1. City of Orange Annual Comprehensive Financial Report and Summary of Audit Results

City of Orange
C a l i f o r n i a

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023

Prepared by:

FINANCE DEPARTMENT

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CITY OF ORANGE, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2023

Table of Contents

Page
Number

INTRODUCTORY SECTION:

Letter of Transmittal ........................................................................................................................................ i Organization Chart .............................................................................................................................................. v Elected Positions and Admi nistrative Personnel ................................................................................................ vi

FINANCIAL SECTION:

Independent Auditors' Report ............................................................................................................................. 1

Management's Discussion and Analysis (Required Supplementary In formation)............................................ 7

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position .................................................................................................................... 21 Statement of Activities .......................................................................................................................... 22

Fund Financial Statements:

Governmental Funds:

Balance Sheet ............................................................................................................................... 28 Reconciliation of the Balance Sheet of Governmental Funds to th e Statement of Net Position .............................................................................................................. 31 Statement of Revenues, Expenditures and Changes in Fund Balance s ..................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activit ies ................... 35

Proprietary Funds:

Statement of Net Position .............................................................................................................. 36 Statement of Revenues, Expenses and Changes in Fund Net Positio n ..................................... 37 Statement of Cash Flows .............................................................................................................. 38

Fiduciary Funds:

Statement of Fiduciary Net Position ........................... .................................................................. 40 Statement of Changes in Fiduciary Net Position .......................................................................... 41 Notes to the Financial Statements .............................................................................................................. 47

Required Supplementary Information:

Budgetary Comparison Sche dule - General Fund .................................................................................... 93 Budgetary Comparison Schedule - Proposition 172 ................................................................................... 94 Budgetary Comparison Schedule - Measure M .......................................................................................... 95 Budgetary Comparison Schedule - Federal, State, and Local Grants ........................................................ 96 Budgetary Comparison Schedule - Housing Successor ............................................................................. 97

OPEB Plan
Schedule of Changes in Total OPEB Liability and Related Ratios ..................................................... 98

CITY OF ORANGE, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2023

Table of Contents

Page
Number

Pension Plan
Miscellaneous Plan:

Schedule of Changes in the Net P ension Liability and Related Ra tios ..................................... 100 Safety Plan:

Schedule of Changes in the Net Pension Liability and Related Ra tios ..................................... 102 Schedule of Plan Contributions ......................................................................................................... 104

Notes to Required Supplem entary Information ....................................................................................... 105

Supplementary Schedules:

Non-Major Governmental Funds:

Combining Balance Sheet ................................................................................................................. 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................................... 116

Budgetary Comparison Schedules – Non-major Special Revenue Funds:

EMT Transport ................................................................................................................................... 121 1% PEG Program ............................................................................................................................... 122 Certified Access Specialist Progr am (CASP) Certification & Trai ning ............................................. 123 Headstart Building Maintenance ........................................................................................................ 124 Air Pollution Reduction ...................................................................................................................... 125 Gas Tax .............................................................................................................................................. 126 Road Maintenance Rehabilit ation Account (RMRA) ................ ........................................................ 127 Transportation System Improvement Program (TSIP) .............. ....................................................... 128 Landscape Maintenance As sessment Districts ................................................................................ 129 Asset Seizure ..................................................................................................................................... 130 SB2- Building Homes and Jobs Act. ............................. .................................................................... 131 Housing in Lieu .................................................................................................................................. 132

Budgetary Comparison Schedules – Capital Projects Funds:

Capital Improvement .......................................................................................................................... 134 Park Acquisition, Development and Maintenance ............................................................................. 135 Drainage District ................................................................................................................................. 136 Fire Facilities Fees ............................................................................................................................. 137 Police Facilities Fees ......................................................................................................................... 138 Library Facilities Fees ........................................................................................................................ 139

Budgetary Comparison Schedules – Debt Service Funds:

Debt Service ....................................................................................................................................... 142

Internal Service Funds:

Combining Statement of Net Position ................................................................................................ 144 Combining Statement of Revenues, Expenses and Changes in Net Po sition ................................... 146
Combining Statement of Cash Flows ................................................................................................. 148

CITY OF ORANGE, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2023

Table of Contents

Page
Number
STATISTICAL SECTION:

Net Position by Component - Last Ten Fiscal Years ............. ........................................................................ 154 Changes in Net Position - Governmental Activities - Last Ten Fi scal Years ................................................ 156 Changes in Net Position - Business-type Activities - Last Ten F iscal Years ................................................ 158 Fund Balances of Governmental Funds - Last Ten Fiscal Years ... ............................................................. 160 Changes in Fund Balances of Governmental Funds - Last Ten Fisca l Years ............................................. 162 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ....................... 164 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Yea rs ........................................................... 166 Principal Property Taxpayers - Current Year and Nine Years Ago ............................................................... 168 Property Tax Levies and Collections - Last Ten Fiscal Years ... .................................................................... 169 Ratios of Outstanding Debt by Ty pe - Last Ten Fiscal Years ........................................................................ 170 Direct and Overlapping Debt .......................................................................................................................... 173 Legal Debt Margin Information - Last Ten Fiscal Years ................................................................................ 174 Pledged-Revenue Coverage - La st Ten Fiscal Years .................................................................................... 176 Demographic and Economic Statistics - Last Ten Fiscal Years ... ................................................................. 177 Principal Employers - Current Year and Nine Years Ago .............................................................................. 178 Full-time Equivalents by Function - Last Ten Fiscal Years ..... ....................................................................... 179 Operating Indicators by Departm ent - Last Seven Fiscal Years... ................................................................. 180 Capital Asset Statistics by Dep artment - Last Seven Fiscal Year s ............................................................... 182

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AT JUNE 30, 2023

ELECTED POSITIONS

Dan Slater.…………...…………………………………………….…………………Mayor
Arianna Barrios.……………...……………………………...……..….........Mayor Pro Tem Jon Dumitru.…………………………………………………….Council Member District 2 Kathy Tavoularis.……………………………………………….Council Member District 3 Denis Bilodeau.…………………………………………………Council Member District 4 Ana Gutierrez.…………………………………………………..Council Member District 5 John Gyllenhammer.……………………………………………Council Member District 6 Richard A. Rohm..………..……………………………………..………..….City Treasurer Pamela Coleman………………....…………………………………………..…...City Clerk

ADMINISTRATIVE PERSONNEL

Tom Kisela……...…………………………………….………………………City Manager
Mike Viglitotta…………………………………………………………….….City Attorney
Susan Galvan….....………………………...…….…………………Assistant City Manager

Trang Nguyen...………………..…….…………..………………………...Finance Director Leslie Hardy......……...……………………...………..……..Community Services Director

Dan Adams……………………...…………………..…………...……..………Police Chief Christopher Cash.………………….…...……………..…..……........Public Works Director Sean Demetropolis...………………..…….…………..…………………………..Fire Chief Russell Bunim………..……..………………………….Community Development Director Monica Espinoza………………………………………………..Human Resources Director Dave F. Curtis…..………………………………..…………….....Library Services Director Dan Slater
Mayor
John Gyllenhammer
Councilmember
District 6
Ana Gutierrez
Councilmember
District 5
Denis Bilodeau
Councilmember
District 4
Arianna Barrios
Mayor pro tem
District 1
Jon Dumitru
Councilmember
District 2
Kathy Tavoularis
Councilmember
District 3
vi
Richard A. Rohm
City Treasurer
Pamela Coleman
City Clerk
Elected Officials
vii

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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com

INDEPENDENT AUDITORS’ REPORT

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

Report on the Audit of the Financial Statements

Opinions

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

In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended i n accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

Change in Accounting Principle

As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance, GASB Statement No. 96, Subscription Based Information Technology Arrangements . Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted au diting standards and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skept icism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of inter nal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied c ertain limited procedures to the required supplementary information in a ccordance 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 res ponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

2 To the Honorable Mayor and Members of the City Council City of Orange, California

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combini ng and individual fund financial statements and schedules (supplementary information) are presented for purpose s of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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

Other Information

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

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2024, on our consideration of the City’s int ernal control over financial rep orting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit p erformed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Brea, California
March 27, 2024
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6 MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Orange, we offer readers of the Ci ty of Orange’s financial statements this narrative overview and analysis of the financial activities of the City of Orange for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-iv of this report.

Financial Highlights

 The assets of the City exceeded its liabilities, on June 30, 2 023, by over $697 million (net position). Of this amount, over $557 million or 80% is in the governmental fu nds and almost $140 million or 20% is in the enterprise funds.

 As of June 30, 2023, the City's governmental activities report ed combined ending net position of over $557 million, a decrease of $2 million in comparison with the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introd uction to the City’s Basic Financial Statements, which are comprised of three components: (1) Government-wide Fi nancial Statements; (2) Fund Financial Statements; and (3) Notes to the Financial Statements. In addition to the Basic Financial Statements and required information, this report also contains other supplementary information.

Government-wide Financial Statements . The Government-wide Financial Statements are designed to provide readers with a broad overview of the City’s financial position, in a manner like that of a private-sector business.

These statements are reported on the full accrual basis of accounting. Thus, revenues and expenses are reported for some items that will not affect cash flows until future fiscal periods.

The Government-wide Financial Statements separate Governmental Activities that are principally supported by taxes and revenues from other agencies, from Business-type Activities that are intended to recover all, or a significant portion, of their costs through user fees and charges. The Governmental Activities of the City include General Government, Public Safety, Public Works, Commun ity Development, Parks and Library, Economic Development, and Interest on Long-Term Debt, when appl icable. The City’s two Business-type Activities are Water and Sanitation.

The Statement of Net Position presents information on all of th e City’s assets and deferred outflows of resources, and liabilities and deferred inflow s of resources; the differen ce between the four is report ed as net position. Total assets include all capital items including infrastructure. Eval uating increases or decreases in net position over time will serve as a useful indicator of whether the financial position of the City is improving or declining.

The Statement of Activities pr esents information on the net cos t of each governmental function (activity) during the fiscal year. This statement also identifies the amount of g eneral revenues needed to fully fund each governmental function.

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 state and local governments, uses fund accounting to demonstrate compliance wit h finance-related legal requirements.

All the funds of the City can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.

Governmental Funds (General F
und, Special Revenue, Debt Service and Capital Projec ts Funds) are used to account for the same functions reported as G overnmental Activities in the Government-wide Financial Statements. However, unlike the Gover nment-wide Financial Statements, Fund Financial Statements focus on short-term inflo ws and outflows of spendable resources. These funds are reported using the modified accrual basis of accounting, which measures cash and all other fi nancial assets that can readily b e converted to cash. This information is useful in evaluating the City’s short-term financing requirements. 7 The focus of the Fund Financial Statements is narrower than tha t of the Government-wide Financial Statements. The governmental fund Balance Sheets and the Statement of Revenues, Expenditures, and Changes in Fund Balance, require a reconcilia tion to facilitate the comparison between the Fund Statements and t he Government-wide Statements. This reconciliation is required because the Government-wide Statements are prepared on the full accrual basis of accounting while the Fund Statements are prepared on the modifi ed accrual basis of accounting.

These reconciliations can be found in the Fund Financial Statements on pages 28 and 35.

Proprietary Funds are Enterprise and Internal Service Funds. The City uses Enterprise Funds to account for its Water Utility and Sanitation services. Internal S e r v i c e F u n d s a r e u s e d t o accumulate and allocate costs internally to various functions. The City uses Internal Service Funds to allocate equipment expenses, equipment replacements, m ajor building improvements, information systems, computer r eplacements, employee accrued li ability, and workers’ compensation, liability, and dental self-insurance costs.

All of the Internal Service Funds are combined into a single, a ggregated presentation in the Proprietary Fund Financial Statements. Individual fund data for the Internal Service Funds is provided in the form of combining statements found on pages 144-149.

Fiduciary Funds (Custodial and Private-Purpose Trust Funds) are used to account for resources held for the benefit of parties outside of the City such as the collection and fees for various assessment districts for which the City ats as an agent for deb t service activity. The Fiduciary Fund resources are not available to support City programs. Fidu ciary Funds are reported in Fiduciary Fund Statements of the basic Financial Statements section and are also reported in the Supplementary Schedules section.

Notes to the Financial Statements. The notes provide additional information that is essential to the reader for a full understanding of the data provided in the Government-wide and Fund Financial Statements.

Other Information . In addition to the Basic Financial Statements and accompanyin g notes, this report also presents certain Supplementary Information such as Budgetary Co mparison Schedules for the General Fund and all Major Special Revenue Funds, Schedules of Changes in the Ne t Pension Liability and Related Ratios and Schedules of Plan Contributions (Required Supplementary Informa tion). In addition, Budgetary Comparison Schedules for all the Non-Major Special Revenue, Capital Projects Funds, and Combining Non-Major Statements are provided (Supplementary Schedules). The Statistical Section provides users with statistical information covering five categories, including financial trends, revenue c apacity, debt capacity, demographic and economic information, and operating information.

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20 CITY OF ORANGE
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 114,203,673$ 34,960,334 $ 149,164,007$ Receivables (net of uncollectibles):

Accounts 6,845,010 8,037,677 14,882,687
Taxes 10,136,974 1,101 10,138,075
Accrued interest 639,959 173,090 813,049
Due from other governments 2,278,514 - 2,278,514
Notes and loans 25,007,424 - 25,007,424
Leases 271,704 - 271,704
Restricted assets:

Cash with fiscal agent 10,781,277 834 10,782,111
Inventories 577,843 802,051 1,379,894
Prepaid costs 41,500 - 41,500
Capital assets (not being depreciated/amortized) 447,411,545 7,763,064 455,174,609 Capital assets (net of accumulated depreciation/amortization) 276,801,360 120,575,006 397,376,366 Total assets 894,996,783 172,313,157 1,067,309,940

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 93,743,727 6,994,883 100,738,610
OPEB-related 7,120,978 1,780,244 8,901,222
Total deferred outflows of resources 100,864,705 8,775,127 109,639 ,832

LIABILITIES
Accounts payable 10,018,209 6,464,929 16,483,138
Contracts payable 285,670 - 285,670
Due to other governments 14,774 - 14,774
Accrued liabilities 5,680,239 - 5,680,239
Accrued interest 742,050 - 742,050
Deposits payable 2,415,362 129,326 2,544,688
Unearned revenue 1,311,087 51,601 1,362,688
Noncurrent liabilities:

Due within one year: bonds, loans, leases, subscriptions, claims, and compensated absences 21,892,394 1,143,766 23,036,160 Due in more than one year:

Net pension liability 59,611,458 3,161,400 62,772,858
Net OPEB liability 29,929,092 7,482,273 37,411,365
Bonds, loans, leases, subscriptions, claims, and
compensated absences 292,594,405 19,905,672 312,500,077 Total liabilities 424,494,740 38,338,967 462,833,707

DEFERRED INFLOWS OF RESOURCES
Pension-related 4,436,616 665,243 5,101,859
OPEB-related 9,142,697 2,285,674 11,428,371
Lease-related 222,884 - 222,884
Total deferred inflows of resources 13,802,197 2,950,917 16,753,11 4

NET POSITION
Net investment in capital assets 684,071,711 127,758,485 811,830,196 Restricted:

Special projects and programs 69,118,798 - 69,118,798
Unrestricted (195,625,958) 12,039,915 (183,586,043)
Total net position 557,564,551$ 139,798,400$ 697,362,951$ June 30, 2023
Primary Government
See accompanying notes to the financial statements.
21 CITY OF ORANGE
Statement of Activities
For the Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government 24,083,824$ 7,306,367$ 4,456,079$ 14,396$ Public safety 110,206,495 9,973,692 1,058,249 501,030
Community development 4,112,664 4,141,083 - 944,217
Parks and library 20,276,823 1,425,928 602,184 -
Public works 19,715,973 10,428,888 - 7,474,423
Economic development 8,310,619 - - -
Interest on long-term debt 7,745,269 - - -
Total governmental activities 194,451,667 33,275,958 6,116,512 8,934,066 Business-type activities:

Sanitation 10,061,616 8,300,397 - -
Water 34,893,589 38,461,941 - -
Total business-type activities 44,955,205 46,762,338 - - Total primary government 239,406,872$ 80,038,296$ 6,116,512$ 8,934,066$ General revenues and transfers:

General revenues:

Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See accompanying notes to the financial statements.
22 Governmental Business-Type
Activities Activities Total
(12,306,982)$ -$ (12,306,982)$
(98,673,524) - (98,673,524)
972,636 - 972,636
(18,248,711) - (18,248,711)
(1,812,662) - (1,812,662)
(8,310,619) - (8,310,619)
(7,745,269) - (7,745,269)
(146,125,131) - (146,125,131)
- (1,761,219) (1,761,219)
- 3,568,352 3,568,352
- 1,807,133 1,807,133
(146,125,131) 1,807,133 (144,317,998)
53,784,303 - 53,784,303
51,389,099 - 51,389,099
6,080,399 - 6,080,399
3,148,573 - 3,148,573
3,897,046 - 3,897,046
4,287,125 324,028 4,611,153
21,365,548 477,874 21,843,422
153,054 (153,054) -
144,105,147 648,848 144,753,995
(2,019,984) 2,455,981 435,997
559,584,535 137,342,419 696,926,954
557,564,551$ 139,798,400 $ 697,362,951 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See accompanying notes to the financial statements.
23 THIS PAGE INTENTIONALLY LEFT BLANK
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25 THIS PAGE INTENTIONALLY LEFT BLANK
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Balance Sheet
Governmental Funds
June 30, 2023
General
ASSETS
Cash and investments 26,170,333$ 150,291 $ 6,282,803 $ 1,425,695 $ 3,057,633$ Receivables (net of allowance for uncollectible):

Accounts 1,607,219 - - 1,735,180 1,001
Taxes 9,174,053 98,560 - - -
Accrued interest 411,467 3,102 34,888 12,448 11,454
Due from other governments 1,613,550 - 664,964 - -
Notes and loans - - - 3,837,291 14,240,247
Leases 265,852 - - - -
Due from other funds 667,656 - - - -
Inventories 130,663 - - - -
Restricted assets:

Cash and investments with fiscal agents 28,913 - - - -
Total assets 40,069,706$ 251,953$ 6,982,655$ 7,010,614$ 17,310,335$

LIABILITIES
Accounts payable 4,248,048$ 1,177 $ 714,160 $ 606,553 $ 10,575$ Contracts payable - - 69,692 32,364 -
Due to other governments --- 1 4,774 -
Accrued liabilities 5,581,229 - - - -
Deposits payable 2,412,222 - 1,450 - -
Due to other funds ---- -
Unearned revenues 1,131,761 - - - -
Total liabilities 13,373,260 1,177 785,302 653,691 10,575

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 752,128 - - 1,737,100 1,250,000
Lease-related 216,114 - - - -
Total deferred inflows of resources 968,242 - - 1,737,100 1,250,000

FUND BALANCES (DEFICITS)
Nonspendable 130,663 - - - -
Restricted 22,506,997 250,776 6,197,353 4,619,823 16,049,760 Committed 630,545 - - - -
Assigned 1,546,660 - - - -
Unassigned 913,339 - - - -
Total fund balances (deficits) 25,728,204 250,776 6,197,353 4,619,8 23 16,049,760 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 40,069,706$ 251,953$ 6,982,655$ 7,010,614$ 17,310,335$ Proposition
172 Measure M
Federal, State
& Local Grants
Housing
Successor
Special Revenue Funds
See accompanying notes to financial statements.
28 CITY OF ORANGE
Balance Sheet
Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

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

Cash and investments with fiscal agents
Total assets

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

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Non-major Governmental
Funds Funds
20,233,386$ 7,526,624$ 17,289,203$ 82,135,968$
2,967,075 40,789 406,414 6,757,678
- - 864,361 10,136,974
35,355 43,066 88,179 639,959
--- 2,278,514
3,000,000 646,045 3,283,841 25,007,424
-- 5 ,852 271,704
--- 667,656
--- 130,663
10,752,197 - - 10,781,110
36,988,013$ 8,256,524$ 21,937,850$ 138,807,650$ 1,598,315$ 384,509 $ 1,474,447 $ 9,037,784 $ 159,173 4,026 20,415 285,670
--- 14,774
- - 99,010 5,680,239
-- 1 ,690 2,415,362
- - 656,907 656,907
179,326 - - 1,311,087
1,936,814 388,535 2,252,469 19,401,823
5,414,364 684,776 116,454 9,954,822
-- 6 ,770 222,884
5,414,364 684,776 123,224 10,177,706
- - - 130,663
- - 19,494,089 69,118,798
--- 630,545
29,636,835 7,183,213 1,538,984 39,905,692
- - (1,470,916) (557,577)
29,636,835 7,183,213 19,562,157 109,228,121
36,988,013$ 8,256,524$ 21,937,850$ 138,807,650$ Capital
Improvement
Park
Acquisition,
Development
and
Maintenance
Capital Projects Funds
See accompanying notes to financial statements.
29 THIS PAGE INTENTIONALLY LEFT BLANK
30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds 109,228,121$
699,528,219
Deferred outflows-pension related 92,344,752$
Deferred outflows-OPEB related 6,764,929
Deferred inflows-pension related (4,303,567)
Deferred inflows-OPEB related (8,685,562)
Total deferred outflows and inflows related to postemployment benefits 86,120,552 Long-term receivables 9,954,822
Total other long-term assets 9,954,822
29,053,842
Bonds and loans payable (277,975,198)
Leases payable (121,038)
Subscription payable (475,348)
Compensated absences (9,595,557)
Accrued interest payable on long-term debt (742,050)
Net pension liability (58,979,177)
Net OPEB liability (28,432,637)
Total long-term liabilities (376,321,005)
Net position of governmental activities 557,564,551$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF ORANGE
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postret irement benefits (pension and OPEB) a re recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred in flows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See accompanying notes to the financial statements.
31 CITY OF ORANGE
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
General

REVENUES
Taxes 108,952,940$ 1,278,164 $ 3,875,255 $ - $ -$ Franchise fees 2,622,044 - - - -
Licenses and permits 6,583,598 - - - -
Intergovernmental 1,246,649 - 182,629 1,457,719 -
Charges for services and fees 10,899,719 - 32,760 165,375 - Use of money and property 2,409,120 (12,692) 54,501 44,334 650,408 Fines and forfeitures 2,006,648 - - - -
Miscellaneous 5,501,110 - - 117,425 -
Total revenues 140,221,828 1,265,472 4,145,145 1,784,853 650,408

EXPENDITURES
Current:

General government 14,805,544 26,512 - - 21,600
Public safety 91,457,920 608,128 - 300,391 -
Community development 3,648,820 - - - 115,491
Parks and library 16,543,427 - 276,651 - -
Public works 9,799,538 - 523,940 - -
Economic development 137,853 - - 2,147,610 5,980,421
Capital outlay 72,677 98,199 2,196,157 1,194,873 -
Debt service:

Principal 706,439 - - - -
Interest and fiscal charges 1,165,400 - - - -
Total expenditures 138,337,618 732,839 2,996,748 3,642,874 6,117,512 Excess (deficiency) of revenues
over (under) expenditures 1,884,210 532,633 1,148,397 (1,858,021) (5 ,467,104)

OTHER FINANCING SOURCES (USES)
Transfers in 2,000,000 - - - -
Transfers out (23,276,946) - - - -
Total other financing sources (uses) (21,276,946) - - - - Net change in fund balances (19,392,736) 532,633 1,148,397 (1,858,0 21) (5,467,104) Fund balances (deficit)-beginning 45,120,940 (281,857) 5,048,956 6,477,844 21,516,864 Fund balances (deficit)-ending 25,728,204 $ 250,776 $ 6,197,353 $ 4,619,823 $ 16,049,760 $ Proposition
172
Federal, State
& Local Grants
Housing
Successor Measure M
Special Revenue Funds
See accompanying notes to financial statements.
32 CITY OF ORANGE
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services and fees
Use of money and property
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and library
Public works
Economic development
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total Total
Non-major Governmental
Funds Funds
-$ - $ 1,044,488$ 115,150,847$ - - 526,529 3,148,573
-- 7 ,698 6,591,296
844,701 - 8,624,997 12,356,695
1,755,040 70,645 3,634,116 16,557,655
454,069 250,945 436,440 4,287,125
--- 2,006,648
- - 18,320,852 23,939,387
3,053,810 321,590 32,595,120 184,038,226
303,875 - 1,351,718 16,509,249
- - 3,491,404 95,857,843
94,154 - 52,339 3,910,804
13,572 - 1,308,123 18,141,773
733,983 646,046 4,120,843 15,824,350
--- 8,265,884
7,235,780 1,365,662 4,582,616 16,745,964
- - 10,120,000 10,826,439
- - 6,635,374 7,800,774
8,381,364 2,011,708 31,662,417 193,883,080
(5,327,554) (1,690,118) 932,703 (9,844,854)
7,000,000 - 400,000 9,400,000
(1,000,000) - - (24,276,946)
6,000,000 - 400,000 (14,876,946)
672,446 (1,690,118) 1,332,703 (24,721,800)
28,964,389 8,873,331 18,229,454 133,949,921
29,636,835$ 7,183,213$ 19,562,157$ 109,228,121$ Park
Acquisition,
Development
and
Maintenance
Capital
Improvement
Capital Projects Funds
See accompanying notes to financial statements.
33 THIS PAGE INTENTIONALLY LEFT BLANK
34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: (24,721,800)$ Capital outlay 18,159,490$
Depreciation/amortization expense (9,148,246)
Total adjustment 9,011,244
Earned but unavailable grant revenues 1,372,294
Earned but unavailable revenues related to loans 6,868,109 Total adjustment 8,240,403
Loss/(gain) on disposal of capital assets (424,896)
Total adjustment (424,896)
Leases issued (77,116)
SBITAs issued (233,987)
Amortization of bond premiums and discounts 145,848
Principal payments 10,362,232
Total adjustment 10,196,977
11,468,728
Accrued interest on long-term debt 6,965
Compensated absences 108,028
Changes in pension liabilities and related deferrals (14,771,489) Changes in OPEB liabilities and related deferrals (1,134,144) Total adjustment (15,790,640)
Change in net position of governmental activities (2,019,984)$ Internal service funds provide services to other funds on a cost-reimbursement basis.

The net revenue of certain activitie s of internal service funds is reporte dw i t h governmental activities.

Some expenses reported in the Statement of Activities do not require the useo f current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF ORANGE
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets are allocated over their estimateduseful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statementof Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.

Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortizedi nt h e Statement of Activities.

See accompanying notes to the financial statements.
35 CITY OF ORANGE
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
ASSETS
Current assets:

Cash and investments 12,312,490$ 22,647,844$ 34,960,334$ 32,067,705$ Receivables (net of uncollectibles):

Accounts 777,277 7,260,400 8,037,677 87,332
Taxes 1,101 - 1,101 -
Accrued interest 63,259 109,831 173,090 -
Prepaid costs - - - 41,500
Inventories - 802,051 802,051 447,180
Restricted:

Cash with fiscal agent 250 584 834 167
Total current assets 13,154,377 30,820,710 43,975,087 32,643,884 Noncurrent:

Capital assets, net 58,681,871 69,656,199 128,338,070 24,684,686 Total noncurrent assets 58,681,871 69,656,199 128,338,070 24,684,686 Total assets 71,836,248 100,476,909 172,313,157 57,328,570

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 2,098,465 4,896,418 6,994,883 1,398,975 OPEB-related 534,073 1,246,171 1,780,244 356,049
Total deferred outflows of resources 2,632,538 6,142,589 8,775,127 1,755,024

LIABILITIES
Current liabilities:

Accounts payable 180,069 6,284,860 6,464,929 980,425
Unearned revenues 51,601 - 51,601 -
Deposits payable - 129,326 129,326 -
Due to other funds - - - 10,749
Compensated absences 48,052 114,654 162,706 -
Claims and judgments - - - 5,330,925
Bonds, notes, loans, leases, and subscriptions 284,118 696,942 981 ,060 1,177,320 Total current liabilities 563,840 7,225,782 7,789,622 7,499,419 Noncurrent liabilities:

Compensated absences 179,320 427,870 607,190 -
Claims and judgments - - - 10,449,080
Bonds, notes, loans, leases, and subscriptions 5,765,092 13,533,390 19,298,482 9,362,333 Net pension liability 948,420 2,212,980 3,161,400 632,281 Net OPEB liability 2,244,682 5,237,591 7,482,273 1,496,455 Total noncurrent liabilities 9,137,514 21,411,831 30,549,345 21,940,149 Total liabilities 9,701,354 28,637,613 38,338,967 29,439,568

DEFERRED INFLOWS OF RESOURCES
Pension-related 199,573 465,670 665,243 133,049
OPEB-related 685,702 1,599,972 2,285,674 457,135
Total deferred inflows of resources 885,275 2,065,642 2,950,917 590 ,184

NET POSITION
Net investment in capital assets 58,542,648 69,215,837 127,758,485 18,085,025 Unrestricted 5,339,509 6,700,406 12,039,915 10,968,817
Total net position 63,882,157$ 75,916,243$ 139,798,400$ 29,053,842$ Business-Type Activities
Sanitation Water
See accompanying notes to financial statements.
36 CITY OF ORANGE
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds

OPERATING REVENUES
Water sales and services -$ 38,347,210$ 38,347,210 $ -$ Charges for services and fees 8,300,397 114,731 8,415,128 16,859,984 Other revenues 441,248 36,626 477,874 2,810,464
Total operating revenues 8,741,645 38,498,567 47,240,212 19,670,448

OPERATING EXPENSES
Salaries and wages 2,298,322 4,887,982 7,186,304 5,441,815 Maintenance and operations 55,843 17,076,655 17,132,498 4,293,920 Contractual services 1,177,540 4,104,289 5,281,829 2,520,737 Interfund charge for administrative services 790,015 2,937,410 3,727,425 - Insurance claims and charges --- 6,655,308
Depreciation/amortization 4,931,222 3,068,420 7,999,642 3,289,901 Other expenses 203,451 1,455,563 1,659,014 -
Total operating expenses 9,915,658 34,553,016 44,468,674 23,097,589 Operating income (loss) (1,174,013) 3,945,551 2,771,538 (3,427,141)

NONOPERATING REVENUES (EXPENSES)
Use of money and property 124,832 199,196 324,028 -
Interest expense (145,958) (340,573) (486,531) (97,308) Gain (loss) on disposal of capital assets --- (36,823)
Total nonoperating revenues (expenses) (21,126) (141,377) (162,503 ) (134,131) Income (loss) before capital contributions and transfers (1,195,139) 3,804,174 2,609,035 (3,561,272) Transfers in --- 16,280,000
Transfers out (32,335) (120,719) (153,054) (1,250,000)
Change in net position (1,227,474) 3,683,455 2,455,981 11,468,728 Net position-beginning 65,109,631 72,232,788 137,342,419 17,585,114 Net position-ending 63,882,157$ 75,916,243$ 139,798,400$ 29,053,842$ Business-Type Activities
Sanitation Water
See accompanying notes to financial statements.
37 CITY OF ORANGE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Governmental
Activities
Internal
Totals Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 8,665,044$ 38,535,304 $ 47,200,348 $ -$ Receipts from interfund charges - - - 16,804,345 Payments to suppliers and service providers (2,618,903) (26,891,281) (29,510,184) (19,221,651) Payments to employees for salaries and benefits (1,879,396) (4, 294,750) (6,174, 146) (868,766) Other receipts (payments) - 36,626 36,626 3,268,780 Net cash provided by (used for)
operating activities 4,166,745 7,385,899 11,552,644 (17,292)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - - - 16,280,000 Transfers to other funds (32,335) ( 120,719) ( 153,054) (1,250,000) Net cash provided by (used for)
noncapital financing activities (32,335) (120,719) (153,054) 15,030,000

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,689,717) (1, 698,372) (4,388, 089) (4,116,637) Principal paid on capital debt (222,612) ( 519,427) ( 742,039) (148,407) Principal paid on subscriptions - ( 340,573) ( 340,573) (2,046,892) Interest paid on capital debt (145,958) - ( 145,958) (97,308) Net cash provided by (used for)
capital and related financing activities (3,058,287) (2,558,372) (5,616,659) (6,409,244)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 71,007 107,435 178,442 - Net cash provided by (used for)
investing activities 71,007 107,435 178,442 - Net increase (decrease) in
cash and cash equivalents 1,147,130 4,814,243 5,961,373 8,603,464 Cash and cash equivalents-beginning 11,165,610 17,834,185 28, 999,795 23,464,408 Cash and cash equivalents-ending 12,312,740$ 22,648,428$ 34,961,168$ 32,067,872$ Business-Type Activities
Sanitation Water
See accompanying notes to financial statements.
38 CITY OF ORANGE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Governmental
Activities
Internal
Totals Service Funds
Business-Type Activities
Sanitation Water

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 12,312,490$ 22,647,844 $ 34,960,334 $ 32,067,705$ Cash with fiscal agent 250 584 834 167 Total cash and cash equivalents 12,312,740$ 22,648,428$ 34,961,168$ 32,067,872$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (1,174,013)$ 3,945,551 $ 2, 771,538$ (3,427,141)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 4,931,222 3,068,420 7,999,642 3,289,901 (Increase) decrease in accounts receivable (24,449) 73,363 48,914 16,550 (Increase) decrease in deposits payable - 1,716 1,716 - (Increase) decrease in inventories - ( 159,967) (159,967) 7,211 (Increase) decrease in pension-related deferred outflows (1,883,292) (4,175,831) (6,059,123) (1,193,094) (Increase) decrease in OPEB-related deferred outflows 93,650 - 93,650 - Increase (decrease) in accounts payable 67,211 (576,778) (509,567) 447,253 Increase (decrease) in accrued liabilities - - - (3,887) Increase (decrease) in compensated absences 16,448 (21, 037) (4,589) - Increase (decrease) in claims and judgments - - - (450,496) Increase (decrease) in net pension liability 3,882,712 9,059,666 12, 942,378 2,588,476 Increase (decrease) in net OPEB liability (416,555) (971,963) (1,388,518) (277,703) Increase (decrease) in pension-related deferred inflows (1,825,703) (4,259,973) (6,085,676) (1,217,135) Increase (decrease) in OPEB-related deferred inflows 412,443 962,370 1,374,813 274,962 Increase (decrease) in unearned revenue (52,152) - (52,152) - Increase (decrease) in due to other funds - - - (72,189) Increase (decrease) in subscription liability 139,223 440,362 579,585 - Total adjustments 5,340,758 3,440,348 8, 781,106 3,409,849 Net cash provided by (used for)
operating activities 4,166,745$ 7,385,899 $ 11, 552,644$ (17,292) $ See accompanying notes to financial statements.
39 Private
Purpose Custodial
Trust Fund Funds
Successor Community
Agency Trust Facilities
Fund Districts
ASSETS
Cash and cash equivalents 9,345,032$ 3,589,691$
Investments:

Cash and investments with fiscal agent 4,300 1,445,720
Receivables:

Accounts 6,112 -
Accrued interest 21,948 16,962
Taxes - 37,608
Notes and loans 45,019 -
Due from other governments - 550,000
Total assets 9,422,411 5,639,981

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 55,891 -
Total deferred outflows of resources 55,891 -

LIABILITIES
Accrued interest 424,137 -
Long-term liabilities:

Due in one year 4,708,741 -
Due in more than one year 24,665,771 -
Total liabilities 29,798,649 -

NET POSITION
Restricted for:

Held in trust (20,320,347) 5,639,981
Total net position (20,320,347)$ 5,639,981 $

CITY OF ORANGE
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying notes to financial statements.
40 Private
Purpose Custodial
Trust Fund Funds
Successor Community
Agency Trust Facilities
Fund Districts

ADDITIONS
Interest 49,168$ 166,929$
Taxes 5,664,058 3,500,243
Miscellaneous 70,167 -
Total additions 5,783,393 3,667,172

DEDUCTIONS
Administrative expenses 24,259 28,533
Contractual services 16,380 -
Payments to external parties 751,630 3,554,098
Total deductions 792,269 3,582,631
Net increase (decrease) in fiduciary net position 4,991,124 84,54 1 Net position-beginning (25,311,471) 5,555,440
Net position-ending (20,320,347)$ 5,639,981 $

CITY OF ORANGE
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
See accompanying notes to financial statements.
41 THIS PAGE INTENTIONALLY LEFT BLANK
42 127(6727+(),1$1&,$/67$7(0(176
43 THIS PAGE INTENTIONALLY LEFT BLANK
44 CITY OF ORANGE
In Order of Presentation
For the Year Ended June 30, 2023

Note Description Page
1 Significant Accounting Policies 47
2 Cash and Investments 57
3 Capital Assets 64
4 Taxes 65
5 Other Revenues 67
6 Retirement Plan 69
7 Insurance Programs 70
8 Other Postemployment Benefits 70
9 Long-Term Liabilities 78
10 Community Facilities and Assessment Districts and Other Reven ue Bond Issues 79 11 Joint Ventures 81
12 Loans Receivable 83
13 Leases Receivable 84
14 Advances to/from Other Funds 84
15 Due to/from Other Funds 85
16 Transfers 85
17 Deficit Equity Balances 85
18 Restatement of Beginning Net Position 86
19 Breakdown of "Restricted" Governmental Fund Balances 86 20 Contingencies 86
21 Successor Agency Trust for Assets of former Redevelopment Age ncy 86 45 THIS PAGE INTENTIONALLY LEFT BLANK
46 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT A CCOUNTING POLICIES

A. Description of the Reporting Entity

The City of Orange (City) was incorporated in April 1888 under the general laws of the Stat e of California. The City operates under a Council-Manager form of government and pr ovides the following services: public safety, public works, community development and redevelopment, parks an d library, sanitation, and general administrative services.

B. Basis of Accounting and Measurement Focus

The basic financial statements of the City are composed of the following:

 Government-wide Financial Statements
 Fund Financial Statements
 Notes to the Financial Statements

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources b eing measured such as current financial resources or economic resources. The basis of accounting indica tes the timing of transactions or events for recognition in the financial statements.

1. Government-wide Financial Statements

Government-wide Financial Statem ents display information about the reporting government as a whole, except for its fiduciary activit ies. All fiduciary activities a re reported only in the fund financial statements. The Government-wide statements include separate columns for the gov ernmental and business-type activities of the primary government. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. Also, certain eliminations have been made in regard to interfund transfers, p ayables, and receivables. Internal service fund activity has been eliminated and net balances are included in t he governmental activities. Interfund services provided and used, if any, are not eliminated in the consolidation process.

Government-wide Financial Statements are presented using the economic resources measurement focus and the full accrual basis of accounting . Under the economic resources measurement focus, all (both cur rent and long-term) economic resources and obligations of the reporting government are reported in the Government-wide Financial Statements. The basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Program revenues include charges for services, operating grants and contributions, capital grants and contributions, special assessments, and payments made by partie s outside of the reporting government's citizenry, if that money is restricted to a particular program. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program. Charges for services include revenues from customers or applicants who purch ase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restr icted to meeting the operational or capital requirement of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the Government-wide Financial Statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the Government-wide Financial Statem ents, rather than as an "other financing source". Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expense.
47 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Fund Financial Statements

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

Fund Financial Statements for t he primary government's governmental, proprietary, and fiduciary funds are presented after the Government-wide Financial Statements. These statements display information about major funds individually and non-major funds in the aggregate for gov ernmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

3. Governmental Funds

In the Fund Financial Statements, governmental funds are presen ted using the modified - accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 da ys for all revenues. Major revenue sources that are susceptible to accrual are sales tax, property tax, motor vehic le in-lieu fees, franchise fees, license and permit fees, charges for services and interest earnings.

Exchange transactions are recognized as revenues in the period in which they are ear ned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are b ased takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non - exchange transactions a r e recognized as revenues when all applicable eligibility requirements have been met.

Reimbursement grants are those grants for which the recipient government must first incur allowabl e costs in order to qualify for the reimbursement. For these grants, funds received in advance of incurring the allowable costs are recorded as unearned revenue in both the Fund Financial Statements and the Government-wide Financial Statements. A receivable (and related revenue) is recorded for costs incur red during the year for which reimbursement has not yet been received. In the Fund Financial Statements of governmental funds, however, unavailable revenue (rather than revenue) is recorded at the es tablishment of this receivable if the amount of the reimbursement is not expected to be received during the recipient's availability period.

Allocations are voluntary non-exchange transactions received from other go vernments that are not in the form of reimb
ursement grants. The entitlement of the recipient governme nt for the receipt of these funds is not based upon the recipient government fir st incurring allowable expendi tures. These amounts are recorded as revenue when the recipient government becomes entitled to the allocation. Unearned revenue is not recorded in either the Fund Financial Statements or in the Government-wide Financial S tatements for receipt of allocations prior to the recording of related expenditures. In some cases, the amounts n ot spent within a specified number of years (the spending period) must be returned to the providing agency. The requirement to return unspent funds within the spending period is not considered to be a requirement pertaining to the eligibility of funding and does not affect the recognition of revenue for this funding. This is bec ause there is no requirement to spend the allocated resources in specific amounts or proportions for each of the fi scal years covered by the spending period. The entire allocation may be spent in any of the fiscal years cover ed by the spending period. Any amounts returned at the end of the spending period are required by generally accept ed accounting principles to be recorded at that time as an expenditure.
48 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In the Fund Financial Statements, governmental funds are presen ted using the current financial resources measurement focus. This means that only current a ssets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund b alance is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Non-current portions of long-term receivables due to government al funds are reported on their balance sheets in spite of their spending measurement focus and are offset by res tricted fund balance. In addition, certain loans have a forgiveness component and/or have a repayment term great er than that of conventional loans. For these loans, an allowance has been recorded to more accurately present the net present value of these receivables.

Due to the nature of their spending measurement focus, expendit ure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect fund balance, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

4. Proprietary and Fiduciary Funds

The City's Enterprise Funds (Water and Sanitation) and Internal Service Funds are proprietary funds. Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a

Statement of Cash Flows. A column representing internal service funds is also presented in these statements.

However, internal service balances and activities have been com bined with the governmental activities in the Government-wide Financial Statements.

In the Fund Financial Statements, proprietary funds and fiducia ry funds are presented using the full accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. I n the Fund Financial Statements, proprietary funds and fiduciary funds are presented using the economic resources measurement focus . This means that all assets, deferred outflows of resources, liabilities, and defer red inflows of resources (whet her current or non-current ) associated with their activity are included on their balance sheets. Proprietary fund type operating statemen ts present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for servic es, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings, result from non-exchange transactions or ancillary activities. Operating ex penses include the cost of sales, maintenance, administration and depreciation on capital assets which are ess ential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Amounts paid to acquire capital assets are capitalized as asset s in both the Proprietary and Fiduciary Fund Financial Statements, rather t han reported as an expense. Also in these funds, proceeds of long-term debt are recorded
as a liability rather than as an "other financing sour ce" and amounts paid to reduce long-term indebtedness are reported as a reduction of the related liability, rather than as an expenditure.

49 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Fund Classifications

The funds designated as major funds are determined by a mathema tical calculation consistent with GASB Statement No. 34. Generally, however, once a fund has met the criteria for becoming a major fund, it will continue to be reported as a major fund by management, regardle ss of its calculation, in order to provide consistency and comparability between the years. The City reports the following major governmental funds:

General Fund. This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.

D. Special Revenue Funds

Proposition 172 Fund. This fund is used to account for sales tax restricted by voter mandate for public safety service enhancements. The primary source of revenue in this fund is sales tax.

Federal, State, and Local Grants Fund. This fund is used to account for grant programs such as Community Development Block Grant, Housing and Urban Developmen t Grant, California Parklands Grant, Citizens Option for Public Safety (COPS) Grant, Traffic Safety Grant, Justice Assistance Grant, and others. The major source of revenue for these funds is proceeds from various federal, state, and local grants.

Housing Successor Fund. This fund is used to account for low and moderate housing acti vities as of February 1, 2012, when the City became the successor housing agency to the former Redevelopment Agency, upon its dissolution. Prior to t hat, these activities were acco unted for in the Redevelopment Agency Housing Fund. The primary source of revenue for these funds is principal housing loan repayments.

Measure M Fund. This fund is used to account for receipts and expenditures rel ating to transportation improvement projects and programs, funded by local ½ cent sales tax.

E. Capital Projects Funds

Capital Improvement Fund. This fund is used to account for general-purpose capital impro vement and cooperatively funded projects.

Park Acquisition Development & Maintenance Fund. This fund is used to account for the acquisition, development and maintenance of parks that are financed by developer fees.

The City reports the following major enterprise funds:

Water Fund. This fund is used to account for the provision of water services to residential, commercial, and industrial customers.

Sanitation Fund. This fund is used to account for the provision of sanitation a nd sewer services to residential, commercial, and industrial customers.

The City's fund structure also includes the following fund types:

Special Revenue Funds. These funds are used to account for the proceeds of specific revenue sources that are restricted by law or administrative action for a specified purpose. These funds include:

Debt Service Fund. This fund is used to account for the accumulation of resources for, and payment of, general long-term debt principal, interest, and related costs.

Capital Project Funds. These funds are used to account for financial resources segregated for the acquisition and construction of major capital facilities (other than those financed by the proprietary funds). 50 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Internal Service Funds. These funds are used to account for the financing of special a ctivities t hat provide services within the City. Such activities include equipment mai ntenance, equipment replacement, major building improvements, information systems, computer replacement, employ ee accrued liability, and dental and workers' compensation self - insurance costs.

Private-Purpose Trust Fund. This fund accounts for the assets, deferred outflows of resour ces, liabilities, and deferred inflows of resources of the former Redevelopment Agency. Tax increment revenue, which was formerly allocated by the County to the Redevelopment Agency, is now all ocated to the Successor Agency Private-Purpose Trust Fund to fund payments of enforceable obli gations until obligations of the former Redevelopment Agency are paid in full and assets have been liquidated.

Custodial Funds. These funds are used to account for money and property held by t h e C i t y a s t r u s t e e o r custodian. These funds include various assessment districts for which the City acts as an agent for debt service activity.

F. Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the City considered cash and cash equivalents (investments with maturities of three months or le ss at the time of purchase) as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling the cash and investments of all funds, including the City's Enterprise and I nternal Service Funds and Fiduciary Funds, except for assets held by fiscal agents. As amounts are available to these funds on demand, all cash and investments are considered to be cash and cash equivalents for Statement of Cash Flows purposes.

Changes in fair value that occur during a fiscal year are recognized as revenues from use of money reported for that fiscal year. Use of money and property includes interest earnings, changes in fair value (realized/unrealized), gains or losses realized upon liquidation, maturity, or sale of investments, and rental income.

The City pools cash and investments for all funds, except for assets held by fiscal agents. Each fund's share in the pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated monthly to the various funds based on each fund's prior month-end cash and investment balance.

G. Inventories and Prepaids

Inventories of office supplies, gasoline and oil are maintained by the General and Internal Service Funds. The inventory maintained by the Water Utility Enterprise Fund consi sts primarily of water meters, water pipes, valves, and fittings. Proprietary Fund inventories are priced at the lo wer of cost or market, determined on a first-in, first-out basis, utilizing the consumption method of accounting for inventories. The General Fund and Internal Service Funds inventories are valued at cost, determined on a w eighted average basis utilizing the consumption method of accounting for inventories.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid, utilizing the consumption method.

H. Loans Receivable

Non-current portions of long-term receivables due are reported on the Governmental, Government-wide, and Fiduciary financial statements. For loans that have a forgiveness component and/or a repayment term greater than that of conventional loans, an allowance is recorded to mo re accurately present the net present value of these receivables. The City's June 30 effective rate of return of 2.28% on investments is used to discount these receivables to their net present value.
51 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. Capital Assets

Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Cont ributed capital assets are valued at their acquisition value at the date of contribution. Generally, capital asset pur chases in excess of $10,000 are capitalized if they have an expected useful life of two years or more.

Capital assets include additions to public domain (infrastructu re), certain improvements including pavement, curb and gutter, sidewalks, traffic control devices, streetlights, sewers, storm drains, bridges, right-to-use leased assets and right-of-way within the City. The City has valued and recor ded all infrastructure assets, in excess of $50,000, in their entirety as of June 30, 2023.

Capital assets used in operations are depreciated/amortized ove r their estimated useful lives using the straight-line method in the Government-wide Financial Statement s and in the Fund Financial Statements of the Enterprise Funds. Depreciation/amortization is charged as an ex pense against operations and accumulated depreciation is reported on the respective balance sheets. The lives used for depreciation/amortization purposes for each capital asset class are:

Structures and improvements 20-50 years
Infrastructure 30-65 years
Wells, reservoirs, and tanks 40 years
Reservoirs and tanks 60 years
Water lines/pipelines 60 years
Pumps & booster pumps 60 years
Vehicles and other equipment 2-25 years

J. Pensions

For purposes of measuring the net pension liability, deferred o utflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net positi on of the City's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized wh en due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

Valuation Date (VD) June 30, 2021

Measurement Date (MD) June 30, 2022

Measurement Period (MP) July 1, 2021 to June 30, 2022

K. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement elemen t, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has four types of it ems in this category. All four relate to Pension and/or OPEB liabilities. 1) Deferr ed outflows from changes in t he net pension liability/total OPEB liability are the results of contributions made after the measurement period, which are applied against the related net/total liability in the following year; 2) Changes of Assumptions is an amount t hat is deferred and amortized using an Expected Average Remaining Service Lifetime (EARSL); 3) Differences betw een expected and actual experience are 52 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

amortized over a closed period equal to the average of the expe cted remaining service lives of all employees that are provided with pensions through the plans; and 4) Net differ ence between expected and actual earnings on pension plan investments. Deferre d outflows are reported only i n the statement of net position, arising under the full accrual basis of accounting.

In addition to liabilities, the statement of financial position 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 position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has four types of items that qualify for reporting in this category. The first item, unavailable revenues from various sources: taxes and grant moni es, is reported only in the governmental funds balance sheet, and arises under a modified accrual basis of acc ounting. These amounts are deferred and recognized as an inflow of resources in the period that the amo unts become available. The other three items relate to inflows from changes in net pension liability and tot al OPEB liability, and are reported only in the statement of net position, arising under the full accrual basis of accounting. These inflows related to pension and OPEB liabilities are the result of:

 Differences between Expected an d Actual Experiences are deferred and amortized using an EARSL.  Changes in assumptions is an amount that is deferred and amortized using an Expected Average Remaining Service Lifetime (EARSL).
 Net difference between Projected and Actual Earnings on Pensio n Plan Investments is deferred and amortized on a straight-line basis over 5 years.

L. Compensated Absences

The employee benefits payable liability is recorded for unused vacation and similar compensatory leave balances.

The employees' entitlement to these balances is attributable to services already render ed and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. Other amounts of unused si ck leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) that is outside the control of the City and the employee.

These leave balances are accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for thes e amounts is reported in the go vernmental funds only if they have matured, for example, as a result of employee resignations and retirements.

M. Net Position

Net position is the excess of all the City's assets and deferre d outflows of resources ove r all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three captions. These captions apply only to net position, which is determined only at the governmen t-wide level and in the proprietary funds and fiduciary funds. These captions are described on the following pages.

Invested in capital assets: the portion of net position which is represented by the curren t net book value of the City's capital assets, less the outstanding balance of any debt issued to finance these assets, net of any unspent debt proceeds.

Restricted: the portion of net position which 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 developer fees received for use on capital projects, debt service requirements, funds restricted for low-and moderate housing, grant funds and legally restricted sales tax revenues.

53 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Unrestricted: the portion of net position which does not meet the definition of "net investment in capital assets" or "restricted net position".

N. Net Position Flow Assumption

Sometimes the government 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 prop rietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. When a fund consists of both restricted and unrestricted resources, expense s are considered to be applied first to the restricted, then to the unrestricted.

O. Fund Balance Flow Assumptions

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of commi tted, assigned, and unassigned fun d 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.

When a fund consists of a combination of resources, expenses are considered paid first from restricted resources, then from committed resources, followed by assigned resources. Unassigned fund balance is applied last.

P. Fund Equity

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

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

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

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is thro ugh the City's budget, which is adopted annually through a City Council Resolution.

Assigned include amounts that are constrained by the government 's intent to be used for specific purposes, but are neither restricted nor committed. By reporting particular a mounts that are not restricted or committed in a particular fund, the government has assigned those amounts to t he purposes of the respective funds. The formal action that is required to be taken to establish, modify, or rescind a fund balance assignment is through the City's budget, which is adopted annually through a City Council Resolution.

Unassigned include the residual amounts that have not been rest ricted, committed, or assigned to specific purposes. Any negative amounts in governmental funds are report ed in unassigned fund balance. Only the General Fund can have a positive unassigned fund balance.

Q. Use of Estimates

The preparation of basic financial statements in conformity wit h accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and deferred inflow/outflows of resources at the reporting date and revenue and expenses during the reporting period. Actual results could differ from those estimates.

54 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. Leases

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

 The City uses the interest rat e charged by the lessor as the d iscount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimat ed incremental borrowing rate as the discount rate for leases.

 The lease term includes the non-cancellable period of the leas e. Lease payments included in the measurement of the lease liability are composed of fixed paymen ts and purchase option price that the City is reasonably certain to exercise.

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

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

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

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequ ently, the lease receivable is reduced by the principal portion of lease payments received. The deferred infl ow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

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

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

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

 The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certa in changes occur that are expected to significantly affect the amount of the lease receivable.
55 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. Subscription-Based Information Technology Arrangements

The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right -to-use subscription asset (subscription asset) in the government-wide financial statements. The City of Orange recognizes subscr iption liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measu res the subscription liability at the present value of payments expected to be made during the subscription term. S ubsequently, the subscr iption liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement dat e, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the di scount rate it uses to discou nt the expected subscription payments to present value, (2) lease term, and (3) subscription payments.

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

 The subscription term includes the non-cancellable period of t he subscription. Subscription payments included in the measurement of the subscription liability are c omposed of fixed payments that the City is reasonably certain to exercise.

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

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

S. New Accounting Pronouncement

The following Government Accounting Standards Board (GASB) pron ouncements were effective for and/or early implemented for the fiscal year ended June 30, 2023:

1. GASB Statement No. 91, Conduit Debt Obligations

The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associat ed with additional commitments extended by issuers and to recognize assets and deferred inflows of resources relat ed to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers Revised disclosure requirements will provide financial statemen t users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financ ial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
56 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. GASB Statement No. 94, Public -Private and Public-Public Partne rships and Availability Payment Arrangements

The requirements of this Statem ent will improve financial repor ting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to r eport assets and liabilities related to PPPs consistently and disclose important information about PPP trans actions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPPs.

3. GASB Statement No. 96, Subscription-Based Information Technology Arrangements

The requirements of this Statement will improve financial repor ting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporti ng for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a gover nment to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The discl osures will allow users to understand the scale and important aspects of a gover nment’s SBITA activities and ev aluate a government’s obligations and assets resulting from SBITAs.

4. GASB Statement No. 100, Accounting Changes and Error Corrections

The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decis ions or assessing accountabilit y. In addition, the display and note disclosure requirements will result in more consistent, decision useful, u nderstandable, and comprehensive information for users about accounting changes and error corrections.

NOTE 2: CASH AND INVESTMENTS

Cash and investments are presented in the accompanying statements as follows:

Statement of Net Position
Cash and investments 149,164,007 $
Cash and inv estments with fiscal agent 10,782,111
Statement of Fiduciary Net Position
Cash and inv estments 12,934,723
Cash and investments with fiscal agent 1,450,020
Total cash and inv estments 174,330,861 $
57 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

Cash and investments at June 30, 2023 consisted of the following:

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

Under the provisions of the City's investment policy as amended periodically by Council, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments:

 United States Treasury notes, bonds, bills or certificates of indebtedness, or other securities for which the full faith and credit of the United States are pledged for the payme nt of principal and interest (Limits: Maximum time to maturity at purchase 5 years).

 Obligations or other instrument s issued by any federal agency, or United States government-sponsored enterprise. In every case, any issue purchased must be fully guaranteed as to principal and interest by the full faith and credit of the United St ates or the issuing federal ag ency (Limits: Maximum time to maturity at purchase 5 years; maximum concentration 75% of portfolio with no more than 30% of total portfolio in any single agency at time of purchase; maximum percent of agency callable securities in the portfolio will be 20%; and completely excluding Government National Mortgage Association bonds).

 Money market mutual funds that invest only in securities and o bligations of the United States government (Limits: Maximum 90 days weighted average maturity; maximum $15 million or 20% of portfolio, whichever is less).

 State of California Local Agen cy Investment Fund, limited to $75 million per account.

 Certificates of Deposit approved by the California AB 2011 (Li mits: maximum concentrate of 30% of total portfolio).

 Commercial Paper of prime quality having the highest ranking, or the highest letter and number rating provided by a national rating agency (Limits: Maximum maturity of 270 days or less, maximum 20% of portfolio and no more than 5% of the book value of the portfolio to a single issuer at time of purchase).

 Medium-term notes issued by corporations or depository institu tions organized and operating within the United States (Limits: Maximum time to maturity at purchase 5 y ears; maximum concentration 30% of portfolio and no more than 5% of the book value of the portfoli o finds to a single issuer at time of purchase; minimum "A" credit rating).

 Municipal bonds including those issued by any State and any lo cal agency within any State, including bonds payable solely out of the revenues from a revenue producing pro perty owned, controlled, or operated by a state or local agency or by a department, board, agency, or aut hority of a state or local agency. (Limits: Maximum maturity at pur chase 5 years; minimum "A" cred it rating; maximum concentration 20% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)

 Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securitie s, and Collateralized Mortgage Obligations limited to mortgage-ba cked pass-through securities issued by a US government agency or consumer receivable pass-through certificates or bonds. (Limits . Maximum maturity at purchase of 5 years; minimum "AA" credit rating, The aggregate investment in mortgag e-backed and asset-backed securities described shall not exceed 20% of the portfolio; no more than 5 % held in any one issuer that is not a US government agency.)
Petty Cash 13,000$
Bank balances (net of outstanding checks
and timing differences (819,181)
Investments 175,137,042
Total 174,330,861$
58 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

 Supranational securities, senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank which are eligible for purchase in the United States. (Limits: Maximum remaining maturity of five years or less; minimum "AA" credit r ating; maximum concentration of 30% of the portfolio with no more than 10% invested in any one issuer.)

The City is a 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 financi al statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entir e LAIF portfolio. The balance available for withdrawal is based on the accounting records maintained by LAIF. The LAIF investment portfolio consists primarily of U.S. treasuries, federal agency securities, certificates of deposit, time deposits, and commercial paper.

B. Investments Authorized by Debt Agreements

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 o r the City's investment policy. The investments authorized by these debt agreements include Money Market Mutual Funds, Federal Agencies with maturity dates not to exceed 5 years, Treasury Bonds and Guaranteed Investment Contracts and have maturity dates of up to 30 years.

C. Risk Disclosures

Market Risk. While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios have higher volatility of total r eturn. The City will limit mar ket risk by limiting the concentrations, volume, and duration of its longer-term inve stments, as well as limiting them to funds which are not needed for current year cash flow purposes.

1. Maturities selected shall pr ovide for stability of income an d liquidity and shall not exceed 5 years from the date of purchase. Funds not requi red for purposes of meeting sp ecific cash flow needs shall be invested in permitted securities so that securities will mature periodically across the maturity spectrum with a maximum of five years.

2. The City may, on occasion, sell a security prior to its matu rity (recording a gain or loss) in order to diminish the portfolio's exposure to market risk or reinvest into a better opportunity providing more potential earning to the City's portfolio.

59 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

At June 30, 2023, the City Treasury had the following investment maturities:

Credit Risk. Credit risk is the risk that the 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. It is the City's po licy to limit its investments to the investment types with ratings identified under the Authorized Investments sections above.

Investment Type Total <1 1 to 2 2 to 3 3 to 5
Federal Farm Credit Bank 4,006,248$ -$ -$ 1,995,080$ 2,011,168$ Federal Home Loan Bank 19,604,469 4,809,825 8,311,509 - 6,483,135 Federal National Mtg. Assn. 15,476,673 10,848,053 4,628,620 - - Federal Home Loan Mortgage Corp. 17,272,614 4,809,170 4,298,446 8,164,998 - Medium-Term Notes:

American Express Credit Trust 347,934 - - 347,934 - Apple Inc. 2,704,422 - - 2,704,422 - Bank of America Corp. 1,198,396 - 1,198,396 - - Bank of Montreal 977,477 - - - 977,477 Bank of NY Mellon Corp. 931,353 - 931,353 - - BMW Vehicle Lease Trust 99,328 - 99,328 - - Caterpillar Financial Services 1,197,798 - 1,197,798 - - Coca-Cola Company 2,899,458 - 2,899,458 - - Honda Auto Receivables Owner 208,640 - - 208,640 - HSBC USA Inc. 2,929,890 2,929,890 - - - John Deere Capital Corp. 271,119 - 271,119 - - John Deere Owner Trust 391,479 - - 391,479 - JP Morgan Chase & Co. 1,170,628 - 1,170,628 - - Morgan Stanley 760,498 - - 760,498 - National Rural Utilities 495,175 - - 495,175 - Paccar Financial Corp. 875,983 875,983 - - - PepsiCo Inc. 194,412 - - 194,412 - Royal Bank of Canada 986,925 - - - 986,925 Toyota Motor Credit Corp 4,529,045 - - 4,529,045 - Union Pacific Corp. 466,719 - 466,719 - United Health Group Inc. 777,146 - 777,146 - Verizon Master Trust 210,006 - 210,006 - - U.S. Treasury Bond 4,548,980 - - - 4,548,980 Local Agency Investment Fund 56,824,604 56,824,604 - - - Money Market Mutual Funds 20,547,491 20,547,491 - - - Held by Trustee:

Money Market Mutual Funds 12,232,132 12,232,132 - - - Total 175,137,042$ 113,877,148$ 25,216,661$ 21,035,548$ 15,007,685$ Investment Maturity (in Years)
60 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

At June 30, 2023, the City's credit risks, expressed on a percentage basis, are as follows:

Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of an entity's investment in a single issuer. The City's policy as to limitations on the amount that can be invested in any one issuer is identified under the Authorized Investments section above. Investments in any one issuer (excluding U.S. Treasury securities and external investment pools which are exempt) can be identified in the table above under Credit Risk.

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 California Government Code requires California banks and savings and loan associations to secure a city's depo sits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a city's deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city's total deposits. Cities may waive collateral re quirements for deposits that are fully insured up to $250,000 by federal depository insurance. The City has not waived this requirement.

Inv estment Type Minimum Rating S&P Rating % of Inv estments Federal Farm Credit Bank Not applicable AA+ 2.4%
Federal Home Loan Bank Not applicable AA+ 11.9%
Federal National Mtg. Assn. Not applicable AA+ 9.4%
Federal Home Loan Mortgage Corp. Not applicable Not Rated 10.5% Medium-Term Notes:

American Express Credit Trust A AAA 0.2%
Apple Inc. A AA+ 1.6%
Bank of America Corp. A A- 0.7%
Bank of Montreal A A- 0.6%
Bank of NY Mellon Corp. A A 0.6%
BMW Vehicle Lease Trust A AAA 0.1%
Caterpillar Financial Serv ices A A 0.7%
Coca-Cola Company A A+ 1.8%
Honda Auto Receiv ables Owner A Not Rated 0.1%
HSBC USA Inc. A A- 1.8%
John Deere Capital Corp. A A 0.2%
John Deere Owner Trust A Not Rated 0.2%
JP Morgan Chase & Co. A A- 0.7%
Morgan Stanley A A- 0.5%
National Rural Utilities A A- 0.3%
Paccar Financial Corp. A A+ 0.5%
PepsiCo Inc. A A+ 0.1%
Royal Bank of Canada A A 0.6%
Toyota Motor Credit Corp A A+ 2.7%
Union Pacific Corp. A A- 0.3%
United Health Group Inc. A A+ 0.5%
Verizon Master Trust A AAA 0.1%
U.S. Treasury Bond Exempt AA+ 2.8%
Local Agency Investment Fund Not Rated Not Rated 34.5%
Money Market Mutual Funds Not applicable AAA 6.2%
Held by Trustee:

Money Market Mutual Funds Not Applicable AAA 7.4%
100.0%
61 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

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 b e able to recover the value of its investment or collateral securities that are in the possession of another par ty. The City's policy is for all securities owned by the City to be held in safekeeping by the City's custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.

The City follows the practice of pooling cash and investments o f all funds except for funds required to be held by outside fiscal or other agents under provisions of the U.S. Department of Housing and Urban Development or provisions of bond indentures.

D. Fair Value Measurements

The City categorizes its fair value measurement 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 assets.

Level 1inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant unobservable inputs.

62 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

The City has the following recurring fair value measurements as of June 30, 2023:

Quoted Prices Observable Unobservable
Inv estment Type Lev el 1 Inputs Lev el 2 Inputs Lev el 3 Total Federal Farm Credit Bank -$ 4,006,248$ -$ 4,006,248$ Federal Home Loan Bank - 19,604,469 - 19,604,469 Federal National Mtg. Assn. - 15,476,673 - 15,476,673 Federal Home Loan Mortgage Corp. 17,272,614 17,272,614 Medium-Term Notes:

American Express Credit Trust - 347,934 - 347,934 Apple Inc. - 2,704,422 - 2,704,422 Bank of America Corp. - 1,198,396 - 1,198,396 Bank of Montreal - 977,477 - 977,477 Bank of NY Mellon Corp. - 931,353 - 931,353 BMW Vehicle Lease Trust - 99,328 - 99,328 Caterpillar Financial Serv ices - 1,197,798 - 1,197,798 Coca-Cola Company - 2,899,458 - 2,899,458 Honda Auto Receiv ables Owner - 208,640 - 208,640 HSBC USA Inc. - 2,929,890 - 2,929,890 John Deere Capital Corp. - 271,119 - 271,119 John Deere Owner Trust - 391,479 - 391,479 JP Morgan Chase & Co. - 1,170,628 - 1,170,628 Morgan Stanley - 760,498 - 760,498 National Rural Utilities - 495,175 - 495,175 Paccar Financial Corp. - 875,983 - 875,983 PepsiCo Inc. - 194,412 - 194,412 Royal Bank of Canada - 986,925 - 986,925 Toyota Motor Credit Corp - 4,529,045 - 4,529,045 Union Pacific Corp. - 466,719 - 466,719 United Health Group Inc. - 777,146 - 777,146 Verizon Master Trust - 210,006 - 210,006 Total Leveled Investments -$ 80,983,835$ -$ 80,983,835 Not Subject to Categorization:

U.S. Treasury Bond 4,548,980
Local Agency Investment Fund 56,824,604
Money Market Mutual Funds 20,547,491
Held by Trustee:

Money Market Mutual Funds 12,232,132
Total Investment Portfolio 175,137,042$
63 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 3: LEASES

A. Leases Receivable and Deferred Inflows of Resources

For the year ended June 30, 2023, the financial statements incl ude the adoption of G ASB Statement No. 87, Leases. The primary objective of this statement is to enhance t he relevance and consistency of information about governments' leasing activities. This statement establishes a s ingle model for lease accounting based on the principle that leases are financings of the right to use an und erlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources . For additional information, refer to the disclosures below.

On June 15, 2016, the City entered into a 231-month lease as Lessor for the use of #21 Selman Chevrolet. An initial lease receivable was recorded in the amount of $341,243 . As of June 30, 2023, the value of the lease receivable is $265,853. The lessee is required to make monthly fixed payments of $1,790. The lease has an interest rate of 4.00%. The Buildings estimated useful life was 0 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2023 w as $216,114, and the City recognized lease revenue of $17,763 during the fiscal year.

On July 1, 2021, the City entered into a 31-month lease as Less or for the use of #20 Headstart. An initial lease receivable was recorded in the amount of $34,450. As of June 30 , 2023, the value of the lease receivable is $5,851. The lessee is required to make monthly fixed payments o f $1,500. The lease has an interest rate of

6.75%. The Buildings estimated useful life was 0 months as of t he contract commencement. The value of the deferred inflow of resources as of June 30, 2023 was $6,770, an d the City recognized lease revenue of $13,539 during the fiscal year.

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

Leases Payable and Right to Use Lease Assets
The City entered into a lease agreement with Toyota and Honda f or the lease of vehicles. The terms range from 14 to 36 months from the date the lease is entered into. The City is required to make monthly payments ranging from $266 to $1,461. The leases have an interest rate ranging f rom 0.02% to 6.36%. The City also leases a mail machine with a 36-month term. The City is required to make mont hly payments quarterly fixed payments of $2,565, and the lease has an interest rate of 0.4260%.

An initial lease liability was recorded in the amount of $243,0 34. As of June 30, 2023, the value of the lease liability is $121,036.

Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 21,078$ 10,506 $ 31,584$
2025 15,847 9,737 25,584
2026 16,493 9,091 25,584
2027 18,730 8,391 27,121
2028 19,493 7,627 27,120
2029 - 2033 118,869 24,987 143,856
2034 - 2038 61,194 2,704 63,898
271,704$ 73,043$ 344,747$
Governmental Activities
64 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 3: LEASES (CONTINUED)

Right-to-use leased assets include the following at June 30, 2023:

Future principal and interest requirements to maturity for each lease liability are as follows:

NOTE 4: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS

The City implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements in the fiscal year ended June 30, 2023. The primary objective of this statement is to enhance the relevance and consistency of information about g overnments' subscription activities. This statement establishes a single model for subscription accounting based on the principle that subscri ptions are financings of the right to use an underlying asset. Under this Statement, an organization is required to recognize a subsc ription liability and an intangible right-to-use subscription asset.

On July 1, 2022, the City entered into multiple subscriptions i nvolving cloud services, surveillance, and other supporting software with terms ranging from 14 months to 120 mo nths. An initial subscription liability was recorded in the amount of $8,381,664. As of June 30, 2023, the value of the subscription liability is $7,654,596.

The City is required to make annual fixed payments ranging from $7,748 to $629,328.10. The interest rates for the subscriptions range from 1.71% to 3.305%. The value of the right to use asset as of June 30, 2023 is $10,374,989 with accumulated amortization of $1,695,977 is incl uded with Software on the Subscription Class Activities table below.

Lease Type Major Class of Underlying Asset
Amount of
Leased
Capital Assets
Accumulated
Amortization
Vehicle Lease Right-to-Use Lease - Vehicles 189,766$ 77,158$ Equipment Lease Right-to-Use Lease - Equipment 28,014 12,113 Total 217,780$ 89,271$
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 $ 75,453 $ 2,418 $ 77,871
2025 36,749 706 37,455
2026 8,834 78 8 ,912
Total 121,036 $ 3,202 $ 124,238$
Governmental Activities
Asset Class Subscription Asset Value Accumulated Amortization Software 10,374,989 $ 1, 695,977$
Total Subscriptions 10,374,989$ 1, 695,977$ 65 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 4: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS (CONTINUED)

The future principal and interest subscription payments as of June 30, 2023, were as follows:

Fiscal Year Principal Payments Interest Payments Total Payments 2024 163,131$ 16,218$ 179,349$
2025 158,489 9,700 168,189 2026 165,566 5,765 171,331 2027 92,399 1,657 94,056 Total 579,585$ 33,340$ 612,925$ Fiscal Year Principal Payments Interest Payments Total Payments 2024 1,176,229$ 198,265$ 1,374,494$ 2025 825,684 182,781 1,008,465
2026 1,188,058 159,542 1,347,600
2027 795,082 125,646 920,728
2028 783,044 103,272 886,316
2029 - 2032 2,306,914 205,939 2,512,853
Total 7,075,011$ 975,445$ 8,050,456$ Business-Type Activ ities
Governmental Activities
66 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 5: CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2023 was as follows:

Balance Balance
July 1, 2022 Transfers of CIP Increases Decreases June 30, 2023 Governmental activities:

Capital assets, not being depreciated/amortized
Land 80,318,000$ -$ 716,000$ (408,274)$ 80,625,726$ Rights of way 347,258,096 - - 347,258,096 Construction-in-progress 32,494,961 (24,320,099) 11,352,861 - 19,527,723 Total capital assets, not being depreciated/amortized 460,071,05 7 (24,320,099) 12,068,861 (408,274) 447,411,545 Capital assets, being depreciated/amortized
Infrastructure 236,023,574 1,394,477 5,471,917 (94,601) 242,795,367 Structures and improvements 136,728,777 22,925,622 294,359 - 159,948,758 Furniture, fixtures and equipment 49,823,267 - 2,054,451 (458,069) 51,419,649 Lease asset 191,119 - 51,645 (24,984) 217,780 Subscription asset - - 9,533,710 - 9,533,710 Total capital assets, being depreciated/amortized 422,766,737 24,320,099 17,406,082 (577,654) 463,915,264 Less accumulated depreciation/amortization
Infrastructure 96,113,330 - 4,263,356 (94,601) 100,282,085 Structures and improvements 46,155,416 - 3,214,984 - 49,370,400 Furniture, fixtures and equipment 32,946,571 - 3,260,807 (404,624) 35,802,754 Lease asset 41,387 - 72,868 (24,984) 89,271 Subscription asset - - 1,569,394 - 1,569,394 Total accumulated depreciation/amortization 175,256,704 - 12,381,409 (524,209) 187,113,904 T
otal capital assets, being depreciated/amortized, net 247,510,0 33 24,320,099 5,024,673 (53,445) 276,801,360 Total governmental activities capital assets 707,581,090$ -$ 17,093,534$ (461,719)$ 724,212,905$ 67 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 5: CAPITAL ASSETS (CONTINUED)

Balance Balance
July 1, 2022 Transfers Increase Decrease June 30, 2023
Business-type activities:

Capital assets, not being depreciated/amortized
Land 2,646,932$ -$ -$ -$ 2, 646,932$ Construction-in-progress 3,940,156 - 1,175,976 - 5, 116,132 Total capital assets, not being depreciated/amortized 6,587,088 - 1,175,976 - 7, 763,064 Capital assets, being depreciated/amortized
Buildings and structures 4,074,838 - - (1,146,316) 2,928,522 Improvements other than buildings
Wells 10,600,614 - - - 10,600,614 Water tank 16,572,565 - - - 16,572,565 Water lines 107,130,750 - 1,072,212 (55,355) 108,147,607 Sewer 72,573,277 2,138,178 - 74,711,455 Storm drains 112,751,143 - - 112, 751,143 Machinery and equipment 12,245,973 - - - 12,245,973 Subscription asset - - 841,280 - 841,280 Total capital assets, being depreciated/amortized 335,949,160 - 4,051,670 (1,201,671) 338,799,159 Less accumulated depreciation/amortization
Buildings and structures 2,320,663 - 123,481 (306,756) 2,137,388 Improvements other than buildings
Wells 3,776,872 254,739 - 4, 031,611 Water tank 8,604,418 409,356 - 9, 013, 774 Water lines 67,834,388 - 1,678,407 (55,355) 69,457,440 Sewer 44,667,728 - 1,992,101 - 46,659,829 Storm drains 79,733,315 - 2,918,042 - 82,651,357 Machinery and equipment 3,649,238 - 496,933 - 4, 146,171 Subscription asset - - 126,583 - 126,583 Total accumulated depreciation/amortization 210,586,622 - 7,999,642 (362,111) 218,224,153 Total capital assets, being depreciated/amortized, net 125,362,538 - (3,947,972) (839,560) 120,575,006 Total business-type activities capital assets 131,949,626$ -$ (2,771,996)$ (839,560)$ 128,338,070$ 68 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 5: CAPITAL ASSETS (CONTINUED)

As of June 30, 2023, the City had the following outstanding purchase commitments:

Depreciation/amortization expense was charged to the following functions in the Statement of Activities:

NOTE 6: TAXES

Property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10.

Any unpaid amounts at the end of the fiscal year are recorded a s taxes receivable in accordance with the City's accrued revenue policy as stated in Note 1. The County of Orang e bills and collects the property taxes and subsequently remits the amount due to the City of Orange in ins tallments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied.

The County is permitted by State Law (Article XIII A of the Cal ifornia Constitution) to levy property taxes at one percent (1%) of full market value at time of purchase and c an increase the property's value no more than two percent (2%) per year. The City receives a share of this ba sic levy proportionate to what it received in the 1976 to 1978 period.

Capital Projects Special Revenue Internal Service Enterprise Total Project:
517 W. Struck Transit 286,840 $ - $ - $ - $ 286,840$ Medicare-Minor Traffic Control Devices 639,361 - - - 639,361 Hart Park Ball Field Renovation & Signage 256,341 - - - 256,341 Tot Lot Shade Sails 203,207 - - 203,207 Santiago Bike Trail IV 122,417 - - 122,417 Signal Mod-Chapman & Batavia Left 344,800 - - 344,800 Cannon/Serrano Intersection 294,097 - - 294,097 Street Light/Signal Install-Tustin 546,477 - - 546,477 Cannon Street Widening 475,708 - - 475,708 Police HQ Atrium Rehab 2,284,017 - - 2,284,017 Fire HQ Construction 367,115 - - 367,115 Pavement Management Program - 7, 163,840 - 7,163,840 Various Street Signal Synchronization - 416,074 - 416,074 Facility Maintenance - - 306,017 306,017 Sewer Cleaning & Video - - - 278,453 278,453 Annual Sewer Line Maintenance/Replacement - - - 741,665 741,665 Wells - - - 752,710 752,710 Annual Asphalt Replacement - - - 607,649 607,649 Total 5,820,380$ 7,579,914$ 306,017$ 2,380,477$ 16,086,788$ Funding Source
Governmental
Activ ities
Business-Type
Activ ities
General government 536,875 $ - $
Public safety 1,661,595 -
Public works 5,059,181 -
Parks and library 1,763,550 -
Economic development 127,045 -
Internal service funds 3,233,163 -
Water - 3,068,420
Sanitation - 4,931,222
Total 12,381,409 $ 7,999,642 $
69 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 6: TAXES (CONTINUED)

The City entered into a participation agreement to abate sales tax with a local business under the City of Orange Municipal Code Section 3.25 Sales Tax Sharing Program. Under th e code, the City may grant sales tax abatements of the amount of sales tax a business generates with in the City, for the purpose of attracting or retaining businesses within their jurisdictions. For the year e nded June 30, 2023, the City abated sales taxes totaling $7,999,081.

NOTE 7: OTHER REVENUES

Other revenues in the General Fund consist mainly of reimbursem ent for the Annual Street Fair and reimbursements from other agencies for emergency services provided.

NOTE 8: RETIREMENT PLAN

A. Plan Description, Benefits Provided and Employees Covered

The City contributes to the California Public Employees' Retire ment System (CalPERS), an agent multiple-employer public employee defined benefit pension plan (the Plan). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and dea th benefits to plan members and their beneficiaries.

CalPERS acts as a common investment and administrative agent fo r participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and memoranda of understanding with employee bargaining units. A full descrip tion of the pension plan regarding the number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the CalPERS June 30, 2020 Valuation Report. Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS' audited financial statements are publicly available reports that can be obtained at CalPERS' website under Employers.

The Plan provides benefits for two membership classifications, Miscellaneous and Safety, and those benefits are tiered based upon date of CalPERS membership. Safety membership is extended to those in active law enforcement and fire suppression, while all others are classifi ed as Miscellaneous members. Assembly Bill (AB) 340, also known as the Public Employees' Pension Reform Act (PE PRA), created new benefit formulas and a final compensation period as well as new contribution requirements for new employees. For the purpose of PEPRA, "new employees" are those hired on or after January 1, 2 013, and had never been a member of CalPERS previously. All employees hired prior to January 1, 2013, or whom, regardless of their hire date had previously been a member of CalPERS, will continue to be covere d under the pre-PEPRA plan. All "new employees", per PEPRA, will not be eligible for this plan, and instead will be co vered under the PEPRA tiered plan. A summary of the plan benefits in effect at June 3 0, 2023 is provided below and on the following page.

Hire Date Prior to January 1, 2013 On or After January 1, 2013 Benefit Formula 2.7% @ 55 2% @ 62
Benefit Vesting Schedule 5 Years of Serv ice 5 Years of Serv ice Benefit Payments Monthly for Life Monthly for Life
Reirement Age 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible Compensation 2.0% - 2.7% 1.0% - 2.5% Required Employee Contribution Rates 8% 6.75%
Required Employer Contribution Rates:

Normal Cost Rate 11.53% 11.53%
Payment of Unfunded Liability 11,230,178$ 502,077$ Miscellaneous
70 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

At the June 30, 2022 measurement date, the following employees were covered by the benefit terms of the Plan:

B. 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 de termined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The em ployer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employe r contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribut ion requirements that are identified by the pension plan terms as plan member contributions requirements ar e classified as plan member contributions. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributio ns or situations where members are paying a portion of the employer contribution.

Hire Date Prior to January 1, 2013 On or After January 1, 2013 Benefit Formula 3.0% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 Years of Serv ice 5 Years of Serv ice Benefit Payments Monthly for Life Monthly for Life
Reirement Age 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible Compensation 3.00% 2.0% - 2.7% Required Employee Contribution Rates 9% 12.25%
Required Employer Contribution Rates:

Normal Cost Rate 19.490% 19.490%
Payment of Unfunded Liability 18,409,102$ 953,294$ Safety
Misc. Safety
Inactive employees or beneficiaries currently receiving benefits 696 464 Inactiv e employees entitled to but not yet receiv ing benefits 50 71 1 8 Active employees 365 268
Total 1,568 850
71 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

C. Actuarial Methods and Assumpti ons Used to Determine Total Pension Liability

The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of th e Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures.

A summary of principal assumptions and methods used to determine the net pension liability is shown below:

D. Discount Rate

The discount rate used to measur e the total pension liability w as 6.90 percent. 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 ne t 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.

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.

Miscellaneous Safety
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 2022
Actuarial Cost Method
Entry Age Normal Cost
Method
Entry Age Normal Cost
Method
Acutarial Assumptions
Discount Rate 6.90% 6.90%
Inflation 2.50% 2.50%
Projected Salary Increases (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefits Increase (3) (3)
(1) Depending on age, serv ice and type of employment
(3) Contract COLA up to 2.5% until Purchasing Power Protection Allowance Floor on (2) The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuarie s. 72 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

In determining the long-term expected rate of return, CalPERS staff took into account both short-term and long-term market return expectations as well as the expected pe nsion fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) ret urns 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 sing le equivalent expected return that arrived at the same present value of benefits for cash flows as the one calcul ated using both short-term and long-term returns.

The expected rate of return was then set equal to the single eq uivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

F. Subsequent Events

There were no subsequent events.

G. Pension Plan Fiduciary Net Position

The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves and fiduciary self-insurance included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves.

New Strategic
Allocation Real Return
1, 2
Global Equity - Cap-weighted 30.00% 4.54%

12.00% 3.84%

13.00% 7.28%

5.00% 0.27%

5.00% 0.50%

10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected price inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study.

Asset Class
1 Global Equity Non-Cap-weighted
Private Equity
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
73 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

H. Changes in the Net Pension Liability-Miscellaneous Plan

The following table shows the changes in net pension liability for the Miscellaneous Plan recognized over the measurement period.

I. Sensitivity of the Miscellaneous Plan Net Pen sion Liability to Changes in the Discount Rate

The following presents the net pension liability of the Miscell aneous Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage- point lower (5.90 p ercent) or 1 percentage-point higher (7.90 percent) than the current rate:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 386,599,782 $ 435,504,669 $ (48,904,887) $ Changes recognized for the
measurement period:

Service cost 5,836,901 - 5,836,901 Interest on total pension liability 26,520,235 - 26,520,235 Changes of assumptions 10,787,597 - 10,787,597 Differences between expected and - - actual experience (5,094,851) - (5,094,851) Contributions from the employer - 3,462,240 (3,462,240) Contributions from the employees - 2,358,367 (2,358,367) Net investment income - (32,211,334) 32,211,334 Benefit payments, including refunds of
employee contributions (21,719,479) (21,719,479) - Administrativ e expense - (271,293) 271,293 Net changes during 2021-22 16,330,403 (48,381,499) 64,711,902 Balance at June 30, 2022 402,930,185 $ 387,123,170 $ 15,807,015 $ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 67,961,186$ 15,807,015$ (27,221,857)$ 74 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

J. Changes in the Net Pension Li ability/(Assets)-Safety Plan

The following table shows the changes in net pension liability for the Safety Plan recognized over the measurement period.

K. Sensitivity of the Safety Plan Net Pension Liability/(Assets) to Changes in the Discount Rate

The following presents the net pension liability of the Safety Plan as of the measurement date, calculated using the discount rate of 6.90 perc ent, as well as what the net pens ion liability would be if it were calculated using a discount rate that is 1 percent age-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

L. Recognition of Gains and Losses

Under GASB 68, gains and losses related to changes in total pen sion 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 defe rred inflows of resources related to pensions and are to be recognized in future pension expenses.

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 604,736,666 $ 669,704,992 $ (64,968,326) $ Changes recognized for the
measurement period:

Serv ice cost 10,563,736 - 10,563,736 Interest on total pension liability 42,323,381 - 42,323,381 Changes of assumptions 21,493,940 - 21,493,940 Differences between expected and
actual experience (2,164,924) (2,164,924)
Contributions from the employer - 6,930,384 (6,930,384) Contributions from the employees - 3,579,796 (3,579,796) Net investment income - (49,811,030) 49,811,030 Benefit payments, including refunds of
employee contributions (31,930,430) (31,930,430) - Administrativ e expense - (417,186) 417,186 Net changes during 2021-22 40,285,703 (71,648,466) 111,934,169 Balance at June 30, 2022 645,022,369 $ 598,056,526 $ 46,965,843 $ Increase (Decrease)
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 135,227,571$ 46,965,843 $ (25,233,732) $ 75 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

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

The expected average remaining service lifetime (EARSL) is calc ulated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that tot al future service is based on the members' probability of decrementing due to an event other than receiving a cash refund.

The EARSL for the Miscellaneous Plan for the 2021-22 measurement period is 2.5 years, which was obtained by dividing the total service years of 3,962 (the sum of remaining service lifetimes of the active employees) by 1,597 (the total number of participants: active, inactive, and retired).

The EARSL for the Safety Plan for the 2021-22 measurement perio d is 3.9 years, which was obtained by dividing the total service years of 3,394 (the sum of remaining service lifetimes of the active employees) by 870 (the total number of participants: active, inactive, and retired).

M. Pension Expense and Deferred Outflows and Deferred Inflows o f Resources Related to Pensions

As of the start of the measurement period (July 1, 2021), the n et pension liability is $15,807,015 for the Miscellaneous Plan and $46,965,843 for the Safety Plan.

For the measurement period endi ng June 30, 2022 (the measurement date), the City of Orange incurred a pension expense of $89,016,340 for the Miscellaneous Plan and $ 112,906,054 for the Safety Plan, allocated as follows:

As of the end of the measurement period (June 30, 2022) and as presented in the June 30, 2023 Statement of Net Position, the net pension liability is $15,807,015 for the Miscellaneous Plan and $46,965,843 for the Safety Plan, allocated as follows:

Difference between projected and actual earnings 5-year straight -line amortization All other amounts Straight-line amortization over the average expected remaining service lives of all members
that are provided with benefits (active, inactive, and
retired) as of the beginning of the measurement
period
Governmental
Activ ities
Business-Type
Activ ities Total
Miscellaneous Plan 71,213,072$ 17,803,268 $ 89,016,340 $ Safety Plan 112,906,054 - 112,906,054 Total Pension Expense 184,119,126$ 17,803,268 $ 201,922,394 $ Governmental
Activ ities
Business-Type
Activ ities Total
Miscellaneous Plan 12,645,615$ 3,161,400 $ 15,807,015 $ Safety Plan 46,965,843 - 46,965,843 Total Net Pension Asset 59,611,458$ 3,161,400 $ 62,772,858 $ 76 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 8: RETIREMENT PLAN (CONTINUED)

As of the fiscal year ended June 30, 2023, the City of Orange has deferred outflows and deferred inflows of resources related to pensions as follows:

The $10,633,848 reported as deferred outflows of resources rela ted to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expenses as shown below.

At June 30, 2023, the City had no outstanding amount of contrib utions to the pension plan required for the year ended June 30, 2023.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date Current year pension contributions 3,640,116 $ - $ Changes of assumptions 6,472,558 -
Differences between expected and actual experience - 3,326,214 Net difference between projected and actual earnings on pension plan investments 24,861,737 -
Total 34,974,411 $ 3,326,214 $
Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date Current year pension contributions 6,993,732 $ - $ Changes of assumptions 15,982,673 -
Differences between expected and actual experience 3,273,271 1,775,645 Net difference between projected and actual earnings on pension plan investments 39,514,523 -
Total 65,764,199 $ 1,775,645 $
Safety Plan
Miscellaneous Plan Safety Plan
Deferred Deferred
Fiscal year Outflows/(Inflows) Outflows/(Inflows)
ended June 30, of Resources of Resources
2024 6,726,144$ 14,226,069 $
2025 5,597,715 13,645,137
2026 3,348,840 10,071,303
2027 12,335,382 19,052,313
Thereafter - -
Total 28,008,081$ 56,994,822 $
77 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 9: INSURANCE PROGRAMS

The City is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors and omissions, road and walkway design hazards, vehicle accidents, and natural disasters for which the City maintains various insurance programs. The City has entered into contracts with outside vendors to supervise and administer these programs. In addition, the City completes an annual actuarial analysis for the Workers' Compensation and Liability Funds to determine appropriate funding levels.

A. General Liability

The City is self-insured for General and Auto Liability claims up to $350,000 per occurrence. For amounts in excess of $350,000 and up to $3,000, 000 the City participates i n a public entity risk pool maintained through the California Insurance Pool Authority (CIPA). CIPA is a consortiu m of California cities under one joint powers authority agreement, which was established to pool resources, s hare risks, purchase excess insurance, and to share costs for professional risk management and claims adminis tration. For amounts in excess of $3,000,000, the pool purchases commercial insurance and has coverage up to $33,000,000.

B. Workers’ Compensation

The City has a self-insurance pr ogram for any liability to City employees arising under the Workers' Compensation laws of the State of California. The City pays up to $500,000 per occurrence. For amounts in excess of $500,000 and up to $2,000,000, the City participates in CIPA. For amounts in excess of $2,000,000, the pool purchases commercial insurance and has coverage up to $52,000,000 per occurrence. There were no changes in insurance coverage from the prior year.

Liabilities are recorded when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have b een incurred but not reported (IBNR). The liability for claims and judgments is reported in the appropriate Interna l Service Fund. The amount for current claims payable is calculated based on the current year’s expenses and the remainder is shown as noncurrent claims payable. There were no claims paid in excess of insurance cover age. Changes in claims payable for the year ended June 30, 2022 and June 30, 2023 are outlined below.

General Workers' Total
Liability Compensation Claims
Liability - June 30, 2021 1,766,045$ 17,107,973$ 18,874,018$ Claims incurred 319,285 835,092 1,154,377 Claims payments (711,872) (3,086,022) (3,797,894) Unpaid Claims - June 30, 2021 1,373,458 14,857,043 16,230,501 Less current portion of unpaid claims 867,388 4,400,853 5,268,241 Noncurrent unpaid claims - June 30, 2022 506,070 10,456,190 10,962,260 Liability - June 30, 2022 1,373,458 14,857,043 16,230,501 Claims incurred 889,691 1,507,120 2,396,811 Claims payments (489,729) (2,357,578) (2,847,307) Unpaid Claims - June 30, 2023 1,773,420 14,006,585 15,780,005 Less current portion of unpaid claims (869,584) (4,461,341) (5,330,925) Noncurrent unpaid claims - June 30, 2023 903,836$ 9,545,244$ 10,449,080$ 78 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 10: OTHER POST EMPLOYMENT BENEFITS (OPEB)

A. Plan Description

The City administers a single employer defined benefit post-emp loyment healthcare plan for eligible City retirees and their dependents through the California Public Employees' R etirement System (CalPERS). Retirees from the City enrolled in the Public Employees Medical and Hospital Insurance Program (PEMHCA), who retire at age 50 or later and have at least 5 years of service in the CalPERS sy stem are eligible for these benefits. These health insurance benefits are authorized through City Resolutions/Memo randas of Understanding defining health care benefits and contribution levels and through the contractual ag reement between the City and CalPERS. The City currently contributes $149 per month for each retiree and the retiree is responsible for the balance of the premium amount. There are no assets accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement 75.

B. Employees Covered

As of the June 30, 2022 actuarial valuation, the following curr ent and former employees were covered by the benefit terms under the plan:

C. Total OPEB Liability

The City’s OPEB liability of $37, 411,365 was measured as of June 30, 2022 and was determined by an actuarial valuation as of June 30, 2022.

D. Actuarial Assumptions and Other Inputs

The total OPEB liability as of the June 30, 2022, actuarial val uation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Inactive employees or beneficiaries currently receiving benefits 456 Active employees 626
Total 1,082
Valuation Date June 30, 2022
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal, Lev el % of Salary Actuarial Assumptions:

Discount Rate 3.69%
Inflation 2.30%
Projected Salary Increase 2.80%, Additional merit based increases based on CalPERS Merit
Salary Increase Table
Health Care Cost Trend Rates 6.5% (Pre-Medicare)/5.5% (Medicare) in first year, trending down to 4.04% ov er
55 years
Pre-retirement Turnov er Deriv ed from CalPERS OPEB
Assumption Model, rev ised
May 14, 2018
Mortality Rate Derived from CalPERS OPEB
Assumption Model, rev ised
May 14, 2018
79 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 10: OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)

The discount rate used to measur e the total OPEB liability is 3 .69%. The City's OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax exempt, high-quality 20-year municipal bonds, as of the valuation date.

E. Changes in Tot al OPEB Liability

F. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability of the City, ca lculated using the discount rate for the Plan, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage rate higher than the current rate:

G. Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage rate higher than the current healthcare cost trend rates:

Total OPEB Liability
Balance at June 30, 2021 (Measurement Date) 44,353,963$ Changes in the Year:

Service Cost 2,229,321
Interest on the Total OPEB Liability 880,729
Difference Between Expected and Actual Experience (24,560) Changes in Assumptions (8,604,291)
Contribution - Employer (537,370)
Implicit Subsidy Fulfilled (886,427)
Net Changes (6,942,598)
Balance at June 30, 2022 (Measurement Date) 37,411,365$ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(2.69%) (3.69%) (4.69%)
Total OPEB Liability 42,355,851$ 37,411,365$ 33,302,329$ Current Healthcare
1% Decrease 6.00%
Cost Trend Rates

7.00% 1% Increase 8.00%
Decreasing to 3.04% Decreasing to 4.04% Decreasing to 5.04% Total OPEB Liability 32,052,811$ 37,411,365$ 44,141,325$ 80 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 10: OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)

H. OPEB Expense and Deferred Out flows of Resources Related to OPEB

The $1,490,360 reported as deferre d outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2024.

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

NOTE 11: LONG-TERM LIABILITIES

Following is a reconciliation of long-term liabilities for the year ended June 30, 2023:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 1,191,821$ 3,767,270 $ Changes in assumptions 6,219,041 7,661,101
Contributions subsequent to measurement date 1,490,360 - Total Deferred Outflows 8,901,222$ 11,428,371$
Year Ending
June 30, Amount
2024 (127,395)$
2025 (127,395)
2026 (122,691)
2027 (361,160)
2028 (972,047)
Thereafter (2,306,821)
Total (4,017,509)$
Amount Amount
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
Governmental activities
Direct borrowing:

Loans payable 303,679 $ - $ 156,439$ 147,240$ 70,095 $ 77,145 $ Leases payable 150,573 51,645 81,182 121,036 75,453 45,583 Subscription payable - 9,357,807 2,282,796 7,075,011 1,176,229 5,898,782 Lease revenue bonds 29,410,000 - 550,000 28, 860,000 570,000 28,290,000 Premium on lease
revenue bonds 4,083,755 - 145,848 3, 937,907 3,937,907 Pension obligation bonds 258,348,004 - 9,377,961 248,970,043 10,337,071 238,632,972 Other liabilities:

Compensated absences 9,703,585 4,273,370 4,381,398 9,595,557 4,332,621 5,262,936 Claims payable 16,230,501 2,396,811 2,847,307 15,780,005 5,330,925 10,449,080 Total governmental activities 318,230,097 16,079,633 19,822,931 314,486,799 21,892,394 292,594,405 Business-type activities:

Compensated absences 774,485 159,087 163,676 769,896 162,706 607,190 Pension obligation bonds 20,441,996 - 742,039 19, 699,957 817,929 18,882,028 Subscription liability - 756,499 176,914 579,585 163,131 416,454 Total business activities 21,216,481 915,586 1,082,629 21,049,438 1,143,766 19,905,672 Total 339,446,578$ 16,995,219$ 20,905,560$ 335,536,237$ 23,036,160$ 312,500,077$ 81 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 11: LONG-TERM LIABILITIES (CONTINUED)

In April 2018 and May 2019, the City entered into a series of l oan agreements with Southern California Edison for LED retrofit of city-owned str eetlights. The loans total $1,682 ,026 and carry a zero percent interest rate. The outstanding balance at June 30, 2023 is $147,240.

The annual payments are as follows:

On July 16, 2020, the City of Orange Public Facilities Financin g Authority issued Lease Revenue Bonds Series 2020A in the amount of $29,930,000. Proceeds of the bonds will be used to: (i) finance the construction of a new Fire Headquarters and Station No. 1, roof replacement and other improvements to the City's Police Headquarters and the City's other fire stations; and installation of securit y improvements at various Ci ty facilities; and costs of issuance of the Bonds. The interest rate on the bonds is 4%. Th e bonds are payable in annual installments of $520,000 to $1,680,000 and are scheduled to mature in 2051.

The annual debt service payments for these bonds are made from the General Fund and are shown on the following page.

Year Ending
June 30, Principal
2023-24 70,095$
2024-25 49,772
2025-26 27,373
Total 147,240$
Year Ending
June 30, Principal Interest Premium
2024 570,000$ 1,143,000 $ 145,848 $
2025 595,000 1,119,700 145,848
2026 620,000 1,095,400 145,848
2027 645,000 1,070,100 145,848
2028 670,000 1,043,800 145,848
2029-2033 3,780,000 4,786,400 729,242
2034-2038 4,615,000 3,949,500 729,242
2039-2043 5,635,000 2,927,500 729,242
2044-2048 6,885,000 1,679,500 729,242
2049-2051 4,845,000 295,900 291,699
Total 28,860,000$ 19,110,800 $ 3,937,907 $
82 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 11: LONG-TERM LIABILITIES (CONTINUED)

On March 3, 2021, the City issued 2021 Taxable Pension Obligati on Bonds in the amount of $286,485,000.

Proceeds of the bonds were used to (i) pay all of the City's cu rrently unamortized, unfunded accrued actuarial liability to the California Public Employees Retirement System with respect to the City's defined benefit retirement plans for City employees; (ii) to pay the premium for a municipal bond insurance policy for the Insured Bonds; and (iii) pay costs of issuance of the Bonds. Interest on the bonds ranges from .291% to 2.82%. The bonds are payable in annual installments of $7,695,000 to $12,455,000 and are scheduled to mature in 2044. The annual debt service payments for these bonds are paid through the Debt Service fund, with funds transferred in from General Government funds and Enterprise funds.

Loans payable are paid for from the General Fund. Compensated a bsences are paid from the Employee Accrued Liability Fund and claims payable are paid from the Workers' Compensation Fund and the Liability Fund.

NOTE 12: COMMUNITY FACILITIES AN D ASSESSMENT DISTRICTS AND OTHE R REVENUE BOND ISSUES

In February 2004, Community Facilities District No. 91-2 issued refunding bonds in the amount of $37,530,000 to finance the acquisition and/or con struction of public improveme nts. In April 2013, bonds in the amount of $28,810,000 were issued to refund the 2004 bonds. In December 2021, bonds in the amount of $18,492,000 were issued to refund the 2013 bonds. The interest rate on this debt is 1.9%. The bonds outstanding at June 30, 2023 are $16,293,000 and are scheduled to mature in October 2030.

Year Ending
June 30, Principal Interest
2024 10,337,071$ 6,112,174$
2025 10,401,938 6,051,496
2026 10,499,239 5,950,180
2027 10,628,974 5,821,670
2028 10,795,775 5,652,988
2029-2033 57,416,844 24,835,310
2034-2038 65,094,355 17,162,344
2039-2043 65,701,328 7,129,102
2044 8,094,519 252,144
Total 248,970,043$ 78,967,408$
Governmental Activity
Year Ending
June 30, Principal Interest
2024 817,929$ 483,630 $
2025 823,062 478,830
2026 830,761 470,812
2027 841,026 460,644
2028 854,225 447,298
2029-2033 4,543,156 1,965,116
2034-2038 5,150,645 1,357,984
2039-2043 5,198,672 564,096
2044 640,481 19,952
Total 19,699,957$ 6,248,362 $
Business Type Activ ity
83 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 12: COMMUNITY FACILITIES AN D ASSESSMENT DISTRICTS AND OTHE R REVENUE BOND

ISSUES (CONTINUED)

In March 2015, Community Facilities District 06-1 issued 2015 Special Tax Refunding Bonds in the amount of $23,920,000. Proceeds of the bonds were used to a) refund all o f the outstanding Community Facilities District No. 06-1 2010 Special Tax Bonds, which were originally issued t o finance the acquisition of a park site and construction of public improvements, b) make a deposit into the Reserve Fund established under the Fiscal Agent Agreement and c) pay costs of issuance. The interest rate on th e debt is variable, ranging from 2% to 5%. The bonds outstanding at June 30, 2023 are $20,705,000 and are scheduled to mature in October 2040.

The City has no obligation or duty to pay any delinquency out o f any available funds of the City. The City is only acting as an agent for the property owners in collecting the as sessments and then seeing that the debt service payments are made, and neither the faith and credit, nor the taxing power of the City, is pledged to the payment of the bonds.

NOTE 13: JOINT VENTURES

The City is a participant in the Anaheim-Garden Grove-Orange Fi re Training Facility Authority, a joint powers authority created to finance fire training. These cities have o ne representative each on the Authority's three-member Board of Directors. The City's share of the Author ity's costs is included in the accompanying financial statements as expenditures of the General Fund and is immaterial to the operations of the City. Separate financial statements may be obtained for the Fire Training Facility Authority from the City of Garden Grove.

In addition to the Fire Training Facility Authority, the Cities of Orange, Anaheim, Fountain Valley, Fullerton, Garden Grove, Brea, Huntington B each, and Newport Beach have fo rmed a regional dispatch operation to provide dispatch services for those cities.

The City of Orange's share of costs for these dispatch services is immaterial to the operations of the City. The financial management and administration of this operation is th e responsibility of the City of Anaheim. Separate financial statements may be obtained for the Metro Cities Fire Authority from the City of Anaheim.

NOTE 14: LOANS RECEIVABLE

With the dissolution of the Redevelopment Agency effective Janu ary 31, 2012, the City Council adopted a resolution authorizing the City to become the Successor Housing Agency and enabling the City to retain housing assets and functions of the Redevelopment Agency. The Successor Housing Agency provides housing loans for the rehabilitation and expansion of housing for low and moderat e-income families in the City. Housing rehabilitation loans are for the purpose of rehabilitating and upgrading existing housing due to structural deficiencies. Housing loans also assist in the construction of new multi-family housing projects or the rehabilitation of existing multi-family units.

Additionally, the former Redevel opment Agency issued several pr omissory notes, pursuant to and in implementation of the "Affordable Housing Resale Restrictions Option to Designate Elig ible Purchaser with Alternative Option to Purchase and Option to Purchase Upon Default". These notes do not actually represent cash paid to the borrowers, but represent the subsidy construct ively received by the borrower as a result of borrowers' purchase of the property at a price below its fair v alue. No repayment of these notes is due by the borrower until the Affordable Term of the loan date (45 years commencing from the loan date), or upon sale of the property or default, as described in the note. At June 30, 2023 , the outstanding amount for these loans was $465,000. Due to the length of the deferral and the uncertainty of repayment on these loans, the outstanding balance is offset by an allowance for the full amount of the note.

In
May 2013, the City entered into a Refinancing Agreement that provides for the Developer of the Serrano Woods Affordable Housing Project to restructure the per manent financing for the Serrano Woods project while maintaining compliance with affordable housing requirements. This Refinancing Agreement provided for a City loan from the In-lieu Housing funds in the amount of $4,30 0,000. The balance of the loan at June 30, 2023 is $4,425,605.
84 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 14: LOANS RECEIVABLE (CONTINUED)

Under the HOME and CDBG programs, the City provides housing loa ns to eligible City of Orange residents and low-income housing projects.

Outstanding loan balances, net of allowances for net present value, for these housing loans at June 30, 2023 are comprised of the following:

NOTE 15: ADVANCES TO/FROM OTHER FUNDS

As part of the City's commitment in its participation in the Or ange County 800 MHz Countywide Coordinated Communication System (CCCS), the City is required to replace a majority of its current public safety radio inventory. This inventory replacement is to be funded with Prop 172 funds. Because there were insufficient funds available in the Prop 172 funding FY 2016-17, an inter-fund loan was made from the Capital Improvement Fund to the Prop 172 fund in the amount of $2,770,119. Repayment of the loan, and accrued interest at the rate of the State's Local Agency Investment Fund yield, are being made from Prop 172 revenues over a period of 6 years, beginning in fiscal year 2017-18. The balance of this advance was fully paid as of June 30, 2023.

NOTE 16: DUE TO/FROM OTHER FUNDS

Transfers of cash were made from the General fund to the SB2 Building Home & Jobs Act fund in the amount of $656,907 and to the Equipment Maintenance fund in the amount of $10,749 to cover deficit cash balances as of June 30, 2023.

NOTE 17: TRANSFERS

Short-term Long-term Total
Housing successor loans 38,666$ 14,366,361$ 14,405,027$ In-lieu loan - 3,167,387 3,167,387 HOME loans 4,940 3,414,983 3,419,923 CDBG loans - 417,368 417,368 Total Loans 43,606$ 21,366,099$ 21,409,705$ Special Capital Internal
Transfers Out General Revenue Projects Service Total
General1 -$ 400,000$ 7,000,000 $ 16,126,946 $ 23,526,946 $ Enterprise2 - - - 153,054 153,054 Capital Improvement3 1,000,000 - - - 1,000,000 Internal Service 1,000,000 1,000,000
Total 2,000,000 $ 400,000 $ 7,000,000 $ 16,280,000 $ 25,680,000 $ Transfers In
3The transfer from Capital Improv ement fund to the General fund was for general services. 1The above General fund transfers were made to the Internal Service fund, for vehicle and computer replacements as well as worker's compensation and to the Capital Projects fund, for infrastructure improv ements. The transfer to the Special Rev enue fund was for EMT transport.
2The Transfer from the Water and Sanitation funds were made to fund the Equipment Expense fund. 4The transfer from the Self Insurance Worker's Compensation fund and Computer Replacement funds were made to the General fund to fund general services.
85 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 18: DEFICIT EQUITY BALANCES

In the non-major Special Revenue funds, the SB2 Building Home & Jobs Act fund ended the fiscal year in a deficit fund balance of $1,470,916. This deficit is due to the expenditure of State of California grant revenue allocated on a reimbursement basis. The reimbursement for these expenditures will be received in a future year.

In the Internal Service funds, the Equipment Maintenance fund had a deficit net position of $4.5 million, due to the implementation of GASB 68, which requires the recording of the fund's unfunded net pension liability of $632,281 and GASB 75, which requires the recording of the fund' s total Other Post-Employment Benefits liability of $1.5 million. The Workers' Compensation Fund and the Liabili ty Fund had deficit net positions of $9.6 million and $832,553, respectively, due the year-end recording of actuarial determined future claims payable.

It is the City's policy not to fund these deficits, as these items do not represent tangible expenses.

NOTE 19: BREAKDOWN OF "RESTRICTE D" GOVERNMENTAL FUND BALANCES

NOTE 20: CONTINGENCIES

The City is involved in pending lawsuits of a nature common to many similar jurisdictions. City Management estimates that these potential claims against the City, not cov ered by insurance, will not have a material adverse effect on the financial position of the City.

NOTE 21: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY

A. Cash and Investments

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

B. Loans Receivable

Commercial loans were issued to private businesses to fund development projects within the former Orange Merged and Amended Redevelopment Project Area through a variety of commercial rehabilitation loan programs. The loans bear interest rates ranging from 0% to 7.5% per annum and are to be repaid in installments over an established time period, if not fully or partially forg iven. The majority of loans are repaid in monthly or yearly installments. In additi on, loans were issued under the S mall Business Assistance (SBA) Programs. The programs are intended to promote and encourage property owners and tenants to rehabilitate commercial, retail and/or industrial properties located within the former Orange Merged and Amended Redevelopment Project Area.

The SBA Programs are comprised of seven loan programs designed to provide incentives to property owners and tenants to upgrade signage, enhance landscaping, improve exteri or facades, and other property improvements.

General Proposition 172 Measure M
Federal, State
& Local Grants
Housing
Successor
Other
Governmental Total
Restricted for:

Public safety - $ 250,776$ - $ - $ - $ 1,040,738$ 1, 291,514$ Federal & state grants - - - 4,619,823 - - 4, 619,823 Housing - - - - 16, 049,760 - 16, 049,760 Streets/roads/transportation improv. - - 6,197,353 - - - 6, 197,353 Development related transportation improv. - - - - - 3,037,432 3,037,432 Highway construction and maint. - - - - - 597,666 597,666 Air quality - - - - - 165,956 165,956 Asset forfeiture operations - - - - - 4,037,297 4,037,297 Assessment district landscape maint. - - - - - 1,882,522 1,882,522 Gov t access/local access programming - - - - - 460,051 460,051 Affordable housing units - - - - - 3,676,247 3,676,247 Training/certifying building inspectors - - - - - 290,912 290,912 Maint./construction of city streets - - - - - 4,133,016 4,133,016 Other 22,506,997 - - - - 172,252 22,679,249 Total 22,506,997$ 250,776$ 6,197,353$ 4,619,823$ 16,049,760$ 19,494,089$ 69,118,798$ Cash and investments pooled with the City 9,345,032$
Cash and investments with fiscal agent 4,300
Total Cash 9,349,332$
86 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 21: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

The seven SBA programs are as follows:

 Landscape Incentive - interest-free, 50/50 matching loan up to $60,000, 50% of which can be forgiven upon meeting certain performance conditions.
 Signage Incentive - interest-free, 50/50 matching loan up to $ 30,000, 50% of which can be forgiven upon meeting certain performance conditions.
 Restaurant Equipment Incentive - loans up to $30,000 to instal l grease interceptors in restaurants, 50% of which can be forgiven upon meeting certain performance conditions.  Property Improvement - interest-free loan up to $250,000 to upgrade building facades, parking, lighting, and related improvements. Upon timely repayment of the first 75% of the loan balance, the remaining 25% is forgiven.
 Old Towne Retail - a 3% interest loan up to $100,000 to bring older buildings into conformance with the current Uniform Building Code, 50% of which can be forgiven upon meeting certain performance conditions.  Hotel Rehabilitation Loan - loan to assist in the retention, a ttraction and expansion of hospitality uses seeking to upgrade existing and/or construct new facilities in the Project Area.

The outstanding balance of these loans, net of allowances for f orgiveness and net present value, at June 30, 2023 is $45,019.

C. Due from Other Agencies

In April 2008, the former Redevelopment Agency Board entered into a Promissory Note with the City of Orange to finance a portion of the cost of construction of the Santiago C reek Gymnasium/Sports Center in the amount of $4,250,000. Effective January 31, 2012, with the dissolution of the Redevelopment Agency, this Promissory Note is now between the Successor Agency and the City. During Fiscal Year 2023, the City repaid the outstanding balance of $3,008,599, plus accrued interest of $480,782.

D. Long-Term Debt

A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2023, follows:

E. Tax Allocation Bonds

To provide funds to refund the Tustin Street Redevelopment Proj ect 1997 Taxable Tax Allocation Parity Bonds, Series B, the Agency sold Orange Merged and Amended Redevelopme nt Project Area 2008 Taxable Tax Allocation Refunding Bonds, Series B, on May 1, 2008, in the amount of $6,180,000 maturing September 1, 2027.

The initial bonds were issued for redevelopment purposes. The c urrent issue is comprised of serial bonds and term bonds. The serial bonds are payable in annual installments of $85,000 to $395,000 and mature in the years prior to 2020. The term bonds are payable in annual installments of $410,000 to $635,000 and mature in the years 2021 to 2027. Interest rates on the refunding bonds range from 5.00% to 6.20%. In lieu of cash funding the Reserve Account, the Successor Agency purchased the Reserve Fun d Insurance Policy to satisfy the "Reserve Requirement” as defined in the Indenture. The bonds outstanding at June 30, 2023 were $2,790,000.

Beginning
Balance Deletions Ending Balance
Due Within
One Year
Due Beyond
One Year
Other debt:

Tax allocation bonds 31,130,000$ (4, 120,000)$ 27, 010,000$ 4,355,000 $ 22,655,000 $ Unamortized bond premium 2,978,902 ( 614,390) 2, 364,512 353,741 2,010,771 Total 34,108,902$ (4, 734,390)$ 29, 374,512$ 4,708,741 $ 24,665,771 $ 87 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

NOTE 21: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)

In December 2014, to provide funds to a) advance refund the out standing Tustin Street Redevelopment Project 1997 Tax Allocation Parity Bonds, Series A, issued by the Forme r Agency in the original principal amount of $3,280,000 and the outstanding Orange Merged and Amended Redevelopment Project Area 2003 Tax Allocation Refunding Bonds, Series A issued by the former Agency in the or iginal principal amount of $45,915,000, b) acquire a debt service reserve fund surety bond for the debt service reserve account under the Indenture, and c) provide for the cost of issuing the 2014 bonds, the Successor Agency issued Orange Merged and Amended Redevelopment Project Area 2014 Tax Allocation Refunding Bonds, Series A in the amount of $28,850.000. The 2014 bonds are payable in annual installments of $2,745,000 to $3,845,000 and mature 2023. Interest rates on the bonds range from 3.00% to 5.0%. In lieu of cash funding the Reserve Account, the Successor Agency purchased the Reserve Fund Insurance Policy to satisfy the "Res erve Requirement" as defined in the Indenture.

The bonds outstanding at June 30, 2023 were $3,845,000.

In July 2018, to provide funds to a) advance refund the outstan ding Orange Merged and Amended Redevelopment Project Area 2008 Tax Allocation Bonds, Series A, issued by the

Former Agency in the original principal amount of $33,450,000, b) acquire a debt service reserve fund surety bond for the debt service reserve account under the Indenture, and c) provide for the cost of issuing the 2018 bonds, the Successor Agency issued Orange Merged and Amended Re development Project Area 2018 Tax Allocation Refunding Bonds, Series A in the amount of $20,375.0 00. The 2018 bonds are payable in annual installments of $750,000 to $2,265,000 and mature 2036. Interest rates on the bonds range from 4.00% to 5.00%.

The Successor Agency completed the refunding to reduce its tota l debt service payments over the next 20 years by more than $3.7 million, resulting in an economic gain (difference between the present value of the old and new debt service payments) of approximately $2.6 million. The bonds outstanding at June 30, 2023 were $20,375,000.

Annual requirements to amortize all tax allocation bonds, notes payable, leases payable, and certificates of participation outstanding as of June 30, 2023 are shown on the following page.

The Successor Agency of the former RDA is covered by insurance policies of the City of Orange as of June 30, 2023.

F. Subsequent Events

In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through March 31, 2024, the date the financial statements were available to be issued.

No other events or transactions were identified that required recognition or disclosure.

Year Ending
June 30, Principal Interest
2024 4,335,000$ 1,162,506 $
2025 1,265,000 1,021,635
2026 1,330,000 958,020
2027 1,410,000 890,570
2028 1,475,000 815,085
2029-2033 8,660,000 2,831,750
2034-2037 8,535,000 700,100
Total 27,010,000$ 8,379,666 $
Tax Allocation Bonds
88
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93 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 872,200$ 872,200 $ 1,278,164 $ 405,964$ Use of money and property 651 651 (12,692) (13,343)
Total revenues 872,851 872,851 1,265,472 392,621

EXPENDITURES
Current:

General government 24,508 24,508 26,512 (2,004)
Public safety 836,595 903,801 608,128 295,673
Capital outlay 96,600 96,600 98,199 (1,599)
Total expenditures 957,703 1,024,909 732,839 292,070
Net change in fund balance (84,852)$ (152,058)$ 532,633 684,691$ Fund balance-beginning (281,857)
Fund balance-ending 250,776$

CITY OF ORANGE
Proposition 172
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
94 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 3,458,084$ 3,458,084 $ 3,875,255 $ 417,171$ Intergovernmental 159,121 159,121 182,629 23,508
Charges for services and fees -- 3 2,760 32,760
Use of money and property 37,189 37,189 54,501 17,312
Total revenues 3,654,394 3,654,394 4,145,145 490,751

EXPENDITURES
Current:

Parks and library 321,599 695,620 276,651 418,969
Public works 384,350 510,893 523,940 (13,047)
Capital outlay 3,557,419 7,243,522 2,196,157 5,047,365
Total expenditures 4,263,368 8 ,450,035 2,996,748 5,453,287 Net change in fund balance (608,974)$ (4,795,641)$ 1,148,397 5,944,038$ Fund balance-beginning 5,048,956
Fund balance-ending 6,197,353$

CITY OF ORANGE
Measure M
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
95 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,936,749$ 3,603,898 $ 1,457,719 $ (2,146,179)$ Charges for services and fees 140,000 140,000 165,375 25,375 Use of money and property 225 497 44,334 43,837
Miscellaneous 12,094 101,626 117,425 15,799
Total revenues 2,089,068 3,846,021 1,784,853 (2,061,168)

EXPENDITURES
Current:

Public safety 404,050 404,750 300,391 104,359
Economic development 1,508,318 4,405,987 2,147,610 2,258,377 Capital outlay 135,430 1,431,176 1,194,873 236,303
Total expenditures 2,047,798 6 ,241,913 3,642,874 2,599,039 Net change in fund balance 41,270$ (2,395,892)$ (1,858,021) 537,871$ Fund balance-beginning 6,477,844
Fund balance-ending 4,619,823$

CITY OF ORANGE
Federal, State & Local Grants
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
96 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 85,341$ 1,384,503 $ 650,408 $ (734,095)$ Total revenues 85,341 1,384,503 650,408 (734,095)

EXPENDITURES
Current:

General government 26,981 16,981 21,600 (4,619)
Community development 55,017 134,941 115,491 19,450
Economic development 48,078 624,078 5,980,421 (5,356,343) Total expenditures 130,076 776,000 6,117,512 (5,341,512) Net change in fund balance (44,735)$ 608,503$ (5,467,104) (6,075,607)$ Fund balance-beginning 21,516,864
Fund balance-ending 16,049,760$

CITY OF ORANGE
Housing Successor
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
97 CITY OF ORANGE
Schedule of Changes in Total OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2023 2022 2021
Measurement Date 6/30/2022 6/30/2021 6/30/2020

TOTAL OPEB LIABILITY
Service cost 2,229,321$ 2,020,586 $ 1,679,816$
Interest on total pension liability 880,729 1,112,493 1,252,988 Changes of assumptions (8,604,291) 3,582,060 3,630,272
Difference between expected and actual experience (24,560) (4,973,808) (25,507) Benefit payments, including refunds of employee
contributions (537,370) (503,530) (486,947)
Implicit subsidy fulfilled (886,427) (1,045,784) (967,848) Net change in total OPEB liability (6,942,598) 192,017 5,082,774 Total OPEB liability-beginning 44,353,963 44,161,946 39,079,172 Total OPEB liability-ending 37,411,365$ 44,353,963$ 44,161,946$ Covered-employee payroll 61,715,879$ 58,599,662 $ 52,413,430$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 60.6% 75.7% 84.3%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only six years are shown.

Benefit Changes : None
Changes of Assumptions : None
98 2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
1,358,445$ 1,360,032$ 1,322,024$
1,201,679 1,119,120 1,087,864
2,818,825 (371,560) -
2,516,073 - -
(1,305,875) (1,207,876) (1,148,907)
-
6,589,147 899,716 1,260,981
32,490,025 31,590,309 30,329,328
39,079,172$ 32,490,025 $ 31,590,309 $
49,778,287$ 59,649,993$ 58,053,521$

78.5% 54.5% 54.4%
99 CITY OF ORANGE
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years 1
2023 2022 2021 2020
Measurement Date 6/30/2022 6/30/20 21 6/30/2020 6/30/2019

TOTAL PENSION LIABILITY
Service cost 5,836,901$ 5,435,892 $ 5,189,996 $ 5,067,666$ Interest on total pension liability 26,520,235 26,300,226 25,659,248 24,866,459 Changes of assumptions 10,787,597 - - -
Difference between expected and actual experience (5,094,851) (1,615,823) 753,998 315,824 Benefit payments, including refunds of employee
contributions (21,719,479) (20,507,418) (20,275,870) (19,046,828) Net change in total pension liability 16,330,403 9,612,877 11,327, 372 11,203,121 Total pension liability-beginning 386,599,782 376,986,905 365,659,533 354,456,412 Total pension liability-ending (a) 402,930,185 386,599,782 376,986 ,905 365,659,533

PLAN FIDUCIARY NET POSITION
Contributions-employer 3,462,240 115,571,257 10,335,791 8,895,425 Contributions-employee 2,358,367 2,208,136 2,175,496 2,344,603 Net investment income (32,211,334) 67,731,016 13,126,364 16,762,810 Benefit payments, including refunds of employee
contributions (21,719,479) (20,507,418) (20,275,870) (19,046,828) Net plan to plan resource movement --- -
Administrative expense (271,293) (270,485) (374,692) (183,409) Other miscellaneous income/(expense) --- 599
Net change in fiduciary net position (48,381,499) 164,732,506 4,98 7,089 8,773,200 Plan fiduciary net position-beginning 435,504,669 270,772,163 265,785,074 257,011,874 Plan fiduciary net position-ending (b) 387,123,170 435,504,669 270 ,772,163 265,785,074 Net pension liability/(asset) (a) - (b) 15,807,015$ (48,904,887)$ 106,214,742$ 99,874,459$ Plan fiduciary net position as a percentage of the
total pension liability 96.1% 112.7% 71.8% 72.7%
Covered payroll 29,053,762$ 29,598,876 $ 26,090,476 $ 29,090,476$ Plan net pension liability/(asset) as a percentage of
covered payroll 54.4% -165.2% 407.1% 343.3%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation; therefore only nine years are shown.

Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions : Effective with the June 30, 2021 valuation date (2022 measurement date),the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 100
2019 2018 2017 2016 2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
5,267,383$ 5,177,802$ 4,672,901 $ 4,546,279 $ 4,911,456$ 24,067,324 23,418,521 23,117,282 22,231,986 21,813,800
(1,376,690) 18,989,623 - (5,284,506) -
(1,306,394) (5,876,562) (131,466) (7,188,831) -
(17,701,058) (16,066,665) (15,554,542) (14,720,766) (13,890,809) 8,950,565 25,642,719 12,104,175 (415,838) 12,834,447
345,505,847 319,863,128 307,758,953 308,174,791 295,340,344 354,456,412 345,505,847 319,863,128 307,758,953 308,174,791 7,864,464 7,498,423 6,420,197 5,766,795 4,836,725
2,088,111 2,142,096 2,036,528 2,104,640 2,042,395
20,755,507 25,473,940 1,162,922 4,982,663 35,349,001
(17,701,058) (16,066,665) (15,554,542) (14,720,766) (13,890,809) (599) 32,777 - - -
(381,953) (334,215) (141,636) (4,435) -
(725,336) - - - -
11,899,136 18,746,356 (6,076,531) (1,871,103) 28,337,312 245,112,738 226,366,382 232,442,913 234,314,016 205,976,704 257,011,874 245,112,738 226,366,382 232,442,913 234,314,016 97,444,538$ 100,393,109$ 93,496,746$ 75,316,040$ 73,860,775$

72.5% 70.9% 70.8% 75.5% 76.0%
26,362,236$ 26,740,825$ 25,760,260 $ 25,364,199 $ 26,155,370$ 369.6% 375.4% 362.9% 296.9% 282.4%
101

CITY OF ORANGE
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years 1
2023 2022 2021 2020
Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019

TOTAL PENSION LIABILITY
Service cost 10,563,736$ 9,602,667 $ 9,008,558 $ 8,940,979$ Interest on total pension liability 42,323,381 41,044,660 39,162,098 37,812,758 Changes of assumptions 21,493,940 - - -
Difference between expected and actual experience (2,164,924) 6,910,237 (876,533) 628,915 Benefit payments, including refunds of employee
contributions (31,930,430) (30,321,036) (27,775,755) (26,302,494) Net change in total pension liability 40,285,703 27,236,528 19,518 ,368 21,080,158 Total pension liability-beginning 604,736,666 577,500,138 557,981,770 536,901,612 Total pension liability-ending (a) 645,022,369 604,736,666 577,500 ,138 557,981,770

PLAN FIDUCIARY NET POSITION
Contributions-employer 6,930,384 198,675,791 16,809,199 14,629,767 Contributions-employee 3,579,796 3,429,542 3,158,214 2,962,476 Net investment income (49,811,030) 101,688,630 19,165,432 24,251,336 Benefit payments, including refunds of employee
contributions (31,930,430) (30,321,036) (27,775,755) (26,302,494) Net plan to plan resource movement --- -
Administrative expense (417,186) (396,207) (543,905) (264,424) Other miscellaneous income/(expense) --- 864
Net change in fiduciary net position (71,648,466) 273,076,720 10,8 13,185 15,277,525 Plan fiduciary net position-beginning 669,704,992 396,628,272 385,815,087 370,537,562 Plan fiduciary net position-ending (b) 598,056,526 669,704,992 396,628,272 385,815,087 Net pension liability/(asset) (a) - (b) 46,965,843$ (64,968,326)$ 180,871,866$ 172,166,683$ Plan fiduciary net position as a percentage of the
total pension liability 92.7% 110.7% 68.7% 69.1%
Covered payroll 34,864,575$ 34,864,575 $ 33,523,404 $ 33,076,571$ Plan net pension liability/(asset) as a percentage of
covered payroll 134.7% -186.3% 539.5% 520.5%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation; therefore only nine years are shown.

Changes of Assumptions : Effective with the June 30, 2021 valuation date (2022 measurement date),the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate ofreturn, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 102
2019 2018 2017 2016 2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
8,684,357$ 8,663,044$ 7,677,162 $ 7,510,097 $ 8,277,333$ 36,374,391 34,973,049 34,040,818 32,660,257 31,691,919
(2,407,807) 29,689,823 - (8,155,227) -
2,812,674 (4,567,911) (325,378) (6,412,547) -
(25,095,404) (23,809,456) (22,545,119) (21,218,801) (20,071,826) 20,368,211 44,948,549 18,847,483 4,383,779 19,897,426
516,533,401 471,584,852 452,737,369 448,353,590 428,456,164 536,901,612 516,533,401 471,584,852 452,737,369 448,353,590 12,902,982 12,304,411 10,451,474 9,399,041 8,394,155
2,863,563 2,785,504 2,715,401 2,736,436 2,571,235
29,531,053 36,448,582 1,469,981 6,943,219 50,548,509
(25,095,404) (23,809,456) (22,545,119) (21,218,801) (20,071,826) (864) 1,111 - - -
(548,398) (479,361) - - -
(1,041,417) - - - -
18,611,515 27,250,791 (7,908,263) (2,140,105) 41,442,073 351,926,047 324,675,256 332,583,519 334,723,624 293,281,551 370,537,562 351,926,047 324,675,256 332,583,519 334,723,624 166,364,050$ 164,607,354$ 146,909,596$ 120,153,850$ 113,629,966$

69.0% 68.1% 68.8% 73.5% 74.7%
31,190,385$ 30,328,006$ 29,703,783 $ 28,780,810 $ 28,144,568$ 533.4% 542.8% 494.6% 417.5% 403.7%
103

CITY OF ORANGE
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Fiscal Year Actuarially Actual Contribution Contribution as a Ending Determined Employer Deficiency Covered % of Covered June 30, Contribution Contributions (Excess) Payroll Payroll 2023 3,640,116$ 3,640,116$ -$ 29,053,762$ 12.5% 2022 3,460,554 3,460,554 - 29,598,876 11.7%
2021 11,230,178 115,573,579 (104, 343,401) 26,090,476 443.0% 2020 10,331,501 10,331,501 - 29,090,476 35.5%
2019 8,889,983 8,889,983 - 26,362,236 33.7%
2018 7,865,000 7,865,000 - 26,740,825 29.4%
2017 7,496,129 7,496,129 - 25,760,260 29.1%
2016 6,420,229 6,420,229 - 25,364,199 25.3%
2015 5,766,795 5,766,795 - 26,155,370 22.0%
2023 6,993,732$ 6,993,732$ -$ 34,142,651$ 20.5% 2022 6,931,080 6,931,080 - 34,864,575 19.9%
2021 18,409,102 198,674,869 (180, 265,767) 33,523,404 592.6% 2020 16,811,365 16,811,365 - 33,076,571 50.8%
2019 14,630,050 14,630,050 - 31,190,385 46.9%
2018 12,903,531 12,903,531 - 30,328,006 42.5%
2017 12,302,440 12,302,440 - 29,703,783 41.4%
2016 10,451,464 10,451,464 - 28,780,810 36.3%
2015 9,399,041 9,399,041 - 28,144,568 33.4%
Note to Schedule of Contributions:

Methods and Assumptions Used to Determine Actuarially Determined Contributions Actuarial cost method: Entry age normal
Amortization method/period: For details, see June 30. 2020 Funding Valuation Report Asset valuation method: Market value of assets. For details, see June 30, 2020 Funding Valuation Report
Inflation: 2.50%
Salary increases: Varies by entry age and service
Payroll growth: 2.75%
Investment rate of return: 7.00% net of investment and administrative expenses Retirement age: The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997-2015.

Mortality: The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997-2015.

Pre-retirement and post-retirement mortality rates include 20 years of projected mortality improvements using Scale BB published by the Society of Actuaries
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation; therefore only nine years are shown.

Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
104
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109

CITY OF ORANGE
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
ASSETS
Cash and investments 1,068,471$ 299,571 $ 289,368 $ 172,440$ Receivables (net of allowance for uncollectible):

Accounts 4,676 295,118 - - Taxes - - - - Accrued interest 4,533 1,419 1,544 916 Notes and loans - - - - Leases - - - 5,852 Total assets 1,077,680$ 596,108$ 290,912$ 179,208$

LIABILITIES
Accounts payable 36,942$ 136,057 $ - $ 186$ Contracts payable - - - - Accrued liabilities - - - - Deposits payable - - - - Due to other funds - - - - Total liabilities 36,942 136,057 - 186

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - Lease-related - - - 6,770 Total deferred inflows of resources - - - 6,770

FUND BALANCES (DEFICITS)
Restricted 1,040,738 460,051 290,912 172,252 Assigned - - - - Unassigned - - - - Total fund balances (deficits) 1,040,738 460,051 290,912 172,252 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 1,077,680$ 596,108$ 290,912$ 179,208$ EMT
Transport
1% PEG
Program
CASP
Certification &
Training
Headstart
Building
Maintenance
Special Revenue Funds
110

CITY OF ORANGE
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Taxes
Accrued interest
Notes and loans
Leases
Total assets

LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
165,358$ 293,865$ 3,570,915$ 3,210,493$ - 1 ,826 - 1,033 - 310,001 545,913 - 598 1 ,510 16,726 17,413 - - - 24,301 - - - - 165,956$ 607,202 $ 4,133,554 $ 3,253,240 $ -$ 7 ,846$ 538$ 175,449$ - - - 16,058 - - - - - 1 ,690 - - - - - - - 9,536 538 191,507 - - - 24,301 - - - - - - - 24,301 165,956 597,666 4,133,016 3,037,432 - - - - - - - - 165,956 597,666 4,133,016 3,037,432 165,956$ 607,202 $ 4,133,554 $ 3,253,240 $ RMRA Road
Maintenance
Transportation
System
Improvement
Program
Special Revenue Funds
Air Pollution
Reduction Gas Tax
111

CITY OF ORANGE
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Taxes
Accrued interest
Notes and loans
Leases
Total assets

LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
1,926,077$ 4,252,300$ -$ 506,519$ - - - - 8,447 - - - 10,043 21,673 - 2,341 - - - 3,167,387 - - - - 1,944,567$ 4,273,973 $ - $ 3,676,247$ 62,045$ 137,666$ 814,009$ -$
- - - - - 99,010 - - - - - - - - 656,907 - 62,045 236,676 1,470,916 - - - - - - - - - - - - - 1,882,522 4,037,297 - 3,676,247 - - - - - - (1,470,916) - 1,882,522 4,037,297 (1,470,916) 3,676,247 1,944,567$ 4,273,973 $ - $ 3,676,247$ Landscape
Maintenance
Assessment
Districts Asset Seizure
SB2 Building
Home & Jobs
Act
Housing
In-Lieu
Special Revenue Funds
112

CITY OF ORANGE
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Taxes
Accrued interest
Notes and loans
Leases
Total assets

LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
4,052$ 534,891$ 618,967$ 375,916$ - 78,554 19,903 5,304 - - - - 22 3 ,309 3,465 2,667 - 38,935 18,791 34,427 - - - - 4,074$ 655,689 $ 661,126 $ 418,314 $ -$ 99,932$ 2,677$ 1,100$ - 4 ,357 - - - - - - - - - - - - - - - 104,289 2,677 1,100 - 38,935 18,791 34,427 - - - - - 38,935 18,791 34,427 - - - - 4,074 512,465 639,658 382,787 - - - - 4,074 512,465 639,658 382,787 4,074$ 655,689 $ 661,126 $ 418,314 $ Drainage
District
Fire Facilities
Fees
Police
Facilities Fees
Library
Facilities Fees
Capital Projects Funds
113

CITY OF ORANGE
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Taxes
Accrued interest
Notes and loans
Leases
Total assets

LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Non-major
Funds
-$ 17,289,203$
- 406,414
- 864,361
- 88,179
- 3,283,841
- 5,852
-$ 21,937,850$
-$ 1,474,447$
- 20,415
- 99,010
- 1,690
- 656,907
- 2,252,469
- 116,454
- 6,770
- 123,224
- 19,494,089
- 1,538,984
- (1,470,916)
- 19,562,157
-$ 21,937,850$
City Debt
Service
Debt Service
Funds
114

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115

CITY OF ORANGE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes -$ - $ - $ -$ Franchise fees - 526,529 - -
Licenses and permits -- 7 ,698 -
Intergovernmental 501,030 - - -
Charges for services and fees 3,387,298 - - -
Use of money and property (23,277) (1,802) 6,109 12,893 Miscellaneous -- 5 9,021 -
Total revenues 3,865,051 524,727 72,828 12,893

EXPENDITURES
Current:

General government - 245,028 - -
Public safety 3,318,419 - - -
Community development - - 1,601 -
Parks and library - - - -
Public works - - 63,810 2,275
Capital outlay --- -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 3,318,419 245,028 65,411 2,275
Excess (deficiency) of revenues
over (under) expenditures 546,632 279,699 7,417 10,618

OTHER FINANCING SOURCES (USES)
Transfers in 400,000 - - -
Total other financing sources (uses) 400,000 - - -
Net change in fund balances 946,632 279,699 7,417 10,618 Fund balances (deficit)-beginning 94,106 180,352 283,495 161,634 Fund balances (deficit)-ending 1,040,738$ 460,051$ 290,912$ 172,252$ EMT
Transport
1% PEG
Program
CASP
Certification &
Training
Headstart
Building
Maintenance
Special Revenue Funds
116

CITY OF ORANGE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services and fees
Use of money and property
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and library
Public works
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ -$ - $ -$ --- -
--- -
135,823 3,528,705 3,115,413 -
-6 ,255 - 158,400
1,966 5,470 42,871 75,345
-6 4 - -
137,789 3,540,494 3,158,284 233,745
59,407 9,409 - -
9,158 - - -
--- -
--- -
- 3,884,543 3,796 166,419
117,566 55,170 2,608,342 697,218
--- -
--- -
186,131 3,949,122 2,612,138 863,637
(48,342) (408,628) 546,146 (629,892)
--- -
--- -
(48,342) (408,628) 546,146 (629,892)
214,298 1,006,294 3,586,870 3,667,324
165,956$ 597,666 $ 4,133,016 $ 3,037,432 $ Transportation
System
Improvement
Program
Air Pollution
Reduction Gas Tax
RMRA Road
Maintenance
Special Revenue Funds
117

CITY OF ORANGE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services and fees
Use of money and property
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and library
Public works
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
1,044,488$ -$ - $ -$ --- -
--- -
174,564 3,939 944,217 221,306
--- -
18,897 65,855 - 160,194
- 1,506,393 - -
1,237,949 1,576,187 944,217 381,500
- - 1,037,870 4
- 124,710 - -
-- 5 0,738 -
1,046,781 - - -
--- -
11,269 244,688 - -
--- -
--- -
1,058,050 369,398 1,088,608 4
179,899 1,206,789 (144,391) 381,496
----
----
179,899 1,206,789 (144,391) 381,496
1,702,623 2,830,508 (1,326,525) 3,294,751
1,882,522$ 4,037,297 $ (1,470,916) $ 3,676,247 $ Landscape
Maintenance
Assessment
Districts Asset Seizure
SB2 Building
Home & Jobs
Act
Housing
In-Lieu
Special Revenue Funds
118

CITY OF ORANGE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services and fees
Use of money and property
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and library
Public works
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ -$ - $ -$ --- -
--- -
--- -
- 57,629 21,919 2,615
57 30,729 11,553 29,580
--- -
57 88,358 33,472 32,195
--- -
- 19,821 19,296 -
--- -
--- 261,342
--- -
- 482,997 53,547 311,819
--- -
--- -
- 502,818 72,843 573,161
57 (414,460) (39,371) (540,966)
----
----
57 (414,460) (39,371) (540,966)
4,017 926,925 679,029 923,753
4,074$ 512,465 $ 639,658 $ 382,787 $ Drainage
District
Fire Facilities
Fees
Police
Facilities Fees
Library
Facilities Fees
Capital Projects Funds
119

CITY OF ORANGE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services and fees
Use of money and property
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and library
Public works
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Non-major
Funds
-$ 1,044,488$
- 526,529
- 7,698
- 8,624,997
- 3,634,116
- 436,440
16,755,374 18,320,852
16,755,374 32,595,120
- 1,351,718
- 3,491,404
- 52,339
- 1,308,123
- 4,120,843
- 4,582,616
10,120,000 10,120,000
6,635,374 6,635,374
16,755,374 31,662,417
- 932,703
- 400,000
- 400,000
- 1,332,703
- 18,229,454
-$ 19,562,157$
City Debt
Service
Debt Service
Funds
120
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 115,000$ 115,000 $ 501,030 $ 386,030$ Charges for services and fees 2,760,000 2,760,000 3,387,298 627,298 Use of money and property 420 420 (23,277) (23,697)
Total revenues 2,875,420 2,875,420 3,865,051 989,631

EXPENDITURES
Current:

Public safety 3,293,285 3,293,285 3,318,419 (25,134)
Total expenditures 3,293,285 3,293,285 3,318,419 (25,134) Excess (deficiency) of revenues
over (under) expenditures (417,865) (417,865) 546,632 964,497

OTHER FINANCING SOURCES (USES)
Transfers in 400,000 400,000 400,000 -
Total other financing sources (uses) 400,000 400,000 400,000 - Net change in fund balance (17,865)$ (17,865)$ 946,632 964,497$ Fund balance-beginning 94,106
Fund balance-ending 1,040,738$

CITY OF ORANGE
EMT Transport
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
121
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 251,900$ 251,900 $ 526,529 $ 274,629$ Use of money and property 907 907 (1,802) (2,709)
Total revenues 252,807 252,807 524,727 271,920

EXPENDITURES
Current:

General government 248,935 293,935 245,028 48,907
Total expenditures 248,935 293,935 245,028 48,907
Net change in fund balance 3,872 $ (41,128) $ 279,699 320,827 $ Fund balance-beginning 180,352
Fund balance-ending 460,051$

CITY OF ORANGE
1% PEG Program
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
122
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Licenses and permits -$ - $ 7,698$ 7,698$ Use of money and property 1,157 1,157 6,109 4,952
Miscellaneous 65,000 65,000 59,021 (5,979)
Total revenues 66,157 66,157 72,828 6,671

EXPENDITURES
Current:

Community development 1,601 1,601 1,601 -
Public works - 3,098 63,810 (60,712)
Total expenditures 1,601 4,699 65,411 (60,712)
Net change in fund balance 64,556$ 61,458$ 7,417 (54,041)$ Fund balance-beginning 283,495
Fund balance-ending 290,912$

CITY OF ORANGE
CASP Certification & Training
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
123
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 15,581$ 15,581 $ 12,893 $ (2,688)$ Total revenues 15,581 15,581 12,893 (2,688)

EXPENDITURES
Current:

Public works 10,485 54,245 2,275 51,970
Total expenditures 10,485 54,245 2,275 51,970
Net change in fund balance 5,096 $ (38,664) $ 10,618 49,282 $ Fund balance-beginning 161,634
Fund balance-ending 172,252$

CITY OF ORANGE
Headstart Building Maintenance
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
124
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 182,000$ 182,000 $ 135,823 $ (46,177)$ Use of money and property 478 478 1,966 1,488
Total revenues 182,478 182,478 137,789 (44,689)

EXPENDITURES
Current:

General government 133,747 115,289 59,407 55,882
Public safety 10,000 10,000 9,158 842
Capital outlay 130,000 210,426 117,566 92,860
Total expenditures 273,747 335,715 186,131 149,584
Net change in fund balance (91,269)$ (153,237)$ (48,342) 104,895$ Fund balance-beginning 214,298
Fund balance-ending 165,956$

CITY OF ORANGE
Air Pollution Reduction
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
125
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 4,000,567$ 4,000,567 $ 3,528,705 $ (471,862)$ Charges for services and fees -- 6 ,255 6,255
Use of money and property 4,687 4,687 5,470 783
Miscellaneous -- 6 4 64
Total revenues 4,005,254 4,005,254 3,540,494 (464,760)

EXPENDITURES
Current:

General government - 12,900 9,409 3,491
Public works 4,029,074 4,149,381 3,884,543 264,838
Capital outlay 420,000 404,168 55,170 348,998
Total expenditures 4,449,074 4,566,449 3,949,122 617,327 Net change in fund balance (443,820)$ (561,195)$ (408,628) 152,567$ Fund balance-beginning 1,006,294
Fund balance-ending 597,666$

CITY OF ORANGE
Gas Tax
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
126
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 3,131,211$ 3,131,211 $ 3,115,413 $ (15,798)$ Use of money and property 9,112 9,112 42,871 33,759
Total revenues 3,140,323 3,140,323 3,158,284 17,961

EXPENDITURES
Current:

Public works - - 3,796 (3,796)
Capital outlay 3,487,943 6,629,553 2,608,342 4,021,211
Total expenditures 3,487,943 6 ,629,553 2,612,138 4,017,415 Net change in fund balance (347,620)$ (3,489,230)$ 546,146 4,035,376$ Fund balance-beginning 3,586,870
Fund balance-ending 4,133,016$

CITY OF ORANGE
RMRA Road Maintenance
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
127
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services and fees 77,267$ 77,267 $ 158,400 $ 81,133$ Use of money and property 73,083 73,083 75,345 2,262
Total revenues 150,350 150,350 233,745 83,395

EXPENDITURES
Current:

Public works 118,990 178,841 166,419 12,422
Capital outlay 450,000 3,951,141 697,218 3,253,923
Total expenditures 568,990 4,129,982 863,637 3,266,345
Net change in fund balance (418,640)$ (3,979,632)$ (629,892) 3,349,740$ Fund balance-beginning 3,667,324
Fund balance-ending 3,037,432$

CITY OF ORANGE
Transportation System Improvement Program
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
128
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 1,037,423$ 1,037,423 $ 1,044,488 $ 7,065$ Intergovernmental - 174,564 174,564 -
Use of money and property 5,537 5,537 18,897 13,360
Total revenues 1,042,960 1,217,524 1,237,949 20,425

EXPENDITURES
Current:

Parks and library 1,075,648 1,512,947 1,046,781 466,166 Capital outlay 10,000 306,653 11,269 295,384
Total expenditures 1,085,648 1,819,600 1,058,050 761,550 Net change in fund balance (42,688)$ (602,076)$ 179,899 781,975$ Fund balance-beginning 1,702,623
Fund balance-ending 1,882,522$

CITY OF ORANGE
Landscape Maintenance Assessment Districts
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
129
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 3,939$ 3,939$ Use of money and property 12,192 12,192 65,855 53,663
Miscellaneous 64,000 64,000 1,506,393 1,442,393
Total revenues 76,192 76,192 1,576,187 1,499,995

EXPENDITURES
Current:

Public safety 241,780 256,980 124,710 132,270
Capital outlay 62,800 335,699 244,688 91,011
Total expenditures 304,580 592,679 369,398 223,281
Net change in fund balance (228,388)$ (516,487)$ 1,206,789 1,723,276$ Fund balance-beginning 2,830,508
Fund balance-ending 4,037,297$

CITY OF ORANGE
Asset Seizure
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
130
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 944,217$ 944,217$ Total revenues - - 944,217 944,217

EXPENDITURES
Current:

General government - 248,078 1,037,870 (789,792)
Community development - 83,907 50,738 33,169
Total expenditures - 331,985 1,088,608 (756,623)
Net change in fund balance -$ (331,985)$ (144,391) 187,594$ Fund balance-beginning (1,326,525)
Fund balance-ending (1,470,916)$

CITY OF ORANGE
SB2 Building Home & Jobs Act
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
131
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 221,306$ 221,306$ Use of money and property 12,289 12,289 160,194 147,905 Total revenues 12,289 12,289 381,500 369,211

EXPENDITURES
Current:

General government 4 372,760 4 372,756
Total expenditures 4 372,760 4 372,756
Net change in fund balance 12,285$ (360,471)$ 381,496 741,967$ Fund balance-beginning 3,294,751
Fund balance-ending 3,676,247$

CITY OF ORANGE
Housing In-Lieu
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
132

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133
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 4,555,985$ 5,822,799 $ 844,701 $ (4,978,098)$ Charges for services and fees 5,000 5,000 1,755,040 1,750,040 Use of money and property 28,471 28,471 454,069 425,598 Total revenues 4,589,456 5,8 56,270 3,053,810 (2,802,460)

EXPENDITURES
Current:

General government 300,000 471,795 303,875 167,920
Community development - 343,874 94,154 249,720
Parks and library 12,049 12,049 13,572 (1,523)
Public works 1,180,000 1,720,884 733,983 986,901
Capital outlay 10,878,900 25,623,432 7,235,780 18,387,652 Total expenditures 12,370,949 28, 172,034 8,381,364 19,790,670 Excess (deficiency) of revenues
over (under) expenditures (7,781,493) (22,315,764) (5,327,554) 16,9 88,210

OTHER FINANCING SOURCES (USES)
Transfers in 7,000,000 7,000,000 7,000,000 -
Transfers out - (1,000,000) (1,000,000) -
Total other financing sources (uses) 7,000,000 6,000,000 6,000,000 - Net change in fund balance (781,493)$ (16,315,764)$ 672,446 16,988,210$ Fund balance-beginning 28,964,389
Fund balance-ending 29,636,835$

CITY OF ORANGE
Capital Improvement
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
134
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services and fees 815,855$ 815,855 $ 70,645 $ (745,210)$ Use of money and property 125,371 125,371 250,945 125,574 Total revenues 941,226 941,226 321,590 (619,636)

EXPENDITURES
Current:

Public works - - 646,046 (646,046)
Capital outlay 2,659,279 5,090,093 1,365,662 3,724,431
Total expenditures 2,659,279 5,090,093 2,011,708 3,078,385 Net change in fund balance (1,718,053) $ (4,148,867) $ (1,690,118) 2,458,749 $ Fund balance-beginning 8,873,331
Fund balance-ending 7,183,213$

CITY OF ORANGE
Park Acquisition, Development and Maintenance
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
135
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 16$ 16 $ 57 $ 41$ Total revenues 16 16 57 41
Net change in fund balance 16$ 16$ 57 41$ Fund balance-beginning 4,017
Fund balance-ending 4,074$

CITY OF ORANGE
Drainage District
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
136
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services and fees 89,049$ 89,049 $ 57,629 $ (31,420)$ Use of money and property 5,973 5,973 30,729 24,756
Total revenues 95,022 95,022 88,358 (6,664)

EXPENDITURES
Current:

Public safety - - 19,821 (19,821)
Capital outlay 535,000 864,555 482,997 381,558
Total expenditures 535,000 864,555 502,818 361,737
Net change in fund balance (439,978) $ (769,533) $ (414,460) 355,073 $ Fund balance-beginning 926,925
Fund balance-ending 512,465$

CITY OF ORANGE
Fire Facilities Fees
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
137
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services and fees 29,465$ 29,465 $ 21,919 $ (7,546)$ Use of money and property 2,206 2,206 11,553 9,347
Total revenues 31,671 31,671 33,472 1,801

EXPENDITURES
Current:

Public safety 20,000 20,000 19,296 704
Capital outlay - 345,000 53,547 291,453
Total expenditures 20,000 365,000 72,843 292,157
Net change in fund balance 11,671$ (333,329)$ (39,371) 293,958$ Fund balance-beginning 679,029
Fund balance-ending 639,658$

CITY OF ORANGE
Police Facilities Fees
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
138
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services and fees 71,550$ 71,550 $ 2,615 $ (68,935)$ Use of money and property 3,450 3,450 29,580 26,130
Total revenues 75,000 75,000 32,195 (42,805)

EXPENDITURES
Current:

Parks and library - 257,785 261,342 (3,557)
Capital outlay - 640,572 311,819 328,753
Total expenditures - 898,357 573,161 325,196
Net change in fund balance 75,000$ (823,357)$ (540,966) 282,391$ Fund balance-beginning 923,753
Fund balance-ending 382,787$

CITY OF ORANGE
Library Facilities Fees
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
139

THIS PAGE INTENTIONALLY LEFT BLANK
140

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Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Other revenues 16,755,374$ 16,755,374 $ 16,755,374 $ -$ Total revenues 16,755,374 16,755,374 16,755,374 -

EXPENDITURES
Debt service:

Principal 10,120,000 10,120,000 10,120,000 -
Interest 6,635,374 6,635,374 6,635,374 -
Total expenditures 16,755,374 16,755,374 16,755,374 -
Net change in fund balance -$ -$ - -$ Fund balance-beginning -
Fund balance-ending -$

CITY OF ORANGE
City Debt Service
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
142

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143

CITY OF ORANGE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Worker's
Compensation
ASSETS
Current assets:

Cash and investments -$ 7,887,601$ 209,293$ 4,457,927$ 1,065,941$ Receivables (net of uncollectibles):

Accounts 560 8,310 - 78,462 -
Prepaid costs - - - - -
Inventories 447,180 - - - -
Restricted:

Cash with fiscal agent 167 - - - -
Total current assets 447,907 7,895,911 209,293 4,536,389 1,065,941 Noncurrent:

Capital assets, net 140,108 17,166,682 - - -
Total noncurrent assets 140,108 17,166,682 - - -
Total assets 588,015 25,062,593 209,293 4,536,389 1,065,941

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 1,398,975 - - - -
OPEB-related 356,049 - - - -
Total deferred outflows of resources 1,755,024 - - - -

LIABILITIES
Current liabilities:

Accounts payable 172,407 58,354 7,164 154,791 125,074
Due to other funds 10,749 - - - -
Claims and judgments - - - 4,461,341 869,584
Bonds, notes, loans, leases and subscriptions 163,586 - - - - Total current liabilities 346,742 58,354 7,164 4,616,132 994,658 Noncurrent liabilities:

Claims and judgments - - - 9,545,244 903,836
Bonds, notes, loans, leases, and subscriptions 3,776,406 - - - - Net pension liability 632,281 - - - -
Net OPEB liability 1,496,455 - - - -
Total noncurrent liabilities 5,905,142 - - 9,545,244 903,836 Total liabilities 6,251,884 58,354 7,164 14,161,376 1,898,494

DEFERRED INFLOWS OF RESOURCES
Pension-related 133,049 - - - -
OPEB-related 457,135 - - - -
Total deferred inflows of resources 590,184 - - - -

NET POSITION
Net investment in capital assets 140,108 17,166,682 - - - Unrestricted (4,639,137) 7,837,557 202,129 (9,624,987) (832,553) Total net position (4,499,029)$ 25,004,239$ 202,129$ (9,624,987)$ (832,553)$ Self-Insurance Funds
Equipment
Maintenance
Equipment
Replacement
Major Building
Improvements Liability
144

CITY OF ORANGE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
ASSETS
Current assets:

Cash and investments
Receivables (net of uncollectibles):

Accounts
Prepaid costs
Inventories
Restricted:

Cash with fiscal agent
Total current assets
Noncurrent:

Capital assets, net
Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Pension-related
OPEB-related
Total deferred outflows of resources

LIABILITIES
Current liabilities:

Accounts payable
Due to other funds
Claims and judgments
Bonds, notes, loans, leases and subscriptions
Total current liabilities
Noncurrent liabilities:

Claims and judgments
Bonds, notes, loans, leases, and subscriptions
Net pension liability
Net OPEB liability
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension-related
OPEB-related
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Self-Insurance
Fund
Total Internal
Service
Funds
536,001$ 6,772,645 $ 1,068,067 $ 10,070,230 $ 32,067,705$ ---- 87,332
41,500 - - - 41,500
---- 447,180
---- 167
577,501 6,772,645 1,068,067 10,070,230 32,643,884
- - 1,421,503 5,956,393 24,684,686
- - 1,421,503 5,956,393 24,684,686
577,501 6,772,645 2,489,57 0 16,026,623 57,328,570
---- 1,398,975
---- 356,049
- - - - 1,755,024
40,848 11,071 358,116 52,600 980,425
---- 10,749
---- 5,330,925
- - 560,803 452,931 1,177,320
40,848 11,071 918,919 505,531 7,499,419
---- 10,449,080
- - 522,750 5,063,177 9,362,333
---- 632,281
---- 1,496,455
- - 522,750 5,063,177 21,940,149
40,848 11,071 1,441,66 9 5,568,708 29,439,568
---- 133,049
---- 457,135
- - - - 590,184
- - 337,950 440,285 18,085,025
536,653 6,761,574 709,951 10,017,630 10,968,817
536,653$ 6,761,574 $ 1,047,901 $ 10,457,915 $ 29,053,842 $ Employee
Accrued
Liability
Information
Systems
Computer
ReplacementDental
145

CITY OF ORANGE
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023

OPERATING REVENUES
Charges for services and fees 3,040,352$ 432,076 $ - $ 3,998,158$ 3,436,889$ Other revenues 6,120 493,194 - 215,252 49,006
Total operating revenues 3,046,472 925,270 - 4,213,410 3,485,895

OPERATING EXPENSES
Salaries and wages 1,044,272 - 15,797 173,061 364,442
Maintenance and operations 2,282,287 - 513,120 148,026 123,500 Contractual services 71,385 - - 27,716 308,805
Insurance claims and charges - - - 2,734,795 3,437,328
Depreciation/amortization 31,908 1,989,336 - - -
Total operating expenses 3,694,421 1,989,336 530,654 3,097,332 4,264 ,522 Operating income (loss) (647,949) (1,064,066) (530,654) 1,116,078 (7 78,627)

NONOPERATING REVENUES (EXPENSES)
Interest expense (97,308) - - - -
Gain (loss) on disposal of capital assets - (36,823) - - - Total nonoperating revenues (expenses) (97,308) (36,823) - - - Income (loss) before capital contributions and transfers (745,25 7) (1,100,889) (530,65 4) 1,116,078 (778,627) Transfers in 720,000 5,750,000 - 950,000 1,110,000
Transfers out - - - (250,000) -
Change in net position (25,257) 4, 649,111 (530,654) 1,816,078 331,373 Net position-beginning (4,473,772) 20,355,12 8 732,783 (11,441,065) (1,163,926) Net position-ending (4,499,029)$ 25,004,239$ 202,129$ (9,624,987)$ (832,553)$ Equipment
Maintenance
Equipment
Replacement
Major Building
Improvements
Worker's
Compensation Liability
Self-Insurance Funds
146

CITY OF ORANGE
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023

OPERATING REVENUES
Charges for services and fees
Other revenues
Total operating revenues

OPERATING EXPENSES
Salaries and wages
Maintenance and operations
Contractual services
Insurance claims and charges
Depreciation/amortization
Total operating expenses
Operating income (loss)

NONOPERATING REVENUES (EXPENSES)
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
Self-Insurance
Fund
Total Internal
Service
Funds
534,214$ 1,820,034$ 3,206,639$ 391,622$ 16,859,984$ - - 944,785 1,102,107 2,810,464
534,214 1,820,034 4,151,424 1,493,729 19,670,448
- 2,715,192 1,129,051 - 5,441,815
10,005 62,755 209,565 944,662 4,293,920
- - 2,112,831 - 2,520,737
453,183 30,002 - - 6,655,308
- - 606,835 661,822 3,289,901
463,188 3,293,325 4,158,327 1,606,484 23,097,589
71,026 (1,473,291) (6,903) (112,755) (3,427,141)
-- - - (97,308)
-- - - (36,823)
- - - - (134,131)
71,026 (1,473,291) (6,903) (112,755) (3,561,272)
- - - 7,750,000 16,280,000
- - - (1,000,000) (1,250,000)
71,026 (1,473,291) (6,903) 6,637,245 11,468,728
465,627 8,234,865 1,054,804 3,820,670 17,585,114
536,653$ 6,761,574 $ 1,047,901 $ 10,457,915 $ 29,053,842 $ Employee
Accrued
Liability
Information
Systems
Computer
Replacement Dental
147

CITY OF ORANGE
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 2,968,366$ 458,344 $ - $ 3,988,237$ 3,436,889$ Payments to suppliers and service providers (2,580,005) - (532,646) (3,918,717) (4,161,055) Payments to employees for salaries and benefits (868,766) - - - - Other receipts (payments) 6,120 551,548 - 215,252 448,968 Net cash provided by (used for)
operating activities (474,285) 1,009,892 (532,646) 284,772 (275,198)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 720,000 5,750,000 - 950,000 1,110,000 Transfers to other funds - - - (250,000) - Net cash provided by (used for)
noncapital financing activities 720,000 5,750,000 - 700,000 1,110,000

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets - (4,116,637) - - - Principal paid on capital debt (148,407) - - - - Principal paid on subscriptions - - - - - Interest paid on capital debt (97,308) - - - - Net cash provided by (used for)
capital and related financing activities (245,715) (4,116,637) - - - Net increase (decrease) in
cash and cash equivalents - 2,643,255 (532,646) 984,772 834,802 Cash and cash equivalents-beginning 167 5,244,346 741,939 3,473,155 231,139 Cash and cash equivalents-ending 167$ 7,887,601$ 209,293$ 4,457,927$ 1,065,941$

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments -$ 7,887,601$ 209,293 $ 4,457,927 $ 1,065,941$ Cash with fiscal agent 167 - - - - Total cash and cash equivalents 167$ 7,887,601$ 209,293$ 4,457,927$ 1,065,941$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (647,949)$ (1,064,066) $ (530,654) $ 1,116,078 $ (778,627)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 31,908 1,989,336 - - - (Increase) decrease in accounts receivable 203 26,268 - (9,921) - (Increase) decrease in inventories 7,211 - - - - (Increase) decrease in pension-related deferred outflows (1,193, 094) - - - - Increase (decrease) in accounts payable 31,025 58,354 (1,992) 32,960 103,467 Increase (decrease) in accrued liabilities - - - (3,887) - Increase (decrease) in claims and judgments - - - (850,458) 399,962 Increase (decrease) in net pension liability 2,588,476 - - - - Increase (decrease) in net OPEB liability (277,703) - - - - Increase (decrease) in pension-related deferred inflows (1,217,1 35) - - - - Increase (decrease) in OPEB-related deferred inflows 274,962 - - - - Increase (decrease) in due to other funds (72,189) - - - - Total adjustments 173,664 2,073,958 (1,992) (831,306) 503,429 Net cash provided by (used for)
operating activities (474,285)$ 1,009,892 $ (532,646) $ 284,772 $ (275,198) $ Self-Insurance Funds
Equipment
Maintenance
Equipment
Replacement
Major Building
Improvements
Worker's
Compensation Liability
148

CITY OF ORANGE
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

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

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Net cash provided by (used for)
noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets
Principal paid on capital debt
Principal paid on subscriptions
Interest paid on capital debt
Net cash provided by (used for)
capital and related financing activities
Net increase (decrease) in
cash and cash equivalents
Cash and cash equivalents-beginning
Cash and cash equivalents-ending

RECONCILIATION OF CASH AND CASH EQUIVALENTS

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

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

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

Depreciation/amortization expense
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in pension-related deferred outflows Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in claims and judgments
Increase (decrease) in net pension liability
Increase (decrease) in net OPEB liability
Increase (decrease) in pension-related deferred inflows Increase (decrease) in OPEB-related deferred inflows
Increase (decrease) in due to other funds
Total adjustments
Net cash provided by (used for)
operating activities
Self-Insurance
Fund
Totals
534,214$ 1,820,034$ 3,206,639$ 391,622$ 16,804,345$ (464,190) (3,282,254) (3,368,511) (914,273) (19,221,651) - - - - (868,766) - - 944,785 1,102,107 3,268,780 70,024 (1,462,220) 782,913 579,456 (17,292) - - - 7,750,000 16,280,000 - - - (1,000,000) (1,250,000) - - - 6,750,000 15,030,000 - - - - (4,116,637) - - - - (148,407) - - (944,785) (1,102,107) (2,046,892) - - - - (97,308) - - (944,785) (1,102,107) (6,409,244) 70,024 (1,462,220) (161,872) 6,227,349 8,603,464 465,977 8,234,865 1,229,939 3,842,881 23,464,408 536,001$ 6,772,645 $ 1,068,067 $ 10,070,230 $ 32,067,872 $ 536,001$ 6,772,645$ 1,068,067$ 10,070,230$ 32,067,705$ - - - - 167 536,001$ 6,772,645 $ 1,068,067 $ 10,070,230 $ 32,067,872 $ 71,026$ (1,473,291)$ (6,903)$ (112,755)$ (3,427,141)$ - - 606,835 661,822 3,289,901 - - - - 16,550 - - - - 7,211 - - - - (1,193,094) (1,002) 1 1,071 182,981 30,389 447,253 - - - - (3,887) - - - - (450,496) - - - - 2,588,476 - - - - (277,703) - - - - (1,217,135) - - - - 274,962 - - - - (72,189) (1,002) 1 1,071 789,816 692,211 3,409,849$ 70,024$ (1,462,220)$ 782,913 $ 579,456 $ (17,292) $ Dental
Employee
Accrued
Liability
Information
Systems
Computer
Replacement
149

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150

67$7,67I&$/6(&7,21
151

THIS PAGE INTENTIONALLY LEFT BLANK
152

Statistical Section

This part of the City's annual comprehensive financial report p resents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents Page

Financial Trends ........................................................................................................................................... 154

These schedules contain trend information to help the reader un derstand how the City's financial performance and well-being have changed over time.

Revenue Capacity ........................................................................................................................................ 164 These schedules contain information to help the reader assess t he City's most significant revenue source, property tax.

Debt Capacity ............................................................................................................................................... 170 These schedules present informa tion to help the reader assess t he affordability of the City's current levels of outstanding debt and its ability to issue additional debt in the future.

Demographic and Economic Information ..................................................................................................... 177 These schedules offer demographic and economic indicators to he lp the reader understand the environment within which the City's financial activities take place.

Operating Information ................................................................................................................................... 180 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the s ervices it provides and the activities it performs.

Sources: Unless otherwise noted, the information in these sched ules is derived from the comprehensive annual financial reports for the relevant year.
153
2023 2022 2021 2020
Governmental activities:

Net investment in capital assets 684,071,711$ 683,891,043 $ 685,927,045$ 674,673,211$ Restricted for:

Specific projects and programs 69,118,798 50,065,919 44,321,446 42,194,380 Unrestricted (195,625,958) (174,372,427) (186,982,262) (183,258,010) Total governmental act.net position 557,564,551$ 559,584,535$ 543,266,229$ 533,609,581$ Business-type activities:

Net investment in capital assets 127,758,485$ 131,949,626 $ 131,443,618$ 129,356,837$ Unrestricted 12,039,915 5,392,793 1,639,357 622,689
Total business-type act. net position 139,798,400$ 137,342,419$ 133,082,975$ 129,979,526$ Primary government:

Net investment in capital assets 811,830,196$ 815,840,669 $ 817,370,663$ 804,030,048$ Restricted for:

Specific projects and programs 69,118,798 50,065,919 44,321,446 42,194,380 Unrestricted (183,586,043) (168,979,634) (185,342,905) (182,635,321) Total primary gov't net position 697,362,951$ 696,926,954$ 676,349,204$ 663,589,107$ (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Fiscal Year

CITY OF ORANGE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
154
2019 2018 2017 2016 (1) 2015 2014
668,898,000$ 658,706,056$ 643,259,170$ 632,246,033 $ 691,177,418 $ 690,214,241$ 40,509,831 40,833,934 43,175,076 50,288,584 56,695,286 58,195,215 (160,066,933) (147,206,248) (103,909,743) (104,017,007) (115,036,34 1) 69,801,995 549,340,898$ 552,333,742 $ 582,524,503 $ 578,517,610 $ 632,836,363 $ 818,211,451 $ 130,464,008$ 132,924,641$ 134,136,742 $ 137,600,598 $ 66,354,962 $ 62,656,018$ (833,151) (3,721,768) 2,174,136 2,606,432 3,876,072 18,512,931 129,630,857$ 129,202,873 $ 136,310,878 $ 140,207,030 $ 70,231,034 $ 81,168,949 $ 799,362,008$ 791,630,697$ 777,395,912 $ 769,846,631 $ 757,532,380 $ 752,870,259$ 40,509,831 40,833,934 43,175,076 50,288,584 56,695,286 58,195,215 (160,900,084) (150,928,016) (101,735,607) (101,410,575) (111,160,26 9) 88,314,926 678,971,755$ 681,536,615 $ 718,835,381 $ 718,724,640 $ 703,067,397 $ 899,380,400 $ Fiscal Year
155
2023 2022 2021 2020
Expenses:

General government 24,083,824$ 13,171,835$ 18,961,388$ 19,426,844$ Public safety 110,206,495 91,321,077 102,189,315 106,839,054 Public works 19,715,973 22,820,124 25,264,533 14,683,383 Community development 4,112,664 3,304,024 5,280,546 5,174,978 Parks and library 20,276,823 17,810,698 17,161,257 17,048,393 Economic development 8,310,619 4,562,019 465,809 849,150 Health and sanitation -- - -
Interest on long-term debt 7,745,269 7,850,113 5,097,209 - Cost of issuance - 677,074 - -
Total governmental activities expenses 194,451,667 161,516,964 174 ,420,057 164,021,802 Program revenues:

Charges for services:

Public safety 9,973,692 8,229,685 7,233,973 8,444,493
Community development 4,141,083 3,655,955 2,973,252 3,105,770 Sanitation -- - -
Other activities 19,161,183 10,233,437 8,100,014 14,732,822 Operating grants and contributions 6,116,512 19,559,089 19,358,516 5,650,779 Capital grants and contributions 8,934,066 7,934,114 12,631,485 8,026,570 Total governmental activities program revenues 48,326,536 49,612,280 50,297,240 39,960,434 Net program revenues (expenses) (146,125,131) (111,904,684) (124,122,817) (124,061,368) General revenues and other changes in net position:

Taxes:

Property taxes 53,784,303 50,960,121 48,272,714 46,274,506 Sales tax 51,389,099 54,702,920 56,577,610 47,215,228
Transient occupancy taxes 6,080,399 5,253,351 1,834,447 3,990,266 Franchise taxes 3,148,573 2,871,612 2,791,170 2,819,979 Other taxes 3,897,046 26,039 30,466 23,361
Use of money and property 4,287,125 (2,755,656) 1,534,758 4,158,758 State motor vehicle in lieu (unrestricted) - - - -
Other general revenues 21,365,548 32,636,552 4,478,646 3,847,953 Transfers 153,054 - - -
Extraordinary items - 4,030,000 - -
Total general revenues and other changes in net position 144,105,147 147,724,939 115,519,811 108,330,051 Changes in net position - governmental activities (2,019,984)$ 35,820,255$ (8,603,006)$ (15,731,317)$

CITY OF ORANGE
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
(1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Fiscal Year
156
2019 2018 2017 2016 (1) 2015 2014
16,046,573$ 12,469,911$ 12,901,270 $ 11,523,233 $ 11,043,299 $ 8,745,250$ 91,261,509 91,221,804 74,753,184 68,091,154 68,074,704 64,237,453 18,465,238 18,449,207 21,174,647 15,343,879 18,432,374 19,408,557 5,280,071 5,419,811 4,753,861 3,651,913 3,760,037 3,487,860 17,791,196 18,243,140 15,632,111 12,867,558 14,226,553 12,585,457 1,195,781 2,667,779 2,371,172 2,615,785 2,026,364 797,263 - - - - 4,677,346 4,232,920
--- - - -
--- - - -
150,040,368 148,471,652 131,586,245 114,093,522 122,240,677 113,494,760 6,578,160 7,412,945 7,115,563 7,227,522 6,594,312 6,960,513 8,438,051 2,250,135 2,476,758 2,825,885 2,144,006 2,054,395 - - - - 4,642,609 5,108,090
8,812,877 7,727,691 7,310,803 10,687,277 5,889,501 9,796,993 3,340,401 4,562,365 4,161,061 4,397,657 5,110,904 4,827,666 7,881,907 4,388,460 5,726,683 3,845,044 3,355,657 4,658,990 35,051,396 26,341,596 26,790,868 28,983,385 27,736,989 33,406,647 (114,988,972) (122,130,056) (104,795,377) (85,110,137) (94,503,688) (80,088,113) 44,237,113 42,385,253 39,907,869 26,733,026 24,378,818 23,605,854 52,300,499 45,082,151 46,102,329 45,789,026 43,928,900 40,343,068 5,399,992 5,476,167 5,413,495 5,211,752 4,545,827 3,851,012 2,821,430 2,831,378 2,755,030 3,076,891 3,157,617 2,950,916 31,682 31,440 39,235 58,043 37,067 41,159
5,077,128 1,753,319 1,572,433 2,248,055 1,629,390 1,782,285 - - - 11,951,577 11,313,325 10,837,071
4,118,151 5,075,459 11,510,192 5,274,621 3,160,624 3,102,953 --- - - -
- - 1,501,687 7,900,901 15,605,368 10,449,117
113,985,995 102,635,167 108,802,270 108,243,892 107,756,936 96,963,435 (1,002,977)$ (19,494,889) $ 4,006,893 $ 23,133,755 $ 13,253,248$ 16,875,322$ Fiscal Year
157
2023 2022 2021 2020
Expenses:

Water 34,893,589$ 36,818,407$ 35,983,197$ 35,010,074$ Sanitation 10,061,616 6,670,133 7,860,697 8,486,309
Total Expenses 44,955,205 43,488,540 43,843,894 43,496,383 Program revenues:

Charges for services:

Water 38,461,941 40,369,251 38,899,703 35,425,788
Sanitation 8,300,397 8,318,717 8,012,849 7,754,294
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total program revenues 46,762,338 48,687,968 46,912,552 43,180,082 Net Program revenues (expenses) 1,807,133 5,199,428 3,068,658 (316,301) General revenues and other
changes in net position:

Use of money and property 324,028 (939,984) 34,791 664,970 Others 477,874 ---
Transfers (153,054) ---
Total general revenues and other 648,848 (939,984) 34,791 664,970 Changes in net position -
business-type activities 2,455,981$ 4,259,444$ 3,103,449$ 348,669$ (accrual basis of accounting)
(1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Fiscal Year

CITY OF ORANGE
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
158
2019 2018 2017 2016 (1) 2015 2014
33,532,078$ 33,413,891$ 29,293,848 $ 25,302,258 $ 28,440,276 $ 27,914,474 $ 8,153,404 7,926,974 7,761,578 7,591,850 - -
41,685,482 41,340,865 37,055,426 32,894,108 28,440,276 27,914,474 33,358,746 32,419,133 28,192,880 25,733,212 28,795,052 30,870,221 7,866,374 7,838,429 4,408,670 4,353,379 - -
-- 7 2 , 3 2 7---
180,500 - - 462,951 385,000 2,382,000
41,405,620 40,257,562 32,673,877 30,549,542 29,180,052 33,252,221 (279,862) (1,083,303) (4,381,549 ) (2,344,566) 739,776 5,337,747 707,846 41,164 92,860 240,646 156,077 185,232
-- 392,537 ---
-- - ---
707,846 41,164 485,397 240,646 156,077 185,232
427,984$ (1,042,139) $ (3,896,152) $ (2,103,920) $ 895,853 $ 5,522,979 $ Fiscal Year
159
2023 2022 2021 2020
General fund:

Nonspendable 130,663$ 102,858$ 101,737$ 87,818$ Restricted 22,506,997 20,667,960 18,259,654 -
Committed 630,545 - - -
Assigned 1,546,660 3,115,614 2,928,780 -
Unassigned 913,339 21,234,508 25,568,686 32,313,009
Total general fund 25,728,204$ 45,120,940$ 46,858,857$ 32,400,827$ All other governmental funds:

Restricted 46,611,801$ 49,810,179$ 44,321,446$ 42,194,380$ Committed - 255,740 4,740,268 5,269,093
Assigned 38,359,032 40,371,444 52,871,901 31,184,214
Unassigned (1,470,916) (1,608,382) (1,856,633) (2,053,907) Total all other governmental funds 83,499,917$ 88,828,981$ 100,076,982$ 76,593,780$ (modified accrual basis of accounting)
Fiscal Year

CITY OF ORANGE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
160
2019 2018 2017 2016 (1) 2015 2014
160,760$ 95,178$ 88,269 $ 88,354 $ 109,731$ 105,777$ ----- -
----- -
----- -
38,610,758 34,763,378 35,810,692 34,732,497 31,493,563 34,262,063 38,771,518$ 34 ,858,556$ 35,898,961$ 34,820,851 $ 31,603,294 $ 34,367,840$ 40,509,831$ 40,833,934$ 43,175,076$ 50,288,584 $ 56,695,286 $ 58,195,215$ 6,154,780 7,398,168 7,737,725 7,886,387 13,486,748 13,850,031 29,603,940 29,224,001 39,584,296 34,414,429 31,626,222 14,240,824 (1,593,498) (1,989,867) - - - -
74,675,053$ 75 ,466,236$ 90,497,097$ 92,589,400 $ 101,808,256$ 86,286,070$ Fiscal Year
161
2023 2022 2021 2020
Revenues:

Taxes 115,150,847$ 110,942,447$ 106,715,236$ 97,503,362$ Franchise fees 3,148,57 3 2,871,611 2,791,170 2,819,979 Licenses and permits 6,591,296 6,669,254 5,550,237 5,780,011 Use of money and property 4,287,125 (2,775,150) 1,533,906 4,121,085 Intergovernmental 12,356,695 27,482,163 33,085,279 13,638,969 Charges for services and fees 16,557,655 13,515,236 11,243,519 18,699,180 Fines and forfeitures 2,006,648 1,942,715 1,485,230 1,772,867 Other revenues 23,939,387 20,252,480 4,483,183 3,661,149 Total Revenues 184,038,226 180,900,756 166,887,760 147,996,602 Expenditures:

Current:

General government 16,509,249 11,134,810 15,518,693 16,680,796 Public safety 95,857,843 90,723,202 88,567,963 85,168,745 Public works 15,824,350 13,033,667 10,901,569 11,062,997 Community development 3,910,804 3,404,436 4,844,971 4,842,271 Parks and library 18,141,773 16,188,815 14,581,024 14,763,471 Economic development 8,265,884 4,457,229 420,264 435,243 Health and sanitation - - - -
Capital outlay 16,745,964 32,146,704 24,762,286 17,107,265 Debt service:

Principal 10,826,439 8,452,778 237,778 237,778
Interest 7,800,774 9,250,095 947,783 -
Total expenditures 193,883,080 188,791,736 160,782,331 150,298,566 Excess (deficiency) of revenues over (under)
expenditures (9,844,854) (7,890,980) 6,105,429 (2,301,964) Other Financing sources (uses):

Loan proceeds - - - -
Lease proceeds - 118,528 - -
Gain on sale of property - 4,030,000 - -
Transfers in 9,400,000 7,300,000 5,847,783 -
Transfers out (24,276,946) (16,587,500) (8,027,783) (2,150,000) Bond proceeds - - 295,582,983 -
Payment to pension liability - - (259,566,751) -
Cost of issuance - - (2,000,429) -
Total other financing sources (uses) (14,876,946) (5,138,972) 31,8 35,803 (2,150,000) Extraordinary gain/(loss) - - - -
Net change in fund balances (24,721,800)$ (13,029,952)$ 37,941,232$ (4,451,964)$ Debt service as a percentage of noncapital expenditures 10.60% 11 .30% 0.72% 0.17% (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Fiscal Year

CITY OF ORANGE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
162
2019 2018 2017 2016 (1) 2015 2014
101,969,285$ 92,975,011$ 91,462,928$ 77,791,847$ 72,890,611$ 67,841,093$ 2,821,431 2,831,378 2,755,030 3,076,891 3,157,618 2,950,916 5,846,046 4,846,681 4,966,017 5,443,388 4,080,299 4,473,533 5,077,127 1,753,319 1,572,433 2,248,055 1,629,390 1,780,461 11,584,134 9,016,736 9,727 ,861 20,125,635 20,574,583 20,703,372 15,924,806 10,703,0 09 10,978,973 14,3 11,067 13,740,393 17,774,897 2,194,948 1,852,674 1,706,291 1,725,785 2,190,664 2,341,032 4,108,287 4,783,149 11,495,612 4,732,645 2,640,918 3,022,791 149,526,064 128,761,957 134,66 5,145 129,455,313 120,904,476 120,888,095 13,460,308 11,488,9 62 11,369,206 11,0 59,999 9,750,112 7,137,074 80,275,211 75,704,8 54 72,292,753 70,3 04,539 65,620,597 63,914,038 11,209,853 10,351 ,948 10,099,229 9,732,287 9,942,108 9,593,548 4,538,371 4,545,422 4,651,614 4,086,895 3,735,548 3,536,074 14,840,900 14,575,7 37 13,835,002 12,4 64,990 12,796,867 11,272,908 1,037,149 2,354,318 2,115,151 2,519,124 557,096 711,397 - - - - 4,595,026 4,259,091
18,370,773 23,596,9 82 18,601,383 12,1 03,521 11,654,340 11,225,325 92,339 - - - - -
-- - - - -
143,824,904 142,618,223 132,96 4,338 122,271,355 118,651,694 111,649,455 5,701,160 (13,856,266) 1,700,807 7,183,958 2,252,782 9,238,640 570,619 - - - - -
-- - - - -
-- - - - -
2,000,000 1,042,261 3,765,260 1,500,000 3,025,395 105,000 (5,150,000) (3,257,261) (6,480,260) (2,952,143) (7,069,316) (255,000) -- - - - -
-- - - - -
-- - - - -
(2,579,381) (2,215,000) (2,715,000) (1,452,143) (4,043,921) (150,000) - - - 31,406 14,548,779 -
3,121,779$ (16,071,266) $ (1,014,193) $ 5,763,221 $ 12,757,640 $ 9,088,640 $

0.07% 0.00% 0.00% 0.00% 0.00% 0.00%
Fiscal Year
163
Fiscal Year Taxable Total Direct
Ended June 30 Secured Unsecured Assessed Value Tax Rate 2014 16,296,788,989 888,670,895 17,185,459,884 0.137%
2015 17,047,541,092 900,737,944 17,948,279,036 0.132%
2016 18,044,868,280 923,910,674 18,968,778,954 0.136%
2017 18,745,544,867 820,730,838 19,566,275,705 0.136%
2018 19,781,317,411 816,774,617 20,598,092,028 0.138%
2019 20,805,169,196 864,502,376 21,669,671,572 0.136%
2020 21,855,913,285 988,437,454 22,844,350,739 0.135%
2021 22,722,807,195 923,182,436 23,645,989,631 0.137%
2022 23,683,281,478 1,099,996,267 24,783,277,745 0.138% 2023 25,668,360,217 963,478,200 26,631,838,417 0.135%
Notes:

Source: Orange County Auditor-Controller
http://acweb1.ocgov.com/ac/txfdr_Civica/av/AssessedValuations1_egov.asp?title=0280 Secured and Unsecured Assessed Value are net of exemptions. Total direct tax rate is calculated using total property tax collections within the fiscal year divided by the taxable assessed value.

In 1978 the voters of the State of California passed Proposition 13 which limited 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.

City

CITY OF ORANGE
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
164
Total for Primary
Government
Taxable Total Direct Total Direct
Secured Unsecured Assessed Value Tax Rate Tax Rate
- - - 0.000% 0.137%
---- 0.132%
---- 0.136%
---- 0.136%
---- 0.138%
---- 0.136%
---- 0.135%
---- 0.137%
---- 0.138%

0.135%
Former Redevelopment Agency
165
2023 2022 2021 2020
Basic levy 1.0000 1.0000 1.0000 1.0000
Overlapping Rates:

School Services:

North Orange County Community College District 0.02778 0.02877 0.0 3198 0.02409 No. OC Comm. College Dist. 2002 Bond - - - -
Rancho Santiago Community College District 0.04691 0.02652 0.02768 0.02818 Anaheim Elementary School District 0.04667 0.06321 0.06595 0.06595 Anaheim High School District 0.03016 0.03804 0.03971 0.03968 Santa Ana Unified School District 0.06976 - - -
Orange USD Series 2018 2016 0.01609 0.01656 0.01664 0.02288 Orange USD Elementary 2016 Series 2022 0.00946 - - -
Placentia Yorba Linda Unified - - - -
Tustin Unified School District SFID No. 2002-1 0.06647 0.06523 0.07102 0.06376 Garden Grove Unified 2010 Series A & B - - - -
Total School Services 0.3133 0.23833 0.25298 0.24454
Metropolitan Water District 0.0035 0.00350 0.0035 0.00350 Irvine Ranch Water District 0.050 01 0.05001 0.05001 0.06901 Total Direct Rate 1.36681 1.29184 1.30649 1.31705
Notes:

The above information is for the entire City, which includes the former Redevelopment Agency for fiscal years through 2012
Source: HdL Coren & Cone

CITY OF ORANGE
Direct and Overlapping Property Tax Rates
(Rate per $100 assessed value)
Last Ten Fiscal Years
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various bonds.

Fiscal Year
166
2019 2018 2017 2016 2015 2014

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

0.02828 0.02927 0.02885 0.03043 0.01704 0.01704

0.00001 - - - - -

0.02875 0.03013 0.04945 0.03063 0.05078 0.03334

0.05059 0.04502 0.04461 0.04227 0.02867 0.05848

0.04244 0.02211 0.04259 0.04948 0.02412 0.02620
- - 0.06377 - 0.06869 0.07359

0.02685 - - - - -
----- -
---- 0 .05822 0.06525

0.06687 0.06873 0.07001 0.07751 0.06955 0.08912
---- 0 .04148 0.03703

0.24379 0.19526 0.29928 0.23032 0.35855 0.40005

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.06901 0.06901 0.02803 0.02803 0.02803 0.05581

1.31630 1.26777 1.33081 1.26185 1.39008 1.45936
Fiscal Year
167
Percentage of (1) Percentage of
Taxable Total Taxable Taxable Total Taxable
Taxpayer Assessed Value Assessed Value Assessed Value Assessed Value Irvine Company LLC 171,995,527$ 0.65% 148,472,335 $ 0.86% Orange City Mills LP 241,542,461 * 0.91% 146,166,715 0.85% Children's Hospital of Orange County 461,674,605 1.73% 141,594,745 0.82% St Joseph Hospital of Orange 509,142,959 1.91% 139,118,932 0.81% City Tower Properties LLC 157,894,643 0.59% - 0.00%
Bex Portfolio Inc 142,190,336 0.53% - 0.00%
OC OET Owner LLC 125,327,850 * 0.47% - 0.00%
TPP-LPW Som Property LLC 120,202,754 0.45% - 0.00%
CRC Real Estate Corporation 107,471,978 0.40% - 0.00%
Mainstay Main Place LP 103,015,496 0.39% - 0.00%
Passco TVO-S LLC - 0.00% 117,697,869 0.68%
Bre Properties Inc - 0.00% 99,842,915 0.58%
DOF II City Tower LLC - 0.00% 69,199,884 0.40%
Wilshire Tower Apartments LLC - 0.00% 69,100,280 0.40%
3091 Chapman Ave Apts Investors - 0.00% 68,042,160 0.40% Orange County Realty Investors LLC - 0.00% 65,545,200 0.38% 2,140,458,609$ 8.04% 1,064,781,035 6.20%
(1) Includes assessed value data for both the City and the former Redevelopment Agency * Pending appeals on parcels
Source: HdL Coren & Cone
2023 2014

CITY OF ORANGE
Principal Property Taxpayers
Current Year and Nine Years Ago
168
Refunds
Fiscal Taxes Levied Collections of Prior Year
Year Ended for the Percent for Prior Collections/ Percent June 30 Fiscal Year Amount of Levy Fiscal Years Appeals Amount of Lev y 2014 42,528,174 23,525,755 55.32% 260,303 (180,204) 23,605,854 55.51% 2015 44,363,564 23,749,253 53.53% 218,294 (232,532) 23,735,015 53.50% 2016 45,251,635 25,697,372 56.79% 204,687 (154,193) 25,747,866 56.90% 2017 38,241,617 26,551,729 69.43% 194,368 (156,033) 26,590,064 69.53% 2018 40,644,711 28,338,995 69.72% 174,216 (112,829) 28,400,382 69.87% 2019 42,770,704 29,572,421 69.14% 170,111 (166,907) 29,575,625 69.15% 2020 44,635,001 30,747,643 68.89% 180,209 (101,066) 30,826,786 69.06% 2021 41,994,760 32,699,504 77.87% 243,898 (611,668) 32,331,734 76.99% 2022 48,623,035 34,141,966 70.22% 245,581 (142,219) 34,245,328 70.43% 2023 47,783,174 35,948,954 75.23% 252,228 (284,750) 35,916,432 75.17% Notes:
collection year.

Source: Orange County Auditor-Controller
Information not available from the County of Orange for delinquent taxes by levy year. Therefore, the City has opted to report delinquent taxes by

CITY OF ORANGE
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within
Fiscal Year of Levy within the Fiscal Year
Total Collections
169
Fiscal Pension Lease Total
Year Ended Obligation Revenue Loans Leases and Governmental June 30 Bonds Bonds Payable Subscriptions Activities
2014 - - - - -
2015 - - - - -
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - - - - -
2020 - - - - -
2021 265,478,776 34,159,604 - - 299,638,380
2022 258,348,004 29,410,000 303,679 150,573 288,212,256 2023 248,970,039 32,797,907 147,240 7,196,047 289,111,233 Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics for personal income. These ratios are calculated using city population times county per capita personal income for two years prior (e.g., 2012 amount is calculated using 2010 data).
2 Based on latest per capita income information available. See the Schedule of Demographic and Economic Statistics for population data.

Governmental Activities

CITY OF ORANGE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
170
Pension Total Total Percentage
Obligation Leases and Business-type Total Primary of Personal Debt Bonds Subscriptions Activities Government Income 1 Per Capita 2 ----- -
----- -
----- -
----- -
----- -
----- -
----- -
21,006,224 - 21,006,224 320,644,604 3.13% 2,334
20,441,996 - 20,441,996 308,654,252 2.77% 2,242
19,699,961 579,585 20,279,546 309,390,779 2.89% 2,225
Business-type Activities
171

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172
2022-23 Assessed Valuation: $26,631,838,417
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicab le (1) Debt 6/30/23 Metropolitan Water District 19,215,000$ 0.732% 140,654 $ Irvine Ranch Water District, Improvement District No. 125 162,186,374 0.891 1,445,081 Irvine Ranch Water District, Improvement District No. 225 236,495,176 0.009 21,285 Irvine Ranch Water District, Improvement District No. 153-253 18,657,730 0.052 9,702 North Orange County Joint Community College District 324,914,503 0.1250 406,143 Rancho Santiago Community College District 176,539,286 28.157 49,708,167 Rancho Santiago Community College District School Facilities Improvement District No. 1 149,820,000 0.002 2,996 Anaheim Union High School District 245,578,955 0.361 886,540 Anaheim School District 270,656,858 0.615 1,664,540
Tustin Unified School District School Facilities Improvement District No. 2002-1 40,350,000 0.052 20,982 Tustin Unified School District School Facilities Improvement District No. 2008-1 76,275,000 0.053 40,426 Tustin Unified School District School Facilities Improvement District No. 2012-1 51,825,000 0.038 19,694 Orange Unified School District 277,865,000 60.357 167,710,978 Orange Unified School District Community Facilities District No. 2005-1 5,315,000 100 5,315,000 Orange Unified School District Community Facilities District No. 2005-2 4,920,000 100 4,920,000 Santa Ana Unified School District 418,970,373 0.002 8,379 City of Orange Community Facilities District No. 91-2 16,293,000 100 16,293,000 City of Orange Community Facilities District No. 06-1 20,705,000 100 20,705,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 269,318,567
OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations 451,165,000 0 16,575,802 Orange County Board of Education Certificates of Participation 10,860,000 3.674 398,996 North Orange County Regional Occupation Program Certificates of Participation 7,790,000 0.129 10,049 Orange Unified School District Certificates of Participation and Benefit Obligations 71,515,618 60.357 43,164,682 Santa Ana Unified School District General Fund Obligations 46,436,043 0.002 929 Anaheim Union High School District Certificates of Participation 29,580,000 0.361 106,784 City of Orange General Fund Obligations 32,797,907 100 32,797,907 City of Orange Pension Obligation Bonds 268,670,000 100 268,670,00 0 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 361,725,149 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 27,010,000 100% 27,010,000 TOTAL DIRECT DEBT 301,467,907
TOTAL OVERLAPPING DEBT 356,585,809
COMBINED TOTAL DEBT $658,053,716 (2)
Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.01%
Total Direct Debt ($297,530,000) 1.12%
Combined Total Debt 2.46%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($5,668,131,638):

Total Overlapping Tax increment Debt 0.48%

CITY OF ORANGE
Direct and Overlapping Property Tax Rates
(Rate per $100 assessed value)
Last Ten Fiscal Years

2. Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

1. The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district'st o t a l taxable assessed value.
173
2023 2022 2021 2020
Assessed valuation 26,631,838,417$ 24,783,277,745 $ 23,645,989,631 $ 22,844,350,739$ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 6,657,959,604 6,195,819,436 5,911,497,408 5,711,087,685 Debt limit percentage 15% 15% 15% 15%
Debt limit 998,693,941 929,372,915 886,724,611 856,663,153 Legal debt margin 998,693,941$ 929,372,915$ 886,724,611$ 856,663,153$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Fiscal Year

CITY OF ORANGE
Legal Debt Margin Information
Last Ten Fiscal Years
174
2019 2018 2017 2016 2015 2014
21,669,671,572$ 20,598,092,028$ 19,566,275,705 $ 18,968,778,954 $ 17,948,279,036 $ 17,185,459,884$ 25% 25% 25% 25% 25% 25%
5,417,417,893 5,149,523,007 4,891,568,926 4,742,194,739 4,487,069,759 4,296,364,971 15% 15% 15% 15% 15% 15%
812,612,684 772,428,451 733,735,339 711,329,211 673,060,464 644,454,746 812,612,684$ 772,428,451 $ 733,735,339$ 711,329,211$ 673,060,464$ 644,454,746$

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
175
Fiscal Year Property Tax
Ended June 30 Increment Principal Interest Coverage
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
Debt Service
Tax Allocation Bonds

CITY OF ORANGE
Pledged-Revenue Coverage
Last Ten Fiscal Years
176
Personal Income
Fiscal Year (expressed Per Capita Public School Unemployment Ended June 30 Population 1, 5 in thousands) 2 Personal Income 2 Enrollment 3,6 Rate 4 2014 139,279 173,305,650 55,096 15,147 4.6%
2015 140,094 183,052,341 57,749 14,982 4.2%
2016 140,761 196,920,661 62,071 14,581 4.3%
2017 140,882 208,653,019 65,400 14,256 4.0%
2018 141,952 220,684,684 69,268 14,072 3.0%
2019 141,691 221,803,099 69,951 13,958 3.0%
2020 140,065 236,303,451 74,618 13,852 8.2%
2021 137,366 256,700,438 81,034 13,105 2.8%
2022 137,676 263,290,135 77,036 13,187 3.7%
2023 139,063 * * 12,850 *
Sources:
1 State of California, Department of Finance
2 U.S. Department of Commerce, Bureau of Economic Analysis (data shown is for the County) 3 Orange Unified School District region
4 State of California, Employment Development Department 5 In fiscal year 2015-16, information was revised to improve accuracy 6 In fiscal year 2019-20, enrollment data is from February 2020 due to school closure from March through June 2020 due to COVID-19.
* Not available at time of printing

CITY OF ORANGE
Demographic and Economic Statistics
Last Ten Fiscal Years
177
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
UCI Medical Center 4,995 6.94% 4,000 5.75%
CHOC Children's Hospital 3,938 5.47% 2,400 3.45%
St. Joseph Hospital of Orange 3,500 4.86% 4,850 (1) 6.97% Chapman University 1,300 1.81% 800 1.15%
Santiago Canyon College 950 1.32% 490 0.70%
CalOptima Health Plans 930 1.29% 575 0.83%
City of Orange 800 1.11% 766 1.10%
Chapman Integrated Healthcare Holdings 700 0.97% - -
Orange County Transportation Authority 500 0.69% - -
Hilton Hotel Fera 477 0.66% - -
National Oilwell Varco-Rig Solutions - - 900 1.29%
Sybron Dental Specialists - - 610 0.88%
California Choice - - 490 0.70%
Notes:
1 Incudes Outpatient Pavilion
Source: Inside Prospects, Inc. and State of California EDD "Total Employment" as used above represents the total employment of all employers located within City limits. 2023 2014

CITY OF ORANGE
Principal Employers
Current Year and Nine Years Ago
178
2023 2022 2021 2020 2019 2018* 2017* 2016* 2015* 2014*
Governmental Activities:

General Government (2) 71 55 60 59 61 71 72 72 75 75
Public Safety 414 407 386 388 386 410 412 412 412 412
78 87 73 71 66 68 67 67 67 74
Community Development 25 24 33 33 32 36 36 36 36 36
Parks and Library 106 113 105 105 106 109 109 111 109 107 Economic Development 1 1 1 1 3 - - - - -
Sanitation (1) - - - - - - - - 21 15
Subtotal governmental activities 695 687 658 657 654 694 696 698 720 719 Business-Type Activities:

W a t e r 4 6 4 65 15 1 5 34 54 54 54 5 44
Sanitation (1) 22 18 18 18 22 21 21 21
Subtotal business-type activities 68 64 69 69 75 66 66 66 45 44 Total activities 763 751 727 726 729 760 762 764 765 763 * Includes budgeted but frozen positions
(1) In fiscal year 2015-16, the Sanitation fund was reclassified as a Business-Type Activity (2) In fiscal year 2018-19, Information Technology transferred from contract to in-house Source: City of Orange
Last Ten Fiscal Years
Function
Public Works

CITY OF ORANGE
Full-Time Equivalents
by Function
Full-Time Equivalents as of June 30
179
2023 2022 2021 2020
City Attorney:

Number of claims/cases handled 467 453 234 413
Number of resolutions/ordinances/agreements 315 342 396 312 City Clerk:

Number of passports processed (1, 3) 1,000 1,634 1,106 1,726 Number of documents scanned (4) - - 2,423 5,890
Number of public records requested (4) 810 1,203 669 439 Finance:

Number of business licenses issued 20,385 20,678 20,849 20,771 Number of water accounts billed 35,513 35,492 36,508 36,456 Human Resources:

Number of recruitments held 128 123 83 68
Number of applications processed 7,851 7,622 7,051 5,725 Library:

Number of items checked out (2, 5) 602,683 462,847 266,537 402,449 Number of library cards issued (5) 6,664 5,354 61,107 60,209 Number of patrons/visitors 258,478 217,211 76,152 339,659 Fire:

Number of calls:

Medical 14,467 13,014 11,789 13,426
Fire 806 845 729 709
Other 2,457 2,496 2,291 2,348
Number of inspections performed 5,949 4,864 3,421 4,004 Police:

Number of calls for service 94,091 91,179 88,853 92,730 Number of arrests 5,335 5,339 5,715 4,589
Public Works:

Lane miles of streets resurfaced 30 27 22 22
Miles of streets swept 40,872 39,664 39,664 39,664
Water Division:

Number of active water connections 36,536 36,508 36,508 36,485 Million gallons of daily average distribution 20 24 24 24 Sanitation Division:

Number of active sewer connections 33,667 33,667 33,662 33,647 1,983 1,985 1,985 1,985
Community Development:

Number of permits issued 4,151 3,676 3,576 3,406
Combined construction valuation 408,001,641$ 192,982,847$ 158,963,749$ 174,844,204$ Community Services:

Number of contract classes held (3) 521 611 278 863
Total participants at all activities/events (3) 804,521 878,457 32,039 622,373 Notes:
3 In 2019-20 and 2020-21, passports issued and classes/activities held were reduced due to COVID-19 4 Effective in 2020-21 we have revised our operating indicators to include public records requested, rather than documents scanned. The public records information was not avai lable for years prior to 2017-18. 5 Source: City of Orange

CITY OF ORANGE
Operating Indicators by Department
Last Ten Fiscal Years
In Fiscal Year 2021-22, information was revised to improve accuracy. 2 In Fiscal Year 2016-17, information was revised to improve accuracy.

Number of catch basins inspected
1 In Fiscal Year 2015-16, information was revised to improve accuracy.

Fiscal Year
180
2019 2018 2017 2016 2015 2014
534 414 428 441 486 790
292 288 240 288 269 367
2,686 2,611 3,183 2,669 1,837 1,530
7,168 4,658 2,544 2,184 2,220 2,810
374 230 N/A N/A N/A N/A
20,659 20,659 20,487 20,721 20,190 19,991
36,490 35,216 35,388 35,380 35,174 35,166
100 81 87 60 60 52
10,744 7,193 7,590 8,968 6,717 9,881
418,033 536,202 541,270 616,388 643,791 688,716
56,992 55,644 57,078 59,162 59,316 60,063
422,142 413,582 426,861 469,700 502,276 534,686
12,592 12,463 12,048 12,327 9,416 9,051
692 688 664 622 355 365
2,218 2,457 2,336 3,022 1,843 1,813
5,612 4,999 6,868 6,866 5,970 5,518
108,371 109,192 100,876 99,728 103,793 98,148
5,353 5,667 4,568 4,771 4,683 4,558
23 24 37 35 28 26
39,664 37,617 40,766 39,850 40,180 32,219
36,435 36,431 36,391 36,372 36,347 36,332
24 25 23 21 26 29
33,950 33,956 33,951 33,950 33,943 33,513
1,985 1,910 1,983 1,983 1,952 1,970 3,396 3,552 4,229 4,153 3,803 3,497
156,630,767$ 132,814,044$ 114,940,690 $ 235,315,312 $ 106,328,212 $ 163,884,728$ 1,201 1,188 1,044 1,148 1,212 1,864
1,000,000 1,060,872 1,060,893 918,805 934,188 909,192
Fiscal Year
181
2023 2022 2021 2020
Library:

Number of libraries 3 3 3 3
Number of books & other items held 1
170,539 168,012 202,641 192,927
Fire:

Number of fire stations 8 8 8 8
Number of vehicles in fleet 62 62 62 59
Police:

Number of stations/sub-stations 2 2 2 2
Number of vehicles in fleet 136 133 131 132
Public Works:

Streets (in miles) 322 324 324 324
Number of streetlights 7,842 7,842 7,842 7,836
Number of traffic signals 158 158 158 157
Number of street trees 23,000 20,000 20,000 19,716
Water Division:

Number of wells 12 12 12 12
Water mains (in miles) 462 445 445 446
Number of hydrants 4,475 4,434 4,431 4,450
Sanitation Division:

Miles of sewer lines/storm drains 422 422 422 422
Facilities Maintenance Division:

Number of city buildings owned 82 82 82 82
Square feet of city buildings 2
533,384 533,384 533,384 533,384
Number of other city vehicles 270 277 275 275
Community Services:

Number of parks 22 22 22 22
Acres of parkland 1
267 267 267 260
Number of community pools 2 2 2 2
Notes:
2 In Fiscal Year 2017, information was revised to improve accuracy. 1 In Fiscal Years 2021, 2019 and 2014, information was revised to improve accuracy.

Fiscal Year

CITY OF ORANGE
Capital Asset Statistics by Department
Last Ten Fiscal Years
182
2019 2018 2017 2016 2015 2014
33333 3
196,198 218,688 231,715 223,161 212,373 209,128
88888 8
58 58 58 58 58 57
22222 2
133 132 132 132 132 128
324 324 324 331 328 328
7,836 7,836 3,182 3,182 3,125 2,926
157 157 157 157 157 156
22,000 22,000 22,000 22,000 20,430 19,728
12 12 14 17 16 16
446 462 462 452 452 452
4,439 4,434 4,389 4,417 4,410 4,413
436 436 436 436 436 436
82 82 82 82 82 82
533,384 512,000 512,000 529,995 529,995 529,995
274 272 271 271 236 241
22 22 22 22 22 22
260 258 258 258 258 258
22222 2
Fiscal Year
183
184

Orange City CouncilMay 14, 2024

Orange City Council
May 14, 2024