included language that specified the limited use for which the authorized revenues were to be expended. Committed Fund Balance – This includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the City Council action that limits the use of funds was separate from the action that initially created the revenues that form the basis for the fund balance then the resultant fund balance is considered to be committed, not restricted. The City considers both an ordinance or resolution to constitute the highest formal action of the City Council for the purpose of establishing committed fund balance.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
55 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) T. Fund Balances (Continued)
The City has established two commitments within the General Fund. The Economic Development commitment was initially set at $250,000 to be used for economic development projects, including assistance with attracting, growing, and retaining businesses, which promote the City’s economic vitality and strengthen or diversify its tax base. Appropriations for the Economic Development commitment can only be made by formal action of the City Council. At June 30, 2025, the commitment totaled $186,282. The Emergency Reserve policy establishes a commitment for a minimum of 50% of General Fund expenditures as of the beginning of each fiscal year. This commitment may be used in emergency situations and appropriations can only be made by formal City Council action, with the exception of interest earnings, which will be transferred to the General Fund. At June 30, 2025, the commitment totaled $10,067,700. Assigned Fund Balance – This includes amounts that are intended to be used for specific purposes as indicated by the City Council or by persons to whom City Council has delegated the authority to assign amounts for specific purposes. The City Council has by resolution authorized the Administrative Services Director the authority to assign unassigned fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements. The City’s fund balance policy established an assigned fund balance in the General Fund of $1,500,000 for cash flow.
This amount is not intended to vary from year to year.
The City’s fund balance policy establishes an assignment for unprogrammed/unfunded capital and infrastructure projects. It is the City’s intent that the fund balances for the Capital Outlay Reserve and the Civic Center Rehabilitation Reserve (components of the Capital Outlay Reserve Fund) be considered to be assigned for the purpose of the fund.
Unassigned Fund Balance – This includes the remaining spendable amounts that are not included in one of the other classifications. Only the General Fund shows a positive unassigned fund balance. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
It is the City’s policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in absence of a formal policy adopted by the Council.
U. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) Plans (Plans) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund has typically been used in prior fiscal years to liquidate pension liabilities.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
56 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) V. Other Postemployment Benefits
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the City’s OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund has typically been used in prior fiscal years to liquidate OPEB liabilities.
W. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:
Investments Authorized by the California Government Code and the City’s Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that addresses interest rate 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 provisions of the California Government Code or the City’s investment policy. The City has no investments held by bond trustees at June 30, 2025.
Statement of Net Position:
Cash and investments 49,936,213 $
Statement of Fiduciary Net Position:
Cash and investments 1,581,310
Total Cash and Investments 51,517,523 $
Cash on hand 7,425 $
Deposits with financial institutions 6,713,471
Investments 44,796,627
Total Cash and Investments 51,517,523 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
57 NOTE 2: CASH AND INVESTMENTS (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
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.
Information about the sensitivity of the fair values of the City’s investments (including investments held by the bond trustee) to market rate fluctuations is provided by the following table that shows the distribution of the City’s investment by maturity:
Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment in Authorized by State Law Policy Maturity Allowed One Issuer Local Agency Bonds Yes 5 Years None None
U.S. Treasury Obligations Yes 5 Years None None
State of California Obligations Yes 5 Years None None
Other 49 State Obligations Yes 5 Years None None
CA Local Agency Obligations Yes 5 Years None None
U.S. Government Agency Securities Yes 5 Years None None Banker's Acceptance Yes 180 Days 40% 30%
Commercial Papers Yes 270 Days 25% 10%
Negotiable Certificates of Deposit Yes 5 Years 30% 5%
Repurchase Agreements Yes 1 Year None None
Reverse Repurchase Agreements Yes 92 Days 20% Base Value None Supranationals Yes 5 Years 30% None
Medium-Term Corporate Notes Yes 5 Years 30% 5%
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% None
Asset-Backed Securities Yes 5 Years 20% None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None $75 million Joint Powers Authority (JPA) Pools Yes N/A None None
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
58 NOTE 2: CASH AND INVESTMENTS (Continued)
Interest Rate Risk (Continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating from S&P or Moody’s Rating where applicable as of fiscal year-end for each investment type. 12 Months 13-24 25-60 More than
Investment Types or Less Months Months 60 Months Total
Investments held by the City:
U.S. Treasury Notes 735,322 $ 6,889,561 $ 7,588,631 $ - $ 15,213,514 $ Municipal Notes - - 116,026 - 116,026
Corporate Notes 271,349 3,109,581 8,338,368 - 11,719,298 Foreign Notes 390,761 280,805 - - 671,566
LAIF 17,026,961 - - - 17,026,961
Money Market Mutual Funds 49,262 - - - 49,262
Total 18,473,655 $ 10,279,947 $ 16,043,025 $ - $ 44,796,627 $ Remaining Maturity (in Months)
Minimum
Legal Total as of More than Not
Investment Types Rating June 30, 2025 AAA AA+ Other* Rated Exempt Investments held by the City:
U.S. Treasury Notes None 15,213,514 $ - $ - $ - $ - $ 15,213,514 $ Municipal Notes A 116,026 116,026 - -
Corporate Notes A 11,719,298 3,890,518 137,297 5,974,198 1,717,285 - Foreign Notes A 671,566 - 671,566 - - -
LAIF None 17,026,961 - - - 17,026,961 -
Money Market Mutual Funds A 49,262 - - - 49,262 -
Total 44,796,627 $ 3,890,518 $ 808,863 $ 6,090,224 $ 18,793,508 $ 15,213,514 $ Ratings as of Fiscal-Year End
*Other Ratings AA AA- A+ A A- Total
Corporate Notes 182,910 $ 555,463 $ 1,728,428 $ 1,436,367 $ 2,071,030 $ 5,974,198 $ Municipal Notes 116,026 - - - - 116,026
Total 298,936 $ 555,463 $ 1,728,428 $ 1,436,367 $ 2,071,030 $ 6,090,224 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
59 NOTE 2: CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There were no investments in any one issuer (other than U.S. treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.
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 possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.
The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2025, the City’s deposits (bank balances) were insured by the Federal Deposit Insurance Corporation or collateralized as required under California Law.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code 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. The balance available for withdrawal is based on the accounting records maintained by LAIF. LAIF is not rated.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. These principles recognize a three-tiered fair value hierarchy.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 are significant unobservable inputs.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
60 NOTE 2: CASH AND INVESTMENTS (Continued)
Fair Value Measurement (Continued)
NOTE 3: DUE FROM SUCCESSOR AGENCY
At June 30, 2025, long-term amounts due from the Successor Agency are as follows:
A. On October 20, 1999, the City authorized a $4,933,000 loan to the former CDC for the purpose of assisting the CDC in the construction of a senior citizens affordable rental housing project. As more fully explained in Note 17, all redevelopment agencies in the state of California were dissolved in fiscal year 2011-12, and all assets and liabilities of the former CDC were transferred to the Successor Agency PrivatePurpose Trust Fund, including this loan. The City expects to receive payments from the Successor Agency’s residual property tax revenue, with full payment expected by fiscal year 2032-33. The outstanding balance as of June 30, 2025, is $6,549,801.
Since 20% of all loan repayments are required to go toward affordable housing, 20% of the loan balance including accrued interest is reported in the Housing Special Revenue Fund. The remainder of the loan balance including accrued interest is reported in the Capital Outlay Reserve Capital Projects Fund (as assigned by City Council for the civic center rehabilitation reserve (see Note 15), and the Water and Sewer Funds.
NOTE 4: LEASES RECEIVABLE
The City has 2 cell tower leases and 1 building lease in place as of June 30, 2025. Revenue recognition is in accordance with GASB Statement No. 87. The City recognized $89,528 in lease revenue during the fiscal year ended June 30, 2025. Leases receivable at June 30, 2025 were $1,426,798. Summarized information for each lease is as follows:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Investments held by the City:
U.S. Treasury Notes - $ 15,213,514 $ - $ 15,213,514 $
Municipal Notes - 116,026 - 116,026
Corporate Notes - 11,719,298 - 11,719,298
Foreign Notes - 671,566 - 671,566
Total Leveled Investments - $ 27,720,404 $ - $ 27,720,404 LAIF* 17,026,961
Money Market Mutual Funds* 49,262
Total Investment Portfolio 44,796,627 $
*Not subject to fair value measurement hierarchy
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
61 NOTE 4: LEASES RECEIVABLE (Continued)
American Cell Tower Lease
In May 1996, the City entered into a lease with American Tower to allow a portion of the City’s property to be utilized for a cellular tower. The original lease term was for 5 years and includes five additional optional 5-year terms. If all options to extend were utilized the original lease would end in 2026. The City and American Tower signed a lease amendment in May 2018 for five additional 5-year terms. If all extensions are utilized the lease would end in May 2051. Monthly rent increases annually by 3%. Options to renew are automatically exercised unless the lessee notifies the City in writing prior to any commencement period of an option. Rent for the fiscal year ended June 30, 2025, totaled $30,252.
Crown Castle Cell Tower Lease
In May 1998, the City entered into a lease with Crown Castle to allow a portion of the City’s property to be utilized for a cellular tower. The original lease term was for 5 years and includes five additional optional 5-year terms. The lease automatically renews on each renewal date unless the lessee notifies the City in writing not to extend at least 90 days prior to the expiration of the current lease term. If all options to extend are utilized the lease would end in May 2028. Monthly rent increases annually by 3%. Rent for the fiscal year ended June 30, 2025, totaled $37,783.
Elite Taekwondo Building Lease
In February 2015, the City entered into a lease with Elite Taekwondo Center Inc. to rent real property. The City and the lessee have entered into 5 lease amendments to the original lease. The 5th amendment set the monthly rent starting December 2024 at $6,000 a month with an annual increase every December of 3% per month. The lease ends in December 2029. Rent for the fiscal year ended June 30, 2025, totaled $36,000.
At fiscal year-end, the future minimum lease payments due to the City are as follows:
Fiscal Present
Year Ending Value Total
June 30, Lease Amortization Payments
2026 88,187 $ 57,072 $ 145,259 $
2027 96,072 53,544 149,616
2028 83,223 49,702 132,925
2029 68,555 46,373 114,928
2030 74,745 43,630 118,375
2031-2035 431,096 167,848 598,944
2036-2040 120,766 108,232 228,998
2041-2045 186,350 79,122 265,472
2046-2050 272,421 35,334 307,755
2051-2052 5,383 215 5,598
Totals 1,426,798 $ 641,072 $ 2,067,870 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
62 NOTE 5: LOANS RECEIVABLE
Loans receivable consists of the following at June 30, 2025:
Rental Housing Project Loan
During the fiscal year ended June 30, 2001, the former CDC loaned $4,933,000 to a developer for the construction of a senior citizens affordable rental housing project. Interest on the loan accrues at a rate equal to the rate of return on City investments in LAIF plus 2.375%. The senior housing operator makes monthly payments to the City based on its operating income. During the fiscal year, the Housing Special Revenue Fund accrued $165,475 in interest and received $552,289 from the operator. The balance of this loan at June 30, 2025 was $2,239,989.
Housing Loans
The former CDC provided second mortgages of $5,000 for the Denni Street Affordable Housing project.
These mortgages had no payment for a period of 10 years from the date of the original buyer’s purchase.
The loans accrue a 3% simple interest until it is repaid in full. There were a total of 62 initial loans for the Denni Street Affordable Housing project. The former CDC accepted full payment of some loans on or after the 10-year anniversary date. These loans were transferred from the Successor Agency to the Housing fund during the 2011-12 fiscal year as a result of the dissolution of the former CDC. As of June 30, 2025, there were five remaining loans outstanding with a total balance of $11,369.
Computer Loan Program
Employee computer loan programs have been used by employers in all fields to increase computer literacy amongst employees and, thereby, improve the productivity of the workforce. They generally offer no- or low-interest loans that are provided by the employer to purchase qualifying computers and accessories. The loans are repaid over time through payroll deductions. If employees separate prior to repayment of the loan, the balance is deducted from the final paycheck. The balance of these loans at June 30, 2025 was $1,788.
Balances at Balances at
June 30, 2024 Additions Deletions June 30, 2025
Loan receivable - Rental Housing Project 2,628,007 $ 164,271 $ (552,289) $ 2,239,989 $ Loan receivable - Housing Loans 11,369 - - 11,369
Computer Loan Program 1,643 1,382 (1,237) 1,788
Total governmental activities –
long–term liabilities 2,641,019 $ 165,653 $ (553,526) $ 2,253,146 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
63 NOTE 6: CAPITAL ASSETS
A summary of capital asset activity for the fiscal year ended June 30, 2025, is as follows:
Balances at Balances at
June 30, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:
Land 2,940,392 $ - $ - $ - $ 2,940,392 $
Land rights related to streets 5,104,472 - - - 5,104,472 Construction in progress 659,707 2,947,512 (59,620) (165,329) 3,382,270 Total capital assets, not being depreciated 8,704,571 2,947,512 (59,620) (165,329) 11,427,134 Capital assets, being depreciated:
Buildings and improvements 10,412,155 343,132 (8,195) 165,329 10,912,421 Equipment 3,638,160 94,033 (144,283) - 3,587,910
Vehicles 2,301,982 293,206 (324,113) - 2,271,075
Furniture and fixtures 128,458 11,334 - - 139,792
Infrastructure - Street network 11,133,099 - - - 11,133,099 Infrastructure - Storm drains 676,184 - - - 676,184
Total capital assets, being depreciated 28,290,038 741,705 (476,591) 165,329 28,720,481 Less accumulated depreciation for:
Buildings and improvements (4,619,168) (244,171) 8,195 - (4,855,144) Equipment (1,916,291) (253,002) 138,708 - (2,030,585)
Vehicles (1,714,218) (136,824) 324,113 - (1,526,929)
Furniture and fixtures (114,634) (3,166) - - (117,800)
Infrastructure - Street network (7,955,807) (167,813) - - (8,123,620) Infrastructure - Storm drains (469,742) (9,016) - - (478,758) Total accumulated depreciation (16,789,860) (813,992) 471,016 - (17,132,836) Total capital assets, being depreciated, net 11,500,178 (72,287) (5,575) 165,329 11,587,645 Capital assets, being amortized:
Intangible right-to-use 349,301 - - - 349,301
Total capital assets, being amortized 349,301 - - - 349,301 Less accumulated amortization for:
Intangible right-to-use (131,033) (117,003) - - (248,036) Total accumulated amortization (131,033) (117,003) - - (248,036) Total capital assets, being amortized, net 218,268 (117,003) - - 101,265 Governmental activities capital assets, net 20,423,017 $ 2,758,222 $ (65,195) $ - $ 23,116,044 $ Governmental Activities
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
64 NOTE 6: CAPITAL ASSETS (Continued)
Depreciation and amortization expense was charged to functions for the fiscal year ended June 30, 2025, as follows:
A summary of capital asset activity for the fiscal year ended June 30, 2025, is as follows:
Governmental Activities:
General government 282,749 $
Public safety 177,037
Public works 272,218
Recreation 190,278
Community Development 8,713
Total depreciation and amortization expense- governmental activities 930,995 $ Balances at Balances at
June 30, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:
Land 754,000 $ - $ - $ - $ 754,000 $
Total capital assets, not being depreciated 754,000 - - - 754,000 Capital assets, being depreciated:
Buildings and improvements 7,839,662 - - - 7,839,662
Vehicles 15,118 - - - 15,118
Machinery and equipment 4,557,536 298,293 (93,511) - 4,762,318 Water system and other improvements 3,008,913 - - - 3,008,913 Sewer system and other improvements 3,211,542 - - - 3,211,542 Total capital assets, being depreciated 18,632,771 298,293 (93,511) - 18,837,553 Less accumulated depreciation for:
Buildings and improvements (6,951,603) (39,811) - - (6,991,414) Vehicles (15,118) - - - (15,118)
Machinery and equipment (3,132,761) (103,877) 59,196 - (3,177,442) Water system and other improvements (2,030,207) (40,124) - - (2,070,331) Sewer system and other improvements (2,266,644) (42,802) - - (2,309,446) Total accumulated depreciation ( (226,614) 14,396,333) 59,196 - (14,563,751) Total capital assets, being depreciated, net 4,236,438 71,679 (34,315) - 4,273,802 Business-type activities capital assets, net 4,990,438 $ 71,679 $ (34,315) $ - $ 5,027,802 $ Business-Type Activities
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
65 NOTE 6: CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions for the fiscal year ended June 30, 2025, as follows:
NOTE 7: LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the fiscal year ended June 30, 2025, is as follows:
Compensated absences are generally liquidated by the General Fund.
Debt service requirements on long-term debt at June 30, 2025, are as follows:
Business-Type Activities:
Water 183,812 $
Sewer 42,802
Total depreciation expense- business-type activities 226,614 $ Balance Balance Due Within
Governmental activities June 30, 2024 Additions Deletions June 30, 2025 One Year Direct Borrowings:
Enterprise Finance Purchase F150 26,445 $ - $ (7,315) $ 19,130 $ 8,000 $ Enterprise Financed Purchase 2 F150s 48,389 - (10,962) 37,427 12,307 Enterprise Financed Purchase 3 F350s 174,187 - (23,214) 150,973 27,828 Enterprise Financed Purchase F450 - 68,683 (9,141) 59,542 8,635 Enterprise Financed Purchase Nissan 26,430 - (4,368) 22,062 5,118 Total Financed Purchase Obligations 275,451 68,683 (55,000) 289,134 61,888 Other Long Term Liabilities
SBITAs 218,268 - (117,005) 101,263 101,263
Compensated Absences 569,345 814,790 (654,219) 729,916 557,874 $ 883,473 1,063,064 $ (826,224) $ 1,120,313 $ 721,025 $ Fiscal Year
Ending June 30, Principal Interest Total
2026 61,888 $ 29,620 $ 91,508 $
2027 85,019 18,561 103,580
2028 60,413 11,916 72,329
2029 67,750 3,097 70,847
2030 14,064 2,839 16,903
$ 66,033 289,134 $ 355,167 $
Fiscal Year
Ending June 30, Principal Interest Total
2026 101,263 $ 5,063 $ 106,326 $
$ 5,063 101,263 $ 106,326 $
Enterprise Finance Purchases
SBITAs
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
66 NOTE 7: LONG-TERM LIABILITIES (Continued)
Enterprise Finance Purchase F150
In October 2021, the City entered into a finance purchase agreement for 60 months with Enterprise to acquire one Ford F150 truck for a total cost of $57,871. The City paid $15,136 at the start of the lease.
Monthly payments are $815 through the maturity of the agreement in October 2026. The outstanding balance at June 30, 2025, was $19,130.
Enterprise Finance Purchase 2 F150s
In May 2022, the City entered into two finance purchase agreements for 60 months with Enterprise to acquire two Ford F-150 trucks for a total cost of $67,765. Monthly payments are $1,352 through the maturity of the agreements in May 2027. The outstanding balance at June 30, 2025 was $37,427.
Enterprise Finance Purchase Nissan
In June 2023, the City entered into a finance purchase agreement for 58 months with Enterprise to acquire a Nissan Rogue for a total cost of $30,835. Monthly payments are $658 through the maturity of the agreement at the end of March 2028. The outstanding balance at June 30, 2025 was $22,062.
Enterprise Finance Purchase 3 F350s
During the fiscal year ended June 30, 2024, the City entered into three finance purchase agreements for 60 months with Enterprise to acquire three Ford F-350 trucks for a total cost of $185,976. Monthly payments range from $1,220 to $ 1,376 through the maturity of the agreements during the fiscal year ended June 30, 2029. The total outstanding balance at June 30, 2025 was $150,973.
Enterprise Finance Purchase F450
In July 2024, the City entered into a finance purchase agreement for 60 months with Enterprise to acquire one Ford F450 truck for a total cost of $68,683. The City paid $9,141 at the start of the lease. Monthly payments are $884 through the maturity of the agreement in July 2030. The outstanding balance at June 30, 2025, was $59,542.
Subscription Based Information Technology Arrangements
As of June 30, 2025, the City has an intangible right-to-use asset amounting to $349,301 with accumulated amortization of $248,038. The subscription asset is offset with a subscription liability as discussed in Note
1. A summary of subscription-based technology arrangements for the fiscal year ended June 30, 2025, are as follows:
Balance Balance Due Within
Subscription Liabilities June 30, 2024 Additions Deletions June 30, 2025 One Year ClearGov 25,385 $ - $ (25,385) $ - $ - $
CivicPlus 32,198 - (15,294) 16,904 16,904
OpenGov Cartegraph 51,847 - (24,628) 27,219 27,219
OpenGov Permit 108,838 - (51,698) 57,140 57,140
$ - 218,268 $ (117,005) $ 101,263 $ 101,263 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
67 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS)
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, which are cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website.
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 to 62 with statutorily reduced benefits. For employees hired into a plan with the
2.7% at 55 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for non-duty disability benefits after five 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. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
Benefits Provided
The Plan’s provisions and benefits in effect for the fiscal year ended June 30, 2025, are summarized as follows:
Tier I Tier II Tier III- PEPRA
Hire date
June 30, 2011
and Prior
On or after
July 1, 2011
On or After
January 1, 2013
Benefit formula 3% @ 50 2% @ 55 2% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 55 57
Monthly benefits, as a % of eligible compensation 3.00% 2.00% 2.00% Required employee contribution rates 8.99% 6.99% 11.75% Required employer normal cost contribution rates 29.30% 18.09% 11.72% Unfunded actuarial liability payment 1,167,110 $ 2,063 $ 15,376 $ City Safety Plan
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
68 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) A. General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on 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 fiscal year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City 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 contributions requirements are classified as plan member contributions. For the fiscal year ended June 30, 2025, the City made contributions totaling $2,580,239 ($1,000,155 Miscellaneous plan and $1,580,084 Safety plan).
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024.
The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
Tier I Tier II Tier III- PEPRA
Hire date
June 30, 2011
and Prior
On or after
July 1, 2011
On or After
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 60 62
Monthly benefits, as a % of eligible compensation 2.70% 2.00% 2.00% Required employee contribution rates 7.96% 6.93% 7.75%
Required employer normal cost contribution rates 16.02% 10.15% 7.87% Unfunded actuarial liability payment $ 2,922 736,697 $ 3,200 $ City Miscellaneous Plan
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
69 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:
The City’s proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2023 and 2024, was as follows:
For the fiscal year ended June 30, 2025, the City recognized pension expense of $ 2,215,905 ($856,780 for the Miscellaneous Plan and $1,359,125 for the Safety Plan). At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Proportionate Share
of Net Pension
Liability
Miscellaneous 8,828,499 $
Safety 14,421,511
Total Net Pension Liability 23,250,010 $
Miscellaneous Safety
Proportion - June 30, 2023 0.17945% 0.19629%
Proportion - June 30, 2024 0.18253% 0.19780%
Changes - Increase (Decrease) 0.00308% 0.00151%
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 733,520 $ - $ Changes in assumptions 226,911 -
Net differences between projected and actual earnings on plan investments 508,246 -
Differences between employer's contributions and the
employer's proprtionate share of contributions 221,944 568,447 Change in employer's proportion -
Pension contributions subsequent to measurement date 1,000,155 - Total 2,690,776 $ 568,447 $
Miscellaneous
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
70 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Amounts reported as deferred outflows of resources related to pension contributions subsequent to the measurement date for the Miscellaneous and Safety Plans, respectively, will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026.
Other amounts reported as deferred outflows/inflows of resources related to pensions will be recognized as pension expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 1,138,657 $ - $ Changes in assumptions 355,316 -
Net differences between projected and actual earnings on plan investments 697,070 -
Differences between employer's contributions and the
employer's proportionate share of contributions - 391,886 Change in employer's proportion 128,496 -
Pension contributions subsequent to measurement date 1,580,084 - Total 3,899,623 $ 391,886 $
Safety
Fiscal Year Ended
June 30 Miscellaneous Safety
2026 378,163 $ 723,913 $
2027 972,794 1,495,003
2028 (54,612) (52,756)
2029 (174,171) (238,507)
Total 1,122,174 $ 1,927,653 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
71 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Methods and Assumptions
The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial calculation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The June 30, 2024 (measurement date) total pension liability was based on the following actuarial methods and assumptions:
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry-Age Entry-Age
Normal Normal
Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation Rate 2.30% 2.30%
Salary Increases (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS'-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS' website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Plan on purchasing power applies, 2.30% thereafter.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
72 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Long-Term Expected Rate of Return
In determining the long-term expected rate of return, CalPERS took into account both long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, 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.
The expected real rates of return by asset class are as followed:
1 – An expected inflation of 2.30% used for this period. 2 – Figures are based on the 2021-22 asset liability management study.
Assumed Asset Real Return
Asset class Allocation Years 1 - 10 1 2
Global equity - cap weighted 30.00% 4.54%
Global equity non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
73 NOTE 8: DEFINED BENEFIT PENSION PLANS (PERS) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS’ financial reports.
C. Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amount of contributions to the pension plans required for the fiscal year ended June 30, 2025.
NOTE 9: PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
PARS is a defined contribution pension plan. On April 18, 2000, the City Council authorized the City to become a member of the Public Agency Retirement System (PARS) trust, effective July 1, 2000, for its eligible part-time, seasonal, and temporary employees. The City Manager is the Plan Administrator and has the authority for establishing or amending the plan’s provision. This is an alternative retirement system for those not covered by a CalPERS retirement plan. Under PARS, the City and the employee each contribute
3.75% of compensation for a total annual contribution of 7.5%. For the fiscal year ended June 30, 2025, the amount contributed by the City was $11,591. Employees are fully vested at all times. The City has entered into an agreement with Phase II Systems to provide trust administrator services.
Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability 14,253,811 $ 21,696,785 $ $ 35,950,596 Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability 8,828,499 $ 14,421,511 $ $ 23,250,010 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability (Asset) 4,362,669 $ 8,471,360 $ 12,834,029 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
74 NOTE 10: OTHER POSTEMPLOYMENT RETIREMENT BENEFITS
Plan Description
The City provides postemployment benefits to retired employees in the form of a contribution toward their medical premiums under the CalPERS’ health plan, which provides medical insurance benefits to eligible retirees in accordance with various labor agreements. The City participates in the California Employer’s Retiree Benefit Trust Program (CERBT). CERBT is administered by CalPERS and is an agent multipleemployer plan. The minimum required retiree contributions are established by CalPERS. Survivor benefits are not provided. Copies of the CalPERS’ annual financial report may be obtained from the CalPERS’ Executive Office – 400 P Street, Sacramento, CA 95814.
Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled), with five years of service and are eligible for a defined benefit pension plan (PERS) pension and are enrolled in a CalPERS retiree health plan. The benefits are available only to employees who retire from the City.
Eligibility
As of measurement date June 30, 2024, the following current and former employees were covered by the benefit terms under the Plan:
Contributions
The benefit provisions and contribution requirements of plan members and the City are established and may be amended through agreements and memorandums of understanding between the City, its employees, and unions representing the City’s employees. Administrative costs of OPEB plan are financed through investment earnings. The contribution required to be made under City Council and labor agreements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). For the fiscal year ended June 30, 2025, the City contributed $236,902 ($68,202 to the CERBT Trust, $133,802 for current premiums, $898 for administrative costs, and the estimated implied subsidy was $34,000) to the OPEB plan. The contributions to the OPEB plan are generally made from the General Fund.
The CERBT is a GASB Statement Number 75 compliant trust in that the contributions are irrevocable, the plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms, and the OPEB plan assets are legally protected from the creditors of the City, OPEB plan administrator, and plan members. The CERBT costs are shared with other members of the CERBT.
Inactive employees or beneficiaries currently receiving benefits 31 Inactive employees entitled to, but not yet receiving benefits 28 Active employees 55
Total 114
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
75 NOTE 10: OTHER POSTEMPLOYMENT RETIREMENT BENEFITS (Continued) Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024 and was determined by an actuarial valuation as of June 30, 2023. A summary of the principal assumptions and methods used to determine the total OPEB liability are shown below.
Actuarial Assumptions
The total OPEB liability actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
The long-term expected rate of return is an estimate and is presented as geometric means developed over a 20-year period. The long-term expected real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of the June 30, 2024, measurement date, are summarized below:
Actuarial Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Actuarial Assumptions
Discount Rate 6.25%
Long-Term Expected Rate of 6.25% (same as discount rate- City Return on Investments projected to pass GASB 75 asset test) Inflation 2.50% annually
Mortality, Retirement, Disability, Termination CalPERS' 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational Scale MP-2021
Salary Increases Aggregate - 2.75% annually
Merit - CalPERS' 2000-2019 Experience
Study
Medical Trend Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare - 6.25% for 2025, decreasing to
an ultimate rate of 3.45% in 2076
PEMHCA Minimum Increases 3.50% annually
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
76 NOTE 10: OTHER POSTEMPLOYMENT RETIREMENT BENEFITS (Continued) Actuarial Assumptions (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the Net OPEB Liability (Asset)
The changes in net OPEB liability are as follows:
Expected
Target Real Rate
Assets Class Allocation of Return
Global Equity 49% 4.56%
Fixed Income 23% 1.56%
Treasury Inflation-Protected Securities 5% -0.08%
Commodities 3% 1.22%
Real Estate Investment Trusts 20% 4.06%
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2024
(6/30/23 measurement date) 2,478,534 $ 3,158,654 $ (680,120) $ Changes for the fiscal year
Service Cost 69,427 - 69,427
Interest 154,003 - 154,003
Actual vs. expected experience - - -
Assumption changes - - -
Contributions - employer - 236,902 (236,902)
Net investment income - 348,607 (348,607)
Benefit Payments (167,802) (167,802) -
Administrative Expense - (1,931) 1,931
Net Change 55,628 415,776 (360,148)
Balance at June 30, 2025
(6/30/24 measurement date) 2,534,162 $ 3,574,430 $ (1,040,268) $ Changes in Net OPEB Liability as of June 30, 2025
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
77 NOTE 10: OTHER POSTEMPLOYMENT RETIREMENT BENEFITS (Continued) A. Change of Assumptions
The discount rate was updated based on newer capital market assumptions. There were decreases in inflation, discount rate, medical trend, and salary increases.
B. Change of Benefit Terms
There were no changes of benefit terms.
C. Subsequent Events
There were no subsequent events that would materially affect the results presented in the disclosure.
D. Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate The following presents the net OPEB liability (asset) of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ending June 30, 2024:
E. Sensitivity of the Net OPEB Liability (Asset) to Changes in Medical Trend Rates The following presents the net OPEB liability (asset) of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period ending June 30, 2024:
F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $236,902. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
1% Decrease Current Trend 1% Increase
Net OPEB Liability (Asset) (1,186,445) $ (1,040,268) $ (859,611) $ Current
1% Decrease Discount Rate 1% Increase
5.25% 6.25% 7.25%
Net OPEB Liability (Asset) (779,901) $ (1,040,268) $ (1,262,104) $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
78 NOTE 10: OTHER POSTEMPLOYMENT RETIREMENT BENEFITS (Continued) F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) The differences between projected and actual earnings on plan investments is amortized over five years. $159,812 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred inflows and outflows of resources will be recognized in the OPEB expense as follows:
G. Payable to the OPEB Plan
At June 30, 2025, the City had no outstanding amount of contributions to the OPEB plan required for the fiscal year ended June 30, 2025.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience 5,199 $ 403,536 $
Change in assumptions 26,448 7,042
Net difference between projected
and actual earnings on investments 22,222 -
Employer contributions made
subsequent to the measurement date 159,812 -
Total $ 410,578 213,681 $
For the Recognized Net
Fiscal Year Deferred Outflows
Ending June 30, (Inflows) of Resources
2026 (92,764) $
2027 286
2028 (121,088)
2029 (98,780)
2030 (44,363)
Thereafter -
Total $ (356,709)
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
79 NOTE 11: LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROTECTION A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of La Palma is a member of the California Joint Powers Insurance Authority (JPIA or Authority).
The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchases excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors (Board). The Board operates through a nine-member Executive Committee.
B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history relative to other members of the risk-sharing pool.
Primary Liability Program:
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second layers.
The overall coverage limit for each member including, all layers of coverage, is $50 million per occurrence.
Subsidence losses have $50 million per occurrence limit. Subsidence losses also have a $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/coverage/risk-sharing-pools/.
Primary Worker’s Compensation Program:
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess from
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
80 NOTE 11: LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROTECTION (Continued)
B. Primary Self-Insurance Programs of the Authority (Continued) $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2024-25 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
C. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City’s property currently has all-risk property insurance protection in the amount of $28,840,928. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. The City’s property currently has earthquake protection in the amount of $23,229,786. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceed pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in FY 2024-25.
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
81 NOTE 12: LITIGATION
The City is presently involved in other matters of litigation that have arisen in the normal course of the City’s businesses. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to have a material adverse financial impact on the City.
Additionally, City management believes that sufficient reserves are available to the City to cover any potential losses, should an unfavorable outcome materialize.
NOTE 13: JOINTLY GOVERNED ENTITIES- ORANGE COUNTY FIRE AUTHORITY The City entered into a joint powers agreement with 17 other cities and the County of Orange in January 1995, and subsequently amended on September 23, 1999, to create the Orange County Fire Authority (the Fire Authority). Since 1995, other cities within the County have also joined the Fire Authority to bring the total members in the Fire Authority to 22. The purpose of the Fire Authority is to provide for mutual fire protection, prevention, and suppression services, and related and incidental services including, but not limited to, emergency medical and transport services and hazardous materials regulation, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995.
The Fire Authority’s governing board consists of one representative from each city and two from the County.
The operations of the Fire Authority are funded with structural fire fees collected by the County through either the property tax roll or with cash contributions based on the Fire Authority’s annual budget. The County pays all structural fire fees it collects to the Fire Authority.
No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2025. Upon dissolution of the Fire Authority, all surplus money and property of the Fire Authority will be conveyed or distributed to each member in proportion to all funds provided to the Fire Authority by that member or by the County on behalf of that member during its membership. Separate audited financial statements may be obtained from the Fire Authority at 1 Fire Authority Road, Irvine, CA 92602.
NOTE 14: INTERFUND
Interfund transfers for the fiscal year ended June 30, 2025, are as follows:
Purpose of Interfund Transfers
a. The Water and Sewer funds transferred $682,900 and $100,000, respectively, to the General Fund to fund various administrative costs.
b. The General Fund transferred $1,400,000 to the Capital Outlay Reserve Fund to fund various capital projects.
Transfers In Transfers Out Amount
General Fund Water (a) 682,900 $
General Fund Sewer (a) 100,000
Capital Outlay Reserve General Fund (b) 1,400,000
Total Interfund Transfers 2,182,900 $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
82 NOTE 14: INTERFUND (CONTINUED)
Due to/from
Due to/from between the General Fund North OC Public Safety Task Force Grant funds total $21,729 and are related to short term cash borrowing and will be rectified within 30 years.
NOTE 15: FUND BALANCES
Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned. A detailed schedule of fund balances at June 30, 2025 is as follows:
Capital Nonmajor Total
General Housing Outlay Reserve Governmental Governmental Fund Fund Fund Funds Funds
Nonspendable
Loans receivable 1,788 $ - $ - $ - $ 1,788 $
Prepaid items 52,100 - - - 52,100
Total nonspendable fund balances 53,888 - - - 53,888
Restricted for:
Public information - - - 429,840 429,840
Capital projects - - - 2,278,363 2,278,363
Public safety - - - 971,156 971,156
Affordable housing - 4,564,340 - - 4,564,340
Total restricted fund balances - 4,564,340 - 3,679,359 8,243,699 Committed for:
Economic uncertainty 10,067,700 - - - 10,067,700
Economic development 186,282 - - - 186,282
Total committed fund balances 10,253,982 - - - 10,253,982 Assigned for:
Cash flow 1,500,000 - - - 1,500,000
Capital projects - - 3,210,720 - 3,210,720
Civic center - - 4,100,716 - 4,100,716
Total assigned fund balances 1,500,000 - 7,311,436 - 8,811,436 Unassigned 7,884,537 - - - 7,884,537
Total fund balances 19,692,407 $ 4,564,340 $ 7,311,436 $ 3,679,359 $ 35,247,542 $ Major Governmental Funds
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
83 NOTE 16: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABLITY
The budget of the City’s capital projects are primarily “long-term” budgets, which emphasize major programs and capital outlay plans extending over a number of fiscal periods. Therefore, no budget-to-actual schedules are presented for the Capital Projects Funds.
NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS AND LIABILITIES FOR FORMER
REDEVELOPMENT AGENCY
A. General Discussion
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. This action impacted the reporting entity of the City that previously had reported a redevelopment agency, the Community Development Commission, within the reporting entity of the City as a blended component unit. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution 2012-09. Subject to the control of an Oversight Board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
On April 18, 2013 the City received a Finding of Completion from the State of California Department of Finance (DOF). The Finding of Completion allows the Successor Agency Oversight Board to approve the advances from the City to the former CDC (see Note 3) on the Recognized Obligation Payment Schedule (ROPS) beginning on July 1, 2014. The Finding of Completion also allows the Successor Agency to utilize proceeds derived from bonds issued prior to January 1, 2011, in a manner consistent with the original bond covenants, per HSC Section 34191.4(c). The Oversight Board has approved the advances on all ROPS submitted to the Department of Finance.
B. Successor Agency Long-Term Debt
A summary of changes in long-term debt held by the Successor Agency of the City for the fiscal year ended June 30, 2025, is as follows:
Advances from the City of La Palma
The former redevelopment agency (CDC) borrowed funds from the City (See Note 3) for the purpose of assisting a third-party business operation to rehabilitate its property, per the scope and guidelines of redevelopment law in force at the time of the loan (1999) and to make a loan to a developer for the construction of a senior citizens affordable rental housing project (2001). The annual payments to the City Balance Balance Due Within
Governmental activities June 30, 2024 Additions Deletions June 30, 2025 One Year Other Long-Term Liabilities:
Advances from the City of
La Palma 7,150,363 $ - $ (600,562) $ 6,549,801 $ - $
$ - 7,150,363 $ (600,562) $ 6,549,801 $ - $
CITY OF LA PALMA
Notes to Basic Financial Statements
June 30, 2025
84 NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS AND LIABILITIES FOR FORMER REDEVELOPMENT AGENCY (Continued)
B. Successor Agency Long-Term Debt (Continued)
on the advances is limited to 50% of the residual earnings of the Successor Agency after all other enforceable obligations and payments to affected taxing agencies have been paid. The amount of interest that can be charged is 3% per annum in accordance with the requirements of California Health & Safety Code Section 34191.4(b)(3). The balance of the advance reported in the Redevelopment Successor Agency PrivatePurpose Trust Fund at June 30, 2025 was $6,549,801.
NOTE 18: COMMITMENTS
A. Operating Covenant Agreement
The City entered into an Operating Covenant Agreement in February 2013 with a business enterprise whereby the City shall rebate to the business enterprise a portion of the sales tax received by the City from the sale of the business enterprise’s products within the City’s limits. The term of the Operating Covenant shall be for 20 years and shall automatically renew for an additional 10 years thereafter unless the business enterprise provides written notice not less than 90 days before the expiration date. The business enterprise may terminate the agreement at any time upon 180 days with prior written notice to the City. Rebate payments to the business enterprise shall be made in quarterly installments by the City after receipt of sales tax revenue. Disclosure of the rebate amount is statutorily prohibited.
B. North Service Planning Area
The North Service Planning Area (North SPA) is a regional subsection of the County of Orange’s Continuum of Care system to address homelessness and is comprised of the cities of Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Placentia, Stanton, Villa Park, and Yorba Linda. The concept of the SPA allows for greater regional coordination while reducing the span of control regarding working with the County of Orange and other stakeholders. The North SPA completed both low barrier homeless shelters during fiscal year 2019-20. The shelters are located in Buena Park and Placentia.
The Memorandum of Understanding assigned funding responsibilities to the City of La Palma for 1.98% of the construction cost and 2.28% of the operating costs borne by the North SPA. The construction costs were primarily funded through State Homeless Emergency Aid Program grants, and the City paid $23,652 in FY 19-20 for the City’s share of the construction costs. Most of the operating costs (96.3% of the operating costs) will be paid by State SB2 funds and the County of Orange, and the North SPA members pay the remaining 3.7% of the operating costs. The City of La Palma pays 2.28% of the 3.7% of operating costs.
The City’s FY 2024-25 share of operating costs was $141,729.
85 REQUIRED SUPPLEMENTARY INFORMATION
86 THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LA PALMA
Required Supplementary Information
Fiscal Year Ended June 30, 2025
87 General Fund
The general fund has been classified as a major fund and is used to account for all of the general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City. The general fund is used to account for all resources not required to be account for in another fund. The budget to actual comparison for this fund has been presented in the accompanying financial statements as required supplementary information.
Special Revenue Funds
Housing Fund – This fund is used to account for the restricted housing assets of the City. Revenues are from housing activities and are restricted for housing purposes. The budget to actual comparison for this fund has been presented in the accompanying financial statements as required supplementary information.
City of La Palma
Schedule of The Proportionate Share of The Net Pension Liability CalPERS Miscellaneous Pension Plan
Last Ten Years
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Measurement Period 06/30/24 06/30/23 06/30/22 06/30/21
Plan's Proportion of the Net Pension Liability 0.18253% 0.17945% 0.17776% 0.15361% Plan's Proportion Share of the Net Pension Liability 8,828,499 $ 8,973,230 $ 8,317,827 $ 2,916,733 $ Plan's Covered Payroll 2,770,224 $ 2,382,233 $ 2,216,206 $ 2,345,721 $ Plan's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 318.69% 376.67% 375.32% 124.34% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 78.04% 77.02% 78.19% 90.49% Plan's Proportionate Share of Aggregate Employer Contributions $ 1,250,465 1,197,653 $ 1,508,072 $ 1,279,001 $ Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expenses.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%
From fiscal year June 30, 2018 to June 30 2019:
Demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and review Actuarial Assumptions December 2017. There were no changes in discount rate.
From fiscal year June 30, 2019 to June 30, 2022:
There were no changes in assumptions.
From fiscal year July 1, 2022 to June 30, 2023:
The discount rate was reduced to 6.90%.
88
06/30/21 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 06/30/14
0.16347% 0.15803% 0.15225% 0.18307% 0.21449% 0.21293% 0.20821% $ 6,328,260 6,895,468 $ 5,737,906 $ 7,216,572 $ 7,451,054 $ 5,841,534 $ 4,425,663 $ $ 2,221,382 2,281,540 $ 2,148,249 $ 2,162,365 $ 2,183,555 $ 2,292,759 $ 2,304,751 $ 302.23% 284.88% 267.10% 333.74% 341.24% 254.78% 192.02%
79.91% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82%
$ 1,099,324 1,225,309 $ 979,451 $ 893,335 $ 757,183 $ 720,130 $ 585,498 $ 89
City of La Palma
Schedule of Pension Contributions - Miscellaneous Cost Sharing Plan CalPERS Miscellaneous Pension Plan
Last Ten Years
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Contractually Required Contribution (Actuarially Determined) 1,003,355 $ 856,780 $ 879,705 $ 795,766 $ Contributions in Relation to the Actuarially Required Contributions (1,003,355) (856,780) (879,705) (795,766) Contribution Deficiency (Excess) $ - - $ - $ - $
Covered Payroll 2,842,155 $ 2,770,224 $ 2,382,233 $ 2,216,206 $ Contributions as a Percentage of Covered Payroll 35.30% 30.93% 36.93% 35.91% Notes to Schedule:
Methods and Assumptions Used to Determine Contribution Rates Actuarial Cost Method Entry age for all periods.
Amortization Cost Method Level percentage of payroll, closed for all periods.
Asset Valuation Method Market Value for all periods except 6/30/15. 15 year Smooth Market Method for 6/30/15.
Inflation 2.75% for 6/30/15, 6/30/16, 6/30/17, 6/30/18, and 6/30/19.
2.625% for 6/30/20.
2.50% for 6/30/21 and 6/30/22. 2.30% for 6/30/23.
Salary Increases Depending on age, service, and type of employment.
Investment Rate of Return Net of pension plan expense, including inflation.
7.50% for 6/30/15, 6/30/16, 6/30/17, 6/30/18.
7.375% for 6/30/19.
7.25% for 6/30/20.
7.00% for 6/30/21 and 6/30/22. 6.90% for 6/30/23.
Retirement Age 50 for all plans with the exception of 52 for the Miscellaneous PEPRA 2%@62.
Mortality Mortality assumptions are based on mortality rates from the most recent CalPERS Experience Study adopted by
the CalPERS Board.
90
06/30/21 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 $ 701,327 759,329 $ 641,146 $ 574,297 $ 550,045 $ 507,201 $ 366,951 $ (759,329) (701,327) (641,146) (1,824,297) (1,800,045) (507,201) (366,951) $ - - $ - $ (1,250,000) $ (1,250,000) $ - $ - $
$ 2,281,540 2,345,721 $ 2,221,382 $ 2,148,249 $ 2,162,365 $ 2,183,555 $ 2,292,759 $
32.37% 30.74% 28.86% 26.73% 25.44% 23.23% 16.00%
91
City of La Palma
Schedule of The Proportionate Share of The Net Pension Liability CalPERS Safety Pension Plan
Last Ten Years
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Measurement Period 06/30/24 06/30/23 06/30/22 06/30/21
Plan's Proportion of the Net Pension Liability 0.19780% 0.19629% 0.19958% 0.18400% Plan's Proportion Share of the Net Pension Liability 14,421,511 $ 14,672,747 $ 13,714,413 $ 6,453,300 $ Plan's Covered Payroll 2,412,455 $ 2,249,142 $ 2,067,409 $ 1,963,800 $ Plan's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 597.79% 652.37% 663.36% 328.61% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 72.92% 72.22% 75.53% 86.61% Plan's Proportionate Share of Aggregate Employer Contributions 1,434,433 $ 1,519,759 $ 2,532,686 $ 2,249,142 $ Notes to Schedule:
Benefit Changes:
There were no changes in benefits
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement is without reduction of pension plan administrative expenses.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%
From fiscal year June 30, 2018 to June 30 2019:
Demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review Actuarial Assumptions December 2017. There were no changes in discount rate.
From fiscal years from June 30, 2019 to June 30, 2022:
There were no changes in assumptions
From fiscal year July 1, 2022 to June 30, 2023:
The discount rate was reduced to 6.90%.
92
06/30/21 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 06/30/14
0.17578% 0.17022% 0.16634% 0.18284% 0.20779% 0.20261% 0.19678% $ 10,625,925 11,711,246 $ 9,760,274 $ 10,924,835 $ 10,761,879 $ 8,348,587 $ 7,058,038 $ $ 1,948,016 1,981,915 $ 1,654,829 $ 1,619,369 $ 1,781,319 $ 1,950,732 $ 2,134,713 $ 590.91% 545.47% 589.81% 674.64% 604.15% 427.97% 330.63%
79.91% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82%
$ 1,551,061 1,841,971 $ 1,462,571 $ 1,102,394 $ 1,009,040 $ 820,164 $ 875,565 $ 93
City of La Palma
Schedule of Pension Contributions - CalPERS Safety Cost Sharing Plan Last Ten Years
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Contractually Required Contribution (Actuarially Determined) 1,576,884 $ 1,359,125 $ 1,367,156 $ 1,258,279 $ Contributions in Relation to the Actuarially Determined Contributions (1,576,884) (1,359,125) (1,367,156) (1,258,279) Contribution Deficiency (Excess) - $ - $ - $ - $
Covered Payroll $ 2,412,455 2,599,512 $ 2,249,142 $ 2,067,409 $ Contributions as a Percentage of Covered Payroll 60.66% 56.34% 60.79% 60.86% Notes to Schedule:
Methods and Assumptions Used to Determine Contribution Rates Actuarial Cost Method Entry age for all periods.
Amortization Cost Method Level percentage of payroll, closed for all periods.
Asset Valuation Method Market Value for all periods except 6/30/15. 15 year Smooth Market Method for 6/30/15.
Inflation 2.75% for 6/30/15, 6/30/16, 6/30/17, 6/30/18, and 6/30/19.
2.625% 6/30/20.
2.50% for 6/30/21 and 6/30/22.
Salary Increases Depending on age, service, and type of employment.
Investment Rate of Return Net of pension plan expense, including inflation.
7.50% for 6/30/15, 6/30/16, 6/30/17, 6/30/18.
7.375% for 6/30/19.
7.25% for 6/30/20.
7.00% for 6/30/21 and 6/30/22. 6.90% for 6/30/23.
Retirement Age 50 for all plans with the exception of 52 for the Miscellaneous PEPRA 2%@62.
Mortality Mortality assumptions are based on mortality rates from the most recent CalPERS Experience Study adopted by the
CalPERS Board.
94
06/30/21 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 $ 1,048,306 1,136,669 $ 910,074 $ 765,691 $ 689,310 $ 685,402 $ 589,871 $ (1,136,669) (1,048,306) (910,074) (2,015,691) (1,939,310) (685,402) (589,871) $ - - $ - $ (1,250,000) $ (1,250,000) $ - $ - $
$ 1,981,915 1,963,800 $ 1,948,016 $ 1,654,829 $ 1,619,369 $ 1,781,319 $ 1,950,732 $
57.88% 52.89% 46.72% 46.27% 42.57% 38.48% 30.24%
95
City of La Palma
Schedule of Changes in The Net OPEB Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Measurement Period 06/30/24 06/30/23 06/30/22 06/30/21
Total OPEB Liability:
Service Cost 69,427 $ 78,560 $ 76,457 $ 84,095 $
Interest on Total OPEB Liability 154,003 176,149 172,385 194,165 Changes in Assumptions - (7,553) - 59,504
Differences Between Expected and Actual Experience - (417,048) - (249,704) Benefit Payments, including refunds and the Implied
Subsidy Benefit Payments (167,802) (182,795) (198,624) (198,974) Net Change in Total OPEB Liability 55,628 (352,687) 50,218 (110,914) Total OPEB Liability - Beginning of Fiscal Year 2,478,534 2,831,221 2,781,003 2,891,917 Total OPEB Liability - End of Fiscal Year (a) 2,534,162 2,478,534 2,831,221 2,781,003 Plan Fiduciary Net Position:
Contributions - Employer 236,902 333,679 507,627 199,781 Net Investment Income 348,607 184,296 (411,687) 631,885 Administrative Expenses (1,931) (1,713) (1,530) (1,677) Benefit Payments,
Including Refunds and the Implied Subsidy Benefit
Payments (167,802) (182,795) (198,624) (198,974)
Net Change in Plan Fiduciary Net Position 415,776 333,467 (104,214) 631,015 Plan Fiduciary Net Position - Beginning of Fiscal Year 3,158,654 2,825,187 2,929,401 2,298,386 Plan Fiduciary Net Position - End of Fiscal Year (b) 3,574,430 3,158,654 2,825,187 2,929,401 Net OPEB Liability (Asset) - Ending (a) - (b) (1,040,268) $ (680,120) $ 6,034 $ (148,398) $ * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. 96
City of La Palma
Schedule of Changes in The Net OPEB Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/21 06/30/20 06/30/19 06/30/18
Measurement Period 06/30/20 06/30/19 06/30/18 06/30/17
Total OPEB Liability:
Service Cost 81,646 $ 78,046 $ 75,773 $ 74,000 $
Interest on Total OPEB Liability 189,360 183,773 180,149 177,000 Changes in Assumptions - (10,449) - -
Differences Between Expected and Actual Experience - 31,179 - - Benefit Payments, including refunds and the Implied
Subsidy Benefit Payments (205,562) (201,169) (207,829) (198,000) Net Change in Total OPEB Liability 65,444 81,380 48,093 53,000 Total OPEB Liability - Beginning of Fiscal Year 2,826,473 2,745,093 2,697,000 2,644,000 Total OPEB Liability - End of Fiscal Year (a) 2,891,917 2,826,473 2,745,093 2,697,000 Plan Fiduciary Net Position:
Contributions - Employer 353,815 374,824 376,687 150,000 Net Investment Income 74,889 110,954 120,339 149,000
Administrative Expenses (1,859) (2,040) (4,663) (2,000) Benefit Payments,
Including Refunds and the Implied Subsidy Benefit
Payments (205,562) (201,169) (207,829) (198,000)
Net Change in Plan Fiduciary Net Position 221,283 282,569 284,534 99,000 Plan Fiduciary Net Position - Beginning of Fiscal Year 2,077,103 1,794,534 1,510,000 1,411,000 Plan Fiduciary Net Position - End of Fiscal Year (b) 2,298,386 2,077,103 1,794,534 1,510,000 Net OPEB Liability (Asset) - Ending (a) - (b) 593,531 $ 749,370 $ 950,559 $ 1,187,000 $ * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. 97
City of La Palma
Schedule of Changes in The Net OPEB Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2024
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Measurement Period 06/30/24 06/30/23 06/30/22 06/30/21
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 141.05% 127.44% 99.79% 105.34%
Covered - Employee Payroll $ 4,621,811 $ 4,559,070 4,283,615$ 5,215,770$ Net OPEB Liability as a Percentage of CoveredEmployee Payroll -22.51% -14.92% 0.14% -2.85% Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
There were no changes in assumptions for measurement periods ended June 30, 2017, 2018, and 2020. For measurement period ended June 30, 2019: Demographic assumptions updated, PEMCHA waived retiree re-election change, and mortality improvement scale updated. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. 98
City of La Palma
Schedule of Changes in The Net OPEB Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2024
Fiscal Year Ended 06/30/21 06/30/20 06/30/19 06/30/18
Measurement Period 06/30/20 06/30/19 06/30/18 06/30/17
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 79.48% 73.49% 65.37% 55.99%
Covered - Employee Payroll $ 4,823,377 4,892,914$ 4,536,000$ 4,482,000$ Net OPEB Liability as a Percentage of CoveredEmployee Payroll 12.31% 15.32% 20.96% 26.48% Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
There were no changes in assumptions for measurement periods ended June 30, 2017, 2018, and 2020. For measurement period ended June 30, 2019: Demographic assumptions updated, PEMCHA waived retiree re-election change, and mortality improvement scale updated. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. 99
City of La Palma
Schedule of Plan Contributions - Other Postemployment Benefit Plan Last Ten Years*
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/25 06/30/24 06/30/23 06/30/22
Actuarially Determined Contribution 1,844 $ 68,202 $ 66,360 $ 156,409 $ Contributions in Relation to the
Actuarially Determined Contributions (159,812) (236,902) (333,679) (507,627) Contribution Deficiency (Excess) (157,968) $ (168,700) $ (267,319) $ (351,218) $ Covered - Employee Payroll 6,394,224 $ 4,621,811 $ 4,559,070 $ 4,283,615 $ Contributions as a Percentage of
Covered-employee Payroll 2.50% 5.13% 7.32% 11.85%
Notes to Schedule:
Valuation Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method a a a a
Amortization Period 13 Years 13 Years 14 Years 17 Years Asset Valuation Method (2) (2) (2) (2)
Discount Rate 6.25% 6.25% 6.25% 6.75%
Inflation 2.50% 2.50% 2.50% 2.75%
Medical Trend - c
Non-Medicare 8.50% - 3.45% 6.50% - 3.75% 6.50% - 3.75% 7.25% - 4.0% Medicare 7.50% - 3.75% 5.65% - 3.75% 4.6% - 3.75% 6.3% - 4.0% Mortality f ffe
a Level percentage of pay.
b Investment gains and losses spread over 5-year rolling period. c Rate decreasing to an ultimate rate in 2076 and later years. d CalPERS 1997-2011 experience study. Mortality projected fully generational Scale MP-2016. e CalPERS 1997-2015 experience study. Mortality projected fully generational Scale MP-2018. f CalPERS 1997-2015 experience study. Mortality projected fully generational Scale MP-2021. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. 100
City of La Palma
Schedule of Plan Contributions - Other Postemployment Benefit Plan (Continued) Last Ten Years*
Fiscal Year Ended June 30, 2025
Fiscal Year Ended 06/30/21 06/30/20 06/30/19 06/30/18
Actuarially Determined Contribution 151,843 $ 147,412 $ 116,000 $ 167,000 $ Contributions in Relation to the
Actuarially Determined Contributions (351,624) (358,815) (374,824) (376,687) Contribution Deficiency (Excess) (199,781) $ (211,403) $ (258,824) $ (209,687) $ Covered - Employee Payroll 5,215,770 $ 4,823,377 $ 4,892,914 $ 4,536,000 $ Contributions as a Percentage of
Covered-employee Payroll 6.74% 7.44% 7.66% 8.30%
Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method a a a a
Amortization Period 17 Years 17 Years 18 Years 19 Years Asset Valuation Method (2) (2) (2) (2)
Discount Rate 6.75% 6.75% 6.75% 6.75%
Inflation 2.75% 2.75% 2.75% 2.75%
Medical Trend - c
Non-Medicare 7.25% - 4.0% 7.25% - 4.0% 7.5% - 4.0% 7.5% - 4.0% Medicare 6.3% - 4.0% 6.3% - 4.0% 6.5% - 4.0% 6.5% - 4.0% Mortality eedd
a Level percentage of pay.
b Investment gains and losses spread over 5-year rolling period. c Rate decreasing to an ultimate rate in 2076 and later years. d CalPERS 1997-2011 experience study. Mortality projected fully generational Scale MP-2016. e CalPERS 1997-2015 experience study. Mortality projected fully generational Scale MP-2018. f CalPERS 1997-2015 experience study. Mortality projected fully generational Scale MP-2021. 101
CITY OF LA PALMA
Budgetary Comparison Schedule
General Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:
Taxes 11,405,100 $ 11,405,100 $ 12,153,694 $ $ 748,594
Intergovernmental 15,000 103,000 40,200 (62,800)
Licenses and permits 438,500 438,500 568,881 130,381
Fines and forfeitures 100,100 100,100 75,407 (24,693)
Investment income 192,000 192,000 1,185,883 993,883
Charges for services 554,400 588,400 600,668 12,268
Rental income 730,200 586,700 579,042 (7,658)
Miscellaneous 32,000 32,000 94,128 62,128
Total revenues 13,467,300 13,445,800 15,297,903 1,852,103 Expenditures:
Current:
General government 4,817,135 4,874,135 4,697,142 176,993 Public safety 6,134,600 6,169,500 5,674,464 495,036
Public works 1,194,700 1,194,700 1,079,407 115,293
Recreation 1,310,500 1,322,200 1,219,626 102,574
Community development 668,000 668,000 546,925 121,075
Capital outlay 11,000 99,000 76,354 22,646
Debt service
Principal 117,005 117,005 117,005 -
Interest and fiscal charges 10,660 10,660 10,660 -
Total expenditures 14,263,600 14,455,200 13,421,583 1,033,617 Excess (deficiency) of revenues
over (under) expenditures (1,009,400) (796,300) 1,876,320 2,885,720 Other financing sources (uses):
Transfers in 783,000 783,000 782,900 (100)
Transfers out (400,000) (400,000) (1,400,000) (1,000,000) Total other financing sources (uses) 383,000 383,000 (617,100) (1,000,100) Net change in fund balance (626,400) (413,300) 1,259,220 1,885,620 Fund balance - beginning of fiscal year 18,433,187 18,433,187 18,433,187 - Fund balance - end of fiscal year $ 17,806,787 18,019,887 $ 19,692,407 $ $ 1,885,620 See notes to Required Supplemetary Information
Budgeted amounts
102
Housing Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Budgeted amounts Positive
Original Final Actual (Negative)
Revenues:
Investment income 63,000$ 63,000$ 257,659$ $ 194,659
Miscellaneous 500 500 - (500)
Total revenues 63,500 63,500 257,659 194,159
Expenditures:
Current:
Community development 355,700 355,700 433,782 (78,082)
Total expenditures 355,700 355,700 433,782 (78,082)
Net change in fund balance (292,200) (292,200) (176,123) 116,077 Fund balance - beginning of fiscal year 4,740,463 4,740,463 4,740,463 - Fund balance - end of fiscal year $ 4,448,263 4,448,263$ 4,564,340$ $ 116,077 See notes to Required Supplemetary Information
CITY OF LA PALMA
Budgetary Comparison Schedule
103
CITY OF LA PALMA
Notes To Required Supplementary Information
Fiscal Year Ended June 30, 2025
104
NOTE 1: BUDGETARY CONTROL AND ACCOUNTING
The City adheres to the following general procedure in establishing its annual budget, which is reflected in the accompanying schedules.
Budgets are legally adopted and formal budgetary integration is employed as a management control device during the year for the General and Special Revenue Funds. No annual budget is adopted for the Capital Outlay Reserve Capital Projects Fund. Budgets are presented in this report for comparison to actual amounts and are presented in accordance with accounting principles generally accepted in the United States of America. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments.
Reported budget amounts represent the original legally adopted budget as amended.
Individual amendments were not material in relation to the original adopted budget amounts. The City Council may amend the budget to increase appropriations only by a duly adopted minute resolution during a regular meeting, providing that sufficient monies are available and that expenditures of proceeds of taxes will not be increased beyond the constitutional appropriation limit as imposed by Article XIIIB of the State Constitution. Management can transfer, without City Council approval, budgeted amounts provided that they do not increase or decrease total fund appropriations adopted by the City Council.
Unexpended budgeted amounts lapse at the end of the budget year. Spending control for the funds is established by the amount of expenditures budgeted for the fund, but management control is exercised at budgetary line-item levels. Expenditures may not legally exceed overall budgeted appropriations.
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SUPPLEMENTARY INFORMATION
107
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