Los Alamitos City Council
May 15, 2023

NOTICE TO THE PUBLIC – This Agenda contains a brief general description of each item to be considered. Except as provided by law, action or discussion shall not be taken on any item not appearing on the agenda. Supporting documents, including staff reports, are available for review at City Hall in the City Clerk’s Office or on the City’s website at www.cityoflosalamitos.org once the agenda has been publicly posted.

Each matter on the agenda, no matter how described, shall be deemed to include any appropriate motion, whether to adopt a minute motion, resolution, payment of any bill, approval of any matter or action, or any other action. Items listed as “for information” or “for discussion” may also be the subject of an “action” taken by the City Council at the same meeting.

Agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5) will be made available for public inspection at the meeting. Such documents will also be available at the City Clerk's office, 3191 Katella Ave., Los Alamitos, CA 90720.

In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (562) 431-3538, ext. 220. Notification at least 42 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II]. Language translation services are available for this meeting by calling the City Clerk’s Office least 42 hours in advance If you are unable to attend this meeting in person, you may submit comments on any agenda item or on any item not on the agenda by email to [email protected] with the subject line “COUNCIL PUBLIC COMMENT”. Comments received by 3:00 p.m. they day of the meeting will be compiled, provided to the City Council, and made available to the public before the start of the meeting. Staff will not read email comments at the meeting. You may also view the meeting live on local cable channel 3.

If, as an attendee, or a participant at this meeting, you will need special assistance beyond what is normally provided, please contact the City Clerk’s Office at (562) 431-3538, extension 220, 48 hours prior to the meeting so that reasonable arrangements may be made.

CITY OF LOS ALAMITOS
Council Chamber
3191 Katella Ave., Los Alamitos CA 90720

CITY COUNCIL AGENDA REGULAR MEETING
Monday, May 15, 2023 – 6:00 PM

1. CALL TO ORDER

2. ROLL CALL
Mayor Doby
Mayor Pro Tem Nefulda
Council Member Hasselbrink
Council Member Hibard
Council Member Murphy

3. PLEDGE OF ALLEGIANCE
Council Member Murphy will lead the Pledge of Allegiance.

4. INVOCATION
Mayor Doby will give the Invocation.

5. PRESENTATIONS
A. Presentation of Certificates to Tanya Doby and Wendy Grose in Recognition of Being Named the 36th Senate District's Women of Distinction
B. Presentation of Certificates to Wendy Grose, Theresa Murphy, and Trisha Murphy in Recognition of Being Named the 70th Assembly District's Women of Distinction
C. Presentation of Certificates to Los Alamitos High School Students in Recognition of Their Participation in 2023 Every 15 Minutes Program
D. Presentation of a Certificate to Peter Choi, Owner of Angelino's Pizza, in Recognition of Being Featured in the Mayor's Business Spotlight
E. Presentation of a Proclamation to the Public Works Team in Recognition of National Public Work's Week
F. Presentation of a Plaque to Wayne Byerly for his Three Years of Service as Police Captain to the City of Los Alamitos
G. Presentation by Police Sergeant Krogman Regarding and Update on E-Bike Safety
H. Presentation by Rob Thompson, General Manager, Providing an Overview of the Orange County Sanitation District

6. ORAL COMMUNICATIONS
At this time, any individual in the audience may come forward to speak on any item within the subject matter jurisdiction of the City Council. Remarks are to be limited to not more than five minutes per speaker.

7. UPDATES FROM THE MAYOR
At this time, the Mayor may report on items not specifically described on the Agenda that are of interest to the community, provided no action or discussion is taken.

8. UPDATES FROM THE CITY STAFF
At this time, City Staff also report on items not specifically described on the Agenda that are of interest to the community, provided no action or discussion is taken.

9. WARRANTS
A. Warrants (Finance)
The attached Warrant Register contains checks and electronic fund transfers for the period from April 1, 2023 to April 30, 2023.

Recommendation: Ratify the Warrants for the period April 1, 2023 to April 30, 2023 in the amount of $1,204,889.20.

Roll Call
Mayor Doby
Mayor Pro Tem Nefulda
Council Member Hasselbrink
Council Member Hibard
Council Member Murphy

10. CONSENT CALENDAR
All Consent Calendar items may be acted upon by one motion unless a Council Member requests separate action on a specific item.

A. Approval of Minutes (Administration)
Approve the City Council Regular Meeting Minutes of April 17, 2023.

B. Annual Comprehensive Financial Report (ACFR) (Finance) For City Council consideration is the receipt of the fiscal year 2021-2022 audit reports.

Recommendation: Receive and file the annual audit reports for fiscal year 2021-2022, including the Annual Comprehensive Financial Report (ACFR) and Report on Applying Agreed- Upon Procedures Appropriations Limit Worksheets (GANN AUP).

C. Treasurer's Quarterly Investment Report - March 2023 (Finance) The item for City Council consideration is receipt of the Treasurer’s Quarterly Investment Report.

Recommendation: Receive and file the Treasurer’s Quarterly Investment Report – March 2023.

D. Amendment No. 3 with West Coast Arborists, Inc. (WCA) for Tree Maintenance Services (Development Services)
This item seeks approval of Amendment No. 3 to the Professional Services Agreement (PSA) with West Coast Arborist, Inc. (WCA) to continue to provide tree maintenance services, a license arborist, and extraordinary work order fulfillment for one (1) year, ending on June 15, 2024. The amount paid to WCA is not to exceed $75,000 annually. The current

Professional Services Agreement (PSA) expires on June 15, 2023.

Recommendation: Authorize the Mayor to execute Amendment No. 3 to the Professional Services Agreement with West Coast Arborists, Inc. (WCA), extending the term of the agreement for one additional year ending on June 15, 2024, and not to exceed $75,000 annually, which is inclusive of a 2.5% CPI increase.

E. Approval of two (2) Open-Ended (Equity) Vehicle Lease Rate Agreements with Enterprise Fleet Management, Inc., via the Sourcewell Competitive Purchasing Program (Development
Services)
This item seeks approval of two (2) vehicle lease agreements with Enterprise Fleet Management Inc. (EFM), via the Sourcewell Competitive Purchasing Program (Contract #030122-EFM).

Recommendation: Authorize the City Manager to lease two (2) fleet vehicles pursuant to the Master Equity Lease Agreement with Enterprise Fleet Management (EFM) via the Sourcewell Competitive Purchasing Program for an estimated monthly lease of
$1,768.00.

11. DISCUSSION ITEM
A. City Council Ad Hoc Committees(Administration)
This item allows Council to appoint two members to various Ad Hoc Committees to assist Staff with large projects before bringing items to Council for approval.

Recommendation:

1. Appoint two Council Members to the Council Member Handbook Ad Hoc Committee; and,

2. Appoint two Council Members to the Council Member Goal Setting Ad Hoc Committee; and,

3. Appoint two Council Members to the City Branding Ad Hoc Committee.

B. Preliminary Budget for Fiscal Year 2023-24 and Fiscal Year 2024-25 and Proposed Changes to Purchase Policy (Finance) This report provides for a review of the preliminary budget for the Fiscal Year 2023- 24 and Fiscal Year 2024-25, and proposed changes to the Purchase Policy.

Recommendation:

1. Review and discuss the preliminary budget for Fiscal Year 2023-24 and Fiscal Year 2024-25, provide direction to staff; and

2. Introduce for first reading, read by title only, waive further reading of Ordinance No. 2023-04, and set for adoption; and,

3. City Attorney Daudt read the title of Ordinance No. 2023-04, “AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALAMITOS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 2.60
(PURCHASING SYSTEM) OF THE LOS ALAMITOS MUNICIPAL CODE”.

12. COUNCIL ANNOUNCEMENTS
At this time, Council Members may also report on items not specifically described on the Agenda that are of interest to the community, provided no action or discussion is taken except to provide Staff direction to report back or to place the item on a future Agenda.

13. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the Los Alamitos City Hall, 3191 Katella Ave. and online at www.cityoflosalamitos.org not less than 72 hours prior to the meeting.

Windmera Quintanar, MMC, City Clerk
Dated: May 10, 2023

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: May 15, 2023 ITEM NUMBER: 9A
To: Mayor Tanya Doby & Members of the City Council
Presented By: Craig Koehler, Director of Finance
Subject: Warrants

SUMMARY
The attached Warrant Register contains checks and electronic fund transfers for the period from April 1, 2023 to April 30, 2023.

RECOMMENDATION
Ratify the Warrants for the period April 1, 2023 to April 30, 2023 in the amount of $1,204,889.20.

BACKGROUND
The expenditures noted within this Warrant Register conform to the budget approved by the City Council.

DISCUSSION
The Director of Finance certifies the accuracy of the attached register and the availability of monies thereof.

FISCAL IMPACT
The grand total of $1,204,889.20 represents checks and electronic fund transfers for the period April 1, 2023 to April 30, 2023.

Attachment: 1. Warrant Register - April 2023

MINUTES OF THE CITY COUNCIL OF THE CITY OF LOS ALAMITOS

REGULAR MEETING
Monday, April 17, 2023

1. CALL TO ORDER
The City Council met in Regular Session at 6:04 p.m., Monday, April 17, 2023, in the Council Chamber located at 3191 Katella Ave., Los Alamitos, CA 90720, Mayor Doby presiding.

2. ROLL CALL

Present: Council Members: Hasselbrink, Hibard, Murphy
Mayor Pro Tem Nefulda, Mayor Doby

Absent: Council Members: None

Present: Staff: Chet Simmons, City Manager
Wayne Byerly, Police Captain
Michael Claborn, Chief of Police
Craig Covey, Orange County Fire Authority Chief
Michael Daudt, City Attorney
Craig Koehler, Finance Director
Emeline Noda, Recreation and Community Services Director Ron Noda, Development Services Director
Windmera Quintanar, MMC, City Clerk
Chelsi Wilson, Administrative Services Manager

3. PLEDGE OF ALLEGIANCE
Council Member Hibard led the Pledge of Allegiance.

4. INVOCATION
Council Member Murphy gave the Invocation.

5. PRESENTATIONS
Mayor Doby and the City Council presented the listed Presentations.

A. Presentation of a Commendation to Nancy Fagan in Celebration of her 102nd Birthday
B. Presentation of a Proclamation to Rachel Rodriguez, OneLegacy Ambassador, in Recognition of Donate Life Month
C. Presentationof a Proclamation to West-Comm Representatives in Recognition of National Telecommunications Week

City Council Regular Meeting Minutes
April 17, 2023

D. Introduction of Los Alamitos Police Captain Luke South and Police Officers Joel Espinoza, Jr. and Oscar Perez

6. ORAL COMMUNICATIONS
At this time, any individual in the audience may come forward to speak on any item within the subject matter jurisdiction of the City Council. Remarks are to be limited to not more than five minutes per speaker.

Mayor Doby opened Oral Communications.

Carol Churchill, Protect Our Community Now, spoke regarding the Housing Element, concern regarding the timing for the release of agendas, and support for community meetings regarding the Lampson project.

Nancy Fagan spoke in support of the City Council and the job being done.

Mayor Doby closed Oral Communications.

7. COUNCIL ANNOUNCEMENTS
At this time, Council Members may also report on items not specifically described on the Agenda that are of interest to the community, provided no action or discussion is taken except to provide Staff direction to report back or to place the item on a future Agenda.

Council Member Murphy spoke regarding attendance at the Planning Commission meeting; Housing Symposium; Stretching and Mimosas in Community Center; upcoming Elevate Women’s conference meet up June 23rd; Coffee with Cop; supported the Police Department and Team 236 in the Baker to Vegas Race; Ride Along with Officer Arnold; Chamber of Commerce Team Building Event; State of Eviction; Spring Carnival; League of California Cities Leadership Summit; and, participation in Biggest Loser Challenge.

Council Member Murphy spoke regarding City Attorney services with Woodruff, Spradlin, and Smart and concern for a potential conflict of interests regarding the Lampson Project and former employe Les Johnson. Per Resolution No. 2019-10, City Council Agenda Policy, Council Member Murphy requested the City Council discuss the scope of services provided by Mr. Daudt to Mr. Les Johnson and or/any developers, builders or agents who proposed projects with the City of Los Alamitos during Mr. Johnson's employment with the City of Los Alamitos as a Development Services Director and Interim City Manager from September 2018 to January 2020. Council Member Hibard agreed.

Council Member Hibard spoke regarding attendance at the Coffee with a Cop; supported the Police Department and Team 236 in the Baker to Vegas Race; League of California Cities Leadership Summit; and, participation in Biggest

City Council Regular Meeting Minutes
April 17, 2023

Loser Challenge.

Council Member Hasselbrink spoke regarding attendance at the Stretching and Mimosas in Community Center; Budget Standing Committee Special Meeting; and the Los Alamitos Community Foundation Board meeting.

Mayor Pro Tem Nefulda spoke regarding attendance at the Spring Carnival and the Orange County Sanitation District Board meeting.

Mayor Doby spoke regarding attendance at the Orange County Council of Governments (OCCOG); Housing Symposium; meeting with Assembly Member Tri Ta regarding available funding; preliminary meeting with Orange County Transportation Authority regarding senior transportation access; Habitat for Humanity Award Lunch; Chamber Lunch at Epson; Spring Carnival; Los Al Sunset Saturdays; and, League of California Cities Leadership Summit. She requested training for Council and Staff regarding workplace investigations and recognized staff for their outstanding performance.

8. ITEMS FROM THE CITY MANAGER
City Manager Simmons asked for and received an overview of upcoming events from Recreation and Community Services Director Noda. He thanked Orange County Fire Authority for lending the City the mobile command post as the Police Department was being renovated.

9. WARRANTS
A. Warrants (Finance)
The attached Warrant Register contains checks and electronic funds transfers for the period March 1, 2023 to March 31, 2023.

Motion/Second: Hasselbrink/Hibard
Unanimously Carried: The City Council ratified the Warrants for the period March 1, 2023 to March 31, 2023 in the amount of $1,612,116.13.

ROLL CALL
Mayor Doby Aye
Mayor Pro Tem Nefulda Aye
Council Member Hasselbrink Aye
Council Member Hibard Aye
Council Member Murphy Aye

10. CONSENT CALENDAR
All Consent Calendar items may be acted upon by one motion unless a Council Member requests separate action on a specific item.

City Council Regular Meeting Minutes
April 17, 2023

Motion/Second: Hasselbrink/Nefulda
Unanimously Carried: The City Council approved the following Consent Calendar items:

A. Approval of Minutes (Administration)
Approved the City Council Minutes for the Regular meeting of March 20, 2023.

B. Approval of the Request for Proposals (RFP) 2023-02 and Authorization to Bid for Janitorial Services for City Facilities (Development Services) This item facilitates the solicitation of bids for contractual services to secure janitorial services for City facilities.

The City Council:

1. Approved the Request for Proposals (RFP) 2023-02 Janitorial Services for City Facilities; and,

2. Authorized Staff to advertise and solicit bid proposals.

C. Amendment No. 9 with Clear Channel Outdoor, LLC for Bus Shelter License and Maintenance Agreement (Development Services) This item seeks approval of Amendment No. 9 with Clear Channel Outdoor, LLC to continue providing Bus Shelter License and Maintenance Services until December 31, 2023. The current Professional Services Agreement (PSA) expires on June 30, 2023.

The City Council authorized the Mayor to execute Amendment No. 9 of the Professional Services Agreement with Clear Channel Outdoor, LLC, with no fiscal impact and a term expiring December 31, 2023.

7. DISCUSSION ITEM
A. Community Outreach and Townhall Meetings (Administration) At the March 20, 2023 Council meeting, Council Members Hibard and Murphy requested an item to discuss additional townhall meetings. This Item seeks direction for the Mayor and City Council related to the City’s Community Outreach & Townhall meetings.

City Manager Simmons summarized the Staff Report. Council Member Hibard provided a PowerPoint presentation.

Mayor Doby opened the item for public comment.

Dan Brandt stated a referendum would be circulated and encouraged Staff to hold a forum to educate the public.

City Council Regular Meeting Minutes
April 17, 2023

Carol Churchill believed this approach would lead to the community having more confidence in the actions of City staff.

Mayor Doby closed the item for public comment.

City Council and Staff discussed the following:
• Concern community events were not a proper forum for discussion • Preference for Staff and the Council to make themselves available to the public during a specific Town Hall meeting
• Staff is available monthly at all the community events for the public to engage with
• Concern for adding more meetings when there is currently a lack of engagement at the current events
• Council is the biggest advocate for their community
• Previous attempts to engage the community were unsuccessful • Community tends to engage when there is a topic of interest • Support for scheduling a Town Hall meeting when there is an actual project to discuss
• Los Al TV has expressed an interesting in assisting with marketing and filming of town hall meetings
• Community meeting plan would come back to Council at a future date
B. Guidelines for Projects of Significance (Administration) This Item seeks direction from the Mayor and City Council related to enhancing the City’s notification efforts related to projects of significance in the City.

City Manager Simmons summarized the Staff report.

Mayor Doby opened the item for public comment. There being no one present wishing to speak, Mayor Doby closed the item for public comment.

Council Member Hibard received support to include asking neighboring jurisdictions to share information, including projects in the E-Newsletter and social media.

City Manager Simmons stated the policy would be outlined in an Administrative Regulation.

Motion/Second: Hasselbrink/Hibard
Unanimously Carried: The City Council approved the following notification enhancements for projects of significance that are proposed in the City:

City Council Regular Meeting Minutes
April 17, 2023

• Increase the written notification radius from 500 feet to 1000 feet
• Project summary, renderings, company name and bio, and project contact information to be housed on the City’s website • Provide signage on the subject property (no smaller than 3 feet x 5 feet) that includes a rendering of the proposed project, company name, project contract information, and QR Code linked to the information page on the City’s website
• When a proposed project’s 1000-foot radius extends into a neighboring jurisdiction, a certified letter with the information referenced above must be sent to that jurisdiction with a request that such information be posted on the subject city’s website and social media platforms
• Project information will be included in the City’s E-Newsletter and social media

12. ADJOURNMENT
The City Council adjourned at 7:25 p.m.

Tanya Doby, Mayor
Attest:

Windmera Quintanar, MMC, City Clerk

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: May 15, 2023 ITEM NUMBER: 10B
To: Mayor Tanya Doby & Members of the City Council
Presented By: Craig Koehler, Director of Finance
Subject: Annual Comprehensive Financial Report (ACFR)

SUMMARY
For City Council consideration is the receipt of the fiscal year 2021-2022 audit reports.

RECOMMENDATION
Receive and file the annual audit reports for fiscal year 2021-2022, including the Annual Comprehensive Financial Report (ACFR) and Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets (GANN AUP).

BACKGROUND
Each year an independent audit of the City is conducted in conformity with generally accepted auditing standards (GAAS). Those standards require that an independent Certified Public Accountant plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The auditor also expresses an opinion on the fairness of the presentation of the financial position and the results of operations of the government's basic financial statements in conformity with generally accepted accounting principles (GAAP).

DISCUSSION
This item was pulled from the March 17, 2023 Council Meeting because an error had been detected and brought to the City’s attention. The error was in the narrative section of the report in table 2 on page 8 that had a typographical mistake. The error did not have any impact on the audited portion of the financial statements. Considering the impact of this, Finance contacted one of the auditing firms that had responded to the RFP for auditing services that was issued in 2020 and requested that they perform a peer review of the report to provide a certificate as to the report’s accuracy and completeness.

The firm providing the review and certification is Rogers, Anderson, Malody & Scott, LLP (RAMS). The partner representing RAMS, that conducted the review is Terry Shea, CPA and Partner. The cost for the review and certification was $1,600. The revised ACFR and certification letter is attached attesting to the completeness and accuracy of the report for the period ending June 30, 2022. The City will also be engaging with a new firm to conduct the audit for the remaining two years, and has received a proposal from RAMS for those services.

A contract to engage RAMS for audit services for FY2022-23 will be made under the City Manager’s approval authority.

FISCAL IMPACT
None.

Attachment: 1. 2022 Annual Comprehensive Financial Report

2. Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets

3. RAMS Review Letter

Annual Comprehensive Financial Report (ACFR)
FISCAL YEAR ENDED June 30, 2022

City of Los Alamitos
Los Alamitos, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
Prepared by the
Finance Department of Los Alamitos

This page intentionally left blank.

City of Los Alamitos
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page

INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal .................................................................................................................................................. i Organizational Chart ................................................................................................................................................. v Principal Officials of the City of Los Alamitos ....................................................................................................... vi Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ....................................................................................................... vii

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ............................................................................................ 1 Management’s Discussion and Analysis ....................................................................................................................... 5 Basic Financial Statements:

Government – Wide Financial Statements:

Statement of Net Position .................................................................................................................................. 15 Statement of Activities ...................................................................................................................................... 17 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .............................................................................................................................................. 21 Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position ........................................................................... 22 Statement of Revenues, Expenditures,
and Changes in Fund Balances ............................................................................................................. 23 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ......................................................................................................................... 24 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................... 27 Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 28 Statement of Cash Flows ............................................................................................................................ 29 Notes to the Basic Financial Statements............................................................................................................... 31

City of Los Alamitos
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund .......................................................................................................... 64 Notes to the Budgetary Comparison Schedule ............................................................................................................... 65 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous .............. 66 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Safety ........................... 67 Schedule of City’s Contributions - Pension .................................................................................................................... 68 Schedule of Changes in Net OPEB Liability and Related Ratios ................................................................................... 69 Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ................................................................................................................................. 71 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................... 75 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds:

Community Development Block Grant ................................................................................................ 79 Measure M ............................................................................................................................................ 80 Los Alamitos Television....................................................................................................................... 81 Office of Traffic Safety ........................................................................................................................ 82 Asset Seizure ........................................................................................................................................ 83 Public Safety Augmentation ................................................................................................................. 84 State Law Enforcement Service ........................................................................................................... 85 Air Quality ............................................................................................................................................ 86 State Gas Tax ........................................................................................................................................ 87 Nonmajor Capital Project Funds:

Park Development ................................................................................................................................ 88 Building Improvement ......................................................................................................................... 89 Residential Streets/Alleys ..................................................................................................................... 90 Traffic Improvement Fund ................................................................................................................... 91 Nonmajor Debt Service Fund:

Debt Service ......................................................................................................................................... 92 Internal Service Funds:

Combining Statement of Net Position ............................................................................................................... 93 Combining Statement of Revenues, Expenses, and Changes in Net Position ................................................... 95 Combining Statement of Cash Flows ................................................................................................................ 97

City of Los Alamitos
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
STATISTICAL SECTION (Unaudited)
Net Position by Component Last Ten Fiscal Years ..................................................................................................... 101 Changes in Net Position Last Ten Fiscal Years ........................................................................................................... 102 Fund Balances of Governmental Funds Last Ten Fiscal Years .................................................................................... 104 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years ................................................................. 106 2021/22 Use Category Summary-Basic Property Value Table Last Ten Fiscal Years ................................................ 108 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years .......................................... 110 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ............................................................................. 111 Principal Property Taxpayers Current Year and Ten Years Ago ................................................................................. 113 Property Tax Levies and Collections Last Ten Fiscal Years ........................................................................................ 114 Ratio of Outstanding Debt by Type Last Ten Fiscal Years .......................................................................................... 115 Direct and Overlapping Governmental Activity Debt .................................................................................................. 116 Legal Debt Margin Information ................................................................................................................................... 117 Demographic and Economic Statistics ......................................................................................................................... 118 Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years ............................. 119 Operating Indicators by Function/Program Last Ten Fiscal Years .............................................................................. 120 Capital Asset Statistics by Function/Program Last Ten Fiscal Years .......................................................................... 122 Top 10 Businesses for Fiscal Yest 2021-22 ................................................................................................................. 123 Principal Employers ..................................................................................................................................................... 124

&,7<2)/26$/$0,726
2UJDQL]DWLRQ
9
 ŝƚŝnjĞŶƐŽĨ
>ŽƐůĂŵŝƚŽƐ
ŝƚLJŽƵŶĐŝů
ŝƚLJƚƚŽƌŶĞLJ ŝƚLJůĞƌŬ ĚŵŝŶŝƐƚƌĂƚŝŽŶ
;ŝƚLJDĂŶĂŐĞƌͿ
&ŝŶĂŶĐĞ
&ŝŶĂŶĐŝĂů
ĚŵŝŶŝƐƚƌĂƚŝŽŶ
ƵĚŐĞƚ
ƵƐŝŶĞƐƐ>ŝĐĞŶƐĞ
ĂƐŚ
DĂŶĂŐĞŵĞŶƚ
ŝƐďƵƌƐĞŵĞŶƚƐ
WĂLJƌŽůů
EŽŶͲ
ĞƉĂƌƚŵĞŶƚĂů
WŽůŝĐĞ
WĂƚƌŽů
/ŶǀĞƐƚŝŐĂƚŝŽŶ
ZĞĐŽƌĚƐ
ŝƐƉĂƚĐŚ
;tĞƐƚŽŵŵͿ
dƌĂĨĨŝĐ

ŵĞƌŐĞŶĐLJ
WƌĞƉĂƌĞĚŶĞƐƐ
ŽŵŵƵŶŝĐĂƚŝŽŶ
dĞĐŚŶŽůŽŐLJ
ŽŵŵƵŶŝƚLJ
KƵƚƌĞĂĐŚ
zŽƵƚŚWƌŽŐƌĂŵƐ
ĞǀĞůŽƉŵĞŶƚ
^ĞƌǀŝĐĞƐ
ŽŵŵƵŶŝƚLJ
ĞǀĞůŽƉŵĞŶƚ
WůĂŶŶŝŶŐ
ƵŝůĚŝŶŐΘ^ĂĨĞƚLJ
EĞŝŐŚďŽƌŚŽŽĚ
WƌĞƐĞƌǀĂƚŝŽŶ
EW
^
WƵďůŝĐtŽƌŬƐ

ŶŐŝŶĞĞƌŝŶŐ
^ĞƌǀŝĐĞƐ
ĂƉŝƚĂů
/ŵƉƌŽǀĞŵĞŶƚ
WƌŽŐƌĂŵ
^ƚƌĞĞƚ
DĂŝŶƚĞŶĂŶĐĞ
WĂƌŬ
DĂŝŶƚĞŶĂŶĐĞ
&ĂĐŝůŝƚLJ
DĂŝŶƚĞŶĂŶĐĞ
&ůĞĞƚ
DĂŝŶƚĞŶĂŶĐĞΘ
^ƚƌĞĞƚ^ǁĞĞƉŝŶŐ
ĚŵŝŶŝƐƚƌĂƚŝǀĞ
^ĞƌǀŝĐĞƐ
,ƵŵĂŶ
ZĞƐŽƵƌĐĞƐ
ZŝƐŬ
DĂŶĂŐĞŵĞŶƚ
/ŶĨŽƌŵĂƚŝŽŶ
dĞĐŚŶŽůŽŐLJ
ŽŵŵƵŶŝĐĂƚŝŽŶƐ
ZĞĐƌĞĂƚŝŽŶĂŶĚ
ŽŵŵƵŶŝƚLJ
^ĞƌǀŝĐĞƐ
ŽŵŵƵŶŝƚLJĂŶĚ
^ĞŶŝŽƌ^ĞƌǀŝĐĞƐ
ĂLJĂŵƉĂŶĚ
WĂƌŬWƌŽŐƌĂŵƐ
^ƉŽƌƚƐ
^ƉĞĐŝĂůůĂƐƐĞƐ
^ƉĞĐŝĂů
ǀĞŶƚƐ
ŝƚLJ
ŽŵŵŝƐƐŝŽŶƐ
>ds

CITY OF LOS ALAMITOS
vi
DIRECTORY OF OFFICIALS (as of June 30, 2022)

CITY COUNCIL
Shelley Hasselbrink, Mayor
Tanya Doby, Mayor Pro Tem
Ron Bates, Council Member
Mark A. Chirco, Council Member
Jordan Nefulda, Council Member

APPOINTED OFFICIALS
Chet Simmons, City Manager
Michael S. Daudt, City Attorney
Windmera Quintanar, City Clerk

EXECUTIVE MANAGEMENT
Chris Kelly, City Engineer
Chelsi Wilson, Administrative Services Manager
Craig Koehler, Finance Director
Emeline Noda, Recreation and Community Services Director Ron Noda, Development Services Director
Michael Clayborn, Chief of Police

vii

This page intentionally left blank.

1 To the Honorable Mayor and Members of the City Council of the City of Los Alamitos
Los Alamitos, California
Independent Auditors’ Report
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Los Alamitos, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Los Alamitos, California’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, each major fund, and the aggregate remaining fund information of the City of Los Alamitos, California, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Los Alamitos, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As described in Note 1 to the basic financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Los Alamitos, California’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.

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 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. 438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

To the Honorable Mayor and Members of the City Council
of the City of Los Alamitos
Los Alamitos, California

2 In performing an audit in accordance with generally accepted 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 of Los Alamitos, California’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 of Los Alamitos, California’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, the schedule of proportionate share of the net pension liability and related ratios, schedule of plan contributions – defined benefit pension plan, schedule of changes in the net OPEB liability and related ratios, schedule of plan contributions – OPEB plan, and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Los Alamitos, California’s basic financial statements. The combining and individual nonmajor fund financial statements , budgetary schedules, and financial data schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary schedules, and financial data schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

To the Honorable Mayor and Members of the City Council
of the City of Los Alamitos
Los Alamitos, California

3 Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2023, on our consideration of the City of Los Alamitos, California’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Los Alamitos, California’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Los Alamitos, California’s internal control over financial reporting and compliance.

Newport Beach, California
February 6, 2023
Gruber and Lopez, Inc.

Gruber and Lopez, Inc.

4 This page intentionally left blank.

5 MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the City of Los Alamitos ("City") offers readers of the City's financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that is provided in our letter of transmittal.

The presentation of the City's financial data in this analysis and statements will differ from the City's budget, in that the analysis and statements are required to follow Governmental Accounting Standards Board Statement Number 34 and other Statements to allocate costs associated with capital related items, long-term debt transactions, accrued interest, compensated absences internal service fund activity, and depreciation to the various functions of the City; whereas the City's budget is an operational financial plan for the upcoming fiscal year.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis provides an introduction to the City's 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.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City's assets and deferred outflows, and liabilities and deferred inflows, with the difference between being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position is reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (government 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, community development, recreation and community services, and public works. The City has no business-type activities.

The Governmental Activities are presented on the accrual basis of accounting, a basis of accounting that differs from the modified accrual basis of accounting used in presenting governmental fund financial statements. Note 1 of the Notes to the Basic Financial Statements fully describe these bases of accounting.

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, like other local governments, uses fund accounting to ensure and

6 demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains sixteen 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. Data from the other fifteen governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds are provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

Proprietary funds. Proprietary funds are used to account for activities where the City needs to show the full costs of providing the services, including depreciation. The City maintains five internal service funds.

The City uses internal service funds to account for its self-insured insurance programs, fleet of vehicles, equipment, technology upgrades and replacements and other capital related activities. Because these services benefit governmental functions, they have been included within governmental activities in the government-wide financial statements. Internal service funds are presented as proprietary funds because internal service funds follow the accrual basis of accounting.

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

Combining statements. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes.

7 Government-wide Financial Analysis
Tables 1 and 2 focus on the net position and changes in net position of the City's governmental activities.

The City’s assets and deferred outflows exceeded liabilities and deferred inflows by $13,701,004 as of June 30, 2022, an increase of $5,532,920 from June 30, 2021.

The largest portion of the City's net position reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructure), net of any related debt that is still outstanding used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Unrestricted net position had a deficit balance of $5,197 million as of June 30, 2022, which relates to the City's net pension liability and OPEB liability.

The City has set-aside $3.40 million for its unfunded pension liability and $500,000 for its OPEB liability. However, since these funds are not held in an irrevocable trust the net pension liability has not been reduced to account for these funds that have been set-aside.

TABLE 1
Net Position
Governmental Activities - June 30,
2021 2022
Current and other assets 19,033,063 $ 23,872,535 $
Capital assets 18,966,258 19,871,393
Total assets 37,999,321 43,743,928
Deferred outflows of resources 6,862,828 11,377,136
Current liabilities 1,651,802 3,002,887
Noncurrent liabilities:

Long-term debt 3,799,410 3,767,244
Net OPEB liability 6, 6,356,967 694,357
Net pension liability 22,139,759 14,540,568
Total liabilities 34,285,328 24,664,779
Deferred inflows of resources 2,408,655 13,752,394
Net position:

Net investment in capital assets 15,623,413 16,544,999
Restricted 2,152,916 2,353,211
Unrestricted (9,608,245) (5,197,206)
Total net position 8,168,084 $ 13,701,004 $

8 A condensed summary of activities for the period ended June 30, 2022 and the prior fiscal year is illustrated in Table 2 below.

TABLE 2
Changes in Net Position
Governmental Activities - June 30,
2021 2022
Revenues
Program revenues:

Charges for services $ 2,272,437 $ 2,340,283
Operating contributions and grants 1,872,432 676,663
Capital contributions and grants 241,536 308,236
General revenues:

Taxes:

Property taxes 4,454,779 4,731,563
Utility users tax 1,834,203 2,122,966
Transit Occupancy Tax 223,450 522,187
Sales taxes 4,854,583 9,670,952
Franchise taxes 725,261 1,070,638
Business licenses 885,569 728,490
Other taxes 548,278 639,883
Investment income 77,885 (665,298)
Other 83,209 528,857
Total revenues 18,519,270 22,229,772
Expenses
General government 3,493,213 2,547,884
Public safety 7,134,874 6,382,127
Community development 956,687 1,343,945
Recreation and community services 1,471,231 2,043,092
Public works 2,907,145 3,225,592
Interest on long-term debt 138,286 330,585
Total expenditures 16,293,735 15,680,926
Change in net position 2,225,535 6,548,846
Net position, beginning, as restated 7,152,158 5,942,549 Net position, ending 8,168,084 $ 13,701,004 $

9 Governmental Activities. Governmental activities increased the City's net position by $5,532,920 compared to a net increase of $2,225,535 in the prior year. Key elements of this year's activity in relation to the prior year are as follows:

Revenues
While variances between years exist for the various revenue categories, the total net increase was $3,710,502, which is largely attributable to the $4,816,369 increase in sales tax. This was attributable to the passage of Measure Y 1.5%, Local Sales Tax.

Expenses:

Although variances between years exist for the various expense functions, the total net decrease was $612,809. Decreased expenditures were recognized in General Government, Public Safety, and interest and fiscal charges. Table 3 below presents the cost of each of the City's six largest programs-general government, public safety, community development, recreation and community services, public works, and interest and fiscal charges as well as their respective program revenues.

Table 3 below represents the cost of each of the City’s six largest programs – general government, public safety, community development, recreation and community services, public works, and interest and fiscal charges, as well as their respective program revenues.

TABLE 3
Expenses and Program Revenues
See the Statement of Activities for further detail on program revenues and general revenues. ‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
General
Government
Public Safety Community
Development
Recreation &
Community
Servivces
Public Works Interest on
Long‐Term Debt
2022 Expenses 2021 Expenses 2022 Program Revenues 2021 Program Revenues

10 FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balance of $19,255,631, an increase of $3,388,299 (21%) from the prior fiscal year's balance. Of this amount, $4,439,441 or 23.06% of fund balance is constrained by the City's intent to utilize fund balance for specific purposes, which is reported within the fund balance classification assigned. Additionally, $2,353,211 or 12% of fund balance is restricted, which represents the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors.

The fund balance of the City's General Fund increased by $4,173,344 during the fiscal year compared to a $3,334,055 increase in the prior year. The increase in the current year is primarily attributable to the increase in sales tax revenue.

Other governmental funds realized an increase in fund balance of $230,881. While variances between years exist for the various nonmajor governmental funds, the net increase was primarily attributable to an increase in funding for Measure M and State Gas Tax, in other restricted amounts.

General Fund Budgetary Highlights
Actual revenues were $2,255,980 more than the final budgeted amount, which is primarily due to increased property and sales tax and intergovernmental charges. The expenditures for the General Fund at fiscal year-end were $960,528 less than the final budgeted expenditures, which is primarily due to a decrease in public safety resulting from vacant positions.

No budget amendments were made during the fiscal year.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At the end of Fiscal Year 2021-22, the City had $19.9 million invested in capital assets, including land, buildings, infrastructure, and equipment. This amount represents a net increase of $905,135, which is primarily due to increases in vehicles, infrastructure, and construction in progress.

11 More detail on the City’s capital assets can be found in Note 5 to the financial statements of this report.

Long-term liabilities. At the end of fiscal year 2021-22, the City had $4.1 million in longterm liabilities which includes outstanding bond indebtedness of $3.35 million along with a capital lease, claims payable and compensated absences. The net increase of $80,006 over the prior year is primarily due to a net increase in compensated absences.

More detail on the City’s long-term debt can be found in Notes, 6, 7 and 12 to the financial statements of this report.

TABLE 4
City of Los Alamitos Capital Assets Net of Depreciation Governmental Activities
2021 2022
Land $ 5,917,715 $ 5,917,715
Buildings and Improvements 758,692 716,299
Equipment 254,610 321,731
Vehicles 167,792 224,014
Infrastructure 11,292,992 11,510,215
Construction in progress 624,720 1,181,419
Totals $ 19,016,521 $ 19,871,393
TABLE 5
City of Los Alamitos Long-Term Liabilities
Governmental Activities
2021 2022
2015 Certificates of participation 3,342,845 $ 3,350,121 $ Capital lease - police vehicles 68,008 62,238
Claims payable 150,663 222,973
Compensated absences 481,842 488,032
Total liabilities $ 4,043,358 $ 4,123,364

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The economy will face challenges in the coming year. Inflation will be a major factor, reflecting imbalances with supply and demand related to the pandemic. The U.S. Treasury will be countering the growth with planned rate hikes. Other factors include supply chain shortages, and global unrest, that will result in hardships and unknown implications on the U.S. economy. According to HdL, the City Sales Tax Consultant, a slowdown is predicted in the later part of 2022 and into to 2023. As such, the budget was prepared using a conservative approach.

On June 13, 2022, the 2022-23 City Budget was adopted. The annual operating budget is balanced, with operating revenues of $21,348,825 and operating expenditures of $20,367,325, resulting in an estimated surplus of $981,500.

Following the adoption of the FY2020-21 budget, the City Council and the residents of Los Alamitos took action. After the City Council unanimously voted to place a revenue measure on the ballot, residents voted to enact a 1.5% sales tax that would be dedicated to ensuring essential services and Los Alamitos residents’ quality of life. This new revenue source will allow for the city to continue to provide the needed services to the community, while addressing infrastructure deficiencies.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide the City of Los Alamitos citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to illustrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department at the City of Los Alamitos, 3191 Katella Avenue, Los Alamitos, California, 90720, (562) 431- 3538.

13 BASIC FINANCIAL STATEMENTS

14 GOVERNMENT-WIDE

FINANCIAL STATEMENTS

Governmental
Activities
ASSETS
Current assets:

Cash and investments (Note 3) 21,302,076 $
Receivables
Accounts 728,406
Due from employees 1,531
Due from other governments 1,837,614
Prepaid costs 2,659
Cash and investments - restricted (Note 3) 249
Total current assets 23,872,535
Noncurrent assets:

Capital assets: (Note 5)
Non-depreciable 7,099,135
Depreciable, net 12,772,258
Total capital assets 19,871,393
Total noncurrent assets 19,871,393
Total assets 43,743,928

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 85,965
Pension deferrals (Note 9) 8,980,782
OPEB deferrals (Note 10) 2,310,389
Total deferred outflows of resources 11,377,136

CITY OF LOS ALAMITOS
Statement of Net Position
June 30, 2022
See accompanying notes to the basic financial statements. 15

Governmental
Activities

LIABILITIES
Current liabilities:

Accounts payable 910,958 $
Accrued liabilities 335,009
Accrued interest 32,109
Unearned revenue 1,305,392
Deposits payable 63,299
Compensated absences, due within one year (Note 6) 181,844 Bonds payable, due within one year (Note 7) 89,434
Capital leases, due within one year (Note 7) 12,967
Claims payable, due within one year (Note 12) 71,875
Total current liabilities 3,002,887
Noncurrent liabilities:

Compensated absences (Note 6) 306,188
Bonds payable (Note 7) 3,260,687
Capital leases (Note 7) 49,271
Claims payable (Note 12) 151,098
Other post-employment benefits liability (Note 10) 6,356,967 Net pension liability (Note 9) 14,540,568
Total noncurrent liabilities 24,664,779
Total liabilities 27,667,666

DEFERRED INFLOWS OF RESOURCES
Pension deferrals (Note 9) 12,212,746
OPEB deferrals (Note 10) 1,539,648
Total deferred inflows of resources 13,752,394

NET POSITION
Net investment in capital assets 16,544,999
Restricted for:

Cable television 73,947
Transportation 1,099,189
Public safety 323,343
Air quality 123,361
Parks 733,371
Total restricted 2,353,211
Unrestricted (Deficit) (5,197,206)
Total net position $ 13,701,004
Statement of Net Position (Continued)
June 30, 2022

CITY OF LOS ALAMITOS
See accompanying notes to the basic financial statements. 16

Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Governmental activities:

General government 2,547,884 $ 1,034,978 $ 1,314 $ - $ 1,036,292 $ Public safety 6,382,127 410,622 430,502 - 841,124
Community development 1,343,945 2,512 4,667 - 7,179
Recreation and community
services 2,043,092 892,015 - - 892,015
Public works 3,225,592 156 240,180 308,236 548,572
Interest and fiscal charges 138,286 - - - -
Total governmental activities 15,680,926 $ 2,340,283 $ 676,663 $ 308,236 $ 3,325,182 $

CITY OF LOS ALAMITOS
Statement of Activities
For the Year Ended June 30, 2022
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements. 17

Net (expense)
Revenue and
Changes in
Net Position
Governmental activities:

General government $ (1,511,592)
Public safety (5,541,003)
Community development (1,336,766)
Recreation and community
services (1,151,077)
Public works (2,677,020)
Interest and fiscal charges (138,286)
Total governmental activities (12,355,744)
General revenues:

Taxes:

Property taxes, levied for general purpose 4,731,563
Utility users tax 2,122,966
Transient occupancy tax 522,187
Sales taxes 9,670,952
Franchise fees 1,070,638
Business license taxes 728,490
Other taxes 639,883
Total taxes 19,486,679
Investment earnings (665,298)
Other 83,209
Total general revenues 18,904,590
Change in net position 6,548,846
Net position - beginning of year (as restated Note 15) 7,152,158 Net position - end of year 13,701,004 $
Functions/Programs

CITY OF LOS ALAMITOS
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying notes to the basic financial statements. 18

19 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements

20 GOVERNMENTAL FUND

FINANCIAL STATEMENTS
The Governmental Funds of the City are outlined below:

General Fund - The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works.

Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds.

Nonmajor Total
Governmental Governmental
General Funds Funds
Cash and investments (Note 3) 16,387,360 $ 2,805,469 $ 19,192,829 $ Receivables:

Accounts 710,628 5,676 716,304
Due from employees 1,531 - 1,531
Due from other governments 1,769,808 67,806 1,837,614
Prepaid costs 2,659 - 2,659
Cash and investments - restricted (Note 3) - 249 249
Total assets $ 18,871,986 2,879,200 $ 21,751,186 $
Liabilities:

Accounts payable 543,286 $ 247,255 $ 790,541 $
Accrued liabilities 335,009 - 335,009
Unearned revenues 1,168,613 136,779 1,305,392
Deposits payable 50,743 12,556 63,299
Total liabilities 2,097,651 396,590 2,494,241
Deferred Inflows of Resources:

Unavailable revenue 1,314 - 1,314
Total deferred inflows of resources 1,314 - 1,314
Fund Balances: (Note 14)
Nonspendable 4,190 - 4,190
Restricted - 2,353,211 2,353,211
Committed 2,620 119 2,739
Assigned 4,195,979 243,462 4,439,441
Unassigned (Deficit) 12,570,232 (114,182) 12,456,050
Total fund balances 16,773,021 2,482,610 19,255,631
Total liabilities, deferred inflows of
resources and fund balances $ 18,871,986 2,879,200 $ 21,751,186 $

CITY OF LOS ALAMITOS
ASSETS
,

OF RESOURCES, AND FUND

BALANCES
Governmental Funds
June 30, 2022
Balance Sheet
See accompanying notes to the basic financial statements. 21

Total Fund Balances - Total Governmental Funds $ 19,255,631 Nondepreciable 7,099,134
Depreciable, net of Internal Service Fund of $719,045 12,053,214 Total capital assets 19,152,348
Total Internal Service Funds 2,433,487
Bonds payable (3,245,000)
Interest payable, net of Internal Service Fund of $1,279 (30,830) Unamortized bond premium (105,121)
85,965
(3,783,018) (488,032)
1,314
Pension related deferred outflows of resources 8,980,782 Pension related deferred inflows of resources (12,212,746) (14,540,568)
OPEB related deferred outflows of resources 2,310,389
OPEB related deferred inflows of resources (1,539,648)
(6,356,967)
Net position of governmental activities $ 13,701,004

CITY OF LOS ALAMITOS
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Deferred amounts relates to pension not available for current expenditures and are not reported in the governmental fund financial statements:

Net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds.

Deferred amounts relates to other postemployment benefits not available for current expenditures and are not reported in the governmental fund financial statements:

Net OPEB liability is not due and payable in the current period and therefore is not reported in the governmental funds.

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Internal Service Funds are used by management to charge garage costs; technology replacement costs; police capital expenditures; facilities, street, parks, and pool capital expenditures; and self-insurance costs to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Governmentwide Statement of Net Position.

Long-term liabilities 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:

Compensated absences
Deferred charge on refunding
Certain revenues were not available to pay for current-period expenditures and, therefore, were deferred in funds.

See accompanying notes to the basic financial statements. 22

Nonmajor Total
Governmental Governmental
General Funds Funds
REVENUES:

Taxes 18,828,358 $ 658,321 $ 19,486,679 $
Licenses and permits 1,034,975 - 1,034,975
Intergovernmental 263,721 435,775 699,496
Charges for services 904,437 156 904,593
Investment earnings (loss) (684,765) 19,466 (665,299)
Fines and forfeitures 382,498 18,214 400,712
Program revenues - 284,090 284,090
Miscellaneous 40,826 448 41,274
Total revenues 1,416,470 20,770,050 22,186,520
EXPENDITURES:

Current:

General government 2,972,137 20,580 2,992,717
Public safety 6,617,305 - 6,617,305
Community development 1,292,094 - 1,292,094
Recreation and community services 1,911,542 - 1,911,542 Public works 2,801,366 150,246 2,951,612
Capital outlay 73,762 882,769 956,531
Debt service:

Principal - 80,000 80,000
Interest and fiscal charges - 130,494 130,494
Total expenditures 15,668,206 1,264,089 16,932,295

REVENUES OVER (UNDER)
EXPENDITURES 5,101,844 152,381 5,254,225

OTHER FINANCING
SOURCES (USES):

Transfers in (Note 4) 375,000 453,500 828,500
Transfers out (Note 4) (1,303,500) (375,000) (1,678,500) Total other financing sources (uses) 78,500 (928,500) (850,000) NET CHANGE IN FUND BALANCE 230,881 4,173,344 4,404,225
Fund balances, beginning of year, as restated (Note 15) 12,599,677 2,251,729 14,851,406 Fund balances, end of year 16,773,021 $ 2,482,610 $ 19,255,631 $ Statement of Revenues, Expenditures, and Changes in Fund Balances

CITY OF LOS ALAMITOS
Governmental Funds
For the Year Ended June 30, 2022
See accompanying notes to the basic financial statements. 23

Net Change in Fund Balances - Total Governmental Funds $ 4,404,225 Governmental activities in the Statement of Activities were reported differently because:

Total capital outlay expenditures reported in governmental funds 957,075 $ Plus: repair and maintenance expenditures capitalized 99,840 Total capital outlay 1,056,915
Total depreciation reported in Government-wide Statement of Activities (457,336) Less: depreciation reported in the Internal Service Fund 105,446 Total (351,890)
1,312
1,394,778
(281,801)
(6,190)
80,000
551
250,946
Change in net position of governmental activities $ 6,548,846 The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position.

Amortization of deferred charge on refunding does not use current financial resources and therefore not reported as expenditures in the governmental funds.

Internal Service Funds are used by management to charge garage costs; technology replacement costs; police capital expenditures; facilities, street, parks, and pool capital expenditures; and self-insurance costs to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.

CITY OF LOS ALAMITOS
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2022
Governmental Funds report capital outlay as expenditures. However, in the Government-wide Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below.

Depreciation expense of capital assets is reported in the Government-wide Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds expect for the Internal Service fund amount listed below.

Earned but unavailable revenues reported in the governmental funds balance sheet as deferred inflows of resources should be recognized in the Government-wide Statement of Activities as revenue regardless of availability.

Certain pension 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.

Certain other postemployment benefit 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.

Compensated absences were reported in the Government-wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.

See accompanying notes to the basic financial statements. 24

25 This page intentionally left blank.

PROPRIETARY FUND

FINANCIAL STATEMENTS
26 Internal Service Funds - To account for the costs associated with the City's insurance, for funding equipment replacement, and fleet maintenance.

Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:

Cash and investments (Note 3) 2,109,247 $
Accounts receivable 12,102
Total current assets 2,121,349
Noncurrent assets:

Capital assets - net of accumulated depreciation (Note 5) 719,045 Total noncurrent assets 719,045
Total assets 2,840,394

LIABILITIES
Current liabilities:

Accounts payable 120,417
Accrued interest 1,279
Accrued claims and judgements 71,875
Capital leases (Note 7) 12,967
Total current liabilities 206,538
Long-term liabilities:

Accrued claims and judgements 151,098
Capital leases (Note 7) 49,271
Total long-term liabilities 200,369
Total liabilities 406,907

NET POSITION
Net investment in capital assets 656,807
Unrestricted 1,776,680
Total net position $ 2,433,487

CITY OF LOS ALAMITOS
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying notes to the basic financial statements. 27

Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:

Charges for services
Garage $ 316,840
Police capital 40,000
Technology replacement 190,000
Miscellaneous 41,940
Total operating revenues 588,780
OPERATING EXPENSES:

Supplies and materials 340,220
Outside services 170,517
Claims expense 563,308
Depreciation 105,446
Total operating expenses 1,179,491
OPERATING INCOME (LOSS) (590,711)
NON-OPERATING REVENUES (EXPENSES):

Interest expense (8,343)
Total non-operating revenues (expenses) (8,343)
INCOME BEFORE TRANSFERS (599,054)
Transfers in (Note 4) 850,000
Total transfers 850,000
Change in net position 250,946
Net position, beginning of year 2,182,541
Net position, end of year 2,433,487 $

CITY OF LOS ALAMITOS
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
See accompanying notes to the basic financial statements. 28

Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund charges for garage services 316,840 $ Receipts from interfund charges for police capital services 40,000 Receipts from interfund charges for technology replacement services 190,000 Payments to suppliers and service providers (935,505)
Cash received from (payments to) others 41,940
Net cash provided (used by) operating activities (346,725) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in 850,000
Net cash provided (used by) non-capital financing activities 850,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (305,559) Principal paid on capital debt (5,570)
Interest paid on capital debt (8,572)
Net cash provided (used by) capital and related financing activities (319,701) Net increase (decrease) in cash and cash equivalents 183,574 Cash and equivalents, beginning of year 1,925,673
Cash and equivalents, end of year 2,109,247 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (590,711) $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 105,446
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (4,146)
Increase (decrease) in accounts payable 70,376
Increase (decrease) in claims and judgements 72,310
Total adjustments 243,986
Net cash provided (used) by operating activities $ (346,725)

CITY OF LOS ALAMITOS
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
See accompanying notes to the basic financial statements. 29

NOTES TO THE BASIC

FINANCIAL STATEMENTS
30

City of Los Alamitos
31 Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Los Alamitos, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies.

The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:

A. Financial Reporting Entity
The City was incorporated on March 1, 1960. The Charter of the City of Los Alamitos was adopted by a vote of the people in September 1966, and the City enjoys all rights and privileges pertaining to such “Charter Law” cities.

The financial statements include the financial activities of the City, the primary government, and its blended component unit, the Los Alamitos Public Financing Corporation (the Corporation). The component unit, discussed below, is included in the City’s reporting entity because of the significance of its operational and financial relationship with the City. This entity is legally separate from the City. However, the City’s elected officials have continuing accountability for fiscal matters of this entity.

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

Management determined that the following entities should be reported as blended component units based on the criteria above. Each blended component unit has a June 30 year-end, has a governing board that is substantially the same as the City’s, there is a financial benefit or burden relationship between the City and the blended component unit, and the City is financially accountable for each of the blended component units.

The Los Alamitos Public Facilities Corporation – The Corporation was formed February 6, 2006, pursuant to the Non-Profit Corporation Law of the State of California for the purpose of assisting the City in financing the acquisition, construction and improvement for public benefit within the City limits. The Corporation is governed by a five-member board that is the City Council of the City of Los Alamitos. Separate financial statements are not prepared.

B. Basis of Accounting and Measurement Focus
The City’s basic financial statements consist of government-wide statements, including the Statement of Net Position and the Statement of Activities, and fund financial statements, which provide a more detailed level of financial information.

Government-Wide Financial Statements
The Statement of Net Position and the Statement of Activities display information about the City as a whole. These statements include the financial activities of the City and the Corporation. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables.

City of Los Alamitos
32 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) The Statement of Net Position presents the financial position of the governmental activities of the City and its component unit, and the Statement of Activities reports expenses of each specific governmental function, offset by program revenues attributable to each functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity.

Program revenues that are attributable to functional programs are separated into three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Charges for services report fees and other charges to users of the City’s services, operating grants and contributions finance annual operating activities and can include restricted investment income, and capital grants and contributions fund the acquisition, construction or rehabilitation of capital assets. These revenues are subject to externally imposed restriction to these program uses. Other revenues sources not included with program revenues are reported as general revenues of the City. These can include taxes or unrestricted investment income.

Fund Financial Statements
The accounts of the City are organized on the basis of funds, each of which is considered 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, liabilities, deferred inflows, fund equity, revenues, and expenditures or expenses as appropriate. The City uses two categories of funds: governmental and proprietary.

The City segregates transactions related to certain City functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City at a more detailed level. Individual governmental fund identified as being Major, as prescribed by governmental accounting standards or by Management of the City, are reported in separate columns on the financial statements.

Governmental Funds
Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balance of the current financial resources. Expendable assets are assigned to the various governmental funds according to the purpose for which they may or must be used. Fund liabilities are assigned to the fund from which they will be liquidated. The City reports the difference between its governmental fund assets and its liabilities and deferred inflows of resources as fund balance.

Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and other governmental funds aggregated.

Accompanying reconciliations are presented to explain the differences in fund balance as presented in these statements to the net position presented in the government-wide financial statements.

City of Los Alamitos
33 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) The funds designated as major funds are determined by a mathematical calculation consistent with GASB Statement No. 34 or are elected by Management of the City based on Management’s belief that the presentation of the funds are particularly important to financial statement users for reasons including public interest or consistency of reporting. The City reports the following major governmental funds:
 The General Fund is used to account for all of the general operations and other financial transactions of the City, which are not accounted for by another fund.

Additionally, the City reports the following fund types:
 The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than for debt service or capital projects) that are restricted by law or administrative action or committed to expenditures for specified purposes.
 The Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of major capital facilities, other than those financed by Internal Service Funds.
 The Debt Service Fund is used to account for and report financial resources that are restricted, committed, or assigned for the payment of, long-term debt principal, interest, and related costs for the 2006 Certificates of Participation (Laurel Park Acquisition).

Proprietary Funds
Proprietary funds are used to account for ongoing organizations and activities, which are operated and financed in a manner similar to those found in the private sector. The reporting focus on the determination of operating income, changes in net position, financial position, and cash flows. The City’s proprietary funds are classified as internal service funds.
 The Internal Service Funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. The City’s internal service funds are used to account for its self-insured insurance programs, fleet of vehicles, equipment, technology upgrades, and replacements and other capital related activities.

Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. All internal balances and transactions have been eliminated from their respective statements to avoid over reporting relating assets, liabilities, revenues and expenses, except for internal service fund charges provided and used.

City of Los Alamitos
34 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fund Financial Statements
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Like the government-wide statements, all proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Basis of Accounting
Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. At the fund reporting level, the governmental funds use the modified accrual basis of accounting. Proprietary funds use the accrual basis of accounting at both reporting levels. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred inflows of resources, and in the presentation of expenses versus expenditures.

Revenue – Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded when the exchange takes place and in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City, the availability is defined within 60 days of year-end.

Revenue – Non-Exchange Transactions
Non-exchange transactions in which the City receives value without directly giving equal value in return, includes sales taxes, property taxes, grants and donations. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Major revenue sources susceptible to accrual include property tax, sales tax, utility users tax, franchise Tax, and licenses. On a modified accrual basis, revenue from non-exchange transaction also must be available (generally 60 days after year-end) before it can be recognized in the governmental funds. However, the City has adopted a 12-month recognition period for grant revenues.

City of Los Alamitos
35 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Unavailable Revenue
Unavailable revenue, presented under deferred inflows of resources, arise when potential revenues do not meet both the measurable and available criteria for recognition in the current period. In subsequent periods when both revenue recognition criteria are met, the deferred inflow is removed from the balance sheet and revenue is recognized.

Unearned Revenue
Unearned revenue arises when assets are recognized before revenue recognition criteria listed above have been satisfied. In subsequent periods when the government has a legal claim to the resources, the unearned revenue is removed from the balance sheet and revenue is recognized.

Expenses/Expenditures
On the accrual basis of accounting, expenses are recognized at the time they are incurred. On the modified accrual basis, expenditures generally are recognized in the accounting period in which the related fund liability is incurred and due, if measurable.

Proprietary Funds Operating and Non-Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for internal service 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 non-operating revenues and expenses.

C. Cash, Cash Equivalents and Investments
Cash Management
The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity.

However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on ending accounting period cash and investment balances.

Investments Valuation
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

State Investment Pool
The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as a result of changes in interest rates.

City of Los Alamitos
36 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments (Continued)
Cash Equivalents and Cash Flows
For purposes of the statement of cash flows, the City considered all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All cash and investments of the proprietary fund types are pooled with the City's pooled cash and investments.

D. Internal Receivable and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “interfund advances receivable/payable” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Advances between funds, as reported in the fund financial statements, are presented as nonspendable in fund balances to indicate that they are not in a spendable form.

E. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

The cost of prepaid items is recorded as an expenditure/ expense when consumed.

F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years, except for computer software and hardware and infrastructure assets which have a capitalization threshold of $20,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use assts), the measurement of which is discussed thereafter. Donated capital assets are recorded at acquisition value at the date of acquisition.

As permitted under GASB Statement No. 34 for small governmental entities, the City has elected to report infrastructure assets prospectively beginning July 1, 2003.

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

Property, plant, and equipment of the primary government, as well as the component unit, are depreciated using the straight-line method over the following estimated useful lives:

Equipment 5 - 10 years
Vehicles 4 - 15 years
Furniture 7 years
Buildings 50 years
Improvements 5 - 20 years
Infrastructure 50 years

City of Los Alamitos
37 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) G. Compensated Absences Payable
Under certain circumstances and according to the negotiated labor agreements, employees of the City are allowed to accumulate annual leave. This amount is accrued in the government-wide and proprietary fund statements. Refer to Note 6 for additional information.

H. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.

In accordance with GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred.

I. Claims and Judgments
The City records a liability for claims, judgments, and litigation when it is probable that an asset has been impaired, or a liability has been incurred prior to fiscal year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated.

The City is exposed to various risks of losses related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City currently reports all of its risk management activities in its General Fund. Claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred, but not reported.

It is the City’s policy to liquidate claims and judgments existing at June 30, with future resources. Accordingly, the liabilities are recorded in the Statement of Net Position. These noncurrent amounts will be recorded as fund expenditures in the fiscal year in which they are paid or become due on demand.

J. Deferred Outflows and Inflows of Resources
In addition to assets, the statements of net position and the governmental funds balance sheet 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 a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items which qualify for reporting in this category.

Deferred pension related items relate to the net pension obligation reported in the statement of net position.

These outflows are the results of contributions made after the measurement date, which are recognized in the following year, and consist of adjustments due to differences in proportions, changes in assumptions, and differences between expected and actual experiences, which are deferred and amortized over the expected average remaining life time. Additionally, the net difference between projected and actual earnings on pension plan investments is reported and amortized over 5 years. Deferred outflows from changes in net pension liability arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position.

The City also reports a deferred charge on refunding which results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunded or refunding debt.

City of Los Alamitos
38 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) J. Deferred Outflows and Inflows of Resources (Continued) In addition to liabilities, the statements 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 a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items which qualifies for reporting in this category. The first item is in relation to the net pension obligation reported in the statement of net position.

These inflows are the results of changes of assumptions, differences between expected and actual experiences, adjustments due to differences in proportions, and differences between proportionate share of contributions and actual contributions. Inflows from changes in net pension liability arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position
The City also reports one type of item, which arises only under the modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds’ balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

K. Net Position
Net position is the excess of all the City’s assets over all its liabilities, regardless of fund. Net position is divided into three captions under GASB Statement No. 34. These captions apply only to net position, which is determined only at the government-wide level, and are described below:
 Net Investment in Capital Assets – the portion of net position that is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.  Restricted – the portion of net position that is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws or other restrictions, which the City cannot unilaterally alter. These principally include funds restricted to community development projects purposes and funds for use in building improvements and governmental grants.  Unrestricted – the portion of net position that is not restricted as to use.

L. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

City of Los Alamitos
39 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) M. Fund Balance
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
 Nonspendable – the portion of a fund balance that includes amounts that cannot be spent because they are either not in a spendable form, such as prepaid items, inventories, or loans receivable.  Restricted – the portion of a fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors (such as through debt covenants, grantors, contributors, or laws or regulations of other governments); or (b) imposed by law through constitutional provisions or enabling legislation. Examples of restricted fund balances include State Gas Tax, Asset Seizure, and Measure M funds.
 Committed – the portion of a fund balance that included amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision- making authority and remain binding unless removed in the same manner. a. The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as a resolution. b. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. c. City Council action to commit fund balance needs to occur within the fiscal reporting periods; however, the amount can be determined subsequently.
 Assigned – amounts that are constrained by the City’s intent to be used for specific purposes, but are neither Restricted nor Committed, should be reported as Assigned fund balance. This policy hereby delegated the authority to assign amounts to be used for specific purposes to the City Manager for the purpose of reporting these amounts in the City’s annual financial statements. Examples of assigned fund balance are funds intended for Capital Improvement Projects and Equipment Replacement.  Unassigned – residual net resources in excess of what can properly be classified in one of the other four categories and do not have any specific spending limitations. The General Fund is the only fund that reports a positive unassigned fund balance amount. In governmental funds, other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, the City reports a negative unassigned fund balance in that fund.

In July 2017, City Council established a Reserve for Emergencies to be maintained at 25% of General Fund appropriations. The reserve is only to be used, with council approval, in the case of a declared natural disaster or financial emergency. A financial emergency is considered when annual revenues decrease by 5% or more or when annual expenditures increase by 5% or more.

City of Los Alamitos
40 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) N. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

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

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

Valuation Date (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) June 30, 2021 to June 30, 2022
P. Other Post-Employment Benefits (OPEB)
For purposes of measuring the other post-employment benefits (OPEB) liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
Q. New Accounting Pronouncements
The City adopted Statement on Governmental Accounting Standards (GASB Statements) No. 87-Leases; No 89- Accounting for Interest Cost Incurred Before the End of a Construction Period; No. 90-Majority Equity Interest; No. 93-Replacement of Interbank Offered Rates; and No. 97-Certain Component Unit Criteria for Internal Revenue Code 457 Deferred Compensation Plans. The City implemented GASB No. 87 during fiscal year June 30, 2022. The adoption of the GASB Nos. 89, 90, 93, and 97 did not significantly impact the City.

City of Los Alamitos
41 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) R. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. The City currently does not have any leases receivable.

City of Los Alamitos
42 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) S. Property Taxes
Under California law, property taxes are assessed and collected by the counties at 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.

Property taxes are assessed, collected and allocated by Orange County throughout the fiscal year according to the following property tax calendar.

Lien Date January 1
Levy Date July 1 to June 30
Due Dates November 1, 1st installment, February 1, 2nd installment Delinquent Dates December 11, 1st installment, April 11, 2nd installment Property taxes receivable for the governmental fund types, which have been remitted within 60 days subsequent to year end, are considered measurable and available and recognized as revenues. All other property taxes are offset by deferred property tax inflows of resources and, accordingly, have not been recorded as revenue. Taxes are considered past due on the above delinquent dates, at which time the applicable property is subject to lien, and penalties and interest are assessed.

T. Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows:
 General government – includes legislative activities, which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities that provide management or support services across more than one functional area.  Public safety – includes those activities that involve the protection of people and property.  Community development – includes those activities such as planning, code enforcement, and building and safety inspections.
 Recreation and community services – includes those activities that involve the community cultural and leisure activities.
 Public works – includes those activities that involve the maintenance and improvement of City streets, roads, and park development and maintenance.
 Capital outlay – includes purchases of property, plant and equipment which are expensed in the governmental funds because governmental funds use the current financial resources measurement focus.  Principal retirement – includes principal payments for long-term liabilities.  Interest and fiscal charges – includes current payments for interest on the City’s long-term debt.

City of Los Alamitos
43 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) U. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Note 2 – Stewardship, Compliance, and Accountability
A. Violations of Legal or Contractual Provisions
Note 2 to Required Supplementary Information, on the Excess of Expenditures over Appropriations, describes budgetary violations that occurred in the General Fund for the year ended June 30, 2022.

B. Deficit Fund Balance
At June 30, 2022, the Community Development Block Grant (CDBG) nonmajor special revenue fund reported a deficit fund balance of $114,182. The deficit is due to the timing of the receipt of CDBG program reimbursements for expenditures incurred. The deficit will be eliminated as the program reimbursements are received from the grantor agency.

Note 3 – Cash and Investments
A. Summary of Cash and Investments
At June 30, 2022, the City reported $21,302,076 in unrestricted cash and investments and $249 in restricted cash and investments held with fiscal agents for a total cash and investment balance of $21,302,325. Total cash and investments consisted of the following:

Cash on hand $ 3,500
Demand deposits 796,570
Investments 20,502,255
Total Cash and Investments $ 21,302,325
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

City of Los Alamitos
44 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
B. Cash Deposits
The carrying amounts of the City’s cash deposits were $796,570 at June 30, 2022. Bank balances before reconciling items were $549,966 at that date. The difference of $246,604 represents outstanding checks, cash deposits in transit, and other reconciling items.

All City’s cash and investments as of June 30, 2022, were collateralized or insured with securities held by pledging financial institutions in the City’s name. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

C. Investments
The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of bond indentures of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio* One Issuer United States (U.S.)Treasury Obligations 5 years None None Federal Agency Securities 5 years None None
Certificates of Deposit 5 years None $250,000
Negotiable Certificates of Deposit 5 years 30% 30%
Local Agency Investment Fund (LAIF) N/A None $50 million * Excludes amounts held by bond trustees that are not subject to California Government Code restrictions.

Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations 30 years None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Money Market Mutual Funds None None None
Investment Agreements None None None
Local Agency Bonds None None None
Medium Tern Notes 5 years 30% None
Negotiable Certificates for Deposits None 30% None
Local Agency Investment Fund (LAIF) None None None

City of Los Alamitos
45 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
C. Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawals is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF does not impose limits or restrictions on participant withdrawals, and the entire balance of the City’s investment in the portfolio is available for withdrawal at any time. LAIF is not registered with the Securities and Exchange Commission and is not rated.

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

D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

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

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
U.S. Treasury Obligations $ - $ 938,242 $ 226,983 $ 1,165,225 U.S. Agency Securities - 3,177,967 4,949,937 8,127,904
Certificates of Deposit 743,167 732,413 1,373,104 2,848,684 Agency Investment Fund (LAIF) 8,360,193 - - 8,360,193
Investment held by Bond Trustee:

Money Market Mutual Funds 249 - - 249

Total $ 9,103,609 $4,848,622 $6,550,024 $20,502,255

City of Los Alamitos
46 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to 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, by Standards and Poor, as of fiscal year end for each investment type:

Minimum
Legal
Not
Investment Type Total Rating Rated AAA AA+
U.S. Treasury Obligations $1,165,225 N/A $ - $1,165,225 $ - U.S. Agency Securities 8,127,904 N/A - 8,127,904 -
Certificates of Deposit 2,848,684 N/A 2,848,684 - -
Agency Investment Fund (LAIF) 8,360,193 Not Rated 8,360,193 - - Investment held by Bond Trustee:

Money Market Mutual Funds 249 N/A - - 249

Total $20,502,255 $11,208,877 $9,293,129 $ 249
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage that the City can invest in certain types of investments. As of June 30, 2022, in accordance with GASB Statement No. 40 requirements, the City is exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City’s investment policy does not contain any additional provisions that would limit the exposure to custodial credit risk for deposits. However, the policy does stipulate that mortgage collateral cannot be used to secure deposits, and that the use of a third-party bank trust department is to act as the City’s safekeeping agent for investments. At June 30, 2022, City deposits (bank balances) were insured by the Federal Depository Insurance Corporation or collateralized as required under California Law.

City of Los Alamitos
47 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2022:

Level
Investments Totals 1 2 Uncategorized
U.S. Treasury Obligations $ 1,165,225 $ 1,165,225 $ - $ - U.S. Agency Securities 8,127,904 8,127,904 - -
Certificates of Deposit 2,848,684 - 2,848,684 -
Local Agency Investment Fund (LAIF)
Investment Held by Fiscal Agent
8,360,193 - - 8,360,193
Money Market Funds 249 249 - -
Totals $ 20,502,255 $ 9,293,378 $ 2,848,684 $ 8,360,193 Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes.

Note 4 – Interfund Transactions
A. Receivables/Payables
The purpose of the interfund transactions is to make short-term interfund loans from the General Fund to nonmajor governmental funds. These interfund loans are to provide for negative cash balances at year-end and/or operating cash flow. Due to/from amounts are short-term financing, which are paid within one year. There were no such balances as of June 30, 2022.

B. Transfers In/Out
Transfers Out
Nonmajor
Governmental
Transfers In General Fund Funds Total
General Fund $ - $ 375,000 $ 375,000
Nonmajor Governmental Funds 453,500 - 453,500
Internal Service Funds 850,000 - 850,000
Total $ 1,303,500 $ 375,000 $ 1,678,500

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48 Note 4 – Interfund Transactions (Continued)
B. Transfers In/Out (Continued)
Transfers to the General Fund from the Nonmajor Governmental Funds were made to fund street maintenance, partially offset the cost of police services, and to partially offset the cost of the Police Department motor officer program and other costs pertaining to traffic safety programs. Transfers to the Other Governmental Funds from the General Fund were made to make principal and interest payments of debt issued for the Laurel Park purchase.

Transfers to the Internal Services Funds from the General Fund were made to set aside fund for claim reserves, in case of any future incidents.

Note 5 – Capital Assets
A summary of changes in the Governmental Activities capital assets for the fiscal year ended June 30, 2022 are as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 5,917,715 $ - $ - $ 5,917,715
Construction in process 624,720 1,056,916 (500,216) 1,181,420 Total non-depreciable 6,542,435 1,056,916 (500,216) 7,099,135 Depreciable:

Buildings and improvements 2,295,266 - - 2,295,266
Equipment 1,266,120 126,030 (56,015) 1,336,135
Right-to-use – leased vehicles 50,263 25,518 - 75,781
Vehicles 1,173,866 103,744 - 1,277,610
Infrastructure- road system 14,109,191 500,215 - 14,609,406 Total depreciable
capital assets 18,894,706 755,507 (56,015) 19,594,198
Less accumulated depreciation for:

Buildings and improvements 1,536,574 42,393 - 1,578,967 Equipment 1,011,510 58,910 (56,015) 1,014,405
Right-to-use – leased vehicles - 16,780 - 16,780
Vehicles 1,056,337 56,260 - 1,112,597
Infrastructure- road system 2,816,199 282,992 - 3,099,191 Total accumulated
depreciation 6,420,620 457,335 (56,015) 6,821,940
Total depreciable
capital assets, net 12,474,086 298,172 - 12,772,258
Total capital assets, net $ 19,016,521 $1,355,088 $ (500,216) $19,871,393 Depreciation expense was charged to governmental activities as follows:

General
Internal
Service Total
General Government $ 18,280 $ - $ 18,280
Public Safety 22,851 - 22,851
Recreation and Community Services 54,840 - 54,840
Public Works 255,918 - 255,918
Internal Service Fund - 105,446 105,446
Totals $ 351,889 $ 105,446 $ 457,335

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 5 – Capital Assets (Continued)
Expenditures
Spent-to-date
Remaining
Commitment
Construction commitments:

Government activities – street projects:

Year 1 Residential Street Improvements $ 70,650 $ 1,177,965 Howard Street from Noel to Lexington 100,957 30,043
Bloomfield from Farquhar to Katella 119,589 40,411
Suburbia Rehabilitation 157,715 29,269
Woodcrest and Carrier Row 19,398 209,685
Storm Drain Management Plan 64,860 10,140
Suburbia Street Project 49,124 73,822
Note 6 – Compensated Absences
The following is a summary of changes in compensated absences for the year ended June 30, 2022 is as follows:

Balance Balance Due within
July 1, 2021 Additions Deletions June 30, 2022 One Year Compensated absences $ 481,842 $ 229,747 $ 223,557 $ 488,032 $ 181,844 There is no repayment schedule for compensated absences. Employee leave benefits are payable to employees upon usage or termination. The City’s policies relating to the payment of these benefits are discussed in Note 1. The liability for compensated absences is typically liquidated through the General Fund.

Note 7 – Long-Term Debt
The following is a summary of changes in Governmental Activities long-term debt for the year ended June 30, 2022:

Balance Balance Due within
July 1, 2021 Additions Deletions June 30, 2022 One Year 2015 Certificates of Participation $ 3,325,000 $ - $ 80,000 $ 3,245,000 $ 85,000 Unamortized bond premium 109,555 - 4,434 105,121 4,434
$ 3,434,555 $ - $ 84,434 $ 3,350,121 $ 89,434

Other Long-term Liabilities:

Lease payable – Police Vehicles $ 68,008 $ - $ 5,770 $ 62,238 $ 12,967

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 7 – Long-Term Debt (Continued)
A. 2015 Certificates of Participation
On September 1, 2015, the City issued the 2015 Certificates of Participation in the amount of $3,685,000, as a public offering, to refund the outstanding balance of the 2006 (Laurel Park Acquisition) Certificates of Participation in an advanced refunding transaction, and to finance the design, acquisition, and construction of certain capital improvement projects. There are no finance-related consequences related to significant events of default or termination, and there are no acceleration clauses. There are no assets pledged as collateral, no required reserve, and no unused lines of credit. Interest on the bonds is payable semiannually on October 1 and April 1, commencing April 1, 2016, at rates which range from 2.00% to 5.00%. Principal payments begin October 1, 2017 and continue October 1 of each year through October 1, 2045. The outstanding balance as of June 30, 2022 is $3,245,000. The annual debt service requirements on these bonds are as follows:

Year ending
June 30, Principal Interest Total
2023 $ 85,000 $ 125,444 $ 210,444
2024 85,000 121,194 206,194
2025 90,000 116,819 206,819
2026 95,000 112,194 207,194
2027 100,000 107,319 207,319
2028-2032 560,000 482,144 1,042,144
2033-2037 655,000 379,147 1,034,147
2038-2042 805,000 236,900 1,041,900
2043-2046 770,000 63,200 833,200
$ 3,245,000 $ 1,744,361 $ 4,989,361

B. Lease Payable – Police Vehicles
In December 2020, the City entered into two five-year lease agreements as lessee for the acquisition and use of two vehicles. Initial lease liabilities were recorded in the amounts of $31,142 and 42,533 during the current fiscal year as a result of implementation of GASB 87. As of June 30, 2022, the value of the lease liabilities were $16,254 and $22,204. The City is required to make monthly principal and interest payments of $519 and $708 for the vehicles. The leases both have an interest rate of 16.2%.

The vehicles both have a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2022 was $21,244 and $29,019 less accumulated amortization of $6,373 and $8,706, respectively.

In March 2022, the City entered into a five-year lease agreement as lessee for the acquisition and use of a vehicle. An initial lease liability was recorded in the amount of $25,518 during the current fiscal year as a result of implementation of GASB 87. As of June 30, 2022, the value of the lease liability was $23,780. The City is required to make monthly principal and interest payments of $623 for the vehicle.

The lease has an interest rate of 16.2%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2022 was $25,518 less accumulated amortization of $1,701.

The following future principal and interest payments on the leases payable for June 30 are as follows:

Year ending
June 30, Principal Interest Total
2023 $ 12,967 $ 9,248 $ 22,215
2024 15,226 6,989 22,215
2025 17,888 4,327 22,215
2026 12,060 1,561 13,621
2027 4,097 292 4,389
$ 62,238 $ 22,417 $ 85,255

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 8 – Defined Contribution Plans
The City provides pension benefits for all of its part time employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered as part of the City’s 457 plan. Federal legislation requires contributions of at least 7.5% of the employees’ salary. For the fiscal year ended June 30, 2022, the City contributed $35,121. City employees are invested immediately. City Council has the authority to establish and amend the provisions of this plan.

Note 9 – Defined Benefit Pension Plans
A. Plan Description
The City contributes to the California Public Employees' Retirement System (CaIPERS), a cost-sharing multipleemployer public employee defined benefit pension plan for full-time safety and miscellaneous employees.

CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for participating public entities within the State of California. CaIPERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost-sharing plans that are administered by CaIPERS. Copies of CalPERS' annual financial report may be obtained from their executive office at: 400 P Street, Sacramento, California 95814.

B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 9 – Defined Benefit Pension Plans (Continued)
B. Benefits Provided (Continued)
The City has a multiple tier retirement plan with benefits varying by plan for both miscellaneous and safety employees hired on or before specific dates as follows:

Safety Employees
 Legacy POA Employees – The retirement formula is 3% at age 50 for safety employees covered under the Los Alamitos Police Officers’ Association (POA) that were hired on or before December 31, 2012.

The employee is responsible for the employee share (9%).  Non-Represented Safety Employees – The retirement formula for Non-Represented Safety Employees hired on or before December 31, 2012 is 3% at age 50. The employee is responsible for the employee share (9%).
 Safety PEPRA Employees – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013. The employee must pay one-half (1/2) of the normal cost of the benefit. The normal cost is currently 23.49% - one-half of which is 11.745%, which is paid by the employee.

Classic members (CalPERS members prior to 12/31/12) hired on or after January 1, 2013 may be placed in a different tier.

Miscellaneous Employees
 Legacy CEA Employees – The retirement formula is 2.7% at age 55 for miscellaneous employees covered under the Los Alamitos City Employees Association (CEA) hired on or before December 31, 2012. The employee is responsible for the employee share (8%).
 Non-Represented Miscellaneous Employees – The retirement formula for Non-Represented Miscellaneous Employees hired on or before December 31, 2012 is 2.7% at age 55. The employee is responsible for the employee share (8%) with the exception of the City Manager whereby the City pays the employee share (8%).
 Miscellaneous PEPRA Employees – The retirement formula is 2% at age 62 for new members hired on or after January 1, 2013. The employee must pay one-half (1/2) of the normal cost of the benefit. The normal cost is currently 12.783% - one-half of which is 6.3915%, which is paid by the employee.

Classic members (CalPERS members prior to 12/31/12) hired on or after January 1, 2013 may be placed in a different tier.

Additionally, the City is required to contribute the actuarially determined amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rates for fiscal year 2021-2022 are as follows:

Employer
Rates
Classic Miscellaneous Members 14.02%
PEPRA Miscellaneous Members 7.59%
Classic Safety Members 23.71%
PEPRA Safety Members 13.13%
The employer rate for each plan does not include the additional City payment made towards the unfunded pension liability. Payment towards the unfunded liability for the fiscal year ended June 30, 2022 was $1,677,621.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 9 – Defined Benefit Pension Plans (Continued)
C. Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2022, the contributions recognized as a reduction to the net pension liability for the miscellaneous and safety plans was $772,765 and $848,052, respectively.

D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2020 valuations were rolled forward to determine the June 30, 2021 total pension liabilities, based on the following actuarial methods and assumptions:
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:

Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirements of GASB 68

7.15%

2.50%
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.5% thereafter

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 9 – Defined Benefit Pension Plans (Continued)
E. Long-term Expected Rate of Return
Assumed
Asset
Asset Class Allocation
Public equity 50.0%
Global fixed income 28.0%
Real assets 13.0%
Private equity 8.0%
Inflation sensitive assets 0.0%
Liquidity 1.0%
F. Discount Rate
The discount rate used to measure the total pension liability was 7.15%. 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.

G. Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

H. Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

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

The EARSL for PERF C (the CalPERS pool) for the measurement date ending June 30, 2021 is 3.7 years, which was obtained by dividing the total service years of 559,502 (the sum of remaining service lifetimes of the active employees) by 150,958 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

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

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 9 – Defined Benefit Pension Plans (Continued)
I. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Net Pension Liability
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share of Net Pension Liability
Miscellaneous $ 7,053,182
Safety 7,487,386
Total Net Pension Liability $ 14,540,568
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, 2020, 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, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion 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. The City’s proportionate share of the net pension liability for each plan as of June 30, 2020 and 2021, were as follows:

Miscellaneous Safety
Proportion – June 30, 2020 0.2450% 0.1772%
Proportion – June 30. 2021 0.3738% 0.2140%

Change – Increase (Decrease) 0.1288% 0.0368%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 7.15%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15%) or 1 percentage point higher (8.15%) than the current rate:

Discount Rate
-1%
(6.15%)
Current
Discount Rate
(7.15%)
Discount Rate
-1%
(6.15%)
Proportion – June 30, 2020 $11,611,367 $ 7,053,182 $ 3,326,094 Proportion – June 30. 2021 13,283,412 7,487,386 2,726,666

Change – Increase (Decrease) $24,894,779 $14,540,568 $ 6,052,760 Pension Expense and Pension Deferrals
For the year ended June 30, 2022, the City recognized a total pension expense of $491,685 for the Miscellaneous plan and $436,776 for the Safety plan, totaling $928,461 for all plans. At June 30, 2022, the City reported deferred outflows and deferred inflows of resources related to pensions as follows:

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 9 – Defined Benefit Pension Plans (Continued)
I. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Contributions subsequent to measurement date $ 1,043,161 $ - Changes in assumptions - -
Difference between expected and actual experience 793,464 2,523 Net difference between projected and actual
earnings on pension plan investments 19,639 6,176,695
Adjustment due to differences in proportions
Difference between actual and proportionate share
3,063,933 262,567
of contributions 49,624 321,455
Subtotal Miscellaneous Plan 4,969,821 6,763,240
Safety Plan

Contributions subsequent to measurement date 1,280,078 - Changes in assumptions - -
Difference between expected and actual experience 1,281,287 2,073 Net difference between projected and actual
earnings on pension plan investments 7,222 4,463,655
Adjustment due to differences in proportions
Difference between actual and proportionate share
1,336,895 33,405
of contributions 105,479 950,373
Subtotal Safety Plan 4,010,961 5,449,506
Total All Plans $ 8,980,782 $ 12,212,746
The $2,323,239 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows/(Inflows) of Resources
Fiscal Year
Ending June 30, Miscellaneous Safety Total
2023 $ (284,108) $ (326,250) $ ( 610,358)
2024 (238,549) (436,791) (675,340)
2025 (612,429) (729,233) (1,341,662)
2026 (1,701,494) (1,226,349) (2,927,843)

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 10 – Other Post-Employment Benefit (OPEB) Plan
A. Plan Description
In addition to providing pension benefits, the City provides certain health care benefits, through a single- employer OPEB Plan (the Plan), for retired employees in accordance with a City Council resolution. Substantially, all the City’s employees become eligible for those benefits if they reach normal retirement age while working for the City. Those and similar benefits for active employees are provided through PERS whose premiums are based on the benefits paid during the year.

Retiree health care coverage is segregated into two tiers as follows:

Tier 1 – Employees Hired Before August 1, 1994(1) receive one of the following:
 Miscellaneous and Safety Employees with 10 years of service with the City, with a regular service retirement, shall be eligible to receive 100% of the monthly benefit applicable towards the employee and one dependent, provided that employee plus one dependent coverage was in effect upon the date of retirement, up to Medicare age, and up to $300 per month thereafter for life.  Employees age fifty (50) or over received up to $300 per month for life.

Tier 2 – Employees Hired on or After August 1, 1994(1) receive one of the following:
 Miscellaneous Employees with at least 15 years of continuous service with the City, and have reached the age of fifty-five (55) shall be eligible to receive 100% of the monthly benefit applicable towards the employee and one dependent, provided that employee plus one dependent coverage was in effect upon the date of retirement, up to Medicare age, and up to $300 per month thereafter for life.  Safety Employees with 10 years of service with the City shall be eligible to receive 50% of the monthly benefit applicable towards the employee and one dependent, if employee plus one dependent coverage was in effect upon the date of retirement. The percentage increases by 5% per year to 100% at 20 years of service up to Medicare age, and up to $300 per month thereafter for life. (1) Applies to police employees hired after January 1, 1995.

B. Employees Covered
As of the June 30, 2022 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active 50
Inactive employees or beneficiaries currently receiving benefits 47 Inactive employees entitled to, but not yet receiving benefits 0 Total 97
C. Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council, and/or the employee associations The City is currently funding this OPEB obligation based on a pay-asyou-go basis. For the measurement date ended June 30, 2022, the City made no contributions to the plan, which would be recognized as a reduction of the total OPEB liability.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) D. Actuarial Methods and Assumptions
The City’s total OPEB liability was measured as of June 30, 2022 and was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.54%
Inflation 2.50%
Salary Increases 2.75% per year
Investment Rate of Return 2.20%, net of expenses
Mortality Rate 2014 CalPERS Active Mortality for Miscellaneous Pre-Retirement Turnover According to the CalPERS Turnover rate table Healthcare Trend Rate 4.0% per year
The actuary applied section 3.7.7(c)4 Actuarial Standards of Practice No. 6, as revised, and determined ageadjusted rates are not necessary and therefore, the Implicit Rate Subsidy is not applicable in calculating the total projection of benefit payments.

E. Discount Rate
The discount rate used to measure the total OPEB liability was 3.54 percent. The discount rate is based on the Bond Buyer 20 Bond Index. The City does not participate in a trust fiduciary fund.

F. Changes in the Total OPEB Liability
The changes in the Total OPEB liability for the Plan are as follows:

Increase
(Decrease)

Total
OPEB
Liability/(Assets)
Balance at June 30, 2021 (valuation date 6/30/19) $ 6,694,357 Changes recognized over the measurement period:

Service Cost 345,491
Interest 144,055
Changes of assumptions (973,560)
Actual and expected experience difference 542,385
Benefit Payments (395,761)
Net Changes (337,390)
Balance at June 30, 2022 (measurement date 6/30/22) $ 6,356,967 G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the Total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
Current
Discount Rate 1% Increase
(2.54%) (3.54%) (4.54%)
$7,038,345 $6,356,967 $5,781,635

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) H. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the Total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Current Healthcare Cost
1% Decrease Trent Rates 1% Increase

3.00% 4.00% 5.00%
$5,879,754 $6,356,967 $6,925,807
I. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $677,562. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of resources
Deferred Inflows
of resources
Change in assumptions $ 1,828,269 $ (865,386)
Difference between expected and
actual experience 482,120 (674,262)
$ 2,310,389 $ (1,539,648)
Amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year
Ending
June 30 Amount
2022 $ 188,016
2023 188,016
2024 188,016
2025 188,016
2026 158,826
Thereafter (140,149)
Total $ 770,741
Note 11 – Joint Ventures
A. Orange County Fire Authority
In January 1995, the City of Los Alamitos entered into a joint powers agreement with 17 other cities within the County of Orange to create the Orange County Fire Authority (Authority). The purpose of the 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, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. Since the creation of the Authority, five additional cities have joined the Authority as members. The Authority’s governing board consists of one representative from each city and two from the County.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 11 – Joint Ventures (Continued)
A. Orange County Fire Authority (Continued)
The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member cities except for eight cities. The County pays all structural fire fees it collects to the Authority. The eight cities for which the County does not collect structural fire fees are considered “cash contract cities” and, accordingly, make cash contributions based on the Authority’s annual budget.

Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the Authority by that member or by the County on behalf of that member during its membership. The City has a financial interest in the Authority; however, it does not have an equity interest. Also, the City does not have an ongoing financial responsibility. Financial statements of the Authority may be obtained from its office at Post Office Box 57115, Irvine, California 92619.

B. West Communications Financing Authority
The West Communications Financing Authority was established December 23, 1996, pursuant to a Joint Exercise of Powers Agreement by the Cities of Los Alamitos, Seal Beach and Cypress for the purpose of operating a public safety communications center.

The Board of Directors is comprised of three elected officials, one designated by each participating City. Each Director has one vote over budgeting and financial matters. The Authority is a public entity separate from the Cities and is not included in the financial statements of those entities.

Each City pays a contractual fee to the Authority which consists of personal costs, capital expenditures and reserves to fund accrued employee leave and equipment purchases. The contractual fee remains stable from year to year. In 2021-2022, the City of Los Alamitos paid $703,953 to the Authority. Financial information for the Authority may be obtained from the City of Cypress.

C. Integrated Law and Justice Agency for Orange County
In May 2006, the City of Los Alamitos entered into a joint powers agreement with 22 other agencies within the County of Orange to create the Integrated Law and Justice Agency for Orange County. The purpose of the Agency is to facilitate the integration and sharing of criminal justice information for the benefit of the lands and inhabitants within their respective boundaries. The Agency’s governing board consists of six Municipal Police Chiefs, each elected for a three-year term by the Orange County Chiefs & Sheriff’s Association. The operations of the Agency are funded by grant awards and annual budget appropriations from each member agency.

Upon dissolution of the Agency, all surplus money and property of the Agency will be conveyed or distributed to each member in proportion to all funds provided to the Agency by that member. The City has a financial interest in the Authority; however, it does not have an equity interest. Also, the City has an ongoing financial responsibility to the Agency for approximately $3,000 per year.

Financial information for this arrangement may be obtained from the City of Los Alamitos.

Note 12 – Self-Insurance Program
Effective July 1, 2016, the City rescinded its participation in the California Joint Power Insurance Authority (CJPIA) and joined the California State Association of Counties Excess Insurance Authority (EIA). Beginning July 1, 2016, excess insurance coverage for General Liability and Workers’ Compensation was provided through the EIA with self-insured retentions of $100,000 and $125,000 per occurrence for each respective program. The EIA provides coverage up to $25 million per occurrence for General Liability and up to the statutory limit for Workers’ Compensation.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 12 – Self-Insurance Program (Continued)
The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss when it became a member of EIA for liability, master crime, and workers’ compensation coverage. All funds of the City participate in the program and make payments to the Self-Insurance Fund based on estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophe losses. The estimated claims liability of $222,973 reported at June 30, 2022, is based on the requirements of Governmental Accounting Standards Board Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The above amount includes an estimate for incurred but not reported claims.

During the last three fiscal years none of the above programs of protection have had settlements or judgments that exceeded the insured coverage amount. There have been no significant reductions in insured liability coverage from the prior year.

Changes in the reported liability for the last two fiscal years are as follows:

Claims and changes in estimates during
Claims payments during the fiscal year
Claims and changes in estimates during
Note 13 – Commitments and Contingencies
The City is subject to litigation arising in the normal course of business.

The City has received various state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.

The City’s operations may be affected by the recent and ongoing outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, possible effects may include, but are not limited to, a reduction in certain tax revenues and a decline in the value of investments, which could have an impact on the City’s financial position and operating results. There is significant uncertainty as to the severity and longevity of the outbreak and City management is in the process of evaluating the impact on the City and its financial statements.

Workers'
Compensation
General
Liability Total
Liability balance as of June 30, 2020 $ 59,868 $ 215,605 $ 275,473 the fiscal year ended June 30, 2021 198,587 (177,484) 21,103 ended June 30, 2021 (196,473) 50,560 (145,913)
Liability balance as of June 30, 2021 61,982 88,681 150,663 the fiscal year ended June 30, 2022 (27,848) (72,962) (100,810) Claims payments during the fiscal year
ended June 30, 2022 37,741 135,379 173,120
Liability balance as of June 30, 2022 $ 71,875 $ 151,098 $ 222,973

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 14 – Classification of Fund Balances
6 At June 30, 2022, fund balances are classified in the governmental funds as follows:

General
Fund
Nonmajor
Governmental
Funds Total
Nonspendable
Prepaid expenditures $ 2,659 $ - $ 2,659
Due from employees 1,531 - 1,531
Total Nonspendable 4,190 - 4,190
Restricted
Transportation - 1,099,189 1,099,189
Cable television - 73,947 73,947
Public safety - 323,343 323,343
Air quality - 123,361 123,361
Parks - 733,371 733,371
Total Restricted - 2,353,211 2,353,211
Committed
Capital projects 2,620 119 2,739
Total Committed 2,620 119 2,739
Assigned
Other POST-employment benefits 500,000 - 500,000
PERS reserves 3,400,000 - 3,400,000
Capital projects 295,979 243,462 539,441
Total Assigned 4,195,979 243,462 4,439,441
Unassigned 12,570,232 (114,182) 12,456,050
Totals $16,773,021 $ 2,482,610 $19,255,631
Note 15 – Restatement of Beginning Net Position/Fund Balance

Governmental
Activities
Governmental
Funds
General Fund
Net position/fund balance at July 1, 2021,
as originally reported

$ 8,168,084

$13,615,603
Adjustment for understatement of
unearned revenue.

(1,015,926)

(1,015,926)
Net position/fund Balance at July 1, 2021,
as restated

$ 7,152,158

$12,599,677
Note 16 – Subsequent Events
Management has evaluated subsequent events through February 6, 2023 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

63 REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)

Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2021 $ 12,599,677 12,599,677 $ 12,599,677 $ - $ Revenues (inflows):

Taxes 15,684,074 15,684,074 18,828,358 3,144,284
Licenses and permits 1,142,382 1,142,283 1,034,975 (107,308) Intergovernmental 20,200 20,200 263,721 243,521
Charges for services 631,924 631,924 904,437 272,513
Investment earnings (loss) 229,280 229,280 (684,765) (914,045) Fines and forfeitures 738,309 738,309 382,498 (355,811) Miscellaneous 68,000 68,000 40,826 (27,174)
Transfers in 375,000 375,000 375,000 -
Amount available for appropriations 18,889,169 18,889,070 21,145,050 2,255,980 Charges to appropriations (outflows):

General government:

City Council 66,895 66,895 70,021 (3,126)
City Manager / City Clerk 1,051,340 1,051,340 917,014 134,326 Administrative Services 725,906 725,906 662,261 63,645
City Attorney 176,000 176,000 210,871 (34,871)
Non-departmental 584,721 584,721 1,111,970 (527,249)
Public safety 7,394,611 7,394,611 6,617,305 777,306
Community development 1,329,924 1,329,924 1,292,094 37,830 Recreation and community services 1,775,322 1,775,322 1,911,542 (136,220) Public works 2,259,400 2,259,400 2,801,366 (541,966)
Capital outlay 1,264,615 1,264,615 73,762 1,190,853
Transfers out 1,303,500 1,303,500 1,303,500 -
Total charges to appropriations 17,932,234 17,932,234 16,971,706 960,528 Fund balance, June 30, 2022 13,556,612 $ 13,556,513 $ 16,773,021 $ 3,216,508 $

CITY OF LOS ALAMITOS
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
Budgeted Amounts
64

65 City of Los Alamitos
Required Supplementary Information (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2022
Note 1 – Budgets and Budgetary Accounting Data
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The annual budget is adopted by the City Council and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget” covers substantially all City expenditures. Actual expenditures may not exceed budgeted appropriations at the department level. The City’s fund structure includes the following departments: City Council, City Manager/City Clerk, Administrative Services, City Attorney, Public Safety, Community Development, Recreation and Community Services, and Public Works. The City Manager is authorized to transfer budgeted amounts between the accounts of any department. Budgets are controlled at the department level. Budget figures used in the financial statements are the final adjusted amounts, including any amendments to the budget during the fiscal year.

3. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the Governmental Fund types during the fiscal year. Unexpended appropriations of the governmental funds automatically lapse at the end of the fiscal year.

4. Budgets for the General, Special Revenue, Debt Service, Traffic Improvement Capital Projects Fund, Building Improvement Capital Project Fund, and Residential Street/Alley Capital Project Fund are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America (USGAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for the proprietary funds, as the City is not legally required to adopt a budget for this type of fund.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2022, based on calculations by City management, proceeds of taxes did not exceed appropriations.

Note 2 – Excess of Expenditures over Appropriations
The following departments had expenditures that exceeded the adopted budget:

Budget Actual Variance
City Council $ 66,895 $ 70,021 $ (3,126)
City Attorney 176,000 210,871 (34,871)
Non-departmental 584,721 1,111,970 (527,249)
Recreation and community services 1,775,322 1,911,542 (136,220) Public works 2,259,400 2,801,366 (541,966)

June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18
City's Proportion of the Net
Pension Liability/(Asset) 0.1740% 0.1791% 0.1662% 0.0953% 0.0920% City's Proportionate
share of the Net Pension
Liability/(Asset) 7,053,182 $ 10,333,777 $ 9,688,016 $ 8,999,874 $ 9,127,183 $ City's Covered payroll 1,802,686 $ 1,853,222 $ 1,883,036 $ 1,882,670 $ 2,067,777 $ City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 391.3% 557.6% 514.5% 478.0% 441.4%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 79.4% 69.3% 70.4% 75.3% 73.3% June 30, 2016 1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year
2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.0922% 0.0901% 0.0726%
City's Proportionate
share of the Net Pension
Liability/(Asset) 7,975,904 $ 6,181,642 $ 4,518,604 $
City's Covered payroll 2,139,951 $ 2,067,219 $ 2,042,142 $ City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 372.7% 299.0% 221.3%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 74.1% 78.4% 79.8%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only eight years are presented.

CITY OF LOS ALAMITOS
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Continued)
66

June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18
City's Proportion of the Net
Pension Liability/(Asset) 0.1643% 0.1695% 0.1710% 0.1047% 0.0980% City's Proportionate
share of the Net Pension
Liability/(Asset) 7,487,386 $ 11,805,982 $ 10,731,155 $ 9,853,739 $ 9,719,511 $ City's Covered payroll 2,184,348 $ 1,935,386 $ 2,287,551 $ 2,498,046 $ 2,655,464 $ City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 342.8% 610.0% 469.1% 394.5% 366.0%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 82.4% 71.8% 73.1% 75.3% 73.3% June 30, 2016 1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year
2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.0965% 0.0922% 0.0891%
City's Proportionate
share of the Net Pension
Liability/(Asset) 8,351,809 $ 6,328,706 $ 5,542,493 $
City's Covered payroll 2,534,307 $ 2,402,592 $ 2,385,017 $ City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 329.6% 263.4% 232.4%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 74.1% 78.4% 79.8%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only eight years are presented.

CITY OF LOS ALAMITOS
Required Supplementary Information (Continued)
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Plan 67

2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution 2 $ 902,971 1,043,161 $ 878,063 $ 706,647 $ 607,715 $ Contributions in relation to the actuarially determined contributions 2 $ (902,971) (1,043,161) $ (878,063) $ (706,647) $ (607,715) $ Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll 2 $ 1,802,686 2,174,409 $ 1,853,222 $ 1,883,036 $ 1,882,670 $ Contributions as a percentage of covered employee payroll 48.0% 50.1% 47.4% 37.5% 32.3% 2016-17 2015-16 2014-15
Actuarially determined contribution 2 $ 478,168 575,534 $ 228,140 $ Contributions in relation to the actuarially determined contributions 2 $ (478,168) (575,534) $ (228,140) $
Contribution deficiency (excess) - $ - $ - $
Covered payroll 2 $ 2,139,951 2,067,777 $ 2,067,219 $
Contributions as a percentage of covered employee payroll 27.8% 22.3% 11.0% 2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution 2 $ 1,163,513 1,280,078 $ 1,075,926 $ 927,772 $ 847,090 $ Contributions in relation to the actuarially determined contributions 2 $ (1,163,513) (1,280,078) $ (1,075,926) $ (927,772) $ (847,090) $ Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll 2 $ 2,184,348 2,103,050 $ 1,935,386 $ 2,287,551 $ 2,498,046 $ Contributions as a percentage of covered employee payroll 60.9% 53.3% 55.6% 40.6% 33.9% 2016-17 2015-16 2014-15
Actuarially determined contribution 2 $ 748,750 797,034 $ 605,370 $ Contributions in relation to the actuarially determined contributions 2 $ (748,750) (797,034) $ (605,370) $
Contribution deficiency (excess) - $ - $ - $
Covered payroll 2 $ 2,534,307 2,655,464 $ 2,402,592 $
Contributions as a percentage of covered employee payroll 30.0% 29.5% 25.2% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only eight years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan

CITY OF LOS ALAMITOS
Required Supplementary Information (Continued)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2022
Last Ten Fiscal Years
68

For the Measurement Period: 2021-22 2020-21 2019-20 2018-19 2017-18 Total OPEB Liability
Service cost 345,491 $ 333,552 $ 192,736 $ 175,452 $ 170,756 $ Interest on the total OPEB Liability 144,055 143,962 164,133 157,013 166,352 Actual and expected
experience difference 542,385 - (1,087,077) - -
Changes in assumptions (973,560) 31,397 2,824,825 100,644 - Changes in benefit terms - - - - -
Benefit payments (395,761) (383,006) (238,645) (237,974) (228,821) Net change in total OPEB liability (337,390) 125,905 1,855,972 195,135 108,287 Total OPEB liability - beginning 6,694,357 6,568,452 4,712,480 4,517,345 4,409,058 Total OPEB liability - ending (a) 6,356,967 $ 6,694,357 $ 6,568,452 $ 4,712,480 $ 4,517,345 $ Fiduciary net position as a % of
total OPEB liability 1 0.00% 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll 4,277,459 $ 4,700,996 $ 4,502,169 $ 4,380,716 $ 4,380,716 $ Net OPEB liability as a
percentage of payroll 148.6% 142.4% 145.9% 107.6% 103.1% * 2018 is the first year of implementation, therefore only five years are available for the required 10-year schedule.
1 The City does not hold any assets in a qualifying irrevocable trust or equivalent avengement. As such, there is no fiduciary net position of the plan, and the total amount of the OPEB liability is reported.

CITY OF LOS ALAMITOS
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
Required Supplementary Information (Continued)
Last Ten Fiscal Years
69

SUPPLEMENTARY INFORMATION
70

Community
Development Los Office
Block Alamitos of Traffic
Grant Measure M Television Safety
Cash and investments 89,930 $ 574,752 $ 71,940 $ 82,603 $ Accounts receivable - - 4,407 1,269
Due from other governments - 49,588 - -
Restricted cash and investments with fiscal agent - - - - Total assets $ 624,340 89,930 $ 76,347 $ 83,872 $
Liabilities:

Accounts payable 204,112 $ 25,750 $ 2,400 $ - $
Unearned revenues - - - -
Deposits payable - - - -
Total liabilities 25,750 204,112 2,400 -
Fund Balances:

Restricted - 598,590 73,947 83,872
Committed - - - -
Assigned - - - -
Unassigned (114,182) - - -
Total fund balances 598,590 (114,182) 73,947 83,872
Total liabilities, deferred inflows
and fund balances $ 624,340 89,930 $ 76,347 $ 83,872 $

CITY OF LOS ALAMITOS
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS

RESOURCES, AND FUND BALANCES

LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
71

Public State Law
Asset Safety Enforcement Air
Seizure Augmentation Service Quality
Cash and investments 34,179 $ 15,399 $ 188,848 $ 123,361 $ Accounts receivable - - - -
Due from other governments - 13,601 - -
Restricted cash and investments with fiscal agent - - - - Total assets $ 34,179 29,000 $ 188,848 $ 123,361 $
Liabilities:

Accounts payable - $ - $ - $ - $
Unearned revenues - - - -
Deposits payable 12,556 - - -
Total liabilities 12,556 - - -
Fund Balances:

Restricted 21,623 29,000 188,848 123,361
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 21,623 29,000 188,848 123,361
Total liabilities, deferred inflows
and fund balances $ 34,179 29,000 $ 188,848 $ 123,361 $

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
72

Special
Revenue
Funds
State Residential
Gas Park Building Streets/
Tax Development Improvement Alleys
Cash and investments 235,797 $ 733,371 $ 233,598 $ 6,804 $ Accounts receivable - - - -
Due from other governments 4,617 - - -
Restricted cash and investments with fiscal agent - - - - Total assets $ 733,371 240,414 $ 233,598 $ 6,804 $
Liabilities:

Accounts payable 14,798 $ - $ 195 $ - $
Unearned revenues - - - -
Deposits payable - - - -
Total liabilities - 14,798 195 -
Fund Balances:

Restricted 225,616 733,371 - -
Committed - - - -
Assigned - - 233,403 6,804
Unassigned - - - -
Total fund balances 733,371 225,616 233,403 6,804
Total liabilities, deferred inflows
and fund balances $ 733,371 240,414 $ 233,598 $ 6,804 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
73

Debt
Service
Fund
Total
Nonmajor
Traffic Capital Debt Governmental
Improvement Outlay Service Funds
Cash and investments 411,762 $ 119 $ 3,006 $ 2,805,469 $ Accounts receivable - - - 5,676
Due from other governments - - - 67,806
Restricted cash and investments with fiscal agent - - 249 249 Total assets $ 119 411,762 $ 3,255 $ 2,879,200 $
Liabilities:

Accounts payable - $ - $ - $ 247,255 $
Unearned revenues 136,779 - - 136,779
Deposits payable - - - 12,556
Total liabilities - 136,779 - 396,590
Fund Balances:

Restricted 274,983 - - 2,353,211
Committed - 119 - 119
Assigned - - 3,255 243,462
Unassigned - - - (114,182)
Total fund balances 119 274,983 3,255 2,482,610
Total liabilities, deferred inflows
and fund balances $ 119 411,762 $ 3,255 $ 2,879,200 $

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Capital Projects Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
74

Community
Development Los Office
Block Alamitos of Traffic
Grant Measure M Television Safety
REVENUES:

Taxes - $ - $ 18,438 $ - $
Intergovernmental 214,046 - - -
Charges for services - - - -
Investment earnings 342 4,052 541 602
Fines and forfeitures - - - 18,214
Program revenues - 284,090 - -
Miscellaneous - - - -
Total revenues 288,142 214,388 18,979 18,816
EXPENDITURES:

Current:

General government - - 20,580 -
Public works - - - -
Capital outlay 318,120 197,730 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 197,730 318,120 20,580 -

REVENUES OVER
(UNDER) EXPENDITURES 90,412 (103,732) (1,601) 18,816
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - (5,000)
Total other financing sources (uses) - - - (5,000)
CHANGE IN FUND BALANCES 90,412 (103,732) (1,601) 13,816 Fund balances (deficits), beginning of year (10,450) 508,178 75,548 70,056 Fund balances (deficits), end of year (114,182) $ 598,590 $ 73,947 $ 83,872 $ Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Combining Statement of Revenues, Expenditures and Changes in Fund Balances

CITY OF LOS ALAMITOS
Special Revenue Funds
75

Public State Law
Asset Safety Enforcement Air
Seizure Augmentation Service Quality
REVENUES:

Taxes - $ 125,711 $ - $ - $
Intergovernmental - - 184,778 10,817
Charges for services - - - -
Investment earnings 415 387 1,801 864
Fines and forfeitures - - - -
Program revenues - - - -
Miscellaneous 448 - - -
Total revenues 126,098 863 186,579 11,681
EXPENDITURES:

Current:

General government - - - -
Public works - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 126,098 863 186,579 11,681
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - (110,000) (140,000) -
Total other financing sources (uses) (110,000) - (140,000) - CHANGE IN FUND BALANCES 16,098 863 46,579 11,681
Fund balances (deficits), beginning of year 20,760 12,902 142,269 111,680 Fund balances (deficits), end of year 21,623 $ 29,000 $ 188,848 $ 123,361 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
76

Special
Revenue
Funds
State Residential
Gas Park Building Streets/
Tax Development Improvement Alleys
REVENUES:

Taxes 514,172 $ - $ - $ - $
Intergovernmental - 26,134 - -
Charges for services - - - -
Investment earnings 1,644 5,268 449 50
Fines and forfeitures - - - -
Program revenues - - - -
Miscellaneous - - - -
Total revenues 31,402 515,816 449 50
EXPENDITURES:

Current:

General government - - - -
Public works 148,648 - - -
Capital outlay 257,731 - 109,188 -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - 406,379 109,188 -

REVENUES OVER
(UNDER) EXPENDITURES 31,402 109,437 (108,739) 50
OTHER FINANCING SOURCES (USES):

Transfers in - - 240,000 -
Transfers out (120,000) - - -
Total other financing sources (uses) - (120,000) 240,000 - CHANGE IN FUND BALANCES 31,402 (10,563) 131,261 50
Fund balances (deficits), beginning of year 236,179 701,969 102,142 6,754 Fund balances (deficits), end of year 225,616 $ 733,371 $ 233,403 $ 6,804 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
77

Debt
Service
Fund
Total
Nonmajor
Traffic Capital Debt Governmental
Improvement Outlay Service Funds
REVENUES:

Taxes - $ - $ - $ 658,321 $
Intergovernmental - - - 435,775
Charges for services 156 - - 156
Investment earnings 3,050 1 - 19,466
Fines and forfeitures - - - 18,214
Program revenues - - - 284,090
Miscellaneous - - - 448
Total revenues 1 3,206 - 1,416,470
EXPENDITURES:

Current:

General government - - - 20,580
Public works 1,598 - - 150,246
Capital outlay - - - 882,769
Debt service:

Principal - - 80,000 80,000
Interest and fiscal charges - - 130,494 130,494
Total expenditures - 1,598 210,494 1,264,089

REVENUES OVER
(UNDER) EXPENDITURES 1 1,608 (210,494) 152,381
OTHER FINANCING SOURCES (USES):

Transfers in - - 213,500 453,500
Transfers out - - - (375,000)
Total other financing sources (uses) - - 213,500 78,500 CHANGE IN FUND BALANCES 1 1,608 3,006 230,881
Fund balances (deficits), beginning of year 273,375 118 249 2,251,729 Fund balances (deficits), end of year 274,983 $ 119 $ 3,255 $ 2,482,610 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
78

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance (deficit), July 1, 2021 $ (10,450) (10,450) $ - $ Revenues (inflows):

Intergovernmental 291,000 214,046 (76,954)
Investment earnings - 342 342
Amount available for appropriations 291,000 214,388 (76,612) Charges to appropriations (outflows):

Capital outlay 291,000 318,120 (27,120)
Total charges to appropriations 291,000 318,120 (27,120) Fund balance (deficit), June 30, 2022 (10,450) $ (114,182) $ (103,732) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2022
79

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 508,178 508,178 $ - $
Revenues (inflows):

Investment earnings 2,500 4,052 1,552
Program revenues 219,988 284,090 64,102
Amount available for appropriations 222,488 288,142 65,654 Charges to appropriations (outflows):

Capital outlay 466,056 197,730 268,326
Total charges to appropriations 466,056 197,730 268,326 Fund balance, June 30, 2022 264,610 $ 598,590 $ 333,980 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2022
80

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 75,548 75,548 $ - $
Revenues (inflows):

Taxes 24,900 18,438 (6,462)
Investment earnings 1,300 541 (759)
Amount available for appropriations 26,200 18,979 (7,221) Charges to appropriations (outflows):

General government 45,990 20,580 25,410
Total charges to appropriations 45,990 20,580 25,410
Fund balance, June 30, 2022 55,758 $ 73,947 $ 18,189 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Los Alamitos Television Special Revenue Fund
For the Year Ended June 30, 2022
81

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 70,056 70,056 $ - $
Revenues (inflows):

Investment earnings 1,000 602 (398)
Fines and forfeitures 15,000 18,214 3,214
Amount available for appropriations 16,000 18,816 2,816 Charges to appropriations (outflows):

Transfers out 5,000 5,000 -
Total charges to appropriations 5,000 5,000 -
Fund balance, June 30, 2022 81,056 $ 83,872 $ 2,816 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Office of Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2022
82

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 20,760 20,760 $ - $
Revenues (inflows):

Investment earnings 500 415 (85)
Miscellaneous - 448 448
Amount available for appropriations 500 863 363
Fund balance, June 30, 2022 21,260 $ 21,623 $ 363 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2022
83

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 12,902 12,902 $ - $
Revenues (inflows):

Taxes 110,783 125,711 14,928
Investment earnings 300 387 87
Amount available for appropriations 111,083 126,098 15,015 Charges to appropriations (outflows):

Transfers out 110,000 110,000 -
Total charges to appropriations 110,000 110,000 -
Fund balance, June 30, 2022 13,985 $ 29,000 $ 15,015 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Safety Augmentation Special Revenue Fund
For the Year Ended June 30, 2022
84

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 142,269 142,269 $ - $
Revenues (inflows):

Intergovernmental 160,000 184,778 24,778
Investment earnings 2,500 1,801 (699)
Amount available for appropriations 162,500 186,579 24,079 Charges to appropriations (outflows):

Transfers out 140,000 140,000 -
Total charges to appropriations 140,000 140,000 -
Fund balance, June 30, 2022 164,769 $ 188,848 $ 24,079 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Law Enforcement Service Special Revenue Fund
For the Year Ended June 30, 2022
85

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 111,680 111,680 $ - $
Revenues (inflows):

Intergovernmental 15,000 10,817 (4,183)
Investment earnings 15,000 864 (14,136)
Amount available for appropriations 30,000 11,681 (18,319) Charges to appropriations (outflows):

Public works 61,865 - 61,865
Total charges to appropriations 61,865 - 61,865
Fund balance, June 30, 2022 79,815 $ 123,361 $ 43,546 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Special Revenue Fund
For the Year Ended June 30, 2022
86

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 236,179 236,179 $ - $
Revenues (inflows):

Taxes 507,531 514,172 6,641
Investment earnings 6,000 1,644 (4,356)
Amount available for appropriations 513,531 515,816 2,285 Charges to appropriations (outflows):

Public works - 148,648 (148,648)
Capital outlay 641,067 257,731 383,336
Transfers out 12,000 120,000 (108,000)
Total charges to appropriations 653,067 526,379 126,688 Fund balance, June 30, 2022 96,643 $ 225,616 $ 128,973 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
87

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 701,969 701,969 $ - $
Revenues (inflows):

Intergovernmental - 26,134 26,134
Investment earnings 8,600 5,268 (3,332)
Amount available for appropriations 8,600 31,402 22,802 Fund balance, June 30, 2022 710,569 $ 733,371 $ 22,802 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park Development Capital Project Fund
For the Year Ended June 30, 2022
88

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 102,142 102,142 $ - $
Revenues (inflows):

Investment earnings 2,900 449 (2,451)
Transfers in 240,000 240,000 -
Amount available for appropriations 242,900 240,449 (2,451) Charges to appropriations (outflows):

Capital outlay 227,000 109,188 117,812
Total charges to appropriations 227,000 109,188 117,812 Fund balance, June 30, 2022 118,042 $ 233,403 $ 115,361 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Building Improvement Capital Project Fund
For the Year Ended June 30, 2022
89

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 6,754 6,754 $ - $
Revenues (inflows):

Investment earnings 100 50 (50)
Amount available for appropriations 100 50 (50)
Fund balance, June 30, 2022 6,854 $ 6,804 $ (50) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Residential Streets/Alleys Capital Project Fund
For the Year Ended June 30, 2022
90

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 273,375 273,375 $ - $
Revenues (inflows):

Charges for services 15,000 156 (14,844)
Investment earnings 2,500 3,050 550
Amount available for appropriations 17,500 3,206 (14,294) Charges to appropriations (outflows):

Public works - 1,598 (1,598)
Total charges to appropriations - 1,598 (1,598)
Fund balance, June 30, 2022 290,875 $ 274,983 $ (15,892) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Traffic Improvement Capital Project Fund
For the Year Ended June 30, 2022
91

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 249 249 $ - $
Revenues (inflows):

Investment earnings 200 - (200)
Transfers in 213,500 213,500 -
Amount available for appropriations 213,700 213,500 (200) Charges to appropriations (outflows):

Debt service:

Principal 80,000 80,000 -
Interest and fiscal charges 133,594 130,494 3,100
Total charges to appropriations 213,594 210,494 3,100
Fund balance, June 30, 2022 355 $ 3,255 $ 2,900 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Debt Service Fund
For the Year Ended June 30, 2022
92

Police
Technology Capital
Garage Replacement Expenditures
ASSETS
Current assets:

Cash and investments 585,731 $ 397,083 $ 164,927 $
Accounts receivable - - -
Total current assets 585,731 397,083 164,927
Noncurrent assets:

Capital assets - net of accumulated depreciation 370,666 8,382 - Total noncurrent assets 370,666 8,382 -
Total assets 405,465 956,397 164,927

LIABILITIES
Current liabilities:

Accounts payable 19,512 70,911 3,294
Accrued interest 1,279 - -
Accrued claims and judgements - - -
Capital leases 12,967 - -
Total current liabilities 33,758 70,911 3,294
Long-term liabilities:

Accrued claims and judgements - - -
Capital leases 49,271 - -
Total long-term liabilities 49,271 - -
Total liabilities 70,911 83,029 3,294

NET POSITION
Net investment in capital assets 308,428 8,382 -
Unrestricted 564,940 326,172 161,633
Total net position $ 334,554 873,368 $ 161,633 $

CITY OF LOS ALAMITOS
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
93

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
ASSETS
Current assets:

Cash and investments 293,558 $ 667,948 $ 2,109,247 $
Accounts receivable - 12,102 12,102
Total current assets 293,558 680,050 2,121,349
Noncurrent assets:

Capital assets - net of accumulated depreciation 339,997 - 719,045 Total noncurrent assets 339,997 - 719,045
Total assets 680,050 633,555 2,840,394

LIABILITIES
Current liabilities:

Accounts payable 634 26,066 120,417
Accrued interest - - 1,279
Accrued claims and judgements - 71,875 71,875
Capital leases - - 12,967
Total current liabilities 634 97,941 206,538
Long-term liabilities:

Accrued claims and judgements - 151,098 151,098
Capital leases - - 49,271
Total long-term liabilities - 151,098 200,369
Total liabilities 249,039 634 406,907

NET POSITION
Net investment in capital assets 339,997 - 656,807
Unrestricted 292,924 431,011 1,776,680
Total net position $ 431,011 632,921 $ 2,433,487 $

CITY OF LOS ALAMITOS
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
94

Police
Technology Capital
Garage Replacement Expenditures
OPERATING REVENUES:

Charges for services:

Garage 316,840 $ - $ - $
Police capital - - 40,000
Technology replacement - 190,000 -
Miscellaneous - - -
Total operating revenues 190,000 316,840 40,000
OPERATING EXPENSES:

Supplies and materials 101,553 181,698 56,969
Outside services 39,645 130,328 -
Claims expense - - -
Depreciation 89,726 8,380 -
Total operating expenses 320,406 230,924 56,969
OPERATING INCOME (130,406) 85,916 (16,969)
NON-OPERATING REVENUES (EXPENSES):

Interest expense (8,343) - -
Total non-operating revenues (expenses) - (8,343) -
INCOME BEFORE TRANSFERS (130,406) 77,573 (16,969)
Transfers in - 190,000 -
Total transfers 190,000 - -
Change in net position 59,594 77,573 (16,969)
Net position, beginning of year 795,795 274,960 178,602 Net position, end of year 873,368 $ 334,554 $ 161,633 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2022
95

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
OPERATING REVENUES:

Charges for services:

Garage - $ - $ 316,840 $
Police capital - - 40,000
Technology replacement - - 190,000
Miscellaneous - 41,940 41,940
Total operating revenues 41,940 - 588,780
OPERATING EXPENSES:

Supplies and materials - - 340,220
Outside services 544 - 170,517
Claims expense - 563,308 563,308
Depreciation 7,340 - 105,446
Total operating expenses 563,308 7,884 1,179,491
OPERATING INCOME (521,368) (7,884) (590,711)
NON-OPERATING REVENUES (EXPENSES):

Interest expense - - (8,343)
Total non-operating revenues (expenses) - - (8,343)
INCOME BEFORE TRANSFERS (521,368) (7,884) (599,054)
Transfers in - 660,000 850,000
Total transfers 660,000 - 850,000
Change in net position 138,632 (7,884) 250,946
Net position, beginning of year 640,805 292,379 2,182,541 Net position, end of year 632,921 $ 431,011 $ 2,433,487 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2022
96

Police
Technology Capital
Garage Replacement Expenditures
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund charges for garage services 316,840 $ - $ - $ Receipts from interfund charges for police capital services - - 40,000 Receipts from interfund charges for technology replacement services - 190,000 - Payments to suppliers and service providers (134,854) (244,969) (53,675) Cash received from (payments to) others - - -
Net cash provided (used by) operating activities (54,969) 181,986 (13,675) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in - 190,000 -
Net cash provided (used by) non-capital financing activities 190,000 - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (305,559) - - Principal paid on capital debt (5,570) - -
Interest paid on capital debt (8,572) - -
Net cash provided (used by) capital and related financing activities - (319,701) - Net increase (decrease) in cash and cash equivalents (137,715) 135,031 (13,675) Cash and equivalents, beginning of year 723,446 262,052 178,602 Cash and equivalents, end of year 585,731 $ 397,083 $ 164,927 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) 85,916 $ (130,406) $ (16,969) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 89,726 8,380 -
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable - - -
Increase (decrease) in accounts payable 6,344 67,057 3,294 Increase (decrease) in claims and judgements - - -
Total adjustments 96,070 75,437 3,294
Net cash provided (used) by operating activities $ (54,969) 181,986 $ (13,675) $

CITY OF LOS ALAMITOS
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2022
97

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund charges for garage services - $ - $ 316,840 $ Receipts from interfund charges for police capital services - - 40,000 Receipts from interfund charges for technology replacement services - - 190,000 Payments to suppliers and service providers - (502,007) (935,505) Cash received from (payments to) others - 41,940 41,940 Net cash provided (used by) operating activities (460,067) - (346,725) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in - 660,000 850,000
Net cash provided (used by) non-capital financing activities 660,000 - 850,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets - - (305,559) Principal paid on capital debt - - (5,570)
Interest paid on capital debt - - (8,572)
Net cash provided (used by) capital and related financing activities - - (319,701) Net increase (decrease) in cash and cash equivalents - 199,933 183,574 Cash and equivalents, beginning of year 293,558 468,015 1,925,673 Cash and equivalents, end of year 293,558 $ 667,948 $ 2,109,247 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (7,884) $ (521,368) $ (590,711) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 7,340 - 105,446
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable - (4,146) (4,146) Increase (decrease) in accounts payable 544 (6,863) 70,376 Increase (decrease) in claims and judgements - 72,310 72,310 Total adjustments 7,884 61,301 243,986
Net cash provided (used) by operating activities $ (460,067) - $ (346,725) $

CITY OF LOS ALAMITOS
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2022
98

STATISTICAL SECTION
99

100

STATISTICAL SECTION
This part of the City of Los Alamitos’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.

CONTENTS:

Page(s)
Financial Trends: these schedules contain trend information to help the reader understands how the City’s financial performance and well-being has changed over time .................................................................................................. 101 Revenue Capacity: these schedules contain trend information to help the reader assesses the factors affecting the City’s most significant revenue source, property tax .................................................................................................................................... 108 Debt Capacity: these schedules present information to help the reader assesses the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future ................................. 115 Demographic and Economic Information: these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place .............................................................................. 118 Operating Information: these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs ................................ 120

2013 2014 2015* 2016 2017
Governmental activities
Net investment in capital assets $ 13,138 $ 13,585 $ 13,519 $ 12,658 $ 14,156 Restricted 841 878 713 1,334 764
Unrestricted 8,034 8,393 (4,126) (3,828) (5,506)
Total governmental activities net position $ 22,013 $ 22,856 $ 10,106 $ 10,164 9,414 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $ 15,281 15,315 15,776 15,623 16,545 Restricted 761 1,350 1,453 2,153 2,353
Unrestricted (10,679) (10,746) (11,287) (9,608) (5,197) Total governmental activities net position $ 5,363 5,919 5,942 8,168 13,701 Source: City of Los Alamitos, Finance Department
* In Fiscal Year 2014-15 the City implemented GASB Statement No. 68, which resulted in a $12.8 million decrease to the City's net position in relation to accounting for the City's net pension liability and related deferrals.
** In Fiscal Year 2017-18 the City implemented GASB Statement No. 75, which resulted in a $3.6 million decrease to the City's net position in relation to accounting for the City's total OPEB liability.

CITY OF LOS ALAMITOS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
(15)
(10)
(5)
‐
5 10
15 20
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Net investment in capital assets Restricted Unrestricted 101

2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government $ 1,377 $ 2,223 $ 2,646 $ 2,976 2,830 Public safety 5,393 5,691 5,463 5,732 6,922
Community development 745 843 714 685 775
Recreation and community services 1,957 1,700 1,772 1,834 1,783 Public works 2,709 2,839 2,592 2,339 2,306
Interest and fiscal charges 168 140 138 302 148
Total governmental activites expenses 12,349 13,436 13,325 13,868 14,764 Program Revenues
Governmental activities:

Charges for services
General government - 385 205 225 272
Public safety 637 735 752 808 825
Community development 435 113 141 80 100
Recreation and community services 1,295 1,242 1,301 1,225 1,087 Public works - 18 2 139 -
Operating grants 119 323 293 398 453
Capital grants and contributions 349 1,739 629 530 369
Total governmental activites program revenues 2,835 4,555 3,323 3,405 3,106 Net (expense)/revenue
Governmental activities (9,514) (8,881) (10,002) (10,463) (11,658) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property 3,734 2,733 2,954 3,118 3,603
Utility users tax 2,160 2,188 2,210 2,092 2,037
Transient occupancy 104 113 132 156 159
Sales 2,117 2,836 3,064 3,357 3,160
Franchise 653 689 712 709 669
Business license 694 551 563 566 609
Other 284 334 348 251 339
9,444 9,746 9,983 10,249 10,576
Motor vehicle in lieu 5 - - - -
Investment income 27 13 30 86 63
Gain on Sale of property 37 - - - -
Other 36 267 146 185 269
Total governmental activities 9,851 9,724 10,159 10,520 10,908 Changes in Net Position
Governmental activities $ 337 $ 843 $ 157 $ 57 (750)
Source: City of Los Alamitos, Finance Department
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)

CITY OF LOS ALAMITOS
Changes in Net Position
102

2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government $ 3,517 $ 3,135 $ 3,586 $ 3,493 2,548 $ Public safety 6,311 6,556 6,912 7,135 6,382
Community development 1,104 986 1,091 957 1,344
Recreation and community services 1,811 1,746 1,758 1,471 2,043 Public works 2,314 2,415 2,572 2,907 3,226
Interest and fiscal charges 141 142 58 331 138
Total governmental activites expenses 15,198 14,980 15,977 16,294 15,681 Program Revenues
Governmental activities:

Charges for services
General government 814 831 1,335 914 1,035
Public safety 859 916 711 478 411
Community development 198 3 3 2 1
Recreation and community services 956 937 781 527 892
Public works - 167 508 353 1
Operating grants 151 442 628 1,872 677
Capital grants and contributions 391 254 249 241 308
Total governmental activites program revenues 3,369 3,550 4,215 4,387 3,325 Net (expense)/revenue
Governmental activities (11,829) (11,430) (11,762) (11,907) (12,356) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property 3,773 3,946 4,169 4,455 4,732
Utility users tax 2,034 1,968 1,988 1,834 2,123
Transient occupancy 167 160 132 223 522
Sales 3,336 3,597 3,227 4,855 9,671
Franchise 691 688 611 725 1,071
Business license 647 684 730 886 728
Other 429 557 564 548 640
11,600 11,077 11,421 13,526 19,487
Motor vehicle in lieu - - - -
Investment income 102 271 254 78 (665)
Gain on Sale of property 19 - - -
Other 182 115 110 528 83
Total governmental activities 11,380 11,986 11,785 14,132 18,905 Changes in Net Position
Governmental activities (449) $ 556 $ 23 $ 2,225 $ 6,549 Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
103

2013 2014 2015 2016 2017
General Fund
Nonspendable $ 6 $ 8 $ 684 $ 59 $ 17
Committed - - - - -
Restricted - - - - -
Assigned 3,770 7,049 7,484 7,347 7,481
Unassigned 4,085 1,218 (644) 3 56
Reserved - - - - -
Unreserved, designated - - - - -
Unreserved, undesignated - - - - -
Total General Fund 7,861 8,275 7,524 7,409 7,554
All Other Governmental Funds
Nonspendable - - - - -
Restricted 888 829 1,063 1,333 1,334
Committed
Assigned 898 677 390 1,001 345
Unassigned (223) (1,240) - - -
Reserved
Unreserved, designated reported in:

Special revenue funds
Unreserved, reported in:

Special revenue funds
Debt service funds
Capital projects funds
Total All Other Governmental Funds 1,563 266 1,453 2,334 1,679 Total All Governmental Funds $ 9,424 $ 8,541 $ 8,97 $ 9,74 7 $ 9,23 3 3 *Note: The City adopted GASB 54 starting in fiscal year 2011 which changed how fund balance is presented in the CAFR
Source: City of Los Alamitos, Finance Department
Fund Balances of Governmental Funds

CITY OF LOS ALAMITOS
(amounts expressed in thousands)
(modified accrual basis of accounting)
Last Ten Fiscal Years
104

CITY OF LOS ALAMITOS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2018 2019 2020 2021 2022
General Fund
Nonspendable $ 18 $ 56 $ 14 $ 7 $ 4
Committed - 3,607 3,286 3 3
Restricted - - - -
Assigned 7,662 4,589 4,196 4,203 4,196
Unassigned 49 588 2,785 9,403 12,570
Reserved -
Unreserved, designated -
Unreserved, undesignated -
Total General Fund 7,729 8,840 10,281 13,616 16,773
All Other Governmental Funds
Nonspendable - - - - -
Restricted 1,334 1,180 1,453 2,153 2,353
Committed -
Assigned 129 99 200 109 243
Unassigned - (4) (9) (10) (114)
Reserved
Unreserved, designated reported in:

Special revenue funds
Unreserved, reported in:

Special revenue funds
Debt service funds
Capital projects funds
Total All Other Governmental Funds 1,463 1,275 1,644 2,252 2,482 Total All Governmental Funds $ 9,192 $ 10,11 $ 11,92 5 $ 15,86 5 $ 19,25 8 5 *Note: The City adopted GASB 54 starting in fiscal year 2011 which changed how fund balance is presented in the CAFR
Source: City of Los Alamitos, Finance Department
105

CITY OF LOS ALAMITOS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2013 2014 2015 2016 2017
Revenues
Taxes $ 9,042 $ 9,420 $ 10,337 $ 10,559 $ 10,724
Licenses and permits 694 937 205 225 272
Intergovernmental 531 150 1,609 245 609
Charges for services 1,752 1,396 1,403 1,459 1,202
Investment earnings 9 2 30 86 63
Fines and forfeitures 615 710 737 781 810
Other 36 581 454 460 476
Total Revenues 12,679 13,196 14,775 13,815 14,156
Expenditures
General government 1,900 2,097 2,379 2,735 2,029
Public safety 5,280 5,874 5,513 5,711 5,777
Community development 737 830 694 657 715
Recreation and community services 1,889 1,620 1,730 1,739 1,646 Public works 1,831 1,686 1,771 1,963 1,963
Capital outlay 806 1,744 830 213 1,972
Debt service:

Principal retirement 72 70 76 75 70
Payment to refunded bond escrow agent - - - 220 -
Interest and fiscal charges 144 141 138 311 142
Total Expenditures 12,659 14,062 13,131 13,624 14,314
Excess of revenues over/(under) expenditures 20 (866) 1,644 191 (158) Other Financing Sources (Uses)
Transfers in 588 606 684 681 1,280
Transfers out (588) (621) (1,892) (1,203) (2,201)
Refunding bonds issued - - - 3,685
Bond premium - - - 133
Payment to refunded bond escrow agent - - - (2,722)
Total other financing sources - (15) (1,208) 574 (921)
Net change in fund balances $ 20 $ (881) $ 436 $ 765 $ (1,079) Debt service as a percentage of noncapital expenditures 1.765% 1.598% 1.813% 2.865% 1.713% (1)
(1) Increase in debt service related to issuance of 2015 Certificates of Participation Source: City of Los Alamitos, Administrative Services Department 106

CITY OF LOS ALAMITOS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2018 2019 2020 2021 2022
Revenues
Taxes $ 11,078 $ 11,600 $ 11,422 $ 13,526 $ 19,487
Licenses and permits 814 831 1,462 914 1,035
Intergovernmental 323 294 684 1,888 699
Charges for services 1,169 1,121 1,310 890 905
Investment earnings 106 271 254 78 (665)
Fines and forfeitures 844 900 694 468 401
Other 398 349 301 610 324
Total Revenues 14,732 15,366 16,127 18,374 22,186
Expenditures
General government 2,243 2,299 2,405 2,240 2,993
Public safety 5,751 5,886 5,585 5,938 6,617
Community development 1,044 928 1,052 1,185 1,292
Recreation and community services 1,598 1,590 1,615 1,391 1,911 Public works 1,943 2,064 1,983 2,379 2,952
Capital outlay 1,068 332 865 490 957
Debt service:

Principal retirement 70 70 75 75 80
Payment to refunded bond escrow agent - - - -
Interest and fiscal charges 140 139 136 134 130
Total Expenditures 13,857 13,308 13,716 13,832 16,932
Excess of revenues over/(under) expenditures 875 2,058 2,411 4,542 5,254 Other Financing Sources (Uses)
Transfers in 832 597 808 733 828
Transfers out (1,752) (1,157) (1,409) (1,334) (1,678)
Refunding bonds issued -
Bond premium -
Payment to refunded bond escrow agent -
Total other financing sources (920) (560) (601) (601) (850) Net change in fund balances $ (45) $ 1,498 $ 1,810 $ 3,941 $ 4,404 Debt service as a percentage of noncapital expenditures 1.640% 1.611% 1.642% 1.566% 1.315% (1) Increase in debt service related to issuance of 2015 Certificates of Participation Source: City of Los Alamitos, Administrative Services Department 107

CITY OF LOS ALAMITOS
2021/22 Use Category Summary-Basic Property Value Table Last Ten Fiscal Years
(amounts expressed in thousands)
2013 2014 2015 2016 2017
Category
Residential 936,234 $ 968,878 $ 1,031,002 $ 1,091,854 $ 1,143,395 $ Commercial 288,665 296,984 318,001 359,002 365,544
Industrial 266,381 270,936 271,390 278,399 292,535
Institutional - - - - -
Miscellaneous - - - - -
Recreational - - - - -
Vacant land 8,530 8,917 8,449 9,710 9,905
SBE Nonunitary 222 222 222 222 222
Cross Reference 4,326 3,453 3,265 3,083 3,998
Unsecured 134,342 119,933 143,801 138,386 154,478
Other - - - - -
Totals 1,638,700 $ 1,669,323 $ 1,776,130 $ 1,880,656 $ 1,970,077 $ Direct rate 0.10067% 0.11558% 0.11568% 0.11571% 0.11578% Note:

Source: HdL Coren and Cone, Orange County Assessor Tax Rate Table In 1978, the voters of the State of California passed
Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of
the property being taxed. Each year the assessed value
of property may be increased by an inflation factor
(limited to a maximum increase of 2%). With few
exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new
assessed value is reassessed at the purchase price of
the property sold. The assessed valuation data shown
above represents the only data currently available with respect to the actual market value of taxable property
108

CITY OF LOS ALAMITOS
2021/22 Use Category Summary-Basic Property Value Table Last Ten Fiscal Years
(amounts expressed in thousands)
2018 2019 2020 2021 2022
Category
Residential 1,200,335 $ 1,266,083 $ 1,332,806 $ 1,408,761 $ 1,479,534 $ Commercial 393,211 405,241 427,330 459,279 506,538
Industrial 292,689 308,001 315,346 382,149 417,895
Institutional - - - - -
Miscellaneous - 1,793 608 555 -
Recreational - - - - -
Vacant land 11,648 10,088 19,185 14,902 10,998
SBE Nonunitary 222 970 970 970 401
Cross Reference 4,139 4,109 4,177 3,976 4,002
Unsecured 163,741 161,257 164,509 158,443 189,648
Other - - - - -
Totals 2,065,985 $ 2,157,542 $ 2,264,931 $ 2,429,035 $ 2,609,016 $ Direct rate 0.11578% 0.11821% 0.11848% 0.11751% 0.11703% Source: HdL Coren and Cone, Orange County Assessor Tax Rate Table 109

Fiscal Year
Ended
June 30
2013 $ 1,504,137 $ 134,342 $ - $ 1,638,479 0.117
2014 1,549,169 119,933 - 1,669,102 0.117
2015 1,632,107 143,801 - 1,775,908 0.117
2016 1,742,048 138,386 - 1,880,434 0.116
2017 1,806,377 154,478 - 1,960,855 0.116
2018 1,902,022 163,742 - 2,065,764 0.116
2019 1,995,314 161,257 - 2,156,571 0.116
2020 2,099,452 164,509 - 2,263,961 0.116
2021 2,269,621 158,443 - 2,428,064 0.116
2022 2,418,967 189,648 2,609,016 0.117
(2) Total includes Nonunitary Taxable Assessed Values.

Note:

Source: HdL Coren and Cone, Orange County Assessor Combined Tax Rolls

CITY OF LOS ALAMITOS
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(amounts expressed in thousands)
(1) Exemptions are netted against the individual property categories.

Secured Unsecured Exemptions (1) Value (2)
Less: Assessed
Taxable Direct
Tax
Rate
Total
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an inflation factor (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 110

CITY OF LOS ALAMITOS
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2013 2014 2015 2016 2017
City Direct Rate 0.117 0.117 0.117 0.116 0.116
Overlapping Rates:

Los Alamitos City General Fund 0.101 0.101 0.101 0.101 0.101 Los Alamitos City Lighting Reorganization 0.016 0.016 0.016 0.016 0.016 Educational Revenue Augmentation Fund 0.144 0.144 0.144 0.145 0.145 Los Alamitos Unified General Fund 0.412 0.412 0.411 0.412 0.412 North Orange Co. Community College District 0.059 0.059 0.059 0.059 0.059 Orange County Department of Education 0.031 0.031 0.031 0.031 0.031 Orange County Fire Authority 0.095 0.095 0.095 0.095 0.095 Orange County Flood Control District General 0.017 0.017 0.017 0.017 0.017 Orange County General Fund 0.052 0.052 0.052 0.052 0.052 Orange County Harbors Beaches & Parks Csa 26 0.013 0.013 0.013 0.013 0.013 Orange County Public Library 0.014 0.014 0.014 0.014 0.014 Orange County Sanitation District 3 Operating 0.027 0.027 0.027 0.027 0.027 Orange County Transit Authority 0.002 0.002 0.002 0.002 0.002 Orange County Vector Control 0.001 0.001 0.001 0.001 0.001 Orange County Water District 0.006 0.006 0.006 0.006 0.006 Orange County Water District reserve 0.000 0.000 0.001 0.000 0.000 Rossmoor/Los Alamitos Sewer District 0.010 0.010 0.010 0.010 0.010 Total Prop 13 Rate 1.000 1.000 1.000 1.000 1.000
Anaheim High School District 0.029 0.026 0.024 0.049 0.043 Cypress Elementary 0.025 0.027 0.023 0.025 0.024
Garden Grove Unified School District 0.031 0.037 0.041 0.047 0.045 Los Alamitos Sfid 0.042 0.056 0.048 0.052 0.048
Metropolitan Water District 0.004 0.003 0.004 0.004 0.004 N. Orange County Community College 0.019 0.017 0.017 0.030 0.029 Total Voter Approved tax Rate 0.150 0.166 0.157 0.207 0.192 Total Tax Rate 1.150 1.166 1.157 1.207 1.192
Source: HdL Coren and Cone, Orange County Assessor 2011/2012 - 2020/2021 Tax Rate Table 111

CITY OF LOS ALAMITOS
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2018 2019 2020 2021 2022
City Direct Rate 0.116 0.116 0.116 0.116 0.117
Overlapping Rates:

Los Alamitos City General Fund 0.101 0.101 0.101 0.101 0.101 Los Alamitos City Lighting Reorganization 0.016 0.016 0.016 0.016 0.016 Educational Revenue Augmentation Fund 0.145 0.145 0.145 0.145 0.145 Los Alamitos Unified General Fund 0.412 0.412 0.412 0.412 0.412 North Orange Co. Community College District 0.059 0.059 0.059 0.059 0.059 Orange County Department of Education 0.031 0.031 0.031 0.031 0.031 Orange County Fire Authority 0.095 0.095 0.095 0.095 0.095 Orange County Flood Control District General 0.017 0.017 0.017 0.017 0.017 Orange County General Fund 0.052 0.052 0.052 0.052 0.052 Orange County Harbors Beaches & Parks Csa 26 0.013 0.013 0.013 0.013 0.013 Orange County Public Library 0.014 0.014 0.014 0.014 0.014 Orange County Sanitation District 3 Operating 0.027 0.027 0.027 0.027 0.027 Orange County Transit Authority 0.002 0.002 0.002 0.002 0.002 Orange County Vector Control 0.001 0.001 0.001 0.001 0.001 Orange County Water District 0.006 0.006 0.006 0.006 0.006 Orange County Water District Reserve 0.000 0.000 0.000 0.000 0.000 Rossmoor/Los Alamitos Sewer District 0.010 0.010 0.010 0.010 0.010 Total Prop 13 Rate 1.000 1.000 1.000 1.000 1.000
Anaheim High School District 0.022 0.042 0.040 0.040 0.038 Cypress Elementary 0.031 0.030 0.030 0.033 0.030
Garden Grove Unified School District 0.075 0.068 0.069 0.070 0.074 Los Alamitos Sfid 0.047 0.049 0.080 0.093 0.079
Metropolitan Water District 0.004 0.004 0.004 0.004 0.004 N. Orange County Community College 0.029 0.028 0.024 0.032 0.029 Total Voter Approved tax Rate 0.207 0.221 0.247 0.271 0.253 Total Tax Rate 1.207 1.220 1.247 1.271 1.253
Source: HdL Coren and Cone, Orange County Assessor 2010/2011 - 2019/2020 Tax Rate Table 112

Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Value Value Value
Los Alamitos Medical Center $ 138,698 5.316% $ 67,539 4.121% Los Alamitos APG LLC 129,851 4.977%
Fine US Long Beach LLC 59,000 2.261%
JCB Merger Sub LLC 43,248 1.658%
Trend Offset Printing Inc. 41,169 1.578% 40,574 2.476%
Los Alamitos Corporation Center JV 54,495 3.325%
Don Wilson Staples LLC 39,207 1.503% 30,193 1.842%
Epson America USA 33,750 1.294%
Bar Bakers LLC 25,361 0.972%
CGM Katella LLC 20,244 0.776%
Ganahl Lumber Company 18,781 0.720% 15,148 0.924%
JCB Inc Tinicum Corporation 16,963 1.035%
Bayport Los Alamitos Associates LP 12,355 0.754%
Fine US Long Beach LLC
Davenport KCC Partners LLC 14,059 0.858%
Arrowhead Products Corporation 11,088 0.677%
Los Altos LLC 0.659% 10,798
ESS WCOT Owner LLC
Top Ten Totals $ 549,309 21.055% $ 273,212 16.672%
City Totals $ 2,609,01 $ 1,638,701 6
Source: HdL Coren and Cone, Orange County Assessor 2012/13 and 2021/22 Tax Rolls

CITY OF LOS ALAMITOS
Principal Property Tax Payers
Current Year and Ten Years Ago
2022 2013
(amounts expressed in thousands)
113

Fiscal
Year
Ended
June 30
2013 $ 2,013,958 $ 1,959,000 97.271% $ 24,090 $ 1,983,090 98.467% 2014 2,010,346 1,981,110 98.546% 24,524 2,005,634 99.766% 2015 2,130,906 2,081,181 97.666% 19,659 2,100,840 98.589% 2016 2,261,032 2,220,841 98.222% 18,519 2,239,360 99.041% 2017 2,347,295 2,314,148 98.588% 17,812 2,331,960 99.347% 2018 2,457,342 2,440,391 99.310% 16,019 2,456,410 99.962% 2019 2,679,049 2,629,318 98.144% 16,951 2,646,269 98.776% 2020 2,786,377 2,742,208 98.415% 21,973 2,764,181 99.203% 2021 2,903,005 2,761,268 95.118% 18,858 2,780,126 95.767% 2022 2,950,445 2,737,154 92.771% 18,843 2,755,997 93.410% (1) Total amount of delinquent taxes collected in each fiscal year; information regarding levy year to which delinquent tax collections pertain is not provided by the Orange County Auditor- Controller.

Source: Orange County Auditor - Controller
Taxes Levied
for the Percent
Fiscal Year
Fiscal Year of Levy Collections
Amount of Levy
Total Collections to Date
Percent
Years (1) Amount of Levy
for Prior
Collected within the

CITY OF LOS ALAMITOS
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
114

Debt as a
Percentage Debt
Fiscal Capital of Personal Per
Year Lease Income1 Capita1
2012 $ 3,110 $ 0 $ 3,110 0.743% $269.10
2013 3,055 - 3,055 0.693% 262.77
2014 2,970 - 2,970 0.668% 253.22
2015 2,895 - 2,895 0.662% 246.91
2016 3,685 - 3,685 0.874% 313.94
2017 3,615 270 3,885 0.912% 330.95
2018 3,545 204 3,749 0.871% 316.02
2019 3,475 137 3,612 0.869% 308.16
2020 3,400 69 3,469 0.782% 299.90
2021 3,325 68 3,393 0.704% 307.51
2022 $ 3,350 62 3,412 0.587% 294.48
1 Ratio is calculated using personal income and population data for the prior calendar year.

Source: City of Los Alamitos, Finance Department
(amounts expressed in thousands, except per capita)

CITY OF LOS ALAMITOS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Government
Primary
Total
Participation
Certificates
of
115

(amounts expressed in thousands)
2021-2022 Taxable Assessed Valuation: $ 2,608,517
City's
Total Percent Share
Debt Applicable of Debt
6/30/2022 to City (1) 6/30/2022

DIRECT DEBT
Vehicle Lease Debt $ 62 100.000% 62
Bonded Debt 3,350 100.000% 3,350
TOTAL DIRECT DEBT $ 3,412
OVERLAPPING DEBT:

Anaheim High 2002 Bond Series 2003 $ 15,504 0.070% $ 11 N.OC Community College 2002 Bond Series #2003B 29,293 1.773% 519 Anaheim High 2002 Bond Series 2002A 28,245 0.071% 20
N.OC Community College 2002 Bond 2005 Refunding 27,702 1.773% 491 Los Alamitos SFID #1 2008 Series 2009 23,065 23.810% 5,492 Cypress Elementary 2008 Bond Series A 15,884 0.477% 76
Los Alamitos SFID #1 2008 Series 2010 2,000 23.810% 476 Los Alamitos SFID #1 2008 Series 2010C 2,000 23.810% 476 Garden Grove USD 2010 Series B 114,445 0.006% 7
Los Alamitos SFID #1 208 Series D 19,000 23.810% 4,524
Cypress Elementary 2008 Bond, Series B1 & B2 24,674 0.477% 118 Los Alamitos SFID #1 208 Series E 58,705 23.810% 13,978 Garden Grove USD 2010 Series C 129,585 0.006% 8
Anaheim High 2014 Bond Series 2015 47,045 0.071% 33
N.OC Community College 2014 Bond Series A 34,025 1.773% 603 Garden Grove USD 2016 Series 2017 69,900 0.006% 4
Anaheim High 2018 Bond Series 2014 69,015 0.071% 49
Garden Grove USD 2016 Series 2019 72,510 0.006% 4
Los Alamitos SFID #1 2008 Series A 33,085 23.810% 7,878 Los Alamitos SFID #1 2008 Series F 11,980 23.810% 2,852 N.OC Community College 2014 Bond Series B 112,416 1.773% 1,993 Anaheim High 2014 Bond Series 2019 96,460 0.071% 68
Los Alamitos SFID #1 2008 Series 2020G 8,500 23.810% 2,024 Los Alamitos SFID #1 2008 Series 2020B 39,500 23.810% 9,405 Grden Grove USD 2016 Series 2021 146,000 0.006% 9
Metropolitan Water District 4,052 0.383% $ 16
TOTAL OVERLAPPING DEBT 51,134
TOTAL DIRECT & OVERLAPPING DEBT $ 54,546
(1) Percentage of overlapping agency's assessed valuation located within the boundaries of the City. (2)
Ratios to Assessed Valuation:

Total Direct Debt…………………………………………….. 0.14%
Overlapping Debt……………………………………………. 1.96%
Net Combined Total Debt……………………………………2.10%
Source - HdL Coren & Cone, Orange County Assossor and Auditor Combined 2021/22 Lien Date Tax Rolls.

CITY OF LOS ALAMITOS
Direct and Overlapping Governmental Activity Debt
As of June 30, 2022
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
116

Legal Debt Margin Calculation for the Current Year
Assessed value $ 2,609,016,274
Debt limit (15% of assessed value) 391,352,441
Debt applicable to limit 0
Legal debt margin - Current Year $ 391,352,441
Fiscal
Year
2013 $ 245,805,113 $ 0 $ 245,805,113 0
2014 250,398,597 0 250,398,597 0
2015 266,419,511 0 266,419,511 0
2016 282,098,369 0 282,098,369 0
2017 294,161,529 0 294,161,529 0
2018 309,897,790 0 309,897,790 0
2019 323,585,613 3,612,467 319,973,146 1.12%
2020 343,305,168 3,565,517 339,739,651 1.04%
2021 367,857,100 3,325,000 364,532,100 0.90%
2022 394,702,562 3,350,121 391,352,441 0.85%
Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Legal Debt Margin Information
Last Ten Fiscal Years
Limit to Limit
Debt as
Percentage
Margin of Limit
Debt
Debt
Applicable Debt
Legal
117

Personal Per Capita
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
2013 11,729 $ 444,811 $ 37,924 2.70%
2014 11,725 437,214 37,289 5.50%
2015 11,738 421,786 35,933 4.50%
2016 11,739 425,943 36,284 4.00%
2017 11,863 430,396 36,280 4.00%
2018 11,721 415,852 35,479 3.20%
2019 11,567 443,756 38,363 2.90%
2020 11,538 481,688 41,747 8.90%
2021 11,873 480,337 40,456 8.30%
2022 11,780 580,872 49,310 4.90%
Sources: Population: California State Department of Finance Unemployment Rate: California Employment Development Department Personal Income and Per Capita Income: ESRI
Last Ten Calendar Years
Demographic and Economic Statistics

CITY OF LOS ALAMITOS

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income and Unemployment
Per Capita Personal Income Unemployment
118

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General Government
City Council 5555555555
Administration 8888888667
Community Development
Administration 1111111111
Planning 1111111111
Code Enforcement 1111111111
Police
Administration 4444444445
Patrol 19 19 19 19 19 18 18 13 13 15
Investigation 3333333323
Records 2222222233
Crossing Guards 3333111111
Other PD Support 2222222233
Public Works
Admin/Engineering 1111111114
Maintenance 10 10 10 10 10 99776
Recreation & Community Services
Administration 5555544427
Recreation/Cultural 15 15 15 15 14 11 11 11 9 11
Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
119

CITY OF LOS ALAMITOS
Operating Indicators by Function/Program
Last Ten Fiscal Years
2013 2014 2015 2016 2017
Function/Program
Community Development
Number of:

Business licenses 1,964 2,089 2,227 2,169 2,068
Plan checks 141 110 95 96 93
NPDES inspections 126 57 104 60 60
Code violations 97 147 121 267 267
Police
Number of:

Part 1 crimes 433 330 299 252 268
Parking violations 1,532 1,766 3,283 3,963 2,997
Traffic (moving) violations 2,177 2,354 1,786 1,473 2,885 Incident & crime reports 1,361 1,293 1,381 1,167 1,254
Public Works
Square yd of street resurfacing/repair 38,800 20,000 15,000 - - Miles of street sweeping 33 33 33 33 33
Number of:

Street signal maintained 24 25 25 25 25
Trees pruned per year 632 620 615 991 991
Square feet graffiti removal 1,650 1,550 1,245 1,205 1,205 Recreation & Community Services
Total in attendance:

Aquatics 230,000 232,000 235,000 163,000 0
Community Services/Seniors 9,800 10,500 10,500 13,180 14,000 Day Camp 2,600 2,800 2,900 2,800 3,000
Park Program 1,400 2,600 4,385 4,262 4,140
Sports N/A N/A N/A 35,500 30,000
Classes 6,400 6,300 6,900 8,900 8,900
Special Events 40,000 41,470 34,200 30,475 34,820
NA - Not Available
Source: City of Los Alamitos, Finance Department
120

CITY OF LOS ALAMITOS
Operating Indicators by Function/Program
Last Ten Fiscal Years
2018 2019 2020 2021 2022
Function/Program
Community Development
Number of:

Business licenses 2,153 1,806 2,046 2,630 2,413
Plan checks 108 98 74 81 338
NPDES inspections 157 85 79 9 55
Code violations 483 420 451 946 1,892
Police
Number of:

Part 1 crimes 209 193 189 330 157
Parking violations 4,043 4,221 1,471 1,470 3,835
Traffic (moving) violations 1,430 1,114 342 636 677
Incident & crime reports 896 752 729 1,046 1,044
Public Works
Square yd of street resurfacing/repair - - - - 62,445
Miles of street sweeping 33 33 33 33 858
Number of:

Street signal maintained 25 25 21 22 28
Trees pruned per year 991 991 995 1,375 1,529
Square feet graffiti removal 1,205 1,205 900 1,100 1,836 Recreation & Community Services
Total in attendance:

Aquatics - - - - -
Community Services/Seniors 14,100 18,390 17,040 16,000 21,600 Day Camp 4,040 3,500 3,200 4,500 4,400
Park Program 4,040 3,000 2,400 2,250 1,800
Sports 30,500 28,234 14,970 13,000 15,500
Classes 8,800 10,300 9,960 8,000 11,000
Special Events 35,000 38,225 31,600 20,000 35,020
NA - Not Available
Source: City of Los Alamitos, Finance Department
121

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Community Develoment
Code enforcement vehicles 1111111122
Police
Stations 1111111111
Patrol Vehicles 7 7 7 7 8 8 8 8 10 13
Other Vehicles 8 9 9 9 9 9 9 9 11 11
Public Works
Streets (Miles) 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 Street lights 910 911 911 911 911 911 911 911 911 911
Traffic signals 24 25 25 25 25 25 25 25 25 25
Public works vehicles 13 13 13 13 13 11 11 11 11 11
Recreation & Community Services
Youth centers 1111111111
Community centers 1111111111
Parks 9999999999
Community service vehicles 2222233333
Source: City of Los Alamitos, Administrative Services Department

CITY OF LOS ALAMITOS
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
122

CITY OF LOS ALAMITOS
Top 10 Businesses for Fiscal Year 2021-22
Ranking Firm Name
1 Ganahl Lumber
2 Shell
3 Grating Pacific
4 Gemini Forrest Products
5 Siteone Landscape Supply
6 Trend Offset Printing
7 Mamas Comfort Food
8 Katella Bakery & Deli
9 Adamson Police Products
10 Chevron
Source: HdL Coren and Cone, Sales Tax Trends and Economic Drivers 123

CITY OF LOS ALAMITOS
Principal Employers
Current Year and Ten Years Ago
FY2021-22 FY2012-13
EMPLOYER Employees Rank
% of
Total City
Employm
ent Employees Rank
% of
Total City
Employm
ent
Los Alamitos Medical Center 1,100 1 7.56% 1,035 1 7.33% Arrowhead Products 780 2 5.36% 578 2 4.09%
Trend Offset Printing 700 3 4.81% 468 3 3.31%
Epson America 693 4 4.76%
Super Media Sales, Inc. 253 4 1.79%
Mittera California, Inc. 238 5 1.64%
Discovery Practice Management, Inc. 205 6 1.41%
Bar Bakers, LLC 200 7 1.37%
Resare Marketing, Inc. 191 8 1.31%
Alamitos West Health & Rehabilitation 151 6 1.07%
Evergreen Pharmaceutical of California, Inc. 150 7 1.06% Katella Delicatessen-Restaurant-Bakery, Inc. 145 9 0.99% 187 5 1.32% Alliance Spacesystems, LLC 144 10 0.98% 107 10 0.76%
Bloomfield Bakers 8 0.99% 141
Bearing Inspection, Inc. 123 9 0.87%
Total 4,396 30.19% 3,193 22.59%
Source: HdL Companies, City Planning Department, and State of California Employment Development Department 124

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
Honorable Mayor and City Council
City of Los Alamitos
Los Alamitos, California
Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets
We have performed the procedures enumerated below on the appropriations limit calculation worksheets of the City of Los Alamitos, California (City) for the year ended June 30, 2022. The City’s management is responsible for the appropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures performed are appropriate for the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of California Cities as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other purpose.

The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

City Council
City of Los Alamitos, California
Page Two

2. We recalculated the mathematical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on meeting the requirements of the Constitution and Guidelines. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

Gruber and Lopez, Inc.

Newport Beach, California
February 6, 2023
Gruber and Lopez, Inc.

April 10, 2023
City of Los Alamitos
Attention: Craig Koehler, Director of Finance
3191 Katella Ave.

Los Alamitos, CA 90720
Dear Craig,
Per your request we have reviewed the City of Los Alamitos FY 21-22 ACFR as prepared by Gruber & Lopez dated as of February 6, 2023, as to its completeness and accuracy.

Not having access to the underlying trial balances and audit documentation we reviewed the ACFR for the appropriate statements, required disclosures as well as consistency between the Financial Statement amounts, the MD&A, the Notes to the Financial Statements and the Statistical Section.

The ACFR contains the proper statements, schedules, and reconciliations and the interrelated amounts are consistent between the Financial Statement amounts, the MD&A, the Notes to the Financial Statements and the Statistical Section.

For the required note disclosures, we used the GFOA ACFR Disclosure Checklist. Our review determined the ACFR contained the appropriate note disclosures and the amounts reported agree with the Financial Statement amounts.

In our review of the MD&A we found the amounts in the MD&A agreed with the Financial Statement and the Notes to the Financial Statement amounts.

If you should have any questions or need additional information, please contact us.

Sincerely,

ROGERS, ANDERSON, MALODY & SCOTT, LLP
________________________________________
Terry Shea, CPA

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: May 15, 2023 ITEM NUMBER: 10C
To: Mayor Tanya Doby & Members of the City Council
Presented By: Craig Koehler, Director of Finance
Subject: Treasurer's Quarterly Investment Report - March 2023

SUMMARY
The item for City Council consideration is receipt of the Treasurer’s Quarterly Investment Report.

RECOMMENDATION
Receive and file the Treasurer’s Quarterly Investment Report – March 2023.

BACKGROUND
Sound investment practices are essential to the City’s fiscal management. The City Treasurer is responsible for managing the City’s investment portfolio, focusing first on the safety of investments and then on liquidity and an appropriate rate of return. The investment report and portfolio composition are attached.

DISCUSSION
This report is a summary of the City’s investment activities and portfolio listing and balances for the quarter ending March 31, 2023.

FISCAL IMPACT
None.

Attachment: 1. March 2023 Quarterly Investment Report

2. March 2023 Pooled Investment Portfolio Holdings

ATTACHMENT 1

CITY OF LOS ALAMITOS
Quarterly Investment Report
March 31, 2023

AMORTIZED MARKET

COST VALUE

POOLED INVESTMENT PORTFOLIO
Money Market Accounts $ 1,816,716.15 $ 1,816,716.15
Local Agency Investment Fund (LAIF) 5,527,710.03 5,453,143.04 Certificates of Deposit 3,945,000.00 3,723,983.52
Treasury Obligations 1,500,000.00 1,411,974.75
U.S. Government Agency Securities 9,750,000.00 9,189,653.00 Commercial Paper (3.19%) 750,000.00 741,737.70
Municipal Securities 750,000.00 687,015.00
Corporate Securities 250,000.00 250,997.50
Miscellaneous Cash 3,500.00 3,500.00
TOTAL POOLED INVESTMENT PORTFOLIO 24,292,926.18 23,278,720.66

INVESTMENTS HELD BY FISCAL AGENT
2015 Certificates of Participation 61,838.96 61,838.96
TOTAL INVESTMENTS HELD BY FISCAL AGENT 61,838.96 61,838.96 TOTAL CASH & INVESTMENTS $ 24,354,765.14 $ 23,340,559.62 It has been verified that this investment portfolio is in conformity with the City's investment policy which was approved by City Council on 9/19/22. The Treasurer's cash management program and cash flow analysis indicates that sufficient liquidity is on hand to meet estimated future expenditures for a period of six months.

The weighted average maturity of the pooled investment portfolio is 1.69 years, and the weighted average yield on cost is 24.086% indenture associated with the bond transaction which generated the cash.

Craig Koehler
Craig Koehler, Finance Director / City Treasurer

7.80%

23.43%

6.07% 16.00%

39.46%

3.19% 2.95%0.02% 1.08%

COMPOSITION OF POOLED PORTFOLIO (NON-FISCAL AGENT)
Money Market Accounts (7.80)
Local Agency Investment Fund (23.43%)
Certificates of Deposit (16.00%)
Treasury Obligations (6.07%)
U.S. Government Agency Securities (39.46%)
Commercial Paper (3.19%)
Municipal Securities (2.95%)
Corporate Securities (1.08%)
Miscellaneous Cash (0.02%)

ATTACHMENT 2

CITY OF LOS ALAMITOS
Pooled Investment Portfolio Holdings
March 31, 2023

DESCRIPTION CUSIP COUPON MATURITY INVESTMENT PURCH AMORTIZED YIELD ON MARKET

OF SECURITY REF RATE DATE RATING DATE COST MATURITY VALUE

MONEY MARKET ACCOUNTS
US Bank Varies Varies Coll. 1 Varies 1,816,716.15 0.50% 1,816,716.15 SUBTOTAL MONEY MARKET ACCOUNTS 1,816,716.15 1,816,716.15 LOCAL AGENCY INVESTMENT FUND (LAIF) Varies Varies NR Varies 5,527,710.03 98.65% 5,453,143.04

CERTIFICATES OF DEPOSIT
Morgan Stanley (FDIC Gtd) 61747MY70 3.20% 05/17/23 FDIC 05/17/18 246,000.00 3.20% 245,414.52 Synchrony Bank (FDIC Gtd) 87164YXH2 3.30% 07/20/23 FDIC 07/20/18 246,000.00 3.30% 244,662.01 CitiBank (FDIC Gtd) 17312QT33 3.30% 09/21/23 FDIC 09/21/18 245,000.00 3.30% 242,926.08 Medallion Bank Utah CTF 58404DHQ7 0.55% 07/30/25 FDIC 07/30/20 249,000.00 0.55% 224,779.27 Texas Exchange Bank SSB 88241TLA6 0.80% 06/04/26 FDIC 06/04/21 248,000.00 0.80% 217,580.07 Sallie Mae Bank Salt Lake UT 795451AF0 1.00% 07/28/26 FDIC 07/28/21 248,000.00 1.00% 218,160.64 Goldman Sachs Bank 38149MG64 0.40% 11/03/27 FDIC 10/28/21 248,000.00 0.40% 241,224.39 Capital One Bank 14042TEU7 2.25% 03/23/27 FDIC 03/16/22 247,000.00 2.25% 223,714.82 Bank of Hapoalim New York 06251A3MO 1.50% 01/22/27 FDIC 01/22/22 250,000.00 1.50% 220,993.50 State Bank of India New York NY 856285C33 1.45% 01/22/27 FDIC 01/22/22 250,000.00 1.45% 220,466.00 American Express NA 02589ADK5 3.35% 08/05/24 FDIC 08/03/22 245,000.00 3.35% 239,583.05 Capital One NA 14042RTH4 3.50% 08/03/26 FDIC 08/03/22 245,000.00 3.50% 234,085.50 Ally Bank 02007GXG3 3.45% 08/04/26 FDIC 08/04/22 245,000.00 3.45% 233,705.99 Discover Bank 254673P34 3.50% 08/10/26 FDIC 08/10/22 245,000.00 3.50% 234,046.30 BMW Bank North America (FDIC Gtd) 05580AP24 3.25% 08/12/24 FDIC 08/12/22 245,000.00 3.25% 239,197.18 Charles Schwab Bank SSB 15987UBA5 5.05% 03/28/25 FDIC 03/28/23 243,000.00 5.05% 243,444.20 SUBTOTAL CERTIFICATES OF DEPOSIT 3,945,000.00 3,723,983.52

TREASURY OBLIGATIONS
U. S Treasury Notes 91282CDH1 0.75% 11/15/24 AAA 12/15/21 500,000.00 0.75% 472,051.00 U. S Treasury Notes 912828ZF0 0.50% 03/31/25 AAA 05/26/21 500,000.00 0.50% 465,644.50 U. S Treasury Notes 91282CAT8 0.25% 10/31/25 AAA 10/28/21 250,000.00 0.25% 227,392.50 u. S Treasury Bills 912797FR3 4.78% 07/25/23 AAA 03/06/23 250,000.00 4.78% 246,886.75 SUBTOTAL TREASURY OBLIGATIONS TOTAL 1,500,000.00 1,411,974.75 U.S. GOVERNMENT AGENCY SECURITIES
Federal Home Loan Bank 3130AM5Q1 0.440% 04/29/24 AAA 12/15/21 500,000.00 0.44% 477,325.50 Federal Home Ln Mtg Corp MTN NTS 3134GWEA0 0.450% 07/29/24 AAA 07/29/20 750,000.00 0.45% 710,532.00 Federal Home Loan Bank 3130ALCV4 0.750% 02/24/26 AAA 10/28/21 250,000.00 0.75% 224,915.50 Federal Farm Credit Banks 3133ENBK5 1.140% 10/20/26 AAA 12/15/21 250,000.00 1.14% 223,915.00 Federal Home Loan Bank 3130APFU4 1.050% 10/28/26 AAA 10/28/21 250,000.00 1.05% 223,065.25 FHLB STEP-UP 3130APTZ8 0.800% 11/24/26 AAA 11/21/21 500,000.00 0.85% 458,378.00 Federal Home Loan Bank 3130AQJG9 1.650% 01/28/27 AAA 01/22/22 1,000,000.00 1.65% 907,520.00 FHLB Agency Note 3130AQRH8 2.000% 02/25/27 AAA 02/25/22 1,000,000.00 2.00% 918,773.00 Federal Home Loan Bank 3130AR4T5 2.000% 03/22/27 AAA 03/17/22 500,000.00 2.00% 470,159.50 Federal Home Loan Bank 3130AQWJ8 2.050% 03/22/27 AAA 03/03/22 1,000,000.00 2.05% 920,389.00 Federal Home Loan Bank 3130ARYD2 3.250% 05/23/25 AAA 05/02/22 500,000.00 3.25% 476,413.50 Federal Home Loan Bank 3130ARYL0 3.000% 11/25/24 AAA 05/02/22 1,000,000.00 3.00% 974,112.00 Federal Home Loan Bank 3130ARYD7 3.250% 05/23/23 AAA 05/02/22 1,000,000.00 3.25% 975,349.00 Federal Home Ln Mtg Corp 3134GX2B9 4.250% 09/27/24 AAA 09/22/22 250,000.00 4.25% 247,274.75 Federal Home Loan Bank 3130ATGG6 4.500% 09/29/25 AAA 09/29/22 500,000.00 4.50% 495,568.00 Federal Farm Credit Banks 3133ENL32 4.230% 09/08/23 AAA 11/04/22 500,000.00 4.23% 485,963.00 SUBTOTAL U.S. GOVERNMENT AGENCY SECURITIES 9,750,000.00 9,189,653.00

COMMERCIAL PAPER
National Security Clearing Corp 63763QSN8 4.570% 05/22/23 A-1+ 1/18/2023 250,000.00 4.570% 248,305.40 Duke University Health Systems Inc 264443GT20 4.850% 06/02/23 A-1+ 3/15/2023 250,000.00 4.850% 247,339.24 Johnson & Johnson 47816GUQ0 5.050% 07/24/23 A-1+ 3/28/2023 250,000.00 5.050% 246,093.06 SUBTOTAL COMMERCIAL PAPER 750,000.00 741,737.70

MUNICIPAL SECURITIES
Placentia-Yorba Linda CA GO Taxable Ref Ser B 725894MX4 4.3000% 8/1/2027 Aa2 12/19/22 250,000.00 4.3000% 218,635.00 California State GO Unlimited Taxable 725894MX4 4.4200% 10/01/26 Aa2 3/1/2023 500,000.00 4.4200% 468,380.00 SUBTOTAL MUNICIPAL SECURITIES 750,000.00 687,015.00

CORPORATE SECURTIES
Morgan Stanley Finance LLC 61766YMT5 5.1500% 01/20/28 A1 01/20/23 250,000.00 01/00/00 250,997.50 SUBTOTAL CORPORATE SECURITIES 250,000.00 250,997.50
FISCAL AGENT 61,838.96 61,838.96
MISCELLANEOUS CASH 3,500.00 3,500.00

TOTAL CUSTODY HOLDINGS 24,289,426.18 23,275,220.66
TOTAL POOLED CASH & INVESTMENTS 24,354,765.14 23,340,559.62 ATTACHMENT 2

CITY OF LOS ALAMITOS
Pooled Investment Portfolio Holdings
March 31, 2023

DESCRIPTION CUSIP COUPON MATURITY INVESTMENT PURCH AMORTIZED YIELD ON MARKET

OF SECURITY REF RATE DATE RATING DATE COST MATURITY VALUE

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: May 15, 2023 ITEM NUMBER: 10D
To: Mayor Tanya Doby & Members of the City Council
Presented By: Ron Noda, Development Services Director
Subject: Amendment No. 3 with West Coast Arborists, Inc. (WCA) for Tree Maintenance Services

SUMMARY
This item seeks approval of Amendment No. 3 to the Professional Services Agreement (PSA) with West Coast Arborist, Inc. (WCA) to continue to provide tree maintenance services, a license arborist, and extraordinary work order fulfillment for one (1) year, ending on June 15, 2024. The amount paid to WCA is not to exceed $75,000 annually. The current Professional Services Agreement (PSA) expires on June 15, 2023.

RECOMMENDATION
Authorize the Mayor to execute Amendment No. 3 to the Professional Services Agreement with West Coast Arborists, Inc. (WCA), extending the term of the agreement for one additional year ending on June 15, 2024, and not to exceed $75,000 annually, which is inclusive of a 2.5% CPI increase.

BACKGROUND
The City of Los Alamitos has approximately 2,596 street, park and parkway trees comprising its urban forest, and has utilized WCA since 2006 to provide tree care (trimming, stump removal), arborists, and to complete extraordinary work such as the removal of trees larger than 25 feet and emergency after-hour work. WCA's licensed arborist is utilized to assess the health of tree(s) that are requested to be removed by residents and to provide workshops to the Public Works Division on how to plant, trim, and maintain trees properly.

WCA has provided tree maintenance services for the City since 2006, with the latest PSA secured via a Request for Proposals (RFP) 2020-01 in June 2020. As established, this PSA secured services for a one-year term ending on June 15, 2021, with a maximum of three one-year contract extensions.

DISCUSSION
WCA has agreed to provide continued services with a requested cost adjustment of 2.5% based on the Consumer Price Index (CPI). In contrast to the current rate schedule, the requested increase would reflect the following:

Amendment No. 3 to the PSA extends the City’s contractual relationship with WCA, utilizing the third and final of three allowable one-year extensions.

FISCAL IMPACT
The Fiscal Year 2023-2024 budget includes funds for $75,000 and will be paid through Measure M - account No. 26.570.5501.1614 (arterial and residential tree trim/removal).

Attachment: 1. Amendment No. 3 (2023)

2. Los Alamitos - Extension Letter 2023-24

3. Amendment No. 2 (2022)

4. Amendment No 1. (2021)

5. West Coast Arborists (2020)

1769562.1
AMENDMENT No. 3 TO PROFESSIONAL SERVICES AGREEMENT
[City of Los Alamitos and West Coast Arborists]
This Amendment No. 3 to Professional Services Agreement (“Third Amendment”) is made and entered into on this 15th day of May, 2023 by and between the City of Los Alamitos, a California charter city and municipal corporation (“City”), and West Coast Arborists, Inc., a California Corporation (“Contractor”).

RECITALS
A. City and Contractor entered into that certain Tree Maintenance Services Agreement on June 15, 2020 (“Original Agreement”), which is incorporated herein by this reference.

B. On May 17, 2021, City and Contractor entered into that certain Amendment No. 1 to Professional Services Agreement extending the term of the Original Agreement for an additional year, until June 15, 2022 (“First Amendment”), which is incorporated herein by this reference.

C. On May 16, 2022, City and Contractor entered into that certain Amendment No. 2 to Professional Services Agreement extending the term of the Original Agreement for an additional year, until June 15, 2023 (“Second Amendment”), which is incorporated herein by this reference.

D. The Original Agreement, as modified by the First Amendment and Second Amendment is hereinafter referred to as the “Agreement”.

E. On April 19, 2023, Contractor submitted a written request for a 2.50% fee increase based on the Consumer Price Index (CPI) for the region from the previous calendar year, as published by the Department of Labor’s Bureau of Labor Statistics, in response to increased operational costs.

F. City and Contractor desire to extend the term of the Agreement for an additional year, until June 15, 2024, subject to the terms and provisions of this Third Amendment.

NOW, THEREFORE, City and Contractor mutually agree as follows:

1. Section 2.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

2.1. Maximum Contract Amount. Contractor shall be compensated for the Project Services performed, including authorized reimbursements, if any, in accordance with the hourly rates and charges set forth in the Scope of Services in an amount not to exceed Seventy-Five Thousand Dollars and Zero Cents ($75,000) annually. The maximum

1769562.1
amount of City’s payment obligation under this Agreement is the amount specified in this section.

2. Section 3.4 of the Agreement is hereby amended and restated in its entirety to read as follows:

3.4. Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the Effective Date and shall continue in full force and effect for a period of four years ending on June 15, 2024.

3. The West Coast Arborists Rate Adjustment attached hereto as Attachment “1” is hereby appended to and made a part of the Scope of Services attached to the Agreement as Exhibit “A”. Effective June 16, 2023, Contractor shall be compensated for the Project Services performed, including authorized reimbursements, if any, in accordance with the hourly rates and charges set forth in Attachment “1”.

4. Except as expressly modified above, all terms and conditions of the Agreement shall remain unchanged and in full force and effect.

5. The persons executing this Third Amendment on behalf of the parties hereto warrant that they are duly authorized to execute this Third Amendment on behalf of said parties and that by so executing the parties are formally bound to the provisions of this Third Amendment.

1769562.1
IN WITNESS WHEREOF, the Parties have executed and entered into this Amendment as of the date first written above.
“City”
City of Los Alamitos
By:_______________________________
Tanya Doby
Mayor
APPROVED AS TO FORM.

Woodruff & Smart, APC
By:__________________________________
Michael S. Daudt
City Attorney
ATTEST:

By:_______________________________
Windmera Quintanar, MMC
City Clerk
“Contractor”
West Coast Arborists
By:_______________________________
Patrick Mahoney
President
[email protected]

By:_______________________________
Richard Mahoney
Assistant Secretary
[email protected]

1769562.1
Attachment “1”
West Coast Arborists Rate Adjustment

Effective Date:

Region Area:

July 01, 2023

2.50%
Los Angeles-Long Beach-Anaheim
Sincerely,
Victor M. Gonzalez
Vice President, Business Development
CPI Adjustment Requested:

We at West Coast Arborists, Inc. are committed to offering you the quality, integrity, and customer service you expect and deserve from a tree care provider. We would like to take this opportunity to express our gratitude to you and your staff for your commitment to a thriving urban forest. We are approaching the end of the third year of the current agreement and have greatly appreciated your support and business relationship.

Since the contract originated, we have realized substantial cost increases to our operations, particularly in labor, fuel, recycling, and insurance premiums. As a result, we respectfully request a slight cost adjustment of

2.50% based on the Consumer Price Index (CPI) for the region from the previous calendar year, as published by the Department of Labor’s Bureau of Labor Statistics:

We greatly appreciate your consideration in this matter through this time of growth and change. It is our goal to continue as your urban forest management and maintenance service provider.  Should you have any questions or require additional information, please do not hesitate to email me at  [email protected] or call me at  (800) 521-3714.

Tree Care Professionals Serving Communities Who Care About Trees www.WCAINC.com April 19, 2023
ATTN: MICHELLE MULLER

CITY OF LOS ALAMITOS
3191 KATELLA AVENUE
LOS ALAMITOS, CA 90720
RE: Tree Maintenance Services performed by WCA, Inc.

Dear Ms. Muller,
West Coast Arborists, Inc.
2200 E. Via Burton · Anaheim, California 92806 · 714.991.1900 · 800.521.3714 · Fax 714.956.3745

1 Grid Prune Each $86.10
2 Service Request Prune 0-6 DSH Each $45.10
3 Service Request Prune 7-30 DSH Each $86.10
4 Service Request Prune 31+ DSH Each $152.70
5 Palm Prune Each $86.10
6 Palm Skinning Each $20.50
7 Clearance Prune Each $45.10
8 Tree & Stump Removal 0-30 DSH Inch $41.00
9 Tree & Stump Removal 31+ DSH Inch $51.25
10 Tree Only Removal 0-30 DSH Inch $30.75
11 Tree Only Removal 31+ DSH Inch $41.00
12 Stump Only Removal Inch $20.50
13 Plant 15 Gal w/o RB Each $152.70
14 Plant 15 Gal w/ RB Each $123.00
15 Plant 24" Box w/o RB Each $280.85
16 Plant 24" Box w/ RB Each $260.35
17 Crew Rental - per man Man Hour $96.35
18 Emergency Response - per man Man Hour $121.95
Contract originated on 7/1/2020. Rates remained the same for 3 years through 6/30/2023. The proposed rates reflect a cost adjustment of 2.5%. The current Consumer Price index for the LA-Anaheim-Long Beach region is 3.7%. The proposed rates have been rounded for simplicity.

CITY OF LOS ALAMITOS
Item
Schedule of Compensation for Year 2023 - 2024
Tree Maintenance Services performed by WCA, Inc.

Description Unit Proposed Prices
Printed on: 5/1/2023 9:01:01 AM Page 1 of 1

1683429.2
AMENDMENT No. 2 TO PROFESSIONAL SERVICES AGREEMENT
[City of Los Alamitos and West Coast Arborists]
This Amendment No. 2 to Professional Services Agreement (“Second Amendment”) is made and entered into on this 16th day of May, 2022 by and between the City of Los Alamitos, a California charter city and municipal corporation (“City”), and West Coast Arborists, Inc., a California Corporation (“Contractor”).

RECITALS
A. City and Contractor entered into that certain Professional Services Agreement for Tree Maintenance Services on June 15, 2020 (“Original Agreement”), which is incorporated herein by this reference.

B. On May 17, 2021, City and Contractor entered into that certain Amendment No. 1 to Professional Services Agreement extending the term of the Original Agreement for an additional year, until June 15, 2022 (“First Amendment”), which is incorporated herein by this reference.

C. The Original Agreement, as amended by the First Amendment, is hereafter referred to as the “Agreement.”
D. City and Contractor desire to extend the term of the Agreement for an additional year, until June 15, 2023, subject to the terms and provisions of this Second Amendment.

NOW, THEREFORE, City and Contractor mutually agree as follows:

1. Section 3.4 of the Agreement is hereby amended and restated in its entirety to read as follows:

3.4. Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the Effective Date and shall continue in full force and effect for a period of three (3) years ending on June 15, 2023, unless extended in writing by mutual agreement of the Parties for one additional year.

2. Except as expressly modified above, all terms and conditions of the Agreement shall remain unchanged and in full force and effect.

3. The persons executing this Second Amendment on behalf of the parties hereto warrant that they are duly authorized to execute this Second Amendment on behalf of said parties and that by so executing the parties are formally bound to the provisions of this Second Amendment.

1683429.2
IN WITNESS WHEREOF, the Parties have executed and entered into this Amendment as of the date first written above.
“City”
City of Los Alamitos
By:_______________________________
Shelley Hasselbrink
Mayor
APPROVED AS TO FORM.

Woodruff, Spradlin & Smart, APC
By:__________________________________
Michael S. Daudt
City Attorney
ATTEST:

By:_______________________________
Windmera Quintanar, MMC
City Clerk
“Contractor”
West Coast Arborists
By:_______________________________
Patrick Mahoney
President
[email protected]

By:_______________________________
Richard Mahoney
Assistant Secretary
[email protected]

1577015.1
AMENDMENT No. 1 TO PROFESSIONAL SERVICES AGREEMENT
[City of Los Alamitos and West Coast Arborists]
This Amendment No. 1 to Professional Services Agreement (“Amendment”) is made and entered into on this 17th day of May, 2021 by and between the City of Los Alamitos, a California charter city and municipal corporation, (“City”) and, West Coast Arborists, Inc., a California Corporation (“Contractor”).

RECITALS
A. City and West Coast Arborists, Inc. entered into that certain Professional Services Agreement for Tree Maintenance Services for annual services for maintenance, removal and replacement of trees, as needed within the City’s community forest on June 15, 2020 (“Agreement”), which is incorporated herein by this reference.

B. City and Contractor desire to amend the Agreement to extend the term of the Agreement, subject to the terms and provisions of this Amendment.

NOW, THEREFORE, City and Contractor mutually agree as follows:

1. Section 3.4 of the Agreement is hereby amended and restated in its entirety to read as follows:

3.4. Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the Effective Date and shall continue in full force and effect for a period of one year ending on June 15, 2022, unless extended by mutual written agreement of the Parties for a maximum of two (2), one-year contract extensions.

2. Except as expressly modified above, all terms and conditions of the Agreement shall remain unchanged and in full force and effect.

3. The persons executing this Amendment on behalf of the parties hereto warrant that they are duly authorized to execute this Amendment on behalf of said parties and that by so executing the parties are formally bound to the provisions of this Amendment.

DocuSign Envelope ID: 25401DA2-691D-413B-8AB2-14A697EF44B2

1577015.1
IN WITNESS WHEREOF, the Parties have executed and entered into this Amendment as of the date first written above.
“City”
City of Los Alamitos
By:_______________________________
Mark A. Chirco
Mayor
APPROVED AS TO FORM.

Woodruff, Spradlin & Smart, APC
By:__________________________________
Michael S. Daudt
City Attorney
ATTEST:

By:_______________________________
Windmera Quintanar, MMC
City Clerk
“Contractor”
West Coast Arborists
By:_______________________________
Patrick Mahoney
President

By:_______________________________
Richard Mahoney
Assistant Secretary

DocuSign Envelope ID: 25401DA2-691D-413B-8AB2-14A697EF44B2 5/20/2021
5/20/2021
5/21/2021
5/23/2021
5/24/2021

DocuSign Envelope ID: F3B292B6- B6FF- 4ED2- 80D8- 9899E1D9A29B

TREE MAINTENANCE SERVICES AGREEMENT
City ofLos Alamitos/ West Coast Arborists]
THIS AGREEMENT FOR TREE MAINTENANCE SERVICES (" Agreement") is made and entered into, to be effective this 15' day of June 2020 (" Effective Date"), by and between the CITY OF LOS ALAMITOS, a California charter city and municipal corporation, (" City") and WEST COAST ARBORISTS, INC., a California Corporation, (" Contractor"). City and Contractor are sometimes hereinafter individually referred to as " Party" and are hereinafter collectively referred to as the " Parties."

RECITALS
A. City has determined that it requires the services of a qualified contractor to provide landscape maintenance services for City parkways, medians, landscape areas and parks.

B. In response to City' s formal Request for Proposals No. 2020- 01 ( RFP) Tree Maintenance Services, Contractor has submitted to City a written proposal, dated March 31, 2020, to provide the desired tree maintenance services.

D. City desires to engage Contractor to provide such landscape maintenance services subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT
Ll Scone of Services and Standard of Performance. Contractor shall provide those services set forth in the Parks & Landscape Maintenance Services Proposal, dated March 31, 2020, attached hereto as Exhibit " A" (" Scope of Services" and/or " Project Services"). Contractor shall provide the Project Services in compliance with all terms and conditions of this Agreement.

Contractor warrants that all Project Services shall be performed in a skillful, competent, professional and satisfactory manner in accordance with all standards prevalent in the same profession in the State of California. Contractor represents and warrants that it and all employees, subconsultants and subcontractors providing any services pursuant to this Agreement shall have sufficient skill and experience to perform the Project Services. All Project Services shall be completed to the reasonable satisfaction of City.

LU Contract Documents. This Agreement shall consist of the following: ( 1) the main body of this Agreement; ( 2) RPF No. 2020- 01 Tree Maintenance Services; and ( 3) Contractor' s Proposal, Exhibit " A". Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest 1367754. 1

DocuSign Envelope ID: F3B292B5- B6FF4ED2- 80D8- 9899E1 D9A29B priority document, which shall be determined in the following order of priority: ( 1 s the main body ofthis Agreement; ( 2`d) the RFP, and ( 3' d) Contractor' s Proposal. 12 Compliance with Law. All Project Services shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of City and any federal, state or local governmental agency of competent jurisdiction. Contractor shall be liable for all violations of such laws, ordinances, resolutions, statutes, rules and regulations in connection with performance of the Project Services. If Contractor performs any Project Services in violation of such laws, ordinances, resolutions, statutes, rules or regulations, Contractor shall be solely responsible for all penalties and costs arising therefrom. Contractor shall defend, indemnify, and hold City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to comply with such laws, ordinances, resolutions, statutes, rules or regulations.

L3 Licenses and Permits. Prior to performing any Project Services, Contractor shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term ofthis Agreement and any extension, any license, permit, qualification, or approval that is legally required for Contractor to perform the Project Services. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor' s performance of the Project Services, and shall defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out ofany failure or alleged failure to obtain such license, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services. 1A Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor ( a) has thoroughly investigated and considered the Project Services to be performed, b) has carefully considered how the Project Services should be performed, and ( c) fully understands the facilities, difficulties and restrictions attending performance of the Project Services under this Agreement.

LS Care in Performance of Project Services. Contractor shall adopt reasonable methods during the term of the Agreement to prevent losses or damage to materials, papers or other components of the Project Services, and shall be responsible for all such damages, to persons or property, until acceptance ofthe Project Services by the City, except such losses or damages as may be caused by City' s own negligence.

L6 Non -Exclusive A¢reement. Contractor acknowledges that City may enter into agreements with other Contractors, contractors, consultants, or vendors for services similar to the services that are the subject of this Agreement. Contractor further acknowledges that City may have its own employees perform services similar to the services that are the subject of this Agreement.
2 1367754. 1

DocuSign Envelope ID: F3B292B6- B6FF- 4ED2- 80D8- 9899E1D9A29B

2. COMPENSATIO
21 Maximum Contract Amount. Contractor shall be compensated for the Project Services performed, including authorized reimbursements, if any, in accordance with the hourly rates and charges set forth in the Scope of Services in an amount not to exceed Sixty Seven Thousand Dollars and Zero Cents ($ 67,000.00) annually. The maximum amount of City' s payment obligation under this Agreement is the amount specified in this section. 22 Method of Payment. In any month in which Contractor wishes to receive payment, Contractor shall no later than first working day of such month, submit to the City, in a form approved by the City Manager or his designee, an invoice for services rendered prior to the date of the invoice. Such requests shall be based upon the amount and value of the services performed by Contractor and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. Within thirty (30) calendar days of receipt of invoice, City shall pay all undisputed amounts included on the invoice.
23 Changes in Scone. In the event any change or changes in the Scope of Services is requested by the City, the Parties shall execute a written amendment to this Agreement, signed by an individual authorized to formally bind the Parry for which he/ she is signing, setting forth with particularity all terms of such amendment, including, but not limited to, any additional professional fees. An amendment may be entered into: ( a) to provide for revisions or modifications to documents or other work product when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; and/ or, ( b) to provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor' s profession.

2.4 Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Los Alamitos City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the City.

3. SCHEDULE OF PERFORMANCE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

The time for completion of the Project Services to be performed by Contractor is an essential condition of this Agreement.
32 Schedule of Performance. Contractor shall prosecute regularly and diligently the Project Services according to the periods specified in the Scope of Services. When requested by Contractor, extensions of the time period( s) specified in the Scope of Services may be approved in writing by the Contract Officer; however, the City shall not be obligated to grant any such extension.
1367754. 1