ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
CITY OF ORANGE, CALIFORNIA
P r e p a r e d b y :
F i n a n c e D e p a r t m e n t
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
City of Orange
California
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK
Kathy Tavoularis
Councilmember
District 3
Dan Slater
Mayor
John Gyllenhammer
Councilmember
District 6
Ana Gutierrez
Councilmember
District 5
Denis Bilodeau
Mayor pro tem
District 4
Arianna Barrios
Councilmember
District 1
Jon Dumitru
Councilmember
District 2
Garrett Smith
City Treasurer
Pamela Coleman
City Clerk
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK
CITY OF ORANGE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
INTR
ODUCTORY SECTION:
Letter of Transmittal ........................................................................................................................................ i Organization Chart .............................................................................................................................................. vi Elected Positions and Admi nistrative Personnel ............................................................................................... vii 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 .................................................................................................................... 23 Statement of Activities .......................................................................................................................... 24 Fund Financial Statements:
Governmental Funds:
Balance Sheet ............................................................................................................................... 30 Reconciliation of the Balance Sheet of Governmental Funds to th e Statement of Net Position .............................................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balance s ..................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activit ies ................... 37 Proprietary Funds:
Statement of Net Position .............................................................................................................. 38 Statement of Revenues, Expenses and Changes in Net Position ... ........................................... 39 Statement of Cash Flows .............................................................................................................. 40 Fiduciary Funds:
Statement of Fiduciary Net Position ........................... .................................................................. 42 Statement of Changes in Fiduciary Net Position .......................................................................... 43 Notes to the Basic Financial Statements .................................................................................................... 49 Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - General Fund ............................................................................................................. 91 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Measure M ................................................................................................................. 92 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Federal, State & Local Grants .................................................................................... 93 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - SB2- Building Homes and Jobs Act .......................................................................... 94 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Housing Successor .................................................................................................... 95
CITY OF ORANGE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
OPEB Plan
Schedule of Changes in Total OPEB Liability and Related Ratios ..................................................... 96
Pension Plan
Miscellaneous Plan:
Schedule of Changes in the Net P ension Liability and Related Ra tios ....................................... 98 Safety Plan:
Schedule of Changes in the Net Pension Liability and Related Ra tios ..................................... 100 Schedule of Plan Contributions ......................................................................................................... 102
Notes to Required Supplem entary Information ....................................................................................... 103
Supplementary Schedules:
Non-Major Governmental Funds:
Combining Balance Sheet ................................................................................................................. 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................................... 114
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Non-major Special Revenue Funds:
Proposition 172 ................................................................................................................................... 119 EMT Transport ................................................................................................................................... 120 1% PEG Program ............................................................................................................................... 121 Certified Access Specialist Progr am (CASP) Certification & Trai ning ............................................. 122 Headstart Building Maintenance ........................................................................................................ 123 Air Pollution Reduction ...................................................................................................................... 124 Gas Tax .............................................................................................................................................. 125 Road Maintenance Rehabilit ation Account (RMRA) ................ ........................................................ 126 Transportation System Improvement Program (TSIP) .............. ....................................................... 127 Landscape Maintenance As sessment Districts ................................................................................ 128 Asset Seizure ..................................................................................................................................... 129 Housing in-Lieu .................................................................................................................................. 130 Opioid Settlement Fund ...................................................................................................................... 131
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Capital Projects and Debt Service Funds:
Capital Improvement .......................................................................................................................... 134 Park Acquisition, Development and Maintenance ............................................................................. 135 Fire Facilities Fees ............................................................................................................................. 136 Police Facilities Fees ......................................................................................................................... 137 Library Facilities Fees ........................................................................................................................ 138 Debt Service Fund .............................................................................................................................. 139
CITY OF ORANGE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
Internal Service Funds:
Combining Statement of Net Position ................................................................................................ 142 Combining Statement of Revenues, Expenses and Changes in Net Po sition ................................... 144 Combining Statement of Cash Flows ................................................................................................. 146
STATISTICAL SECTION:
Net Position by Component - Last Ten Fiscal Years ............. ........................................................................ 152 Changes in Net Position - Governmental Activities - Last Ten Fi scal Years ................................................ 154 Changes in Net Position - Business-type Activities - Last Ten F iscal Years ................................................ 156 General Governmental Tax Revenues by Source ........................................................................................... 159 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 Sales Tax Producers - Current Year and Nine Years Ago .............................................................. 168 Principal Property Taxpayers .......................................................................................................................... 169 Property Tax Levies and Collections - Last Ten Fiscal Years ... .................................................................... 170 Ratios of Outstanding Debt by Ty pe - Last Ten Fiscal Years ........................................................................ 171 Direct and Overlapping Property T ax Rate - Last Ten Fiscal Years .............................................................. 173 Legal Debt Margin Information - Last Ten Fiscal Years ................................................................................ 174 Demographic and Economic Statistics - Last Ten Fiscal Years ... ................................................................. 176 Principal Employers - Current Year and Nine Years Ago .............................................................................. 177 Full-Time Equivalents by Function - Last Ten Fiscal Years ..... ..................................................................... 179 Operating Indicators by Department - Last Ten Fiscal Years ........................................................................ 180 Capital Asset Statistics by Dep artment - Last Ten Fiscal Years ................................................................... 182
INTRTT ODUCTOTT RY SECTITT ON
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK
January 26, 2026
Honorable Mayor, Members of the City Council, City Manager, and Residents of the City of Orange, California:
The Annual Comprehensive Financial Report (ACFR) of the City of Orange (City) for the fiscal year ended June 30, 2025, is hereby submitted. These statements have been prepared in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.
The report consists of management’s representations concerning the finances of the City.
Management assumes full responsibility for the accuracy, completeness, and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that have been established for this purpose. Because the cost of internal controls should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the City of Orange. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have also been included.
The City’s financial statements have been audited by LSL, LLP, an independent public accounting firm. The auditors have issued an unmodified opinion on the City’s financial statements for the year ended June 30, 2025. Their report is included at the front of the financial section of this re- port.
The
Management Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE CITY OF ORANGE
The City of Orange, with a present population estimated at 139,724, is situated in central Orange County, approximately 32 miles southeast of Los Angeles. The City’s land area is 24 square miles. Its planning area or "sphere of influence" is 62 square miles. i
The City was incorporated in 1888 under the general laws of the State of California. Under a council-manager form of government, a mayor is elected every two years and, beginning with the November 2020 election, six council members are elected by district to four-year terms alternating on a two-year basis. The City Manager, who is the administrative official of the City, is appointed by the City Council. The City Manager is responsible for implementing policies and ordinances approved by the City Council, overseeing the day-to-day operations of the City, and appointing the heads of the various City departments.
The City provides a full range of services for its citizens. These services include police, fire, paramedic, emergency transportation, library, recreation and parks, senior services, planning and development, street improvements and lighting, and general administration. The City also operates a water utility and contracts for refuse collection services. In addition, the City provides aid to its citizens in the form of residential and commercial rehabilitation loans and economic development.
The former Orange Redevelopment Agency was a component unit of the City until the implementation of AB IX 26, which dissolved California Redevelopment Agencies effective January 31, 2012 (dissolution date). All funds remaining as of that date were transferred to the Successor Agency public trust fund. The City, per Resolution No. 10625, is the Successor Agency to the former Redevelopment Agency. The Successor Agency’s (City Council) approvals are subject to review and confirmation by the Oversight Board (OB) and State Department of Finance (DOF). All transactions effective from the dissolution date and through the “wind- down” period, will be reported in the Successor Agency trust fund.
The annual budget is adopted by July 1 st for all funds of the City on a basis consistent with generally accepted accounting principles. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. City staff is responsible for monitoring the appropriated budgets for all funds.
The budget is prepared by funds, department (e.g. police), and activity (e.g. patrol). Transfers of appropriations between funds, between departments within a fund, and between capital outlay or debt service and another object group classification within a department, require City Council approval. All other transfers of appropriations can be made with City management approval.
LOCAL ECONOMY
The City of Orange, located in the heart of Southern California, boasts a vibrant and diverse economy. With a strategic location in Orange County, Orange offers easy access to major highways, airports, and ports, making it an ideal place for businesses of all sizes and sectors.
Orange is home to several institutions, including UCI Irvine Healthcare, Children’s Hospital of Orange County (CHOC) Children’s Hospital, St. Joseph Hospital, and Chapman University, providing numerous employment opportunities. The City also features a dynamic retail and ii
automotive market, attracting both local and international businesses. The city's healthcare sector is a significant contributor to the local economy. This concentration of medical facilities supports further healthcare development, as well as retail, dining, and housing development. Old Towne Orange is a hub of antique and collectibles dealers, specialty shops, art galleries, and restaurants.
The local economy in the City of Orange has seen a modest improvement. The City’s General Fund revenues, which include sales tax, property tax, transient occupancy tax, licenses and permits, and fees for services, ended the 2024-25 fiscal year with an overall increase of $14 million, or 9.7%, compared to fiscal year 2023-24.
The top two sources of revenue for the City are sales tax and property tax. Property tax revenue increased by $3.1 million, or 5.54%, over FY 2023-24, due to increased assessed property values related to the annual inflation adjustment and due to changes in ownership and price appreciation.
The City’s sales tax base is primarily generated from three industry groups: fuel and service stations, autos and transportation, and general consumer goods. The City experienced $1.2 million decrease in revenue or -2.3% compared to the prior year. This was primarily due to fluctuating fuel prices that continue to lag behind FY 2024 resulting om a decline in overall revenue from fuel and service stations. Additionally, general consumer goods reported sluggish sales as consumer spending shifted focus to services and value. Business closures also had a negative impact on receipts from food and drugs. Overall, economic factors such as interest rates, inflation, and consumer spending patterns continue to influence sales tax revenue, with the Federal Reserve’s actions noted as a key factor affecting future revenue growth. The ongoing uncertainty due to high inflation and interest rates will continue to impact the City’s revenue sources.
FINANCIAL POLICIES
In August 2025, the City Council adopted Resolution No. 11628, establishing a Financial Management Policy. These policies were adopted to establish adequate reserves to continue to meet its financial obligations in the event of economic uncertainty, catastrophes, or other unforeseen circumstances; and to establish a method to proactively manage future unfunded pension liabilities.
In the General Fund, this policy provides for a year-end commitment of fund balance of a minimum of 16.6% of annual General Fund expenditures. In addition, it provides for a year-end assignment of fund balance equal to the carryover of encumbered and unencumbered appropriations and the fund balances of certain funds within the General Fund reporting group.
LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES
Pursuant to the California Public Employees’ Pension Reform Act of 2013 (PEPRA) and related statutory changes, the City implemented a two-tiered retirement system with the California Public iii
Employees Retirement System (CalPERS). This system provides for a second tier of reduced retirement benefits, effective for employees hired after January 1, 2013 who are also new to CalPERS. It includes a retirement benefit of 2% at 62 for miscellaneous employees and 2.7% at 57 for safety employees, and requires employee contribution rates of 6.75% and 12%, respectively.
Over the long term, this reduced benefit tier is designed to decrease retirement costs for the City.
As of the July 2025 CalPERS Annual Valuation Report, there are 400 of the City’s 676 active employees (59.1%) at this lower tier of retirement benefits.
Sales Tax Sharing Program: In May 2013, the City Council adopted Ordinance No. 4-13 establishing a Sales Tax Sharing Program as a new economic development incentive to promote business growth and job creation, and to enhance the economic base through increased sales tax revenue in the City of Orange. Under the Sales Tax Sharing Program, the City may enter into a Participation Agreement with the owners of existing or new local businesses that generate sales tax revenue to provide for economic development incentives. Currently, the City has Participation Agreements with one entity.
Providing for Internal Service Funding (ISF): The City maintains several Internal Service Funds (ISFs), which are replenished by annual charges or transfers from the General Fund. ISF allocations include funding for General Liability, Workers Compensation, the Employee Accrued Liability Fund (see below), Equipment Maintenance, Equipment Replacement, Information Systems, and Computer Replacement Funds. These funds are critical for the replacement and maintenance of the City’s aging equipment and vehicles. It is also used to fund Workers’ Compensation claims, litigation settlements, and insurance premiums. The City strives to maintain adequate reserves for these funds and staff will continue to put forth recommendations for fully funding these reserves into the future.
Retirement Cost Increases and Pension Obligation Bond Issuance: As part of their plan to fully fund all retirement plans within 30 years, CalPERS established a plan to dramatically increase contribution rates over a five-year period, beginning in FY 2015-16. In addition, changes in actuarial assumptions based on life expectancy have increased retirement costs for all agencies. In FY 2012-13, City Council established a contingency reserve in the Employee Accrued Liability Fund which set-aside monies to be used to offset future retirement costs. $1.5 million has been set aside as of June 30, 2025. The current fund balance is $1.5 million, the reduction in fund balance reflecting higher leave payouts associated with employee retirements and separations, as well as increased employer contributions to CalPERS. Fiscal year 2025 was the first year since issuance of the Pension Obligation Bond that additional payments were required to be made toward the unfunded pension liability.
On March 15, 2021, the City successfully issued 2.7% Pension Obligation Bonds (POBs), in the amount of $286.5 million, to effectively refinance the City’s Unfunded Accrued Liability (UAL) with CalPERS as of that date. The UAL represented ongoing expenditures with a 7% iv
interest/discount rate, coupled with increasing annual contributions to reduce the overall balance.
The balance of the outstanding bonds as of June 30, 2025 is $246,289,999.
ACKNOWLEDGEMENTS
The preparation of the ACFR was accomplished through the ongoing dedication and cooperation of the Finance Department staff and the City’s independent auditors, LSL, LLP. Special appreciation is extended to the Accounting division staff who contributed to and participated in the coordination and preparation of the ACFR. Additionally, we appreciate the assistance and support from the City departments in planning and conducting the financial operations of the City during this fiscal year, as well as the Mayor and Councilmembers for their steadfast support for maintaining the highest standards of professionalism in the management of the City's finances.
Respectfully submitted,
Trang Nguyen
Finance Director
v
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK
CITY OF ORANGE
Organization Chart at June 30, 202
CITIZENS OF ORANGE
City Clerk
City Attorney City Manager
Assistant City Manager Fire Department
Community Services
Department
Human Resources
Department
Police Department Finance Department
Commissions &
Committees
City Treasurer
ix
Dan
Slater, Mayor
'HQLV %LORGHDX, Mayor pro tem
$ULDQQD %DUULRV, Councilmember
Jon Dimitru, Councilmember
Kathy Tavoularis, Councilmember
Ana Gutierrez, Councilmember
John Gyllenhammer, Councilmember
Community Development
Department
Library Services
Department
Public Works
Department
Information Technology
Department
vi
AT JUNE 30, 2025
ELECTED POSITIONS
ADMINISTRATIVE PERSONNEL
Da
n Slater.…………...…………………………………………….…......................................……………Mayor Denis Bilodeau..……………...……………………………...........................……..….........Mayor Pro Tem Arianna Barrios………………………………………….......................………Council Member District 1 Jon Dumitru.…………………………………………........................………….Council Member District 2 Kathy Tavoularis.………………………......................……………………….Council Member District 3 Ana Gutierrez.……………………………………….......................…………..Council Member District 5 John Gyllenhammer.…………………………………....................…………Council Member District 6 Garrett Smith.......………..……………………………………..…...........................……..….City Treasurer Pamela Coleman………………....…………………………………………...............................…...City Clerk Tom Kisela……...................................…………………………………….………………………City Manager M
ike Viglitotta………………………………………………………...............................…….….City Attorney Trang Nguyen...………………..…….…………...........................………………………...Finance Director Leslie Hardy......……...………………….......Community Services and Library Services Director Adam Jevec.……………………...…………………..…………...……................................………Police Chief Christopher Cash.………………….…...…………...................…..…..……........Public Works Director Sean Demetropolis...………………..…….…………..….…..........................……………………..Fire Chief Russell Bunim………..……..……………………….................….Community Development Director Monica Espinoza…………………………………...................………….…..Human Resources Director vii
FIFF NANN NCICC AII L SECTITT ON
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK
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 o f the City of Orange, California, (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our 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, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial 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 22 to the financial statements, in 2025, t he City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including 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
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted 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 information, and required pe nsion and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operat ional, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assuran ce 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 purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic 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 auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 26, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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.
Irvine, California
January 26, 2026
3 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 4 MAMM NANN GEMEE ENEE T’TT S’ DISCUSSION & ANANN LYSYY IS 5 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 6 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Orange, we present this Management’s Discussion and Analysis (MD&A) to provide readers with a narrative overview and analysis of th e City’s financial activities for the fiscal year ended June 30, 2025. This discussion is intended to assist readers in understanding the City’s financial position, results of operations, and changes in financial condition. The MD&A should be read in conjunction with the City’s basic financial statements, notes to the financial statements, and the letter of transmittal, which can be found on pages i–v of this report.
Overall, the City experienced relatively flat revenue growth du ring fiscal year 2025 and maintained a stable financial position despite inflationary pressures and rising pension-related costs.
Financial Highlights
• At June 30, 2025, the City’s assets and deferred outflows exceeded liabilities and deferred inflows by $704.6 million, net position. Of this amount, $556.6 million or 79.0% is attributable to governmental activities and $148.0 million or 21.0% to business-type activities.
• Governmental activities reported a net position of $556.6 milli on, a decrease of $14.0 million, or -2.4%, from the prior year. The decrease reflects expenditure growth exceeding revenue growth.
• Unrestricted net position for governmental activities declined by $30.5 million to a negative $224.6 million, primarily due to pension-related liabilities and other long-term obligations.
• Business-type activities ended the year with a net position of $148.0 million, of which approximately 89.4% is invested in capital assets.
• General Fund revenues totaled $158.4 million, representing 99.4% of the final amended budget.
Property tax revenues exceeded projections, partially offset by declines in sales and use taxes.
• General Fund expenditures totaled $161.2 million, or 94.7% of the final amended budget, resulting in $9.1 million of unspent appropriations due primarily to staff vacancies, delayed expenditures, and the timing of grant- and donation-funded activities.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s basic financial state ments consist of (1) government-wide financial statements, (2) fund financial statements, (3) notes to the financial statements, and (4) other information such as supplemental information and statistical sec tion. Together, these statements provide both long-term and short-term perspectives of the City’s financial position and accountability.
Government-wide Financial Statements
The government-wide financial statements present a broad overvi ew of the City’s financial position in a manner similar to a private-sector business. These statements are prepared using the full accrual basis of accounting, which recognizes revenues when earned and expenses when incurred.
7 The Statement of Net Position presents information on all of th e City’s assets and de ferred outflows of resources, as well as liabilities and deferred inflows of resources. The difference between these elements is reported as net position.
The Statement of Activities presents information showing how the City’s net position changed during the fiscal year. This statement demonstrates the extent to which go vernmental functions are supported by program revenues versus general revenues. Public Safety continued to represent the largest governmental function, accounting for approximately 58.8% of total governmental expenses.
Governmental activities are pr imarily supported by taxes and intergovernmental revenues, while business-type activities are supported largely by user fees and charges. During fiscal year 2025, governmental activities accounted for approximately 77.3% of total City revenues.
Fund Financial Statements
Fund financial statements provide detailed information about th e City’s funds. A fund is a grouping of related accounts used to maintain control over resources segregated for specific purposes. The City uses fund accounting to demonstrate compliance with finance-related legal requirements.
Governmental Funds (General Fund, Special Revenue, Debt Service and Capital Projects Funds) are used to account for the same functions reported as G overnmental Activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Fund Financial Statements focus on short-term inflows and outflows of spendable resources. These fun ds are reported using the mod ified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. This information is useful in evaluating the City’s s hort-term financing requirements.
The focus of the Fund Financial Statements is narrower than that of the Government-wide Financial Statements. The govern mental fund Balance Sheets and t h e S t a t e m e n t o f Revenues, Expenditures, and Changes in Fund Balance, require a reconciliation to facilitate the comparison between the Fund Statements and the 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 modified accrual basis of accounting. The se reconciliations can be foun d in the Fund Financial Statements on pages 33 and 37.
Proprietary Funds are Enterprise and Internal Service Funds. The City uses Enter prise Funds for financial information reported as business-type activities in the government-wide statements, to account for its Water Utility and Sanitation services. Internal Service Funds are used to accumulate and allocate costs internally to various functions. The City uses Internal Service Funds to allocate equipmen t expenses, equipmen t replacements, major building improvements, information systems, computer replacemen ts, employee accrued liability, and workers’ compensation, general liability and dental self-insurance costs.
All the Internal Service Funds a re combined into a single, aggr egated 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 142-147. 8 Fiduciary Funds ( Custodial and Private-Purpose T rust 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 acts as an agent for debt service activity.
The Fiduciary Fund resources are not available to support City programs. Fiduciary Funds are reported in Fiduciary Fund Statements of the basic Financia l 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 accompanying notes, this report also presents certain Supplementary Information such as Budgetary Comparison Schedules for the General Fund and all Major Special Revenue Funds, Schedules of Changes in the Net 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, Cap ital Projects Funds, and Combining Non-Major Statements are provided (Supplementary Schedules). T he Statistical Section provides users with statistical information covering five categories, includin g financial trends, revenue capacity, debt capacity, demographic and economic information, and operating information.
GOVERNMENT-WIDE FINANCIAL HIGHLIGHTS AND ANALYSIS
Governmental Activities
At June 30, 2025, governmental activities reported net position of $556.6 million, a decrease of $14.0 million, or -2.4%, from the prior year. Total assets incr eased by $2.4 million, primarily due to increases in long-term receivables. Total liabilities decreased by $31.0 million, largely attributable to reductions in certain long-term obligations.
Despite the decrease in net position, the City continued to mee t its current obliga tions and maintain adequate liquidity.
Unrestricted net position declined from a negative $194.1 million to a negative $224.6 million, an increase in the deficit of $30.5 million, or 15.7%. This negative balanc e is primarily attri butable to long-term liabilities, including pension obligation bonds, net pension li abilities, claims liabilities, leases and subscription obligations, and compensated absences.
The City’s unrestricted net position has been negative since fiscal year 2014–15, following implementation of GASB Statement No. 68 related to pension liability reporting.
Restricted net position increased by $6.3 million, or 9.4%, ref lecting growth in resources restricted by external parties or enabling legislation.
9 Business Type Activities
Business-type activities reported net position of $148.0 millio n at June 30, 2025. Approximately $132.3 million is invested in capital assets, while $15.7 million remains unrestricted. Total assets increased by $3.4 million, primarily due to increases in cash, investment s, and capital assets. Total liabilities increased by $0.7 million, largely due to increase in accounts payable.
GOVERNMENTAL FUND HIGHLIGHTS AND ANALYSIS
Governmental fund revenues totaled $215.2 million for the fisca l year ended June 30, 2025, an decrease of $1.7 million, or -0.8%, from th e prior year. Major revenue s ources included property taxes of $58.7 million, sales and use taxes of $50.7 million, and charges for services of $43.2 million.
Governmental fund expenditures totaled $224.6 million, an increase of $20.6 million, or 10.1%, compared to the prior year. Public Safety remained the largest expenditure category, accounting for approximately
58.8% of total governmental fund expenditures.
Governmental Fund Revenues:
The graph on the next page shows a summary of Governmental Fund revenue by source which includes the taxes, charges for services, use of money and property, and other revenues that are used to provide services to the community.
2025 2024 2025 2024 2025 2024
ASSETS
Current and Other Assets 187,652 191,015 54,802 50,587 242,454 241,602 Capital Assets 742,367 7 36,639 1 32,736 1 33,580 8 75,104 870,219 Total Assets 930,019 927,654 187,538 184,167 1,117,557 1,111,821 Deferred Outflows of Resources 49,171 92,627 4,246 7,835 53,417 100,462
LIABILITIES
Current Liabilities 17,720 22,643 11,104 8,473 28,824 31,116 Non-current Liabilities 385,615
4 11,695 3 0,028 3 1,972 4 15,643 443,667 Total Liabilities 403,335 434,338 41,132 40,445 444,467 474,783 Deferred Inflows of Resources 19,255 15,385 2,685 3,219 21,940 18,604
NET POSITION
Net Investment Capital Assets 708,071 697,804 132,265 132,978 840,336 830,782 Restricted 73,170 66,863 - - 73,170 66,863 Unrestricted (224,641)
(194,108) 1 5,702 1 5,360 (208,940) (178,748) Total Net Position 556,600 5 70,558 1 47,967 1 48,339 7 04,567 718,897 Governmental Activities Business-Type Activities Total
City of Orange
Summary of Net Position
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
10 Revenues in the governmental fund decreased by $1.7 million, or -0.8%. Some of the major changes in governmental fund revenue are:
• Charges for services increased by $9.9 million or 29.7% • Operating grants decreased by $1.3 million or -17.9%
• Use of money and property increased by $16.7 million or 229.3%
Governmental Fund Expenditures:
The graph below shows a summary of Governmental Fund type expenditures which includes the various departments, such as Public Safety, Public Works, Parks and Library and General Government (e.g. City Manager, City Clerk, Finance, Human Resources, Information Technology, etc.).
Governmental fund expenditures totaled $224.6 million, an incre ase of 20.6 million, or 10.1%, from the prior year. Public Safety continued to represent the largest expenditure category, accounting for approximately 58.0% of total governmental fund expenditures.
Approximately $193.0 million or 86.0% of the governmental activ ities are direct services to the community:
• $132.1 million of 58.8% is used for Public Safety
• $30.5 million or 13.6% is used for Public Works
• $19.1 million or 8.5% is used for Parks and Library
• $11.3 million or 5.1% is used for Community Development
Charges for
Services
20%
Property Taxes
27%
Sales and Use
Tax
24%
Other Taxes
6%
Use of Money
and Property
11%
Other Revenues
12%
Governmental Fund Revenue by Source
11 The General Fund expenditures underspent budget by almost $9.1 million, or 94.7% of the final budget.
The unspent budget is a combination of vacancies throughout the city, unpaid commitments, and a combination of unspent donations and grants received during the year.
Overall, governmental activities increased by $20.7 million, or 10.1% compared to the prior fiscal year.
Below are the highlighted changes in governmental activities:
• General government increased by $7.4 million or 44.1%. This increase is from the consolidation of certain Internal Service Funds such as Equipment Replacement, Major Building Improvements, Self Insurance Dental, and Information Systems Operations to the General Fund. • Community Development increased by $3.6 million or 47.4%. The increase is mainly from activities with grants received from the California Department of Housing and Community Development and the U.S. Department of Housing and Urban Development. • Parks and Library decreased by $3.1 million or -14.1% from the elimination of special events and programs and the reduction in library services hours.
General
Government
11%
Public Safety
59%
Public Works
14%
Community
Development
5% Parks & Library
8%
Economic
Development
0%
Debt Services
3%
Governmental Fund Expenditures by Category
12 The City closed FY 2024-25 with a negative change in the net po sition of -$9.4 million compared to the $13.0 million in the prior year. This change was driven by the decrease in revenues of $1.7 million and an increase of $20.7 million in expenditure. The negative change in net position indicates the City’s continued challenge to keep pace with operating costs and positioning the City to rebuild reserves.
Amount
Increase
REVENUES: 2025 2024 (Decrease)
Program Revenues:
Charges for Services 43,188 33,304 9,884 Operating Grants and Contributions 5,967 7,266 (1,299) Capital Grants and Contributions 14,890 15,249 (359) General Revenues:
Taxes
Property Taxes 58,692 55,610 3,082 Sales and Used Taxes 50,683 51,891 (1,208) Transient Occupancy Taxes 6,163 6,093 70 Franchise Taxes 2,944 3,201 (257) Other Taxes 4,532 3,418 1,114 Use of Money and Property 24,016 7,292 16,723 Other 4,096 35,888 (31,793)
Gain on Sale of Capital Asset 37 53
Transfers - (2,310) 2 ,310 Total Revenues 215,208 216,956 (1,732)
EXPENSES:
Program Activities
General Government 24,090 16,723 7,367 Public Safety 132,087 124,980 7,107
Public Works 30,522 22,437 8,085
Community Development 11,345 7,696 3,649 Parks & Library 19,142 22,279 (3,137) Economic Development 386 1,723 (1,337) Debt Services - - - Interest on Long-term Debts 7,069 8,125 (1,056) Total Expenses 224,640 203,963 20,677
Changes in Net Position (9,432) 12,993 (22,409) Governmental Activities
City of Orange
Summary of Ne t Position
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
13 Other General Fund Highlights:
• General Fund revenues increased by $14.9 million or 10.16% over prior year, from $147.0 million to $161.9 million. This increase is mainly from the consolidation of several Internal Service Funds. • General Fund operating expenditure totaled $161.2 million, an increase of $16.9 million or 11.7% compared to the prior fiscal year. This increase is mainly from the consolidation of several Internal Service Funds.
• General Fund recorded over $3.0 million of one-time transfer in.
2025 Percent of 2024 Percent of Increase
Actuals Total Actuals Total (Decrease)
REVENUES
Taxes 113,165 70% 111,273 76% 1,892
Franchise Fees 2,753 2% 2,981 2% (228) Licenses and Permits 6,396 4% 6,761 5% (365) Fines and Forfeitures 2,624 2% 1,748 1% 876 Use of Money and Property 3,816 2% 4,816 3% (1,000) Intergovernmental Revenues 3,003 2% 4,011 3% (1,008) Charges for Services 22,672 14% 11,136 8% 11,536 Other Revenues 3,940 2 % 1 ,632 1 % 2,308 Total Revenues 158,368 98% 144,358 98% 14,010 Other Financing Sources 3,555 2 % 2 ,629 2 % 926 Total Revenues &
Other Financing Sources 161,923 100% 146,987 100% 14,936
EXPENDITURES
General Government 19,420 12% 12,488 9% 6,932 Public Safety 103,299 64% 96,249 66% 7,050 Public Works 12,373 8% 10,168 7% 2,205 Parks and Library 16,757 10% 17,055 12% (298) Community Development 6,324 4% 6,252 4% 72 Economic Development 145 0% 148 0% (3) Debt Services 2,338 1% 1,782 1% 556 Other Expenses 519 0 % 115 0 % 404 Total Expenditures 161,176 99% 144,257 98% 16,919 Other Financing Uses 488 0% - 0% 488 Extraordinary Items - 0 % - 0 % - Total Expenditures &
Other Financing Sources 161,664 100% 144,257 9 8% 17,407 City of Orange
General Fund Revenues and Other Financing Sources
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
14 FUND BALANCE ANALYSIS OF THE GOVERNMENTAL FUNDS
In August 2025, the City Council adopted a Financial Management Policy establishing a minimum General Fund reserve level of 16.6% of annual General Fund expenditures.
At year-end, governmental funds reported combined fund balances of approximately $137.9 million, an increase of $7.7 million from the prior year. This increase was primarily attributable to the consolidation of some of the Internal Service Funds to the General Fund.
Governmental fund balances ended FY 2025 as follows:
The General Fund reported an ending fund balance of $31.1 million, an increase of $2.6 million from the prior year. Committed fund balance totaled $26.4 million, repre senting 16.6% of General Fund expenditure. Assigned and nonspendable fund balances totaled $4 .7 million and included amounts for prepaid expenses, inventories, and approved carryovers.
Amount
Increase
CATEGORY 2025 2024 (Decrease)
Nonspendable 1,334,127 271,684 1,062,443 Restricted 73,170,463 66,862,501 6,307,962
Committed 30,166,289 23,891,358 6,274,931
Assigned 35,145,220 38,371,046 (3,225,826)
Unassigned (1,944,877) 725,414 (2,670,291) Total Fund Balance 137,871,222 130,122,003 7,749,219 City of Orange
Summary of Fund Balances
Governmental Funds
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
Governmental Funds
Amount
Increase
CATEGORY 2025 2024 (Decrease)
Nonspendable 1,334,127 271,684 1,062,443
Restricted 8,413 - 8,413 Committed 26,380,740 23,891,358 2,489,382
Assigned 3,335,112 3,568,489 (233,377)
Unassigned - 726,027 (726,027) Total Fund Balance 31,058,392 28,457,558 2,600,834 City of Orange
Summary of Fund Balances
General Fund
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
15 PROPRIETARY FUND HIGHLIGHTS AND ANALYSIS
The Proprietary Funds of the City consist of the Enterprise Funds (Water Fund and Sanitation Fund) and the Internal Service Funds. The Enterprise Funds are reported as Business-Type Activity on the Government-wide Financial Statements. The Internal Service Funds are Governmental Activities and as such, are combined with other Governmental Activities (Governme ntal Funds) when presented on the Government-wide Financial Statements. The following are highlights of the Proprietary Funds:
Enterprise Fund
Enterprise Fund operating revenues increased by $3.6 million, o r 6.4%, primarily due to water rate increases approved by the City C ouncil and increased consumptio n. Operating expenses increased by $16.0 million, or 33.8%, due to higher operating costs and a on e-time $5.0 million contribution to the Orange County Water District for PFAS treatment facilities.
Enterprise Fund net position decreased by almost $0.4 million during fiscal year 2025.
Amount
Increase
REVENUES: 2025 2024 (Decrease)
Program Revenues:
Charges for Services 56,311 50,662 5,649 Operating Contributions and Grants 4,348 721
General Revenues:
Taxes - - -
Sales and Used Taxes - - - Use of Money and Property 2,220 1,783 438 Other Revenues 265 440 (175)
Transfers - 2,310 (2,310)
Total Revenues 63,144 55,916 3,601
EXPENSES:
Program Activities
Water 51,542 38,090 13,452
Sanitation 11,828 9,286 2,542
Total Expenses 63,370 47,376 15,994
Changes in Net Position (226) 8,540 (12,394) City of Orange
Summary of Net Position
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
Business-Type Activities
Business- Type Activities
16 Internal Service Funds
Internal Service Funds reported total revenues of $17.7 million for the fiscal year ended June 30, 2025, a decrease of $3.3 million, or -15.8%, from the prior year. The d ecrease was primarily due to the consolidation of certain Internal Service Funds into the General Fund.
Total expenses increased by $4 million or 18.4%, reflecting higher leave payouts associated with employee retirements and separations, as well as increased empl oyer contributions to CalPERS. Fiscal year 2025 was the first year since issuance of the Pension Obligation Bond that additional payments were required to be made toward the unfunded pension liability.
As a result, Internal Service Funds reported a decrease in net position, ending the year with a negative net position of $7.3 million.
CAPITAL ASSET AND DEBT ADMINISTRATION
The City’s Five-Year Capital Improvement Plan identifies approx imately $126.0 million in planned capital investments for fiscal years 2024–25 through 2028–29.
At June 30, 2025, the City had invested approximately $875.1 mi llion in capital asse ts, including land, buildings, infrastructure, vehicles, and equipment, representing an increase of $4.9 million from the prior year.
Amount
Increase
REVENUES: 2025 2024 (Decrease)
Operating Revenues 15,722 18,344 (2,622) Other Revenues 1,976 1,682 294
Transfers - 1,000 (1,000)
Total Revenues 17,698 21,026 (3,328)
EXPENSES:
Operating Expenses 25,809 21,794 4,015 (Gain) loss on disposal of capital assets 75
Transfers Out - - - Total Expenses 25,884 21,794 4,015
Changes in Net Position (8,187) (768) (7,343) City of Orange
Summary of Net Position
Internal Service Funds
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
Internal Service Activities
17 Long-term liabilities totaled $314.6 million at June 30, 2025, a decrease of $9.0 million, or 2.8%, from the prior year. Pension obligation bonds remained the City’s largest long-term liability.
The table below is a reconciliation of the long-term liabilities for the year ended June 30, 2025:
2025 2024 2025 2024 2025 2024
Land and Improvements 81,702 82,133 2,647 2,647 84,349 84,780 Projects in Progress 367,054 372,227 11,602 11,193 378,656 383,420 Buildings 119,266 108,667 1,375 1,522 120,641 110,189 Furniture, Fixture & Equipment 16,790 14,455 6,955 7,564 23,745 22,019 Infrastructures 151,854 152,513 109,511 109,848 261,365 262,361 Lease Assets 256 111 - - 256 111 Subscription Assets 5,446 6,534 646 806 6,091 7,340 Total Capital Assets 742,367 736,640 132,736 133,580 875,104 870,220 City of Orange
Summary of Capital Assets (Net of Depreciation)
For Fiscal Year Ended June 30, 2025 and 2024
(in thousands)
Governmental Activities Business-Type Activities Total
Balance Balance
June 30, June 30, Due Within
Government Activities 2024 Additions Reduction 2025 One-Year Loans Payable 78 250 50 278 68 Lease Payable 111 223 66 267 61 Subscription Payable 6,566 82 986 5,663 1,175 Lease Revenue Bond 28,290 - 595 27,695 620 Premium on Lease Revenue Bond 3,792 - 146 3,646 - Pension Obligation Bond 238,633 - 10,402 228,231 10,499 Compensated Absences 11,390 1,144 - 12,534 5,905 Claims Payable 14,394 7 ,449 5,349 16,494 6,058 Total Government Activities 303,254 9,147 17,594 294,808 24,386 Business-type Activities
Compensated Absences 898 394 - 1,292 295 Pension Obligation Bond 18,882 - 823 18,059 831 Subscription Payable 601 - 131 4 70 139 Total Business-type Activities 20,381 3 94 954 19,821 1,265 Total Government-wide 323,635 9 ,541 18,547 314,629 25,650 City of Orange
Summary of Changes in Long-Term Liabilities
(in thousands)
18 More detailed information on the City’s long-term liabilities c an be found in note 12 of the Notes to the Financial Statements.
Economic Factors and Next Year’s Budget:
The City’s economic outlook remains stable, supported by steady growth in assessed property values and continued sales tax activity. Inflation and interest rates continue to influence operating and capital costs.
The fiscal year 2025–26 adopted budget maintains the City’s focus on public safety, infrastructure maintenance, and long-term fiscal sustainability.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances. This financial report can also be found on the City’s website at https://www.cityoforange.org/our- city/departments/finance/annual-comprehensive-financial-reports. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Finance Department, City of Orange, 300 East Chapman Avenue, Orange, California 92866. 19 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 20 GOVEVV REE NMENEE T-TT WIWW DE FIFF NANN NCICC AII L STATT TETT MEE ENEE TSTT 21 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 22 CITY OF ORANGE, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 110,281,702$ 43,784,558$ 154,066,260$ Receivables (net of uncollectibles):
Accounts 13,254,496 9,751,299 23,005,795
Taxes 9,412,905 813 9,413,718
Accrued interest 909,214 343,713 1,252,927 Due from other governments 1,549,545 - 1,549,545 Notes and loans 45,973,562 - 45,973,562 Leases 1,675,886 - 1,675,886 Restricted assets:
Cash with fiscal agent 3,260,379 - 3,260,379 Inventories 930,045 921,579 1,851,624 Prepaid costs 404,082 - 404,082 Capital assets (not being depreciated/amortized) 448,756,301 14,249,210 463,005,511 Capital assets (net of accumulated depreciation/amortization) 293,611,126 118,486,961 412,098,087 Total assets 930,019,243 187,538,133 1,117,557,376
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 44,573,123 3,096,744 47,669,867 OPEB-related 4,597,673 1,149,418 5,747,091 Total deferred outflows of resources 49,170,796 4,246,162 53,416,958
LIABILITIES
Accounts payable 5,604,097 10,603,545 16,207,642 Contracts payable 269,115 - 269,115 Accrued liabilities 4,757,154 337,558 5,094,712 Accrued interest 680,482 39,234 719,716 Deposits payable 3,022,788 123,667 3,146,455 Unearned revenue 3,386,587 - 3,386,587 Noncurrent liabilities:
Due within one year:
Total OPEB liability 1,209,164 318,201 1,527,365 Bonds, loans, leases, subscriptions, claims, and
compensated absences 24,385,396 1,264,740 25,650,136 Due in more than one year:
Net pension liability 64,329,910 3,585,580 67,915,490 Total OPEB liability 25,269,372 6,301,433 31,570,805 Bonds, loans, leases, subscriptions, claims, and
compensated absences 270,421,204 18,558,346 288,979,550 Total liabilities 403,335,269 41,132,304 444,467,573
DEFERRED INFLOWS OF RESOURCES
Pension-related 499,597 - 499,597 OPEB-related 10,741,820 2,685,456 13,427,276 Lease-related 1,552,364 - 1,552,364 PPP-related 6,461,119 - 6,461,119 Total deferred inflows of resources 19,254,900 2,685,456 21,940,356
NET POSITION
Net investment in capital assets 708,071,099 132,265,035 840,336,134 Restricted:
Public safety 4,699,463 - 4,699,463 Federal & state grants 9,732,975 - 9,732,975 Housing 28,449,585 - 28,449,585 Streets/roads/transportation improv. 13,911,453 - 13,911,453 Development related transport improv. 4,416,063 - 4,416,063 Air quality 332,608 - 332,608 Asset forfeiture operations 3,760,506 - 3,760,506 Assessment district landscape maint. 2,006,813 - 2,006,813 Gov. access/local access programming 286,795 - 286,795 Affordable housing units 4,896,237 - 4,896,237 Training/certifying building inspect. 669,552 - 669,552 Pension obligation bond 8,413 - 8,413 Unrestricted (224,641,692) 15,701,500 (208,940,192) Total net position 556,599,870$ 147,966,535$ 704,566,405$ June 30, 2025
Primary Government
See Notes to Financial Statements
23 CITY OF ORANGE, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government 24,089,979$ 21,398,130$ 4,532,775$ -$ Public safety 132,087,478 11,600,833 1,391,167 - Community development 11,344,671 2,101,614 - 2,658,019 Parks and library 19,141,883 1,076,673 42,800 - Public works 30,521,699 7,010,908 - 12,231,955 Economic development 385,660 - - - Interest on long-term debt 7,068,584 - - - Total governmental activities 224,639,954 43,188,158 5,966,742 14,889,974 Business-type activities:
Sanitation 11,828,262 8,975,326 69,602 - Water 51,542,436 47,335,301 4,278,705 - Total business-type activities 63,370,698 56,310,627 4,348,307 - Total primary government 288,010,652$ 99,498,785$ 10,315,049$ 14,889,974$ General revenues:
General revenues:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Use of money and property
Other
Gain on sale of capital assets
Total general revenues
Change in net position
Net position - beginning, as previously stated
Restatements - error correction
Restatements - changes within the reporting entity
Net position-beginning, as restated
Net position-ending
Program Revenues
Restatements - change in accounting principle
See Notes to Financial Statements.
24 Governmental Business-Type
Activities Activities Total
1,840,926$ -$ 1,840,926$
(119,095,478) - (119,095,478)
(6,585,038) - (6,585,038)
(18,022,410) - (18,022,410)
(11,278,836) - (11,278,836)
(385,660) - (385,660)
(7,068,584) - (7,068,584)
(160,595,080) - (160,595,080)
- (2,783,334) (2,783,334)
- 71,570 71,570
- (2,711,764) (2,711,764)
(160,595,080) (2,711,764) (163,306,844)
58,692,002 - 58,692,002
50,683,134 - 50,683,134
6,163,266 - 6,163,266
2,943,807 - 2,943,807
4,531,813 - 4,531,813
24,015,779 2,220,468 26,236,247
4,095,873 243,920 4,339,793
37,208 20,726 57,934
151,162,882 2,485,114 153,647,996
(9,432,198) (226,650) (9,658,848)
570,557,891 148,338,723 718,896,614
(2,938,830) - (2,938,830)
(4,272) 4,272 -
(1,582,721) (149,810) (1,732,531)
566,032,068 148,193,185 714,225,253
556,599,870$ 147,966,535$ 704,566,405$
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
25 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 26 FUND FIFF NANN NCICC AII L STATT TETT MEE ENEE TSTT
27 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 28 Governmental Funds
Major Governmental Funds
Individual funds whose assets, liabilities, revenues, or expend itures are at least 10% of the total assets, liabilities, revenues, or expenditures of the governmental funds and at leas t 5% of the total assets, liabilities, revenues, or expenditures of the governmental and enterprise funds combined, will be classified as major funds.
General Fund must be classified as a major fund and is used to account for revenues and expenditures that are not required to be accounted for in another fund.
Special Revenue Funds are used to account for the pro ceeds of specific revenue sourc es (other than for major capital projects) that are legally restricted to expenditure fo r specified purposes. The following Special Revenue Funds have been classified as major funds in the accompanying financial statements:
• Measure M
• Federal, State & Local Grants
• SB2 Building Home & Jobs Act
• Housing Successor
Capital Projects Funds are used to account for the acquisition and construction of capital facilities. The following Capital Projects Funds have been classified as major funds in the accompanying financial statements:
• Capital Improvement
• Park Acquisition Development and Maintenance
Non-Major Governmental Funds
Other Governmental Funds - These funds constitute all other governmental funds that do not meet the major fund test described above. These funds include Special Revenue Funds and several smaller Capital Projects Funds. 29 CITY OF ORANGE, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
General
ASSETS
Cash and investments 27,519,852$ 6,978,114$ 1,807,337$ 1,386,558$ Receivables (net of allowance for uncollectible):
Accounts 2,400,379 186,630 2,123,790 399,168 Taxes 9,011,247 - - - Accrued interest 397,865 50,325 22,249 10,714 Due from other governments 824,380 725,165 - - Notes and loans - - 8,036,562 - Leases 1,560,131 - - - Prepaid expense 404,082 - - - Inventories 930,045 - - - Restricted assets:
Cash and investments with fiscal agents 8,413 - - - Total assets 43,056,394$ 7,940,234$ 11,989,938$ 1,796,440$
LIABILITIES
Accounts payable 1,960,272$ 605,794$ 135,525$ 1,501,467$ Contracts payable - 39,413 4,248 - Accrued liabilities 4,703,402 - - - Deposits payable 3,021,338 1,450 - - Unearned revenues 367,907 - - 1,840,682 Total liabilities 10,052,919 646,657 139,773 3,342,149
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 502,900 186,630 2,117,190 399,168 Lease-related 1,442,183 - - - Total deferred inflows of resources 1,945,083 186,630 2,117,190 399,168
FUND BALANCES
Nonspendable 1,334,127 - - - Restricted 8,413 7,106,947 9,732,975 - Committed 26,380,740 - - - Assigned 3,335,112 - - - Unassigned - - - (1,944,877) Total fund balances 31,058,392 7,106,947 9,732,975 (1,944,877) Total liabilities, deferred inflows
of resources, and fund balances 43,056,394$ 7,940,234$ 11,989,938$ 1,796,440$ Measure M
Federal, State
& Local Grants
SB2 Building
Home & Jobs
Act
Special Revenue Funds
See Notes to Financial Statements.
30 CITY OF ORANGE, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Due from other governments
Notes and loans
Leases
Prepaid expense
Inventories
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Special
Revenue Fund
118,262$ 14,653,599$ 10,371,196$
- 6,905,115 262,686
- - -
850 136,551 81,242
- - -
29,582,480 3,000,000 646,045
- - -
- - -
- - -
- 3,251,966 -
29,701,592$ 27,947,231$ 11,361,169$
2,007$ 400,899$ 269,947$
- 219,329 -
- - -
- - -
- 17,117 -
2,007 637,345 269,947
1,250,000 4,614,926 908,731
- - -
1,250,000 4,614,926 908,731
- - -
28,449,585 - -
- 3,785,549 -
- 18,909,411 10,182,491
- - -
28,449,585 22,694,960 10,182,491
29,701,592$ 27,947,231$ 11,361,169$
Park
Acquisition,
Development
and
Maintenance
Capital
Improvement
Housing
Successor
Capital Projects Fund
See Notes to Financial Statements.
31 CITY OF ORANGE, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Due from other governments
Notes and loans
Leases
Prepaid expense
Inventories
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Deposits payable
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
26,019,190$ 88,854,108$
844,989 13,122,757
401,658 9,412,905
209,418 909,214
- 1,549,545
4,708,475 45,973,562
115,755 1,675,886
- 404,082
- 930,045
- 3,260,379
32,299,485$ 166,092,483$
246,494$ 5,122,405$
6,125 269,115
53,752 4,757,154
- 3,022,788
1,160,881 3,386,587
1,467,252 16,558,049
131,303 10,110,848
110,181 1,552,364
241,484 11,663,212
- 1,334,127
27,872,543 73,170,463
- 30,166,289
2,718,206 35,145,220
- (1,944,877)
30,590,749 137,871,222
32,299,485$ 166,092,483$
Total
Nonmajor
Funds
Total
Governmental
Funds
See Notes to Financial Statements.
32 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 137,871,222$
719,065,451
Deferred outflows-pension related 44,573,123
Deferred outflows-OPEB related 4,597,673
Deferred inflows-pension related (499,597)
Deferred inflows-OPEB related (10,741,820)
Total deferred outflows and inflows related to post-employment benefits 37,929,379 3,610,848
22,644,834
Bonds payable (255,926,033)
Loan payable (277,373)
Leases and subscriptions payable (649,733)
Compensated absences (12,533,587)
Accrued interest payable on long-term debt (680,482)
Net pension liability (64,329,910)
Net OPEB liability (26,478,536)
Total long-term liabilities (360,875,654)
(3,646,210)
Net position of governmental activities 556,599,870$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities.
CITY OF ORANGE, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the post-employment benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.
See Notes to Financial Statements.
33 CITY OF ORANGE, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
Formerly Major
Fund
General
REVENUES
Taxes 113,164,832$ -$ -$ -$ Franchise fees 2,753,300 - - - Licenses and permits 6,396,387 - - - Intergovernmental 3,002,532 - 4,737,429 2,225,916 Charges for services and fees 22,671,799 - - 156,260 Use of money and property 3,815,519 - 288,580 143,864 Fines and forfeitures 2,623,786 - - - Miscellaneous 3,939,610 - - 32,563 Total revenues 158,367,765 - 5,026,009 2,558,603
EXPENDITURES
Current:
General government 19,420,355 - - - Public safety 103,298,970 - - 217,059 Community development 6,324,386 - - 510,138 Parks and library 16,756,991 - 300,397 - Public works 12,373,209 - 711,614 26,779 Economic development 145,382 - - - Capital outlay 519,058 - 2,124,382 544,166 Debt service:
Principal 1,122,754 - - - Interest and fiscal charges 1,215,249 - - - Total expenditures 161,176,354 - 3,136,393 1,298,142 Excess (deficiency) of revenues
over (under) expenditures (2,808,589) - 1,889,616 1,260,461
OTHER FINANCING SOURCES (USES)
Transfers in 3,000,000 - - - Transfers out (487,680) - - - Issuance of loans 555,209 - - - Proceeds from sale of capital assets - - - - Total other financing sources (uses) 3,067,529 - - - Net change in fund balances 258,940 - 1,889,616 1,260,461 Fund balances-beginning 28,457,558 841,793 5,217,331 8,472,514 Restatements - Changes within the financial
reporting entity 2,341,894 (841,793) - - Restatements - error correction - - - - Fund balances-beginning, as restated 30,799,452 - 5,217,331 8,472,514 Fund balances-ending 31,058,392$ -$ 7,106,947$ 9,732,975$ Proposition
172
Federal, State
& Local Grants
Special Revenue Funds
Measure M
See notes to financial statements.
34 CITY OF ORANGE, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
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
Issuance of loans
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatements - Changes within the financial
reporting entity
Restatements - error correction
Fund balances-beginning, as restated
Fund balances-ending
Formerly Non-
Major Fund
-$ -$ -$ -$ - - - - - - 3,060 - 2,658,019 - 4,736,201 - - - 4,476,794 244,376 114,657 111,472 1,202,459 659,070 - - - - - - 9,965 - 2,772,676 111,472 10,428,479 903,446 - 28,962 - - - - - - 3,343,153 202,739 - - - - - - - - - - - 46,026 - - - - 7,571,097 461,791 - - - - - - - - 3,343,153 277,727 7,571,097 461,791 (570,477) (166,255) 2,857,382 441,655 - - 354,029 - - - (3,000,000) - - - - - - - - - - - (2,645,971) - (570,477) (166,255) 211,411 441,655 - 28,615,840 22,483,549 9,740,836 1,564,430 - - - (2,938,830) - - - (1,374,400) 28,615,840 22,483,549 9,740,836 (1,944,877)$ 28,449,585$ 22,694,960$ 10,182,491$ Park
Acquisition,
Development
and
Maintenance
Capital
Improvement
SB2 Building
Home & Jobs
Act
Special Revenue Funds Capital Projects Fund
Housing
Successor
See notes to financial statements.
35 CITY OF ORANGE, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
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
Issuance of loans
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatements - Changes within the financial
reporting entity
Restatements - error correction
Fund balances-beginning, as restated
Fund balances-ending
Total Total
Nonmajor Governmental
Funds Funds
2,373,570$ 115,538,402$
190,507 2,943,807
- 6,399,447
8,084,577 25,444,674
4,879,334 32,428,563
1,189,047 7,524,668
56,058 2,679,844
16,567,491 20,549,629
33,340,584 213,509,034
320,932 19,770,249
4,886,617 108,402,646
8,190 10,388,606
945,121 18,002,509
3,790,214 16,901,816
21,029 212,437
2,723,622 13,944,116
10,401,938 11,524,692
6,051,496 7,266,745
29,149,159 206,413,816
4,191,425 7,095,218
133,651 3,487,680
- (3,487,680)
- 555,209
700,000 700,000
833,651 1,255,209
5,025,076 8,350,427
26,292,582 130,122,003
(726,909) 2,337,622
- (2,938,830)
25,565,673 129,520,795
30,590,749$ 137,871,222$
See notes to financial statements.
36 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: 8,350,427$ Capital outlay 10,760,061
Depreciation/amortization expense (9,939,779)
Total adjustment 820,282
PPP revenue 38,881
Earned but unavailable grant revenues 1,622,633
Total adjustment 1,661,514
Loss on disposal of capital assets (1,166,803)
Total adjustment (1,166,803)
Notes and loans issued (250,000)
Leases issued (222,814)
SBITAs issued (82,395)
Amortization of bond premiums and discounts 145,849
Principal payments 11,815,516
Total adjustment 11,406,156
(7,862,005)
Accrued interest on long-term debt 52,312
Compensated absences 439,120
Changes in pension liabilities and related deferred outflows and inflows of resources (22,954,815) Changes in OPEB liabilities and related deferred outflows and inflows of resources (178,386) Total adjustment (22,641,769)
Change in net position of governmental activities (9,432,198)$ Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF ORANGE, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
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 Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
See Notes to Financial Statements.
37 CITY OF ORANGE, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
ASSETS
Current assets:
Cash and investments 13,431,794$ 30,352,764$ 43,784,558$ 21,427,594$ Receivables (net of uncollectibles):
Accounts 948,276 8,803,023 9,751,299 131,739 Taxes 813 - 813 - Accrued interest 105,535 238,178 343,713 - Inventories - 921,579 921,579 - Total current assets 14,486,418 40,315,544 54,801,962 21,559,333 Noncurrent:
Capital assets, net 58,525,997 74,210,174 132,736,171 23,301,976 Total noncurrent assets 58,525,997 74,210,174 132,736,171 23,301,976 Total assets 73,012,415 114,525,718 187,538,133 44,861,309
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 929,023 2,167,721 3,096,744 - OPEB-related 344,825 804,593 1,149,418 - Total deferred outflows of resources 1,273,848 2,972,314 4,246,162 -
LIABILITIES
Current liabilities:
Accounts payable 548,290 10,055,255 10,603,545 481,692 Accrued expenses 120,590 216,968 337,558 - Unearned revenues - - - - Accrued interest 11,770 27,464 39,234 - Deposits payable - 123,667 123,667 - Compensated absences, due in one year 115,559 179,475 295,034 - Claims and judgments, due in one year - - - 6,057,758 Subscriptions, due in one year 16,776 122,169 138,945 1,038,105 Bonds, due in one year 249,228 581,533 830,761 - Total OPEB liability, due in one year 222,741 95,460 318,201 - Total current liabilities 1,284,954 11,401,991 12,686,945 7,577,555 Noncurrent liabilities:
Compensated absences 390,878 607,072 997,950 - Claims and judgments - - - 10,436,130 Subscriptions 166,096 166,095 332,191 4,202,790 Bonds, notes, and loans 5,168,461 12,059,744 17,228,205 - Net pension liability 1,075,674 2,509,906 3,585,580 - Total OPEB liability 1,763,149 4,538,284 6,301,433 - Total noncurrent liabilities 8,564,258 19,881,101 28,445,359 14,638,920 Total liabilities 9,849,212 31,283,092 41,132,304 22,216,475
DEFERRED INFLOWS OF RESOURCES
OPEB-related 805,637 1,879,819 2,685,456 - Total deferred inflows of resources 805,637 1,879,819 2,685,456 -
NET POSITION
Net investment in capital assets 58,343,125 73,921,910 132,265,035 18,061,081 Unrestricted 5,288,289 10,413,211 15,701,500 4,583,753 Total net position 63,631,414$ 84,335,121$ 147,966,535 22,644,834$ Business-Type Activities
Sanitation Water
See Notes to Financial Statements.
38 CITY OF ORANGE, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
OPERATING REVENUES
Water sales and services -$ 47,050,029$ 47,050,029$ -$ Charges for services and fees 8,975,326 285,272 9,260,598 15,722,062 Other revenues 48,682 195,238 243,920 1,975,580 Total operating revenues 9,024,008 47,530,539 56,554,547 17,697,642
OPERATING EXPENSES
Salaries and wages 2,225,428 4,605,542 6,830,970 5,158,991 Maintenance and operations 1,234,694 32,782,981 34,017,675 6,513,454 Contractual services 1,173,692 5,072,030 6,245,722 224,367 Interfund charge for administrative services 1,151,025 4,848,671 5,999,696 - Insurance claims and charges - - - 11,501,517 Depreciation/amortization 5,344,621 2,526,715 7,871,336 2,410,714 Other expenses 541,907 1,340,405 1,882,312 - Total operating expenses 11,671,367 51,176,344 62,847,711 25,809,043 Operating income (loss) (2,647,359) (3,645,805) (6,293,164) (8,111,401)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 69,602 4,278,705 4,348,307 - Use of money and property 681,902 1,538,566 2,220,468 - Interest expense (156,895) (366,092) (522,987) - Gain (loss) on disposal of capital assets 23,742 (3,016) 20,726 (75,185) Total nonoperating revenues (expenses) 618,351 5,448,163 6,066,514 (75,185) Change in net position (2,029,008) 1,802,358 (226,650) (8,186,586) Net position-beginning, as previously stated 65,699,417 82,639,306 148,338,723 28,286,113 Restatements - change in reporting entity 4,272 - 4,272 2,545,307 Restatements - change in accounting principle (43,267) (106,543) (149,810) - Net position-beginning, as restated 65,660,422 82,532,763 148,193,185 30,831,420 Net position-ending 63,631,414$ 84,335,121$ 147,966,535$ 22,644,834$ Business-Type Activities
Sanitation Water
See Notes to Financial Statements.
39 CITY OF ORANGE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Internal
Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 8,953,536$ 46,734,607$ 55,688,143$ -$ Receipts from interfund charges - - - 17,665,766 Payments to suppliers and service providers (4,940,702) (41,596,394) (46,537,096) (11,717,172) Payments to employees for salaries and benefits (152,794) (3,884,291) (4,037,085) - Other receipts (payments) - - - (9,401,891) Net cash provided by (used for)
operating activities 3,860,040 1,253,922 5,113,962 (3,453,297)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - - - Principal paid on non-capital debt (246,919) (576,143) (823,062) - Interest paid on non-capital debt (145,125) (338,628) (483,753) - Operating grants and contributions 68,789 4,278,705 4,347,494 - Net cash provided by (used for)
noncapital financing activities (323,255) 3,363,934 3,040,679 -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,821,252) (4,320,694) (7,141,946) (1,489,340) Principal paid on capital debt (15,332) (115,221) (130,553) (481,526) Proceeds from sales of assets 85,536 49,640 135,176 (48,503) Net cash provided by (used for)
capital and related financing activities (2,751,048) (4,386,275) (7,137,323) (2,019,369)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 668,324 1,514,454 2,182,778 - Net cash provided by (used for)
investing activities 668,324 1,514,454 2,182,778 - Net increase (decrease) in
cash and cash equivalents 1,454,061 1,746,035 3,200,096 (5,472,666) Cash and cash equivalents-beginning 11,977,733 28,606,729 40,584,462 26,900,260 Cash and cash equivalents-ending 13,431,794$ 30,352,764$ 43,784,558$ 21,427,594$ Business-Type Activities
Sanitation Water
See Notes to Financial Statements.
40 CITY OF ORANGE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Internal
Totals Service Funds
Business-Type Activities
Sanitation Water
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (2,647,359)$ (3,645,805)$ (6,293,164)$ (8,111,401)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 5,344,621 2,526,715 7,871,336 2,410,714 (Increase) decrease in accounts receivable (70,472) (792,525) (862,997) (34,006) (Increase) decrease in inventories - (156,322) (156,322) - (Increase) decrease in prepaid items - 43,427 43,427 237,601 Increase (decrease) in accounts payable 403,456 1,854,385 2,257,841 (55,831) Increase (decrease) in accrued liabilities 120,590 216,968 337,558 - Increase (decrease) in deposits payable - (3,407) (3,407) - Increase (decrease) in compensated absences 207,759 40,450 248,209 - Increase (decrease) in claims and judgments - - - 2,099,626 Increase (decrease) in net pension liability 488,065 1,138,818 1,626,883 - Increase (decrease) in net OPEB liability 13,380 31,218 44,598 - Total adjustments 6,507,399 4,899,727 11,407,126 4,658,104 Net cash provided by (used for)
operating activities 3,860,040$ 1,253,922$ 5,113,962$ (3,453,297)$
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments 223,902$ 518,355$ 742,257$ -$ See Notes to Financial Statements.
41 Private
Purpose Custodial
Trust Funds Funds
ASSETS
Cash and cash equivalents 5,770,492$ 3,811,136$
Investments:
Cash and investments with fiscal agent 376 1,597,011 Receivables:
Accounts 6,112 6,791
Accrued interest 46,266 30,013
Taxes - 24,373
Notes and loans 358,899 -
Total assets 6,182,145 5,469,324
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 21,073 -
Total deferred outflows of resources 21,073 -
LIABILITIES
Accrued interest 330,223 -
Long-term liabilities:
Due in one year 1,330,000 -
Due in more than one year 21,923,208 -
Total liabilities 23,583,431 -
NET POSITION
Restricted for:
Individuals, organizations, and other governments (17,380,213) 5,469,324 Total net position (17,380,213)$ 5,469,324$
CITY OF ORANGE, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See Notes to Financial Statements.
42 Private
Purpose Custodial
Trust Funds Funds
ADDITIONS
Investment earnings 346,480 180,076
Taxes 522,835 3,640,475
Miscellaneous 193 -
Total additions 869,508 3,820,551
DEDUCTIONS
Administrative expenses 11,927 6,670
Contractual services 10,983 18,212
Payments to external parties 825,181 3,517,341 Total deductions 848,091 3,542,223
Net increase (decrease) in fiduciary net position 21,417 278,328 Net position-beginning (17,401,630) 5,190,996
Net position-ending (17,380,213)$ 5,469,324$
CITY OF ORANGE, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See Notes to Financial Statements.
43 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 44 NOTETT SEE TOTT THTT E FIFF NANN NCICC AII L STATT TETT MEE ENEE TSTT 45 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 46 CITY OF ORANGE
In Order of Presentation
For the Year Ended June 30, 2025
Note Description Pa ge
1 Si gnificant Accounting Policies 49
2 Cash and Investments 59
3 Leases 6 3
4 Subscription-Based Technolo gy Arrangements 64
5 Service Concession Arran gement 6 4
6 Capital Assets 65
7 Taxes 6 7
8 Other Revenues 67
9 Retirement Plan 67
10 Insurance Pro grams 75
11 Other Post Emplo yment Benefits (OPEB) 7 6
12 Lon g-Term Liabilities 78
13 Community Facilities and Asse ssment Districts and Other Revenue Bond Issues
8 0
14 Joint Ventures 81
15 Loans Receivable 81
16 Transfers 82
17 Deficit Fund Balance or Net Position 83
18 Governmental Fund Balances 83
19 Contin gencies 83
20 21
Successor Agency Trust for Assets of Former Redevelopment Agency Construction and Commitments and Contingencies
8 3
85 22 Restatements 86
23 Subsequent Events 86
47 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 48 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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.
49 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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. Governmentmandated 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 Governmentwide Financial Statements. A receivable (and related revenue) is recorded for costs incur red during the year for which reimb
ursement 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 governments that are not in the form of reimbursement 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.
50 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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 b alances and activities have been combined 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.
51 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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.
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.
Federal, State & Local Grants Fund. This fund is used to account for grant programs such as Commun ity Development Block Grant, Housing and Urban Development Grant, C alifornia 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.
SB2 Building Home & Jobs Act Fund. This fund is used to account for the collection and expe nditure of state grant funds received for the purpose of preparation, adoption, or implementation of planning documents that streamline housing project approvals and accelerate housing productions.
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.
Capital Improvement Fund. This fund is used to account for general-purpose capital impro vement and cooperatively funded projects.
Park Acquisition, Development and 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). 52 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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.
PrivatePurpose 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.
D. 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.
E. 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.
F. 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 collectability of these receivables.
53 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. 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 co ntrol devices, streetlights, sewers, storm drains, bridges, right-to-use leased assets, and right-of-way within the City. The City has valued a nd recorded all infrastructure assets, in excess of $50,000, in their entirety as of June 30, 2025.
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/amortization 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
Subscription and leased assets Term of arrangement
H. 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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
I. 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 54 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Average Remaining Service Lifetime (EARSL); 3) Differences betw een expected and actual experience are 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 amounts become available. The second item is deferred inflows related to lease receivables. These are report ed on both the governmental funds balance sheet and the statement of net position, and are amortized over the l ife of the lease using the straight-line method. The third item is deferred amounts related to the PPP that will be recognized as revenue over the life of the agreement. The other two items relate to inflows from changes in net pension liability and total OPEB liability, and are reported only in the statement of net position, arising und er 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 project a nd actual earning on pension plan investments.
J. 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.
K. 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.
Net investment in capital assets: the portion of net position whic h is represented by the curren t net book value of the City's capital assets, les s the outstanding balance of any debt issued to finance these assets, net of any unspent debt proceeds.
55 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Unrestricted: the portion of net position which does not meet the definition of "net investment in capital assets" or "restricted net position".
L. 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.
M. 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.
N. Fund Equity
In the fund financial statements, government funds report the following fund balance classifications:
Nonspendable includes 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 includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governm ents or (b) by law through constitutional provisions or enabling legislation.
Committed includes amounts that can only be used for specific p urposes 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 includes 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 includes the residual amounts that have not been res tricted, 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.
56 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. 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.
P. Leases
Lessee: The City is a lessee for a noncancellable lease of equi pment and vehicles. 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 noncancellable period of the lease. 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 City -owned buildings. 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.
57 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease . Lease receipts included in the measurement of the lease receivable 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.
Q. 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 noncancellable period of th e subscription. Subscription payments included in the measurement of the subscription liability are composed o f 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.
R. 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, 2025:
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information n eeds of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
58 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.
The objective of this Statement is to provide users of government financial statements with essential information about risks related to a governm ent’s vulnerabilities due to ce rtain concentrations or constraints. The City determined there was no impact on the financial statements.
NOTE 2: CASH AND INVESTMENTS
Cash and investments are presented in the accompanying statements as follows:
Cash and investments at June 30, 2025 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 purchas e; maximum percent of agency ca llable 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).
Statement of Net Position
Cash and inv estments 154,066,260 $
Cash and inv estments with fiscal agent 3,260,379
Statement of Fiduciary Net Position
Cash and investments 9,581,628
Cash and inv estments with fiscal agent 1,597,387
Total cash and inv estments 168,505,654 $
Petty Cash 13,700$
Bank balances (net of outstanding checks
and timing differences) (2,351,007)
Investments 170,842,961
Total 168,505,654$
59 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
• 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.)
• 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.
60 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
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.
At June 30, 2025, the City Treasury had the following investment maturities:
At June 30, 2025, the City Treasury had the following investment ratings:
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.
At June 30, 2025, the City's credit risks, expressed on a percentage basis, are as follows:
Inv estment Type Total <1 1 to 2 2 to 5
Asset Backed Securities 11,255,504$ 351,806$ 1,184,134$ 9,719,564$ Federal Agency Securities 23,453,373 7,952,058 4,833,892 10,667,423 Medium-Term Corporate Notes 31,901,013 10,992,706 1,670,734 19,237,573 Money Market Fund 15,103,361 15,103,361 - - Supranational Bond 2,627,890 - - 2,627,890 US Treasury Securities 36,249,622 - 2,889,844 33,359,778 State Investment Pool (LAIF) 45,394,432 45,394,432 - - Held by Trustee:
Money Market Mutual Funds 4,857,766 4,857,766 - - Total 170,842,961$ 84,652,129$ 10,578,604$ 75,612,228$ Investment Maturity (in Years)
Inv estment Type AAA AA A Not Rated Total
Asset Backed Securities 11,255,504$ -$ -$ -$ 11,255,504$ Federal Agency Securities 2,448,329 21,005,044 - - 23,453,373 Medium-Term Corporate Notes 3,775,603 11,166,310 16,959,100 - 31,901,013 Money Market Fund 15,103,361 - - - 15,103,361 Supranational Bond 2,627,890 - - - 2,627,890 US Treasury Securities - 36,249,622 - - 36,249,622.00 State Investment Pool (LAIF) - - - 45,394,432 45,394,432.00 Held by Trustee:
Money Market Mutual Fund 4,857,766 - - - 4,857,766 40,068,453$ 68,420,976$ 16,959,100$ 45,394,432$ 170,842,961$ Investment Type Minimum Rating S&P Rating % of Investment s Asset Backed Securities Not applicable AA+ 6.6%
Federal Agency Securities Not applicable AA+ 13.7%
Supranational Bond Not applicable Not Rated 18.7%
Medium-Term Notes Various Various 8.8%
U.S. Treasury Bond Exempt AA+ 1.5%
Local Agency Investment Fund Not Rated Not Rated 21.2%
Money Market Mutual Funds Not applicable AAA 26.6%
Held by Trustee:
Money Market Mutual Funds Not Applicable AAA 2.8%
100.0%
61 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
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 fair 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 $250,000 by federal depository insurance. The City has not waived this requirement.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not b e able to recover the value of its investment or collateral securities that are in the possession of another par ty. The City's policy is for all securities owned by the City to be held in safekeeping by the City's custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.
The City follows the practice of pooling cash and investments o f all funds except for funds required to be held by outside fiscal or other agents under provisions of the U.S. Department of Housing and Urban Development or provisions of bond indentures.
D. Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets.
Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2025:
Observable
Investment Type Inputs Level 2 Total
Asset Backed Securities 11,255,504$ 11,255,504$
Federal Agency Securities 23,453,373 23,453,373
Supranational Bond 31,901,013 31,901,013
Medium-Term Notes 15,103,361 15,103,361
Total Leveled Investments 81,713,251$ 81,713,251
Not Subject to Categorization:
U.S. Treasury Bond 2,627,890
Local Agency Investment Fund 36,249,622
Money Market Mutual Funds 45,394,432
Held by Trustee:
Money Market Mutual Funds 4,857,766
Total Investment Portfolio 170,842,961$
62 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: LEASES
A. Leases Receivable and Deferred Inflows of Resources
As of June 30, 2025, the City had three active leases as lessor . The leases have receipts that range from $16,000 to $105,609 and interest rates that range from 2.0930% to 6.7500%. As of June 30, 2025, the total combined value of the lease receivable is $1,675,886, the total combined value of the short-term lease receivable is $107,283, and the combined value of the deferred inflow of r esources is $1,552,364. There were no variable or other receipts not included in the lease receivable, within the fiscal year.
The principal and interest payments that are expected to maturity are as follows:
Leases Payable and Right to Use Lease Assets
As of June 30, 2025, the City had twenty-one active leases as l essee. The leases have payments that range from $499 to $7,695 and interest rates that range from 0.0200% to 4.4400%. As of June 30, 2025, the total combined value of the lease liability is $267,071, the total combined va lue of the short-term lease liability is $60,599. The combined value of the right to use asset, as of June 30, 2025 of $352,385 with accumulated amortization of $96,197 is included within the table found below. There were no variable or other receipts not included in the lease liability, within the fiscal year.
Right-to-use leased assets include the following at June 30, 2025:
Future principal and interest requirements to maturity for each lease liability are included in governmental activities as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 107,283$ 43,684 $ 150,967 $
2027 114,211 40,601 154,812
2028 118,603 37,321 155,924
2029 122,456 33,868 156,324
2030 127,755 30,257 158,012
2031-2035 679,791 91,197 770,988
2036-2039 405,787 16,307 422,094
1,675,886$ 293,235$ 1,969,121$
Governmental Activities
Lease Type Asset Class
Lease Asset
Value
Accumulated
Amortization
Equipment Lease Vehicles 352,385 $ 96,197 $
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 $ 60,599 $ 6,564 $ 67,163 2027 48,659 5,003 53,662 2028 157,813 2,869 160,682 Total 267,071$ 14,436 $ 281,507 $
63 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS
As of June 30, 2025, the City had fourteen active subscriptions. The subscriptions have payments that range from $0 to $629,328 and interest rates that range from 2.0240% to 3.3050%. As of June 30, 2025, the total combined value of the subscription liability is $6,133,574, and the total combined value of the short-term subscription liability is $1,313,689. The combined value of the right to use asset, as of June 30, 2025, of $9,620,752 with accumulated amortization of $3,529,518 is included within the table found b elow. There were no variable or other receipts not included in the subscription liability, within the fiscal year.
The future principal and interest subscription payments as of June 30, 2025, were as follows:
NOTE 5: SERVICE CONC ESSION ARRANGEMENT
On July 5, 2023, the City entered into a service concession arr angement with Katella Terrace L.P. for the operation of a 74-unit affordable senior housing project on City-owned land. Under the agreement, the operator collects and retains rental revenues from third-party tenants f or 60 years and is required to provide services at City-approved rates and service levels. As part of the consider ation exchanged, the City provided a ground rent loan totaling $6,500,000. As of June 30, 2025, the City recorde d an SCA asset of $6,500,000 and a related deferred inflow of resources of $6,461,119, which will be recognized as revenue over the term of the arrangement
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Software 9,620,752 $ 3,529,518 $
Fiscal Year Principal Interest Total
2026 1,174,744$ 162,812$ 1,337,556$
2027 782,494 129,273 911,767
2028 802,988 107,237 910,225
2029 685,536 84,634 770,170
2030 706,804 64,622 771,426
2031-2034 1,509,872 67,512 1,577,384 Total 5,662,438$ 616,090$ 6,278,528$
Fiscal Year Principal Interest Total
2026 138,945$ 12,303$ 151,248$
2027 36,619 8,909 45,528
2028 39,877 7,927 47,804
2029 43,336 6,858 50,194
2030 47,007 5,696 52,703
2031-2034 165,352 9,098 174,450
Total 471,136$ 50,791$ 521,927$
Governmental Activities
Business-type Activ ities
64 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Balance Balance
July 1, 2024 Transfers of CIP Increases Decreases June 30, 2025 Governmental activities:
Capital assets, not being depreciated/amortized
Land 82,133,126$ -$ -$ (430,809)$ 81,702,317$ Rights of way 347,258,096 - - - 347,258,096 Construction-in-progress 24,968,617 (14,624,396) 9,451,667 - 19,795,888 Total capital assets, not being depreciated/amortized 454,359,83 9 (14,624,396) 9,451,667 (430,809) 448,756,301 Capital assets, being depreciated/amortized
Infrastructure 256,064,212 2,153,708 1,910,068 (1,035,352) 259,092,636 Structures and improvements 161,643,431 7,909,310 147,561 (1,469,964) 168,230,338 Buildings under service concession arrangements - - 6, 500,000 - 6,500,000 Furniture, fixtures and equipment 52,357,077 4,561,378 740,105 (3,044,542) 54,614,018 Leased vehicles 276,251 - 242,269 (166,135) 352,385 Software as a service 8,662,654 - 398,490 (525,279) 8,535,865 Total capital assets, being depreciated/amortized 479,003,625 14,624,396 9,938,493 (6,241,272) 497,325,242 Less accumulated depreciation/amortization
Infrastructure 103,551,461 - 4, 464,704 (777,437) 107,238,728 Structures and improvements 52,976,820 - 3, 721,305 (1,233,496) 55,464,629 F
urniture, fixtures and equipment 37,901,675 - 2, 859,905 (2,937,150) 37,824,430 Leased vehicles 165,589 - 96,743 (166,135) 96,197 Software as a service 2,128,757 - 1, 207,836 (246,461) 3,090,132 Total accumulated depreciation/amortization 196,724,302 - 12, 350,493 (5,360,679) 203,714,116 Total capital assets, being depreciated/amortized, net 282,279,3 23 14,624,396 (2,412,000) (880,593) 293,611,126 Total governmental activities capital assets 736,639,162$ -$ 7, 039,667$ (1,311,402)$ 742,367,427$ 65 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: CAPITAL ASSETS (CONTINUED)
Balance Balance
July 1, 2024 Transfers Increase Decrease June 30, 2025
Business-type activities:
Capital assets, not being depreciated/amortized
Land 2,646,932$ -$ -$ -$ 2,646,932$ Construction-in-progress 11,193,009 (2,670,759) 3,080,028 - 11,602,278 Total capital assets, not being depreciated/amortized 13,839,941 (2,670,759) 3,080,028 - 14,249,210 Capital assets, being depreciated/amortized
Buildings and structures 3,782,716 - - - 3,782,716 Improvements other than buildings
Wells 10,600,614 - - - 10,600,614 Water tank 16,572,565 - - - 16,572,565 Water lines 108,147,607 1,387,127 1,279,532 (56,968) 110,757,298 Sewer 77,051,701 1,283,632 2,782,386 (189,088) 80,928,631 Storm drains 113,478,218 - - - 113,478,218 Machinery and equipment 12,267,496 - - (72,331) 12,195,165 Software as a serv ice 1,084,887 - - - 1,084,887 Total capital assets, being depreciated/amortized 342,985,804 2,670,759 4,061,918 (318,387) 349,400,094 Less accumulated depreciation/amortization
Buildings and structures 2,260,567 - 147,101 - 2,407,668 Improvements other than buildings -
Wells 4,286,347 - 254,736 - 4,541,083 Water tank 9,272,526 - 256,834 - 9,529,360 W
ater lines 70,644,777 - 1,186,834 (53,951) 71,777,660 Sewer 47,424,220 - 3,570,280 (127,295) 50,867,205 Storm drains 84,375,188 - 1,735,409 - 86,110,597 Machinery and equipment 4,703,043 - 559,823 (22,692) 5,240,174 Software as a service 279,067 - 160,319 - 439,386 Total accumulated depreciation/amortization 223,245,735 - 7,871,336 (203,938) 230,913,133 Total capital assets, being depreciated/amortized, net 119,740,0 69 2,670,759 (3,809,418) (114,449) 118,486,961 Total business-type activities capital assets 133,580,010$ -$ (729,390)$ (114,449)$ 132,736,171$ 66 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to the following functions in the Statement of Activities:
NOTE 7: 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.
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, 2025, the City abated sales taxes totaling $5,327,586.
NOTE 8: 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 9: 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, 2023 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.
Governmental
Activ ities
Business-Type
Activ ities
General government 1,323,645 $ - $
Public safety 1,848,048 -
Public works 5,007,356 -
Parks and library 1,639,167 -
Economic development 121,563 -
Internal service funds 2,410,714 -
Water - 2,526,715
Sanitation - 5,344,621
Total 12,350,493 $ 7,871,336 $
67 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: RETIREMENT PLAN (CONTINUED)
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, 2025 is provided below and on the following page.
Miscellaneous
Hire Date Prior to Januar y 1, 2013 On or After Januar y 1, 2013 Benefit Formula 2.7% @ 55 2% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement 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% 7.75%
Required Employer Contribution Rates:
Normal Cost Rate 12.48% 12.48%
At the June 30, 2023 valuation 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 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 Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible Compensation 3.00% 2.0% - 2.7% Required Employee Contribution Rates 9% 12.75%
Required Employer Contribution Rates:
Normal Cost Rate 20.96% 20.96%
Safety
Misc. Safety
Inactive employees or beneficiaries currently receiving benefits 742 501 Inactive employees entitled to but not yet receiving benefits 64 0 135 Active employees 402 274
Total 1,784 910
68 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: RETIREMENT PLAN (CONTINUED)
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.
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method
Entry Age Normal Cost
Method
Entry Age Normal Cost
Method
Actuarial Assumptions
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected Salary Increases (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefits Increase (3) (3)
(1) Depending on age, service and type of employment
(3) Contract COLA up to 2.3% until Purchasing Power Protection Allowance Floor (2) The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries
69 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: 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. 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 2021-22 Asset Liability Management st udy.
Asset Class 1
Global Equity Non-Cap-weighted
Priv ate Equity
Treasury
Mortgage-Backed Securities
Inv estment Grade Corporates
70 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: RETIREMENT PLAN (CONTINUED)
G. 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.
H. Sensitivity of the Miscellaneous Plan Net Pension 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, 2023 419,039,535 $ 393,882,170 $ 25,157,365 $ Changes recognized for the
measurement period:
Service cost 6,489,014 - 6, 489,014 Interest on total pension liability 28,443,939 - 28, 443,939 Changes of assumptions - - - Differences between expected and
actual experience 1,657,750 - 1, 657,750 Contributions from the employer - 4, 516,483 (4, 516,483) Contributions from the employees - 2, 865,819 (2, 865,819) Net investment income - 36, 758,371 (36,758,371) Benefit payments, including refunds of
employee contributions (23,421,607) (23,421,607) - Administrative expense - ( 320,503) 320,503 Net changes during 2023-24 13,169,096 20,398,563 (7,229,467) Balance at June 30, 2024 432,208,631$ 414,280,733$ 17,927,898$ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 73,482,158$ 17,927,898 $ (27,879,526) $ 71 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: RETIREMENT PLAN (CONTINUED)
I. 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.
J. Sensitivity of the Safety Pla n 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:
K. 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, 2023 673,655,195 $ 611,568,948 $ 62,086,247 $ Changes recognized for the
measurement period:
Service cost 11,161,161 - 11,161,161 Interest on total pension liability 45,729,124 - 45,729,124 Changes of assumptions - - - Differences between expected and
actual experience 845,747 - 845,747 Contributions from the employer - 8, 656,893 (8, 656,893) Contributions from the employees - 4, 461,372 (4, 461,372) Net investment income - 57, 214,057 (57,214,057) Benefit payments, including refunds of
employee contributions (34,681,175) (34, 681,175) - Administrative expense - ( 497,635) 497,635 Net changes during 2023-24 23,054,857 35, 153,512 (12,098,655) Balance at June 30, 2024 696,710,052 $ 646,722,460 $ 49,987,592 $ 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) 144,113,274$ 49,987,592 $ (27,088,520) $ 72 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: 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 2023-24 measurement period is 2.6 years, which was obtained by dividing the total service years of 4,394 (the sum of remaining service lifetimes of the active employees) by 1,708 (the total number of participants: active, inactive, and retired).
The EARSL for the Safety Plan for the 2023-24 measurement perio d is 3.9 years, which was obtained by dividing the total service years of 3,484 (the sum of remaining service lifetimes of the active employees) by 896 (the total number of participants: active, inactive, and retired).
L. Pension Expense and Deferred Outflows and Deferred Inflows o f Resources Related to Pensions
For the measurement period endi ng June 30, 2024 (the measurement date), the City of Orange incurred a pension expense of $12,442,153 for the Miscellaneous Plan and $ 24,981,116 for the Safety Plan, allocated as follows:
As of the end of the measurement period (June 30, 2024) and as presented in the June 30, 2025 Statement of Net Position, the net pension liability is $17,927,898 for the Miscellaneous Plan and $49,987,592 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
Activities
Business-Type
Activities Total
Miscellaneous Plan 9,953,723 $ 2, 488,430 12, 442,153$ Safety Plan 24,981,116 - 24, 981,116 Total Pension Expense 34,934,839$ 2, 488,430$ 37, 423,269$ Governmental
Activities
Business-Type
Activities Total
Miscellaneous Plan 14,342,318$ 3, 585,580$ 17, 927,898$ Safety Plan 49,987,592 - 49, 987,592 Total Net Pension Liability 64,329,910$ 3, 585,580$ 67, 915,490$ 73 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: RETIREMENT PLAN (CONTINUED)
As of the fiscal year ended June 30, 2025, the City reports deferred outflows and deferre d inflows of resources related to pensions as follows:
The $12,380,473 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, 2026.
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, 2025, the City had no outstanding amount of contrib utions to the pension plan required for the year ended June 30, 2025.
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date Current year pension contributions 4,309,195 $ - $ Changes of assumptions - -
Differences between expected and actual experience 1,966,948 - Net difference between projected and actual earnings on pension plan investments 9,207,576 -
Total 15,483,719 $ - $
Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date Current year pension contributions 8,521,278 $ - $ Changes of assumptions 4,960,139 -
Differences between expected and actual experience 4,086,393 499,597 Net difference between projected and actual earnings on pension plan investments 14,618,338 -
Total 32,186,148 $ 499,597 $
Safety Plan
Miscellaneous Plan Safety Plan
Deferred Deferred
Fiscal year Outflows/(Inflows) Outflows/(Inflows)
ended June 30, of Resources of Resources
2026 3,452,028$ 9,912,879 $
2027 11,236,738 18,509,721
2028 (1,481,202) (2,100,943)
2029 (2,033,040) (3,156,384)
Total 11,174,524$ 23,165,273 $
74 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 10: 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 $52, 000,000 per occurrence. There were no changes in insurance coverage from the prior year.
Liabilities are recorded when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have b een incurred but not reported (IBNR). The liability for claims and judgments is reported in the appropriate Interna l Service Fund. The amount for current claims payable is calculated based on the current year’s expenses and the remainder is shown as noncurrent claims payable. There were no claims paid in excess of insurance cover age. Changes in claims payable for the years ended June 30, 2024 and June 30, 2025 are outlined below.
General Workers' Total
Liability Compensation Claims
Liability - June 30, 2023 1,773,420$ 14,006,585$ 15,780,005$ Claims incurred 747,855 2,116,634 2,864,489 Claims payments (493,982) (3,756,250) (4,250,232) Unpaid Claims - June 30, 2023 2,027,293 12,366,969 14,394,262 Less current portion of unpaid claims (876,603) (4,392,977) (5,269,580) Noncurrent unpaid claims - June 30, 2024 1,150,690 7,973,992 9,124,682 Liability - June 30, 2024 2,027,293 12,366,969 14,394,262 Claims incurred (6,606) 7,455,186 7,448,580 Claims payments (775,979) (4,572,975) (5,348,954) Unpaid Claims - June 30, 2025 1,244,708 15,249,180 16,493,888 Less current portion of unpaid claims (834,039) (5,223,719) (6,057,758) Noncurrent unpaid claims - June 30, 2025 410,669$ 10,025,461$ 10,436,130$ 75 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: 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 Cal PERS system are eligible for these benefits. These health insurance benefits are aut horized through City Resolutio ns/Memorandums of Understanding defining health care benefits and contribution levels and through the co ntractual agreement between the City and CalPERS. The City currently contributes $157 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, 2024 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 $ 33,098,170 was measured as of Ju ne 30, 2024 and was determined by an actuarial valuation as of June 30, 2023.
D. Actuarial Assumptions and Other Inputs
The total OPEB liability as of the June 30, 2024, 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 320 Active employees 662
Total 982
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal, Level % of Salary Actuarial Assumptions:
Discount Rate 4.09%
Inflation 2.30%
Projected Salary Increase 2.80%, Additional merit based increases based on CalPERS Merit Salary
Increase Table
Health Care Cost Trend Rates 6.8% (Pre-Medicare)/4.17% (Medicare) in first year, trending down to 4.14%
over 51 years
Pre-retirement Turnover Derived from CalPERS Pension
Assumption Model, effective November
17, 2021
Mortality Rate Derived from CalPERS Pension
Assumption Model, effective November
17, 2021
76 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
The discount rate used to measur e the total OPEB liability is 4 .09%. 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 cal culated using a discount rate that is one 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 one percentage point lower or 1 percentage rate higher than the current healthcare cost trend rates:
Total OPEB Liability
Balance at June 30, 2023 (Measurement Date) 32,787,319$ Changes in the Year:
Service Cost 1,444,503
Interest on the Total OPEB Liability 1,291,909
Difference Between Expected and Actual Experience (10,712) Changes in Assumptions (889,475)
Benefit Payments (594,247)
Implicit Subsidy Fulfilled (931,127)
Net Changes 310,851
Balance at June 30, 2024 (Measurement Date) 33,098,170$ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(3.09%) (4.09%) (5.09%)
Total OPEB Liability 37,253,606$ 33,098,170 $ 29,624,583 $ Current Healthcare
1% Decrease 5.80%
Cost Trend Rates
6.80% 1% Increase 7.80%
Decreasing to 3.14% Decreasing to 4.14% Decreasing to 5.14% Total OPEB Liability 31,407,033$ 33, 098,170$ 35, 102,445$ 77 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
H. OPEB Expense and Deferred Out flows of Resources Related to OPEB
The $1,591,005 reported as deferre d outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2026.
Other amounts reported as deferred outflows of resources and de ferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
NOTE 12: LONG-TERM LIABILITIES
Following is a reconciliation of long-term liabilities for the year ended June 30, 2025:
* Compensated Absences are presented as net change.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 529,695$ 4,373,864 $ Changes in assumptions 3,626,391 9,053,412
Contributions subsequent to measurement date 1,591,005 - Total Deferred Outflows 5,747,091$ 13,427,276$
Year Ending
June 30, Amount
2026 (917,719)$
2027 (1,156,188)
2028 (1,767,075)
2029 (2,051,667)
2030 (1,845,210)
Thereafter (1,533,331)
Total (9,271,190)$
Amount Amount
Beginning Ending Due Within Due Beyond
Balance Additions* Deletions Balance One Year One Year
Governmental activities
Direct borrowing:
Loans payable 77,145 $ 250,000 $ 49,772 $ 277,373$ 67,914 $ 209,459 $ Leases payable 110,732 222,814 66,475 267,071 60,599 206,472 Subscription payable 6,565,636 82,395 985,593 5, 662,438 1,174,744 4,487,694 Lease revenue bonds 28,290,000 - 595,000 27, 695,000 620,000 27,075,000 Premium on lease
revenue bonds 3,792,059 - 145,849 3, 646,210 - 3,646,210 Pension obligation bonds 238,632,971 - 10,401,938 228,231,033 10,499,239 217,731,794 Other liabilities:
Compensated absences* 11,389,987 1,143,600 - 12, 533,587 5,905,142 6,628,445 Claims payable 14,394,262 7,448,580 5,348,954 16,493,888 6,057,758 10,436,130 Total governmental activities 303,252,792 9,147,389 17,593,581 294,806,600 24,385,396 270,421,204 Business-type activities:
Compensated absences* 899,236 393,748 - 1, 292,984 295,034 997,950 Pension obligation bonds 18,882,028 - 823,062 18, 058,966 830,761 17,228,205 Subscription liability 601,689 - 130,553 471,136 138,945 332,191 T
otal business activities 20,382,953 393,748 953,615 19,823,086 1,264,740 18,558,346 Total 323,635,745$ 9,541,137$ 18,547,196$ 314,629,686$ 25,650,136$ 288,979,550$ 78 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: 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. In May 2025, the City entered into a new loan agreement with Southern California Edison for an additional $250,000 related to energy efficiency programs and carry a zero percent interest rate. The outstanding balance at June 30, 2025 is $277,373.
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 $1,680,000 and are scheduled to mature in 2051.
The annual debt service payments for these bonds are made from the General Fund and are shown on the following page.
Year Ending
June 30, Principal
2026 67,914
2027 40,541
2028 40,541
2029 40,541
2030 40,541
2031 47,295
Total 277,373$
Year Ending
June 30, Principal Interest Premium
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 695,000 1,016,500 145,848
2030 725,000 988,100 145,848
2031-2035 4,095,000 4,471,500 729,242
2036-2040 5,000,000 3,565,000 729,242
2041-2045 6,105,000 2,458,100 729,242
2046-2050 7,460,000 1,106,000 729,242
2051 1,680,000 33,600 2
Total 27,695,000$ 16,848,100 $ 3,646,210 $
79 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: 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. Claims payabl e are paid from the Workers' Compensation Fund and the Liability Fund.
NOTE 13: COMMUNITY FACILITIES AND ASSESSMENT DISTRICTS AND OTHER 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, 2025 are $12,714,000 and are scheduled to mature in October 2030.
Year Ending
June 30, Principal Interest
2026 10,499,239$ 5,950,180 $
2027 10,628,974 5,821,670
2028 10,795,776 5,652,988
2029 10,990,378 5,460,067
2030 11,217,413 5,232,566
2031-2035 60,178,341 22,075,283
2036-2040 68,082,887 13,353,749
2041-2044 45,838,025 3,257,236
Total 228,231,033$ 66,803,739 $
Governmental Activity
Year Ending
June 30, Principal Interest
2026 830,761$ 470,813 $
2027 841,026 460,644
2028 854,224 447,297
2029 869,622 432,032
2030 887,587 414,031
2031-2035 4,761,659 1,746,724
2036-2040 5,387,113 1,056,626
2041-2044 3,626,974 257,732
Total 18,058,966$ 5,285,899 $
Business Type Activ ity
80 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: 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, 2025 are $19,485,000 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 14: 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 15: 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, 2025 , the outstanding amount for these loans was $346,744. 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 permanent f inancing 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 $4,300,000 . The loan balance at June 30, 2025 is $4,294,711.
81 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 15: LOANS RECEIVABLE (CONTINUED)
On December 21, 2022, the City entered into Financing Agreement s that provided the Developer of the Villa St.
Joseph Affordable Housing Project for the acquisition and development of forty-nine (49) affordable rental housing units for Extremely Low Income, Very Low Income, Low Income Sen ior Citizen Households, and one (1) manager’s unit located at 480 South Batavia Street in the C ity of Orange, while maintaining compliance with the affordable housing requirements. The Financing Agreements provided for City loans from the Housing In-Lieu Fund in the amount of $372,756, from the HOME Fund in the amoun t of $651,244, and from the Housing Successor Fund in the amount of $576,000. The loan balances at June 30, 2025 are $297,309 for the Housing In-Lieu Fund, $618,682 for the HOME Fund, and $458,696 for the Housing Successor Fund.
On January 23, 2024, the City entered into a Financing Agreemen t that provided the Developer of 1800 E. La Veta Avenue in the City of Orange for the developmen t and operation of one hundred sixty-four (164) affordable rental housing units for Extremely Low Income and Lo w Income Senior Citizen Households, and two (2) manager’s units. The Financing Agreement provided for a City loan from the Housing Successor Fund in the amount of $2,200,000. The loan balance is $1,980,000 at June 30, 2025.
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 estimated unco llectible amounts, for these housing loans at June 30, 2025 are comprised of the following:
NOTE 16: TRANSFERS
1The above Capital Improvement transfers were for $3,000,000 to the general fund for general services and subsequent return of unused funds in the amount of $354,029.
Total
Housing successor loans 29,582,479$
In-lieu loans 4,592,019
HOME loans 17,952,320
CDBG loans 346,744
Total Loans 52,473,562 $
Capital Nonmajor
Transfers Out General Improvement Governmental Total
General1 -$ 354,029$ 133,651 $ 487,680 $ Capital Improvement1 3,000,000 - - 3,000,000 Total 3,000,000$ 354,029$ 133,651$ 3,487,680$ Transfers In
82 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 17: DEFICIT FUND BALANCE OR NET POSITION
The SB2 Building Home & jobs Act fund ended the fiscal year in a deficit fund balance of $1,944,877. This deficit is due to the new grant program spending.
In the Internal Service funds, the Workers' Compensation Fund a nd the Liability Fund had deficit net positions of $11.3 million and $11,568, 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 18: GOVERNMENTAL FUND BALANCES
NOTE 19: 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 20: 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 2% to 3% p er annum and are to be repaid in installments over an established time period, if not fully or partially forgiven.
General Measure M
Federal, State
& Local Grants
Housing
Successor
SB2 Building
Home & Jobs
Act
Capital
Improvement
Park
Acquisition,
Development
and
Maintenance
Other
Governmental Total
Nonspendable:
Prepaid items 404,082 $ - $ - $ - $ - $ - $ - $ - $ 404,082$ Inventories 930,045 - - - - - - - 930,045 Restricted for:
Public safety - - - - - - - 4,699,463 4,699,463 Federal, state & local grants - - 9,732,975 - - - - - 9,732,975 Housing - - - 28,449,585 - - - - 28,449,585 Streets/roads/transportation improv. - 7,106,947 - - - - - 6,804,506 13,911,453 Development related transportation improv. - - - - - - - 4,416,063 4,416,063 Air quality - - - - - - - 332,608 332,608 Asset forfeiture operations - - - - - - - 3,760,506 3,760,506 Assessment district landscape maint. - - - - - - - 2,006,813 2,006,813 Gov t access/local access programming - - - - - - - 286,795 286,795 Affordable housing units - - - - - - - 4,896,237 4,896,237 Training/certifying building inspectors - - - - - - - 669,552 669,552 Pension obligation bond 8,413 - - - - - - - 8,413 Total restricted 8,413 7,106,947 9,732,975 28,449,585 - - - 27,872,543 73,170,463 Committed:
Catastrophic reserve 26,380,740 - - - - - - - 26,380,740 Capital project fund reserve - - - - - 3,785,549 - - 3,785,549 Assigned:
Continuing appropriation 1,216,704 - - - - 17,593,001 10,006,844 2,718,206 31,534,755 Purchase order carryover 787,103 - - - - 1,316,410 175,647 2,279,160 General plan 1,331,305 - - - - - - - 1,331,305 Unassigned - - - - (1,944,877) - - - (1,944,877) Total fund balances 31,058,392$ 7,106,947$ 9,732,975$ 28,449,585$ (1,944,877)$ 22,694,960$ 10,182,491$ 30,590,749$ 137,871,222$ Cash and inv estments pooled with the City 5,770,492$
Cash and inv estments with fiscal agent 376
Total Cash 5,770,868$
83 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 20: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)
The majority of loans are repaid in monthly or yearly installme nts. In addition, loans were issued under the Small Business Assistance (SBA) Programs. The programs are intended t o 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 exterior facades, and other property improvements.
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 doubtful accounts, at June 30, 2025 is $358,899.
C. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2025, follows:
D. 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, 2025 were $1,785,000.
Beginning
Balance Additions Deletions Ending Balance
Due Within
One Year
Due Beyond
One Year
Other debt:
Tax allocation bonds 22,675,000$ - $ (1,265,000)$ 21,410,000 $ 1,330,000 $ 20,080,000 $ Unamortized bond premium 2,010,771 - (167,563) 1,843,208 - 1,843,208 Total 24,685,771$ -$ (1,432,563)$ 23,253,208$ 1,330,000$ 21,923,208$ 84 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 20: SUCCESSOR AGENCY TRUST F OR ASSETS OF FORMER REDEVELOPM ENT AGENCY (CONTINUED)
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 ser vice 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 Redevelopment Project Area 2018 Tax Allocation Refunding Bonds, Series A in the amount of $20,375,000. The 2018 bonds a re payable in annual installments of $750,000 to $2,265,000 and mature 2036. Interest rates on the bonds rang e from 4.00% to 5.00%. The Successor Agency completed the refunding to reduce its total debt service payments over the next 20 years by more than $3.7 million, resulting in an eco nomic 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, 2025 were $19,625,000.
Annual requirements to amortize all tax allocation bonds, notes payable, leases payable, and certificates of participation outstanding as of June 30, 2025 are shown below:
The Successor Agency of the former RDA is covered by insurance policies of the City of Orange as of June 30, 2025.
NOTE 21: CONSTRUCTION COMMITMENTS
The City has active construction projects as of June 30, 2025. The significant projects include the following:
Year Ending
June 30, Principal Interest
2026 1,330,000$ 958,020 $
2027 1,410,000 890,570
2028 1,475,000 815,085
2029 1,565,000 735,275
2030 1,640,000 655,150
2031-2035 9,550,000 1,963,025
2036-2037 4,440,000 179,400
Total 21,410,000$ 6,196,525 $
Tax Allocation Bonds
Project Remaining Commitment
Mobile Data Computers 1,774,849$
Pedestrian Beacon Upgrades 4,065,813
Well Rehabilitation 1,491,847
Exterior Cathodic Protection System 4,036,080
Pavement Management Program 142,955
Families Forward 112,473
Fair Housing Foundation 235,036
85 CITY OF ORANGE, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 22: RESTATEMENTS
During the prior year, the City had incorrectly recorded grant revenues in the governmental funds. The effects of the change in accounting principle are summarized below in the “Error correction” column in the table below.
During the current year, the City had changes to the reporting entity related to the movement of internal service funds to governmental funds and the Proposition 172 fund changing to a non-major fund after it was reported as a major fund in the previous fiscal year. The effects of the chan ge in accounting principle are summarized below in the “Changes within financial reporting entity” column in the table below.
During the current year, the City implemented GASB Statement No . 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separa tion of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability fo r compensated absences. The ef fects of the change in accounting principle are summarized below in the “Change in accounting principle” column in the table below.
NOTE 23: SUBSEQUENT EVENTS
In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through January 26, 2026, the date the financial statements were available to be issued. No other eve
nts or transactions were identified tha t required recognition or disclosure.
On November 17, 2025, La Veta Village fully repaid its outstanding $700,000 loan with the City. The payoff satisfied all remaining principal and related obligations under the loan agreement. Because this transaction occurred after year-end but provides additional information about conditions that existed at the financial statement date, it is considered a nonrecognized subsequent event. Accord ingly, no adjustments have been made to the accompanying financial statements for this event.
On December 19, 2025, Villa St. Joseph received the remaining b alance for the Mercy Housing Loans. Because this transaction occurred after year-end but provides additional information about conditions that existed at the financial statement date, it is considered a nonrecognized subs equent event. Accordingly, no adjustments have been made to the accompanying financial statements for this event.
Net position/fund
balance as of
6/30/2024 as
previously reported Error correction
Change in
accounting
principle
Changes within
financial reporting
entity
Net position/fund
balance as of
6/30/2024 as
adjusted/restated
Government-wide
Governmental Activities 570,557,891$ (2,938,830) $ (1,582,721) $ (4,272) $ 566,032,068$ Business Type Activities 148,338,723 - (149,810) 4,272 148,193,185 Total government-wide 718,896,614$ (2,938,830)$ (1,732,531)$ -$ 714,225,253$ Governmental Funds
Major funds
General fund 28,457,558$ -$ -$ 2,341,894$ 30,799,452$ Proposition 172 841,793 - - (841,793) -
- (2,938,830) - 1,564,430 (1,374,400)
Nonmajor funds 26,292,582 - - (726,909) 25,565,673 Total governmental funds 55,591,933$ (2,938,830)$ -$ 2,337,622$ 57,929,555$ Business-Type Funds
Major funds
Sanitation 65,699,417$ -$ (43,267)$ 4,272$ 65,660,422$ Water 82,639,306 - (106,543) - 82,532,763 Total business-type funds 148,338,723$ -$ (149,810)$ 4,272$ 148,193,185$ Internal service funds 28,286,113$ -$ -$ 2,545,307$ 30,831,420$ SB2 Building Home &
Jobs Act
86 REQUIREDEE SUPPLEMEE ENEE TATT RY INFORMAMM TITT ON
87 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 88 General Fund
General Fund - This fund has been classified as a major fund and is used to account for revenues and expenditures that are not required to be accounted for in another fund.
Special Revenue Fund
Measure M – This fund is used to account for receipts and expenditures relating to transportation improvement projects and programs, funded by local ½ cent sales tax.
Federal, State and Local Grants – This fund is used to account for grant programs such as Community Development Block Grant, Housing and Urban Development Grant, California Parklands Grant, Citizens Option for Public Safety (COPS) Grant, Traffic Safety Grant, Justice Assistance Grant, and other.
SB2 Building Home & Jobs Act - This fund is used to account for the collection and expenditure of state grant funds received for the purpose of preparation, adoption, or implementation of planning documents that streamline housing project approvals and accelerate housing productions.
Housing Successor - This fund is used to account for low and moderate housing activities as of February 1, 2012, when the City became the successor housing agency to the former Redevelopment Agency, upon its dissolution.
Prior to that, these activities were accounted for in the Redevelopment Agency Housing fund.
89 THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 90 CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 116,407,582$ 116,407,582$ 113,164,832$ (3,242,750)$ Franchise fees 3,220,194 3,220,194 2,753,300 (466,894) Licenses and permits 6,543,979 6,543,979 6,396,387 (147,592) Intergovernmental 1,387,632 2,551,915 3,002,532 450,617 Charges for services and fees 13,890,482 22,992,697 22,671,799 (320,898) Use of money and property 3,107,951 3,107,951 3,815,519 707,568 Fines and forfeitures 3,158,600 3,158,600 2,623,786 (534,814) Miscellaneous 1,093,015 1,357,653 3,939,610 2,581,957 Total revenues 148,809,435 159,340,571 158,367,765 (972,806)
EXPENDITURES
Current:
General government 14,277,378 21,998,081 19,420,355 2,577,726 Public safety 102,728,369 104,261,317 103,298,970 962,347 Community development 6,851,001 7,106,456 6,324,386 782,070 Parks and library 20,889,984 19,822,417 16,756,991 3,065,426 Public works 10,217,924 14,350,597 12,373,209 1,977,388 Economic development 32,487 32,487 145,382 (112,895) Capital outlay 66,800 694,090 519,058 175,032 Debt service:
Principal 595,000 758,628 1,122,754 (364,126) Interest and fiscal charges 1,119,700 1,216,453 1,215,249 1,204 Total expenditures 156,778,643 170,240,526 161,176,354 9,064,172 Excess (deficiency) of revenues
over (under) expenditures (7,969,208) (10,899,955) (2,808,589) 8,091,366
OTHER FINANCING SOURCES (USES)
Transfers in 3,000,000 3,000,000 3,000,000 - Transfers out - - (487,680) (487,680) Issuance of loans - - 555,209 555,209 Total other financing sources (uses) 3,000,000 3,000,000 3,067,529 67,529 Net change in fund balances (4,969,208)$ (7,899,955)$ 258,940 8,158,895$ Fund balances-beginning 28,457,558
Restatements - changes within the financial reporting entity 2,341,894 Fund balances-beginning 30,799,452
Fund balances-ending 31,058,392$
Budget Amounts
91 CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 4,422,635$ 4,422,635$ 4,737,429$ 314,794$ Use of money and property 116,580 116,580 288,580 172,000 Total revenues 4,539,215 4,539,215 5,026,009 486,794
EXPENDITURES
Current:
Parks and library 236,886 496,468 300,397 196,071 Public works 1,199,581 1,199,581 711,614 487,967 Capital outlay 2,825,000 9,521,732 2,124,382 7,397,350 Total expenditures 4,261,467 11,217,781 3,136,393 8,081,388 Net change in fund balances 277,748$ (6,678,566)$ 1,889,616 8,568,182$ Fund balances-beginning 5,217,331
Fund balances-ending 7,106,947$
Budget Amounts
92 CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Federal, State & Local Grants
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,774,037$ 1,762,232$ 2,225,916$ 463,684$ Charges for services and fees 170,000 170,000 156,260 (13,740) Use of money and property 42,018 42,018 143,864 101,846 Miscellaneous - - 32,563 32,563 Total revenues 1,986,055 1,974,250 2,558,603 584,353
EXPENDITURES
Current:
Public safety 315,127 687,895 217,059 470,836 Community development 434,787 468,532 510,138 (41,606) Public works - - 26,779 (26,779) Capital outlay 1,148,898 4,522,436 544,166 3,978,270 Total expenditures 1,898,812 5,678,863 1,298,142 4,380,721 Net change in fund balances 87,243$ (3,704,613)$ 1,260,461 4,965,074$ Fund balances-beginning 8,472,514
Fund balances-ending 9,732,975$
Budget Amounts
93 CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB2 Building Home & Jobs Act
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental -$ -$ 2,658,019$ 2,658,019$ Use of money and property - - 114,657 114,657 Total revenues - - 2,772,676 2,772,676
EXPENDITURES
Current:
Community development - 5,847,661 3,343,153 2,504,508 Total expenditures - 5,847,661 3,343,153 2,504,508 Net change in fund balances -$ (5,847,661)$ (570,477) 5,277,184$ Fund balances-beginning 1,564,430
Restatements - error correction (2,938,830)
Fund balances (deficit)-beginning (1,374,400)
Fund balances (deficit)-ending (1,944,877)$
Budget Amounts
94 CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Successor
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 101,937$ 101,937$ 111,472$ 9,535$ Total revenues 101,937 101,937 111,472 9,535
EXPENDITURES
Current:
General government 36,715 34,715 28,962 5,753 Community development 114,187 131,101 202,739 (71,638) Economic development 47,151 2,823,151 46,026 2,777,125 Capital outlay - - - - Total expenditures 198,053 2,988,967 277,727 2,711,240 Net change in fund balances (96,116)$ (2,887,030)$ (166,255) 2,720,775$ Fund balances-beginning 28,615,840
Fund balances-ending 28,449,585$
Budget Amounts
95 CITY OF ORANGE, CALIFORNIA
Schedule of Changes in Total OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL OPEB LIABILITY
Service cost 1,444,503$ 1,552,104$ 2,229,321$ 2,020,586$ Interest on total pension liability 1,291,909 1,410,255 880,729 1,112,493 Changes of assumptions (889,475) (3,697,487) (8,604,291) 3,582,060 Difference between expected and actual experience (10,712) (2,398,558) (24,560) (4,973,808) Benefit payments, including refunds of employee
contributions (594,247) (581,215) (537,370) (503,530) Implicit subsidy fulfilled (931,127) (909,145) (886,427) (1,045,784) Net change in total OPEB liability 310,851 (4,624,046) (6,942,598) 192,017 Total OPEB liability-beginning 32,787,319 37,411,365 44,353,963 44,161,946 Total OPEB liability-ending 33,098,170$ 32,787,319$ 37,411,365$ 44,353,963$ Covered-employee payroll 69,392,787$ 61,844,646$ 61,715,879$ 58,599,662$ Plan OPEB liability as a percentage of
covered payroll 47.7% 53.0% 60.6% 75.7%
Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios:
Benefit Changes: None
Changes of Assumptions: For the fiscal year ended June 30, 2025, the City's actuary updated assumptions in determining the total OPEB liability for: healthcare trends; mortality tables; merit salary increase tables; retirement, termination and disability rates; decrement timing; spousal rate; and the discount rate. See Note 10 to the financial statements for details on the actuarial methods and assumptions. For changes in the preceding years, refer to those years' respective annual comprehensive financial reports. 1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown. 96 2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
1,679,816$ 1,358,445$ 1,360,032$ 1,322,024$ 1,252,988 1,201,679 1,119,120 1,087,864 3,630,272 2,818,825 (371,560) -
(25,507) 2,516,073 - - (486,947) (1,305,875) (1,207,876) (1,148,907) (967,848) - - - 5,082,774 6,589,147 899,716 1,260,981 39,079,172 32,490,025 31,590,309 30,329,328 44,161,946$ 39,079,172$ 32,490,025$ 31,590,309$ 52,413,430$ 49,778,287$ 59,649,993$ 58,053,521$
84.3% 78.5% 54.5% 54.4%
Benefit Changes: None
97 CITY OF ORANGE, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 6,489,014$ 6,124,048$ 5,836,901$ 5,435,892$ 5,189,996$ Interest on total pension liability 28,443,939 27,585,423 26,520,235 26,300,226 25,659,248 Changes of benefit terms - 459,186 - - - Changes of assumptions - - 10,787,597 - - Difference between expected and actual experience 1,657,750 4,733,966 (5,094,851) (1,615,823) 753,998 Benefit payments, including refunds of employee
contributions (23,421,607) (22,793,273) (21,719,479) (20,507,418) (20,275,870) Net change in total pension liability 13,169,096 16,109,350 16,330,403 9,612,877 11,327,372 Total pension liability-beginning 419,039,535 402,930,185 386,599,782 376,986,905 365,659,533 Total pension liability-ending (a) 432,208,631 419,039,535 402,930,185 386,599,782 376,986,905
PLAN FIDUCIARY NET POSITION
Contributions-employer 4,516,483 4,123,707 3,462,240 115,571,257 10,335,791 Contributions-employee 2,865,819 2,357,110 2,358,367 2,208,136 2,175,496 Net investment income 36,758,371 23,356,128 (32,211,334) 67,731,016 13,126,364 Benefit payments, including refunds of employee
contributions (23,421,607) (22,793,273) (21,719,479) (20,507,418) (20,275,870) Net plan to plan resource movement - - - - - Administrative expense (320,503) (284,672) (271,293) (270,485) (374,692) Other miscellaneous income/(expense) - - - - - Net change in fiduciary net position 20,398,563 6,759,000 (48,381,499) 164,732,506 4,987,089 Plan fiduciary net position-beginning 393,882,170 387,123,170 435,504,669 270,772,163 265,785,074 Plan fiduciary net position-ending (b) 414,280,733 393,882,170 387,123,170 435,504,669 270,772,163 Net pension liability/(asset) (a) - (b) 17,927,898$ 25,157,365$ 15,807,015$ (48,904,887)$ 106,214,742$ Plan fiduciary net position as a percentage of the
total pension liability 95.9% 94.0% 96.1% 112.7% 71.8%
Covered payroll 33,006,175$ 30,789,582$ 29,053,762$ 29,494,804$ 27,858,270$ Plan net pension liability/(asset) as a percentage of
covered payroll 54.3% 81.7% 54.4% -165.8% 381.3%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long- term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 98 2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
5,067,666$ 5,267,383$ 5,177,802$ 4,672,901$ 4,546,279$ 24,866,459 24,067,324 23,418,521 23,117,281 22,231,987 - - - - - - (1,376,690) 18,989,623 - (5,284,506) 315,824 (1,306,394) (5,876,562) (131,466) (7,188,831) (19,046,828) (17,701,058) (16,066,665) (15,554,542) (14,720,766) 11,203,121 8,950,565 25,642,719 12,104,174 (415,837) 354,456,412 345,505,847 319,863,128 307,758,954 308,174,791 365,659,533 354,456,412 345,505,847 319,863,128 307,758,954 8,895,425 7,864,464 7,498,423 6,420,197 5,766,795 2,344,603 2,088,111 2,142,096 2,036,528 2,104,640 16,762,810 20,755,507 25,473,940 1,162,922 5,258,066 (19,046,828) (17,701,058) (16,066,665) (15,554,542) (14,720,766) - (599) 32,777 26 (4,435) (183,409) (381,953) (334,215) (141,662) (275,403) 599 (725,336) - - - 8,773,200 11,899,136 18,746,356 (6,076,531) (1,871,103) 257,011,874 245,112,738 226,366,382 232,442,913 234,314,016 265,785,074 257,011,874 245,112,738 226,366,382 232,442,913 99,874,459$ 97,444,538$ 100,393,109$ 93,496,746$ 75,316,041$
72.7% 72.5% 70.9% 70.8% 75.5%
26,357,030$ 27,290,727$ 26,413,315$ 26,369,288$ 25,364,199$ 378.9% 357.1% 380.1% 354.6% 296.9%
99 CITY OF ORANGE, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 11,161,161$ 10,646,420$ 10,563,736$ 9,602,667$ 9,008,558$ Interest on total pension liability 45,729,124 44,229,279 42,323,381 41,044,660 39,162,098 Changes of benefit terms - 260,657 - - - Changes of assumptions - - 21,493,940 6,910,237 (876,533) Difference between expected and actual experience 845,747 7,299,176 (2,164,924) - - Benefit payments, including refunds of employee
contributions (34,681,175) (33,802,706) (31,930,430) (30,321,036) (27,775,755) Net change in total pension liability 23,054,857 28,632,826 40,285,703 27,236,528 19,518,368 Total pension liability-beginning 673,655,195 645,022,369 604,736,666 577,500,138 557,981,770 Total pension liability-ending (a) 696,710,052 673,655,195 645,022,369 604,736,666 577,500,138
PLAN FIDUCIARY NET POSITION
Contributions-employer 8,656,893 7,904,822 6,930,384 198,675,791 16,809,199 Contributions-employee 4,461,372 3,670,921 3,579,796 3,429,542 3,158,214 Net investment income 57,214,057 36,179,168 (49,811,030) 101,688,630 19,165,432 Benefit payments, including refunds of employee
contributions (34,681,175) (33,802,706) (31,930,430) (30,321,036) (27,775,755) Net plan to plan resource movement - - - - - Administrative expense (497,635) (439,783) (417,186) (396,207) (543,905) Other miscellaneous income/(expense) - - - - - Net change in fiduciary net position 35,153,512 13,512,422 (71,648,466) 273,076,720 10,813,185 Plan fiduciary net position-beginning 611,568,948 598,056,526 669,704,992 396,628,272 385,815,087 Plan fiduciary net position-ending (b) 646,722,460 611,568,948 598,056,526 669,704,992 396,628,272 Net pension liability/(asset) (a) - (b) 49,987,592$ 62,086,247$ 46,965,843$ (64,968,326)$ 180,871,866$ Plan fiduciary net position as a percentage of the
total pension liability 92.8% 90.8% 92.7% 110.7% 68.7%
Covered payroll 36,617,982$ 34,690,193$ 34,142,651$ 33,812,207$ 31,421,550$ Plan net pension liability/(asset) as a percentage of
covered payroll 136.5% 179.0% 137.6% -192.1% 575.6%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long- term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 100
2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
8,940,979$ 8,684,357$ 8,663,044$ 7,677,162$ 7,510,097$ 37,812,758 36,374,391 34,973,049 34,040,818 32,660,257 - - - - - 628,915 (2,407,807) 29,689,823 - (8,155,227) - 2,812,674 (4,567,911) (325,378) (6,412,547) (26,302,494) (25,095,404) (23,809,456) (22,545,119) (21,218,801) 21,080,158 20,368,211 44,948,549 18,847,483 4,383,779 536,901,612 516,533,401 471,584,852 452,737,369 448,353,590 557,981,770 536,901,612 516,533,401 471,584,852 452,737,369 14,629,767 12,902,982 12,304,411 10,451,474 9,399,041 2,962,476 2,863,563 2,785,504 2,715,401 2,736,436 24,251,336 29,531,053 36,448,582 1,469,981 6,943,219 (26,302,494) (25,095,404) (23,809,456) (22,545,119) (21,218,801) - (864) 1,111 - - (264,424) (548,398) (479,361) - - 864 (1,041,417) - - - 15,277,525 18,611,515 27,250,791 (7,908,263) (2,140,105) 370,537,562 351,926,047 324,675,256 332,583,519 334,723,624 385,815,087 370,537,562 351,926,047 324,675,256 332,583,519 172,166,683$ 166,364,050$ 164,607,354$ 146,909,596$ 120,153,850$
69.1% 69.0% 68.1% 68.8% 73.5%
31,077,439$ 30,016,442$ 29,388,167$ 29,062,548$ 28,144,568$ 554.0% 554.2% 560.1% 505.5% 426.9%
101
CITY OF ORANGE, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Fiscal Year Actuarially Actual Contribution Contribution as a Ending Determined Employer Deficiency Covered % of Covered June 30, Contribution Contributions (Excess) Payroll Payroll 2025 4,060,735$ 4,309,195$ (248,460)$ 34,591,647$ 12.5% 2024 4,276,337 4,517,941 (241,604) 33,006,175 13.7% 2023 3,640,116 3,640,116 30,789,582 11.8% 2022 3,460,554 3,460,554 - 29,053,762 11.9% 2021 11,230,178 115,573,579 (104,343,401) 29,494,804 391.8% 2020 10,331,501 10,331,501 - 27,858,270 37.1% 2019 8,889,983 8,889,983 - 26,357,030 33.7% 2018 7,865,000 7,865,000 - 27,290,727 28.8% 2017 7,496,129 7,496,129 - 26,413,315 28.4% 2016 6,420,229 6,420,229 - 26,369,288 24.3% 2025 7,683,945$ 8,521,278$ (837,333)$ 40,654,957$ 21.0% 2024 7,952,294 8,644,337 (692,043) 36,617,982 23.6% 2023 6,993,732 6,993,732 - 34,690,193 20.2% 2022 6,931,080 6,931,080 - 34,142,651 20.3% 2021 18,409,102 198,674,869 (180,265,767) 33,812,207 587.6% 2020 16,811,365 16,811,365 - 31,421,550 53.5% 2019 14,630,050 14,630,050 - 31,077,439 47.1% 2018 12,903,531 12,903,531 - 30,016,442 43.0% 2017 12,302,440 12,302,440 - 29,388,167 41.9% 2016 10,451,464 10,451,464 - 29,062,548 36.0% Actuarial Cost Method: Entry Age Normal
Amortization Method/Period: For details, see June 30, 2023 Funding Valuation Report Asset Valuation Method: Fair value of assets; for details, see June 30, 2023 Funding Valuation Report Inflation: 2.30%
Salary Increases: Varies by entry age and service
Payroll Growth: 2.8%
Investment Rate of Return: 6.80% (net of administrative expenses; includes inflation) Retirement Age: For details, see June 30, 2023 Funding Valuation Report Mortality: For details, see June 30, 2023 Funding Valuation Report Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
Notes to Schedules of Plan Contributions
The actuarial methods and assumption used to set the actuarially determined contributions for fiscal year ended June 30, 2025 were derived from the June 30, 2023 funding valuation report publicly available on CalPERS' website. 102
CITY OF ORANGE, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
NOTE 1: BUDGETARY ACCOUNTING
Annual budgets are adopted by July 1 of each year on a basis co nsistent with generally accepted accounting principles for all governmental funds. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by t he City Council throughout the year.
Department heads are responsible for monitoring their department's appropriated budget.
Legal level of Control - The legal level of budgetary control i s at the department level within each fund. Transfers of appropriations between funds, between departments within a f und, and between capital outlay or debt service and another object group classification within a department, re quire City Council approval. All other transfers of appropriations can be made with the City management’s approval.
The City Council approved increases in appropriations during th e year in the amount of $790,327 in the General Fund, $20,000,532 in the Special Revenue Funds, and $38,453,992 in the Capital Projects Funds.
Unencumbered appropriations of the governmental funds automatic ally lapse at the end of the fiscal year.
Ongoing, unfulfilled encumbrances and their appropriations auto matically carry over and will be honore d during the subsequent year.
The City did not adopt a budget in the current fiscal year for the Reimbursable Expense Fund or the City Debt Service Fund.
During the current fiscal year, the City reported the following expenditures in excess of the budgeted appropriations.
Budget Actual
General fund:
Economic development 32,487 $ 145,382 $
Debt service principal 758,628 1,122,754
Federal, State & Local Grants fund
Community development 468,532 510,138
Public works - 26,779
Housing Successor fund
Community development 131,101 202,739
103
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 104
SUPPLEMEE ENEE TATT RY SCHCC EDEE ULESEE
105
THIS PAGE INTENTIONALLY LEFT BLANK.
106
Non-Major Special Revenue Funds
The following Special Revenue Funds have been classified as non-major funds in the accompanying financial statements and budgetary comparison schedules:
Proposition 172 Fund - This fund is used to account for sales t ax restricted by voter mandate for public safety service enhancements. The primary source of revenue in this fund is sales tax.
EMT Transport - This fund is used to account for the receipts a nd expenditures related to ambulance transportation.
1% PEG Program - This fund is used to account for Public Educat ion and Government (PEG) access fees paid to the City by cable providers. T hese revenues are restricted by S tate regulations for the exclusive use of the City's Government Access and Local Access programming.
Certified Access Specialist Program (CASP) Certification & Trai ning - This fund is used to account for collection and expenditures of fees restric ted, by Senate Bill 262 (Chapte r 872, 2003), for costs of training and certifying inspectors and educating the public pursuant to Government Code Section 4467.
Headstart Building Maintenance - This fund is used to account f or lease payments and maintenance on the Headstart/Preschool building.
Air Pollution Reduction - This fund is used to account for reve nues and expenditures related to air pollution reduction programs pursuant to the California Clean Air Act of 1988.
Gas Tax - This fund is used to account for receipts and expendi tures of money apportioned under Streets and Highway Code Sections 2105, 2106 and 2107 of the State of California.
Road Maintenance Rehabilitation Account (RMRA) - This fund is used to account for collection and expenditure of gas tax funds allocated and restricted under Street and Highway Code Section 2031, through the RMRA, for maintenance and construction of city streets and roads.
Transportation System Improvement Program (TSIP) - This fund is used to account for the collection of fees assessed to developers and expenditures made to improve the City's transportation system.
Landscape Maintenance Assessment Districts - This fund is used to account for the collection of assessments from property owners and the associated city expenditures for t he maintenance of landscaped areas within the districts.
Asset Seizure - This fund is used to account for assets seized as a result of drug enforcement efforts.
Housing in Lieu - This fund is used to account for the collecti on of developer affordable housing in-lieu fees and other transactions related to the creation of new affordable housing units.
Opioid Settlement Fund - National settlements were reached to resolve all opioids litigation brought by states and local political subdivisions against the three largest pharmace utical distributors and the manufacturer. These National Settlements have been finalized, and payments have already begun. This fund is established to account for the proceeds that are restricted for specific use.
107
CITY OF ORANGE, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments 1,218,344$ 3,302,070$ 281,187$ 441,392$ Receivables (net of allowance for uncollectible):
Accounts 98,303 2,453 44,534 - Taxes 60,930 - - - Accrued interest 9,553 25,871 2,201 3,459 Notes and loans - - - - Leases - - - - Total assets 1,387,130$ 3,330,394$ 327,922$ 444,851$
LIABILITIES
Accounts payable -$ 68,942$ 41,127$ -$ Contracts payable - - - - Accrued liabilities - - - - Unearned revenues - - - - Total liabilities - 68,942 41,127 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - Lease-related - - - - Total deferred inflows of resources - - - -
FUND BALANCES
Restricted 1,387,130 3,261,452 286,795 444,851 Assigned - - - - Unassigned - - - - Total fund balances 1,387,130 3,261,452 286,795 444,851 Total liabilities, deferred inflows
of resources, and fund balances 1,387,130$ 3,330,394$ 327,922$ 444,851$ Proposition
172 EMT Transport
1% PEG
Program
CASP
Certification &
Training
Special Revenue Funds
108
CITY OF ORANGE, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
(Continued)
217,424$ 330,023$ 1,114,745$ 4,627,187$ - - 1,889 676,579 - - 337,479 - 1,703 2,585 9,545 39,159 - - - - 115,755 - - - 334,882$ 332,608$ 1,463,658$ 5,342,925$ -$ -$ 2,077$ -$ - - - - - - - - - - - - - - 2,077 - - - - - 110,181 - - - 110,181 - - - 224,701 332,608 1,461,581 5,342,925 - - - - - - - - 224,701 332,608 1,461,581 5,342,925 334,882$ 332,608$ 1,463,658$ 5,342,925$ Headstart
Building
Maintenance
Air Pollution
Reduction Gas Tax
RMRA Road
Maintenance
Special Revenue Funds
109
CITY OF ORANGE, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
4,503,958$ 1,991,166$ 3,785,388$ 301,853$ - 81 6,301 - - 3,249 - - 35,280 15,600 32,082 2,364 24,301 - - 4,592,020 - - - - 4,563,539$ 2,010,096$ 3,823,771$ 4,896,237$ 117,050$ 3,283$ 9,513$ -$ 6,125 - - - - - 53,752 - - - - - 123,175 3,283 63,265 - 24,301 - - - - - - - 24,301 - - - 4,416,063 2,006,813 3,760,506 4,896,237 - - - - - - - - 4,416,063 2,006,813 3,760,506 4,896,237 4,563,539$ 2,010,096$ 3,823,771$ 4,896,237$ Housing In-
Lieu
Landscape
Maintenance
Assessment
Districts Asset Seizure
Transportation
System
Improvement
Program
Special Revenue Funds
110
CITY OF ORANGE, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
(Continued)
Special
Revenue Fund
1,205,391$ 887,878$ 948,483$ 862,701$ - - - 14,849 - - - - 9,926 6,946 7,431 5,713 - 38,936 18,791 34,427 - - - - 1,215,317$ 933,760$ 974,705$ 917,690$ 3,555$ 947$ -$ -$ - - - - - - - - 1,160,881 - - - 1,164,436 947 - - - 38,935 18,791 49,276 - - - - - 38,935 18,791 49,276 50,881 - - - - 893,878 955,914 868,414 - - - - 50,881 893,878 955,914 868,414 1,215,317$ 933,760$ 974,705$ 917,690$ Fire Facilities
Fees
Police
Facilities Fees
Library
Facilities Fees
Capital Projects Fund
Opioid
Settlement
Fund
111
CITY OF ORANGE, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
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
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources
FUND BALANCES
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Debt Service
Fund
Total
Nonmajor
Funds
-$ 26,019,190$
- 844,989
- 401,658
- 209,418
- 4,708,475
- 115,755
-$ 32,299,485$
-$ 246,494$
- 6,125
- 53,752
- 1,160,881
- 1,467,252
- 131,303
- 110,181
- 241,484
- 27,872,543
- 2,718,206
- -
- 30,590,749
-$ 32,299,485$
City Debt
Service
112
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 113
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Formerly
Major Fund
REVENUES
Taxes 1,340,408$ -$ -$ -$ Franchise fees - - 190,507 - Intergovernmental - - - - Charges for services and fees - 4,503,368 - - Use of money and property 54,651 156,125 18,294 21,432 Fines and forfeitures - - - - Miscellaneous - - - 61,736 Total revenues 1,395,059 4,659,493 208,801 83,168
EXPENDITURES
Current:
General government 1,993 - 254,904 - Public safety 823,801 3,776,440 - - Community development - - - 8,190 Parks and library - - - - Public works - - - - Economic development - - - - Capital outlay 23,928 - 78,491 - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 849,722 3,776,440 333,395 8,190 Excess (deficiency) of revenues
over (under) expenditures 545,337 883,053 (124,594) 74,978
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Proceeds from sale of capital assets - - - - Total other financing sources (uses) - - - - Net change in fund balances 545,337 883,053 (124,594) 74,978 Fund balances (deficit)-beginning - 2,378,399 411,389 369,873 Changes within the financial reporting entity 841,793 - - - Fund balances-beginning, as restated 841,793 2,378,399 411,389 369,873 Fund balances (deficit)-ending 1,387,130$ 3,261,452$ 286,795$ 444,851$ Proposition
172 EMT Transport
1% PEG
Program
CASP
Certification &
Training
Special Revenue Funds
114
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Franchise fees
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
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Changes within the financial reporting entity
Fund balances-beginning, as restated
Fund balances (deficit)-ending
(Continued)
-$ -$ -$ -$ - - - - - 183,306 3,959,603 3,839,385 - - 11,598 - 30,660 16,120 35,544 185,111 - - - - - - 18,093 - 30,660 199,426 4,024,838 4,024,496 - 64,035 - - - 9,179 - - - - - - - - - - 3,099 - 3,770,698 297 - - - - - - 35,748 1,338,647 - - - - - - - - 3,099 73,214 3,806,446 1,338,944 27,561 126,212 218,392 2,685,552 - - - - - - 700,000 - - - 700,000 - 27,561 126,212 918,392 2,685,552 197,140 206,396 543,189 2,657,373 - - - - 197,140 206,396 543,189 2,657,373 224,701$ 332,608$ 1,461,581$ 5,342,925$ Headstart
Building
Maintenance
Air Pollution
Reduction Gas Tax
RMRA Road
Maintenance
Special Revenue Funds
115
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Franchise fees
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
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Changes within the financial reporting entity
Fund balances-beginning, as restated
Fund balances (deficit)-ending
Formerly Non-
Major Fund
-$ 1,033,162$ -$ -$ - - - - - - 102,283 - 143,319 - - - 231,184 104,582 130,828 - - - - - - 34,228 - - 374,503 1,171,972 233,111 - - - - - - - 221,140 - - - - - - 945,121 - - 16,120 - - - - - - - 151,095 381,918 366,452 - - - - - - - - - 167,215 1,327,039 587,592 - 207,288 (155,067) (354,481) - - - - - - - - - - - - - 207,288 (155,067) (354,481) - 4,208,775 2,161,880 4,114,987 1,564,430 - - - (1,564,430) 4,208,775 2,161,880 4,114,987 -
4,416,063$ 2,006,813$ 3,760,506$ -$
Transportation
System
Improvement
Program
Landscape
Maintenance
Assessment
Districts Asset Seizure
SB2 Building
Home & Jobs
Act
Special Revenue Funds
116
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Franchise fees
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
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Changes within the financial reporting entity
Fund balances-beginning, as restated
Fund balances (deficit)-ending
(Continued)
-$ -$ -$ -$ - - - - - - - - - - - 127,677 16,074 51,493 - 49,771 - 56,058 - - - - - - 16,074 107,551 - 177,448 - - - - - 56,057 - - - - - - - - - - - - - - 21,029 - - - - - - 227,013 - - - - - - - - 21,029 56,057 - 227,013 (4,955) 51,494 - (49,565) - - - - - - - - - - - - (4,955) 51,494 - (49,565) 4,901,192 (613) 4,272 943,443 - - (4,272) - 4,901,192 (613) - 943,443 4,896,237$ 50,881$ -$ 893,878$ Drainage
District
Fire Facilities
Fees
Opioid
Settlement
Fund
Housing In-
Lieu
Special Revenue Funds Capital Projects Funds
117
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Franchise fees
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
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Changes within the financial reporting entity
Fund balances-beginning, as restated
Fund balances (deficit)-ending
Total
Nonmajor
Funds
-$ -$ -$ 2,373,570$ - - - 190,507 - - - 8,084,577 35,020 58,352 - 4,879,334 47,951 39,227 - 1,189,047 - - - 56,058 - - 16,453,434 16,567,491 82,971 97,579 16,453,434 33,340,584 - - - 320,932 - - - 4,886,617 - - - 8,190 - - - 945,121 - - - 3,790,214 - - - 21,029 - 120,330 - 2,723,622 - - 10,401,938 10,401,938 - - 6,051,496 6,051,496 - 120,330 16,453,434 29,149,159 82,971 (22,751) - 4,191,425 - 133,651 - 133,651 - - - 700,000 - 133,651 - 833,651 82,971 110,900 - 5,025,076 872,943 757,514 - 26,292,582 - - - (726,909) 872,943 757,514 - 25,565,673 955,914$ 868,414$ -$ 30,590,749$ City Debt
Service
Police
Facilities Fees
Library
Facilities Fees
Debt Service
FundCapital Projects Funds
118
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Proposition 172
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 1,326,600$ 1,326,600$ 1,340,408$ 13,808$ Use of money and property 8,000 8,000 54,651 46,651 Total revenues 1,334,600 1,334,600 1,395,059 60,459
EXPENDITURES
Current:
General government 1,993 1,993 1,993 - Public safety 1,509,977 1,509,977 823,801 686,176 Capital outlay 41,600 41,600 23,928 17,672 Total expenditures 1,553,570 1,553,570 849,722 703,848 Net change in fund balances (218,970)$ (218,970)$ 545,337 764,307$ Fund balances-beginning 841,793
Fund balances-ending 1,387,130$
Budget Amounts
119
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual EMT Transport
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 115,000$ 115,000$ -$ (115,000)$ Charges for services and fees 3,200,000 3,200,000 4,503,368 1,303,368 Use of money and property 13,500 13,500 156,125 142,625 Total revenues 3,328,500 3,328,500 4,659,493 1,330,993
EXPENDITURES
Current:
Public safety 3,776,054 3,776,054 3,776,440 (386) Total expenditures 3,776,054 3,776,054 3,776,440 (386) Net change in fund balances (447,554)$ (447,554)$ 883,053 1,330,607$ Fund balances-beginning 2,378,399
Fund balances-ending 3,261,452$
Budget Amounts
120
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual 1% PEG Program
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 251,800$ 251,800$ 190,507$ (61,293)$ Use of money and property 3,800 3,800 18,294 14,494 Total revenues 255,600 255,600 208,801 (46,799)
EXPENDITURES
Current:
General government 254,709 254,709 254,904 (195) Capital outlay 67,500 95,412 78,491 16,921 Total expenditures 322,209 350,121 333,395 16,726 Net change in fund balances (66,609)$ (94,521)$ (124,594) (30,073)$ Fund balances-beginning 411,389
Fund balances-ending 286,795$
Budget Amounts
121
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CASP Certification & Training
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 4,900$ 4,900$ 21,432$ 16,532$ Miscellaneous 40,000 40,000 61,736 21,736 Total revenues 44,900 44,900 83,168 38,268
EXPENDITURES
Current:
Community development 128,190 128,190 8,190 120,000 Total expenditures 128,190 128,190 8,190 120,000 Net change in fund balances (83,290)$ (83,290)$ 74,978 158,268$ Fund balances-beginning 369,873
Fund balances-ending 444,851$
Budget Amounts
122
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Headstart Building Maintenance
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 17,800$ 17,800$ 30,660$ 12,860$ Total revenues 17,800 17,800 30,660 12,860
EXPENDITURES
Current:
Public works 12,299 56,005 3,099 52,906 Total expenditures 12,299 56,005 3,099 52,906 Net change in fund balances 5,501$ (38,205)$ 27,561 65,766$ Fund balances-beginning 197,140
Fund balances-ending 224,701$
Budget Amounts
123
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Air Pollution Reduction
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 181,700$ 181,700$ 183,306$ 1,606$ Use of money and property 2,200 2,200 16,120 13,920 Total revenues 183,900 183,900 199,426 15,526
EXPENDITURES
Current:
General government 77,778 77,778 64,035 13,743 Public safety 10,000 10,000 9,179 821 Public works - 142,179 - 142,179 Total expenditures 87,778 229,957 73,214 156,743 Net change in fund balances 96,122$ (46,057)$ 126,212 172,269$ Fund balances-beginning 206,396
Fund balances-ending 332,608$
Budget Amounts
124
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 3,852,160$ 3,852,160$ 3,959,603$ 107,443$ Charges for services and fees - - 11,598 11,598 Use of money and property 8,000 8,000 35,544 27,544 Miscellaneous - - 18,093 18,093 Total revenues 3,860,160 3,860,160 4,024,838 164,678
EXPENDITURES
Current:
Public works 4,044,791 4,044,791 3,770,698 274,093 Capital outlay 100,000 880,464 35,748 844,716 Total expenditures 4,144,791 4,925,255 3,806,446 1,118,809 Excess (deficiency) of revenues
over (under) expenditures (284,631) (1,065,095) 218,392 1,283,487
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 700,000 700,000 Total other financing sources (uses) - - 700,000 700,000 Net change in fund balances (284,631)$ (1,065,095)$ 918,392 1,983,487$ Fund balances-beginning 543,189
Fund balances-ending 1,461,581$
Budget Amounts
125
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual RMRA Road Maintenance
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 3,572,565$ 3,572,565$ 3,839,385$ 266,820$ Use of money and property 52,700 52,700 185,111 132,411 Total revenues 3,625,265 3,625,265 4,024,496 399,231
EXPENDITURES
Current:
Public works - - 297 (297) Capital outlay 3,000,000 6,548,529 1,338,647 5,209,882 Total expenditures 3,000,000 6,548,529 1,338,944 5,209,585 Net change in fund balances 625,265$ (2,923,264)$ 2,685,552 5,608,816$ Fund balances-beginning 2,657,373
Fund balances-ending 5,342,925$
Budget Amounts
126
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transportation System Improvement Program
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services and fees -$ -$ 143,319$ 143,319$ Use of money and property 57,100 57,100 231,184 174,084 Total revenues 57,100 57,100 374,503 317,403
EXPENDITURES
Current:
Public works - - 16,120 (16,120) Capital outlay 1,940,000 3,997,183 151,095 3,846,088 Total expenditures 1,940,000 3,997,183 167,215 3,829,968 Net change in fund balances (1,882,900)$ (3,940,083)$ 207,288 4,147,371$ Fund balances-beginning 4,208,775
Fund balances-ending 4,416,063$
Budget Amounts
127
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Landscape Maintenance Assessment Districts
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 1,017,827$ 1,017,827$ 1,033,162$ 15,335$ Use of money and property 29,300 29,300 104,582 75,282 Miscellaneous - - 34,228 34,228 Total revenues 1,047,127 1,047,127 1,171,972 124,845
EXPENDITURES
Current:
Parks and library 1,152,178 1,192,178 945,121 247,057 Capital outlay - 430,285 381,918 48,367 Total expenditures 1,152,178 1,622,463 1,327,039 295,424 Net change in fund balances (105,051)$ (575,336)$ (155,067) 420,269$ Fund balances-beginning 2,161,880
Fund balances-ending 2,006,813$
Budget Amounts
128
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Seizure
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 64,000$ 64,000$ 102,283$ 38,283$ Use of money and property 65,800 65,800 130,828 65,028 Total revenues 129,800 129,800 233,111 103,311
EXPENDITURES
Current:
Public safety 380,780 386,428 221,140 165,288 Capital outlay 171,800 419,130 366,452 52,678 Total expenditures 552,580 805,558 587,592 217,966 Net change in fund balances (422,780)$ (675,758)$ (354,481) 321,277$ Fund balances-beginning 4,114,987
Fund balances-ending 3,760,506$
Budget Amounts
129
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing In-Lieu
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 17,993$ 17,993$ 16,074$ (1,919)$ Total revenues 17,993 17,993 16,074 (1,919)
EXPENDITURES
Current:
Economic development 21,029 393,785 21,029 372,756 Total expenditures 21,029 393,785 21,029 372,756 Net change in fund balances (3,036)$ (375,792)$ (4,955) 370,837$ Fund balances-beginning 4,901,192
Fund balances-ending 4,896,237$
Budget Amounts
130
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Opioid Settlement Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property -$ -$ 51,493$ 51,493$ Fines and Fees - - 56,058 56,058 Total revenues - - 107,551 107,551
EXPENDITURES
Current:
Public Safety - 145,512 56,057 89,455 Total expenditures - 145,512 56,057 89,455 Excess (deficiency) of revenues
over (under) expenditures - (145,512) 51,494 197,006 Net change in fund balances -$ (145,512)$ 51,494 197,006$ Fund balances (deficit)-beginning (613)
Fund balances-ending 50,881$
131
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 132
Major and Non-Major Capital Projects and Debt Service Funds
The following Capital Projects Funds have been classified as major funds in the accompanying Budgetary Comparison Schedules:
Capital Improvement - This fund is used to account for general purpose capital improvement and cooperatively funded projects.
Park Acquisition, Development and Maintenance - This fund is us ed to account for the acquisition, development and maintenance of parks that are financed by developer fees.
The following Capital Projects Funds have been classified as no n-major funds in the accompanying financial statements and Budgetary Comparison Schedules:
Fire Facilities Fees - This fund is used to account for fees collected from the developers to improve the fire protection within specified areas.
Police Facilities Fees - This fund is used to account for fees collected from developers to construct or improve police facilities.
Library Facilities Fees - This fund is used to account for fees collected from developers to construct or improve library facilities.
Debt Service Fund - This fund is used to account for the accumulation of resources for and the repayment of long- term debt principal, interest and related costs
133
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Improvement
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Licenses and permits 4,350$ 4,350$ 3,060$ (1,290)$ Intergovernmental 4,738,334 4,873,325 4,736,201 (137,124) Charges for services and fees 4,000,000 4,000,000 4,476,794 476,794 Use of money and property 110,300 110,300 1,202,459 1,092,159 Miscellaneous - - 9,965 9,965 Total revenues 8,852,984 8,987,975 10,428,479 1,440,504
EXPENDITURES
Capital outlay 11,086,775 33,070,177 7,571,097 25,499,080 Total expenditures 11,086,775 33,070,177 7,571,097 25,499,080 Excess (deficiency) of revenues
over (under) expenditures (2,233,791) (24,082,202) 2,857,382 26,939,584
OTHER FINANCING SOURCES (USES)
Transfers in - - 354,029 354,029 Transfers out (3,000,000) (3,000,000) (3,000,000) - Total other financing sources (uses) (3,000,000) (3,000,000) (2,645,971) 354,029 Net change in fund balances (5,233,791)$ (27,082,202)$ 211,411 27,293,613$ Fund balances-beginning 22,483,549
Fund balances-ending 22,694,960$
Budget Amounts
134
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Acquisition, Development and Maintenance
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services and fees -$ -$ 244,376$ 244,376$ Use of money and property 229,752 229,752 659,070 429,318 Total revenues 229,752 229,752 903,446 673,694
EXPENDITURES
Capital outlay 475,000 2,821,818 461,791 2,360,027 Total expenditures 475,000 2,821,818 461,791 2,360,027 Net change in fund balances (245,248)$ (2,592,066)$ 441,655 3,033,721$ Fund balances-beginning 9,740,836
Fund balances-ending 10,182,491$
Budget Amounts
135
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Facilities Fees
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services and fees 5,200$ 5,200$ 127,677$ 122,477$ Use of money and property 12,200 12,200 49,771 37,571 Total revenues 17,400 17,400 177,448 160,048
EXPENDITURES
Capital outlay 140,000 740,000 227,013 512,987 Total expenditures 140,000 740,000 227,013 512,987 Net change in fund balances (122,600)$ (722,600)$ (49,565) 673,035$ Fund balances-beginning 943,443
Fund balances-ending 893,878$
Budget Amounts
136
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Police Facilities Fees
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services and fees -$ -$ 35,020$ 35,020$ Use of money and property 11,100 11,100 47,951 36,851 Total revenues 11,100 11,100 82,971 71,871
EXPENDITURES
Current:
Public safety 20,000 65,000 - 65,000 Capital outlay - 236,020 - 236,020 Total expenditures 20,000 301,020 - 301,020 Net change in fund balances (8,900)$ (289,920)$ 82,971 372,891$ Fund balances-beginning 872,943
Fund balances-ending 955,914$
Budget Amounts
137
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library Facilities Fees
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services and fees -$ -$ 58,352$ 58,352$ Use of money and property 11,400 11,400 39,227 27,827 Total revenues 11,400 11,400 97,579 86,179
EXPENDITURES
Current:
Parks and library - - - - Capital outlay - 420,056 120,330 299,726 Total expenditures - 420,056 120,330 299,726 Excess (deficiency) of revenues
over (under) expenditures 11,400 (408,656) (22,751) 385,905
OTHER FINANCING SOURCES (USES)
Transfers in - - 133,651 133,651 Total other financing sources (uses) - - 133,651 133,651 Net change in fund balances 11,400$ (408,656)$ 110,900 519,556$ Fund balances-beginning 757,514
Fund balances-ending 868,414$
Budget Amounts
138
CITY OF ORANGE, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual City Debt Service
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous 17,755,326$ 17,755,326$ 16,453,434$ (1,301,892)$ Total revenues 17,755,326 17,755,326 16,453,434 (1,301,892)
EXPENDITURES
Debt service:
Principal - - 10,401,938 (10,401,938) Interest and fiscal charges - - 6,051,496 (6,051,496) Total expenditures - - 16,453,434 (16,453,434) Excess (deficiency) of revenues
over (under) expenditures 17,755,326 17,755,326 - (17,755,326) Net change in fund balances 17,755,326$ 17,755,326$ - (17,755,326)$ Fund balances-beginning -
Fund balances-ending -$
139
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 140
Internal Service Funds
Internal Service Funds are used to account for the financing of special activities and services provided by one department of a government to another. The following Internal S ervice Funds are included in the accompanying financial statements:
Equipment Maintenance - This fund is used to account for the operating costs of the City's rolling stock.
Workers' Compensation - This fund is used to account for worker s' compensation claims, premiums, and administrative costs, and to maintain a sinking fund for future claims.
Liability - This fund is used to account for liability claims, premiums, and administrative costs.
Employee Accrued Liability - This fund is used to account for t he City's vacation, sick and compensation time payouts for all City departments.
Computer Replacement - This fund is used to account for the replacement costs of the City's computers.
141
CITY OF ORANGE, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments 4,973,719$ 4,047,178$ 1,269,089$ Receivables (net of uncollectibles):
Accounts - 130,803 936
Total current assets 4,973,719 4,177,981 1,270,025 Noncurrent:
Capital assets, net 18,419,144 - - Total noncurrent assets 18,419,144 - - Total assets 23,392,863 4,177,981 1,270,025
LIABILITIES
Current liabilities:
Accounts payable 233,342 186,251 36,885 Claims and judgments, due in one year - 5,223,719 834,039 Subscriptions, due in one year - - - Total current liabilities 233,342 5,409,970 870,924 Noncurrent liabilities:
Claims and judgments - 10,025,461 410,669 Subscriptions - - - Total noncurrent liabilities - 10,025,461 410,669 Total liabilities 233,342 15,435,431 1,281,593
NET POSITION
Net investment in capital assets 18,419,144 - - Unrestricted 4,740,377 (11,257,450) (11,568) Total net position 23,159,521$ (11,257,450)$ (11,568)$ Equipment
Replacement
Self Insurance
Worker's
Compensation
Self Insurance
Liability
142
CITY OF ORANGE, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments
Receivables (net of uncollectibles):
Accounts
Total current assets
Noncurrent:
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Claims and judgments, due in one year
Subscriptions, due in one year
Total current liabilities
Noncurrent liabilities:
Claims and judgments
Subscriptions
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Total Internal
Service
Funds
1,531,276$ 9,606,332$ 21,427,594$
- - 131,739 1,531,276 9,606,332 21,559,333
- 4,882,832 23,301,976
- 4,882,832 23,301,976
1,531,276 14,489,164 44,861,309
12,368 12,846 481,692
- - 6,057,758 - 1,038,105 1,038,105
12,368 1,050,951 7,577,555
- - 10,436,130 - 4,202,790 4,202,790
- 4,202,790 14,638,920
12,368 5,253,741 22,216,475
- (358,063) 18,061,081
1,518,908 9,593,486 4,583,753
1,518,908$ 9,235,423$ 22,644,834$
Employee
Accrued
Liability
Computer
Replacement
143
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Charges for services and fees -$ 1,154,212$ -$ 4,488,520$ 4,564,690$ Other revenues - 122,128 - 1,683,840 89,057 Total operating revenues - 1,276,340 - 6,172,360 4,653,747
OPERATING EXPENSES
Salaries and wages - - - 579,553 374,761 Maintenance and operations - - - 403,692 442,584 Contractual services - - - 20,978 177,345 Insurance claims and charges - - - 8,522,030 2,979,487 Depreciation/amortization - 1,720,156 - - - Total operating expenses - 1,720,156 - 9,526,253 3,974,177 Operating income (loss) - (443,816) - (3,353,893) 679,570
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of capital assets - (75,185) - - - Total nonoperating revenues (expenses) - (75,185) - - - Income (loss) before transfers - (519,001) - (3,353,893) 679,570 Change in net position - (519,001) - (3,353,893) 679,570 Net position-beginning, as previously stated (4,618,612) 23,678,522 176,328 (7,903,557) (691,138) Change in reporting entity 4,618,612 - (176,328) - - Net position-beginning, restated - 23,678,522 - (7,903,557) (691,138) Net position-ending -$ 23,159,521$ -$ (11,257,450)$ (11,568)$ Equipment
Maintenance
Equipment
Replacement
Major Building
Improvements
Self Insurance
Worker's
Compensation
Self Insurance
Liability
144
CITY OF ORANGE, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
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)
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before transfers
Change in net position
Net position-beginning, as previously stated
Change in reporting entity
Net position-beginning, restated
Net position-ending
Total Internal
Service
Funds
-$ 2,058,340$ -$ 3,456,300$ 15,722,062$ - - - 80,555 1,975,580 - 2,058,340 - 3,536,855 17,697,642 - 4,127,812 - 76,865 5,158,991 - 3,795,106 - 1,872,072 6,513,454 - - - 26,044 224,367 - - - - 11,501,517 - - - 690,558 2,410,714 - 7,922,918 - 2,665,539 25,809,043 - (5,864,578) - 871,316 (8,111,401) - - - - (75,185) - - - - (75,185) - (5,864,578) - 871,316 (8,186,586) - (5,864,578) - 871,316 (8,186,586) 576,014 7,383,486 1,320,963 8,364,107 28,286,113 (576,014) - (1,320,963) - 2,545,307 - 7,383,486 - 8,364,107 30,831,420 -$ 1,518,908$ -$ 9,235,423$ 22,644,834$ Employee
Accrued
Liability
Information
Systems
Operations
Computer
Replacement
Self Insurance
Dental
145
CITY OF ORANGE, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 1,280,522$ 6,128,900$ 4,661,149$ Payments to suppliers and service providers 170,728 (923,182) (1,005,531) Other receipts (payments) - (5,639,819) (3,762,072) Net cash provided by (used for)
operating activities 1,451,250 (434,101) (106,454)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,408,785) - - Principal paid on capital debt - - - Proceeds from sales of assets (48,503) - - Net cash provided by (used for)
capital and related financing activities (1,457,288) - - Net increase (decrease) in
cash and cash equivalents (6,038) (434,101) (106,454) Cash and cash equivalents-beginning 4,979,757 4,481,279 1,375,543 Cash and cash equivalents-ending 4,973,719$ 4,047,178$ 1,269,089$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (443,816)$ (3,353,893)$ 679,570$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 1,720,156 - - (Increase) decrease in accounts receivable 2,052 (43,460) 7,402 (Increase) decrease in prepaid items - - - Increase (decrease) in accounts payable 172,858 81,041 (10,841) Increase (decrease) in claims and judgments - 2,882,211 (782,585) Total adjustments 1,895,066 2,919,792 (786,024) Net cash provided by (used for)
operating activities 1,451,250$ (434,101)$ (106,454)$ Equipment
Replacement
Self Insurance
Worker's
Compensation
Self Insurance
Liability
146
CITY OF ORANGE, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges
Payments to suppliers and service providers
Other receipts (payments)
Net cash provided by (used for)
operating activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Principal paid on capital debt
Proceeds from sales of assets
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 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 prepaid items
Increase (decrease) in accounts payable
Increase (decrease) in claims and judgments
Total adjustments
Net cash provided by (used for)
operating activities
Totals
2,058,340$ 3,536,855$ 17,665,766$
(7,912,434) (2,046,753) (11,717,172)
- - (9,401,891) (5,854,094) 1,490,102 (3,453,297)
- (80,555) (1,489,340) - (481,526) (481,526)
- - (48,503) - (562,081) (2,019,369)
(5,854,094) 928,021 (5,472,666)
7,385,370 8,678,311 26,900,260
1,531,276$ 9,606,332$ 21,427,594$
(5,864,578)$ 871,316$ (8,111,401)$
- 690,558 2,410,714
- - (34,006) - 237,601 237,601
10,484 (309,373) (55,831)
- - 2,099,626 10,484 618,786 4,658,104
(5,854,094)$ 1,490,102$ (3,453,297)$
Employee
Accrued
Liability
Computer
Replacement
147
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 148
STATT TITT STITT CACC L SECTITT ON
149
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 150
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 ........................................................................................................................................... 152
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 ........................................................................................................................................ 159 These schedules contain information to help the reader assess t he City's most significant revenue source, property tax.
Debt Capacity ............................................................................................................................................... 171 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 ..................................................................................................... 176 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 ................................................................................................................................... 179 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 annual comprehensive financial reports for the relevant year.
151
CITY OF ORANGE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2016¹ 2017 2018 2019
Governmental activities:
Net investment in capital assets 632,246,033$ 643,259,170$ 658,706,056$ 668,898,000$ Restricted for:
Specific projects and programs 50,288,584 43,175,076 40,833,934 40,509,831 Unrestricted (104,017,007) (103,909,743) (147,206,248) (160,066,933) Total governmental act.net position 578,517,610$ 582,524,503$ 552,333,742$ 549,340,898$ Business-type activities:
Net investment in capital assets 137,600,598$ 134,136,742$ 132,924,641$ 130,464,008$ Unrestricted 2,606,432 2,174,136 (3,721,768) (833,151) Total business-type act. net position 140,207,030$ 136,310,878$ 129,202,873$ 129,630,857$ Primary government:
Net investment in capital assets 769,846,631$ 777,395,912$ 791,630,697$ 799,362,008$ Restricted for:
Specific projects and programs 50,288,584 43,175,076 40,833,934 40,509,831 Unrestricted (101,410,575) (101,735,607) (150,928,016) (160,900,084) Total primary gov't net position 718,724,640$ 718,835,381$ 681,536,615$ 678,971,755$ (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Source:
City General Ledger
Fiscal Year
152
2020 2021 2022 2023 2024 2025
674,673,211$ 685,927,045$ 683,891,043$ 684,071,711$ 697,803,591$ 708,071,099$ 42,194,380 44,321,446 50,065,919 68,868,022 66,862,501 73,170,463 (183,258,010) (186,982,262) (174,372,427) (195,375,182) (194,108,201) (224,641,692) 533,609,581$ 543,266,229$ 559,584,535 557,564,551$ 570,557,891$ 556,599,870$ 129,356,837$ 131,443,618$ 131,949,626$ 127,758,485$ 132,978,321$ 132,265,035$ 622,689 1,639,357 5,392,793 12,039,915 15,360,402 15,701,500 129,979,526$ 133,082,975$ 137,342,419 139,798,400$ 148,338,723$ 147,966,535$ 804,030,048$ 817,370,663$ 815,840,669$ 811,830,196$ 830,781,912$ 840,336,134$ 42,194,380 44,321,446 50,065,919 68,868,022 66,862,501 73,170,463 (182,635,321) (185,342,905) (168,979,634) (183,335,267) (178,747,799) (208,940,192) 663,589,107$ 676,349,204$ 696,926,954$ 697,362,951$ 718,896,614$ 704,566,405$ Fiscal Year
153
CITY OF ORANGE
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
2016¹ 2017 2018 2019
Expenses:
General government 11,523,233$ 12,901,270$ 12,469,911$ 16,046,573$ Public safety 68,091,154 74,753,184 91,221,804 91,261,509 Public works 15,343,879 21,174,647 18,449,207 18,465,238 Community development 3,651,913 4,753,861 5,419,811 5,280,071 Parks and library 12,867,558 15,632,111 18,243,140 17,791,196 Economic development 2,615,785 2,371,172 2,667,779 1,195,781 Interest on long-term debt - - - -
Cost of issuance - - - -
Total governmental activities expenses 114,093,522$ 131,586,245$ 148,471,652$ 150,040,368$ Program revenues:
Charges for services:
Public safety 7,227,522$ 7,115,563$ 7,412,945$ 6,578,160$ Community development 2,825,885 2,476,758 2,250,135 8,438,051 Other activities 10,687,277 7,310,803 7,727,691 8,812,877 Operating grants and contributions 4,397,657 4,161,061 4,562,365 3,340,401 Capital grants and contributions 3,845,044 5,726,683 4,388,460 7,881,907 Total governmental activities program revenues 28,983,385 26,790,868 26,341,596 35,051,396 Net program revenues (expenses) (85,110,137)$ (104,795,377)$ (122,130,056)$ (114,988,972)$ General revenues and other changes in net position:
Taxes:
Property taxes 26,733,026$ 39,907,869$ 42,385,253$ 44,237,113$ Sales tax 45,789,026 46,102,329 45,082,151 52,300,499 Transient occupancy taxes 5,211,752 5,413,495 5,476,167 5,399,992 Franchise taxes 3,076,891 2,755,030 2,831,378 2,821,430 Other taxes 58,043 39,235 31,440 31,682 Use of money and property 2,248,055 1,572,433 1,753,319 5,077,128 State motor vehicle in lieu (unrestricted) 11,951,577 - - - Other general revenues 5,274,621 11,510,192 5,075,459 4,118,151 Transfers - - - - Gain on sale of capital assets - - - - Extraordinary items 7,900,901 1,501,687 - - Total general revenues and other changes in net position 108,243,892 108,802,270 102,635,167 113,985,995 Changes in net position - governmental activities 23,133,755$ 4,006,893$ (19,494,889)$ (1,002,977)$ (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Source:
City General Ledger
Fiscal Year
154
2020 2021 2022 2023 2024 2025
19,426,844$ 18,961,388$ 13,171,835$ 24,083,824$ 16,723,060$ 24,089,979$ 106,839,054 102,189,315 91,321,077 110,206,495 124,980,249 132,087,478 14,683,383 25,264,533 22,820,124 19,715,973 22,436,985 30,521,699 5,174,978 5,280,546 3,304,024 4,112,664 7,696,354 11,344,671 17,048,393 17,161,257 17,810,698 20,276,823 22,279,842 19,141,883 849,150 465,809 4,562,019 8,310,619 1,723,275.00 385,660 - 5,097,209 7,850,113 7,745,269 8,124,874 7,068,584 - - 677,074 - - - 164,021,802$ 174,420,057$ 161,516,964$ 194,451,667$ 203,964,639$ 224,639,954$ 8,444,493$ 7,233,973$ 8,229,685$ 9,973,692$ 11,657,313$ 11,600,833$ 3,105,770 2,973,252 3,655,955 4,141,083 1,976,021 2,101,614 14,732,822 8,100,014 10,233,437 19,161,183 19,670,861 29,485,711 5,650,779 19,358,516 19,559,089 6,116,512 7,266,416 5,966,742 8,026,570 12,631,485 7,934,114 8,934,066 15,249,685 14,889,974 39,960,434 50,297,240 49,612,280 48,326,536 55,820,296 64,044,874 (124,061,368)$ (124,122,817)$ (111,904,684)$ (146,125,131)$ (148,144,343)$ (160,595,080)$ 46,274,506$ 48,272,714$ 50,960,121$ 53,784,303$ 55,610,096$ 58,692,002$ 47,215,228 56,577,610 54,702,920 51,389,099 51,891,628 50,683,134 3,990,266 1,834,447 5,253,351 6,080,399 6,092,659 6,163,266 2,819,979 2,791,170 2,871,612 3,148,573 3,201,234 2,943,807 23,361 30,466 26,039 3,897,046 3,418,634 4,531,813 4,158,758 1,534,758 (2,755,656) 4,287,125 7,292,376 24,015,779 - - - - - -
3,847,953 4,478,646 32,636,552 21,365,548 35,941,326 4,095,873 - - - 153,054 (2,310,270) - - - - - - 37,208 - - 4,030,000 - - -
108,330,051 115,519,811 147,724,939 144,105,147 161,137,683 151,162,882 (15,731,317)$ (8,603,006)$ 35,820,255$ (2,019,984)$ 12,993,340$ (9,432,198)$ Fiscal Year
155
CITY OF ORANGE
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
(accrual basis of accounting)
2016 (1)
2017 2018 2019
Expenses:
Water 25,302,258$ 29,293,848$ 33,413,891$ 33,532,078$ Sanitation 7,591,850 7,761,578 7,926,974 8,153,404 Total Expenses 32,894,108$ 37,055,426$ 41,340,865$ 41,685,482$ Program revenues:
Charges for services:
Water 25,733,212$ 28,192,880$ 32,419,133$ 33,358,746$ Sanitation 4,353,379 4,408,670 7,838,429 7,866,374 Operating grants and contributions - 72,327 - - Capital grants and contributions 462,951 - - 180,500 Total program revenues 30,549,542 32,673,877 40,257,562 41,405,620 Net Program revenues (expenses) (2,344,566)$ (4,381,549)$ (1,083,303)$ (279,862)$ General revenues and other
changes in net position:
Use of money and property 240,646$ 92,860$ 41,164$ 707,846$ Others - 392,537 - -
Transfers - - - -
Total general revenues and other 240,646 485,397 41,164 707,846 Changes in net position -
business-type activities (2,103,920)$ (3,896,152)$ (1,042,139)$ 427,984$ (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Source:
City General Ledger
Fiscal Year
156
2020 2021 2022 2023 2024 2025
35,010,074$ 35,983,197$ 36,818,407$ 34,893,589$ 38,089,991$ 51,542,436$ 8,486,309 7,860,697 6,670,133 10,061,616 9,286,085 11,828,262 43,496,383$ 43,843,894$ 43,488,540$ 44,955,205$ 47,376,076$ 63,370,698$ 35,425,788$ 38,899,703$ 40,369,251$ 38,461,941$ 41,539,708$ 47,335,301$ 7,754,294 8,012,849 8,318,717 8,300,397 9,121,934 8,975,326 - - - - 721,295 4,348,307 - - - - - - 43,180,082 46,912,552 48,687,968 46,762,338 51,382,937 60,658,934 (316,301)$ 3,068,658$ 5,199,428$ 1,807,133$ 4,006,861$ (2,711,764)$ 664,970$ 34,791$ (939,984)$ 324,028$ 1,782,865$ 2,220,468$ - - - 477,874 440,327 264,646 - - - (153,054) 2,310,270 - 664,970 34,791 (939,984) 648,848 4,533,462 2,485,114 348,669$ 3,103,449$ 4,259,444$ 2,455,981$ 8,540,323$ (226,650)$ Fiscal Year
157
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 158
CITY OF ORANGE
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal
Year Property Tax Sales Tax
Transient
Occupancy
Tax
Franchise
Tax Other Taxes Total
2015 24,378,818$ 43,928,900$ 4,545,827$ 3,157,617$ 37,067$ 76,048,229$ 2016 26,733,026 45,789,026 5,211,752 3,076,891 58,043 80,868,738 2017 39,907,869 46,102,329 5,413,495 2,755,030 39,235 94,217,958 2018 42,385,253 45,082,151 5,476,167 2,831,378 31,440 95,806,389 2019 44,237,113 52,300,499 5,399,992 2,821,430 31,682 104,790,716 2020 46,274,506 47,215,228 3,990,266 2,819,979 23,361 100,323,340 2021 48,272,714 56,577,610 1,834,447 2,791,170 30,466 109,506,407 2022 50,960,121 54,702,920 5,253,351 2,871,612 26,039 113,814,043 2023 53,784,303 51,389,099 6,080,399 3,148,573 3,897,046 118,299,420 2024 55,610,096 51,891,628 6,092,659 3,201,234 3,418,634 120,214,251 2025 58,692,002 50,683,134 6,163,266 2,943,807 4,531,813 123,014,022 Source:
City General Ledger
159
CITY OF ORANGE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 (1)
2017 2018 2019
General fund:
Nonspendable 88,354$ 88,269$ 95,178$ 160,760$ Restricted
Committed
Assigned
Unassigned 34,732,497 35,810,692 34,763,378 38,610,758 Total general fund 34,820,851$ 35,898,961$ 34,858,556$ 38,771,518$ All other governmental funds:
Restricted 50,288,584$ 43,175,076$ 40,833,934$ 40,509,831$ Committed 7,886,387 7,737,725 7,398,168 6,154,780 Assigned 34,414,429 39,584,296 29,224,001 29,603,940 Unassigned - - (1,989,867) (1,593,498)
Total all other governmental funds 92,589,400$ 90,497,097$ 75,466,236$ 74,675,053$ (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Source:
City General Ledger
Fiscal Year
160
2020 2021 2022 2023 2024 2025
87,818$ 101,737$ 102,858$ 130,663$ 271,684$ 1,334,127$ 18,259,654 20,667,960 22,506,997 - 8,413 - - 630,545 23,891,358 26,380,740 2,928,780 3,115,614 1,546,660 3,568,489 3,335,112 32,313,009 25,568,686 21,234,508 913,339 726,027 - 32,400,827$ 46,858,857$ 45,120,940$ 25,728,204$ 28,457,558$ 31,058,392$ 42,194,380$ 44,321,446$ 49,810,179$ 46,361,025$ -$ 73,162,050$ 5,269,093 4,740,268 255,740 250,776 (23,891,358) 3,785,549 31,184,214 52,871,901 40,371,444 38,359,032 (3,568,489) 31,810,108 (2,053,907) (1,856,633)$ (1,608,382)$ (1,470,916)$ (613)$ (1,944,877)$ 76,593,780$ 100,076,982$ 88,828,981$ 83,499,917$ (27,732,144)$ 106,812,830$ Fiscal Year
161
CITY OF ORANGE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 (1)
2017 2018 2019
Revenues:
Taxes 77,791,847$ 91,462,928$ 92,975,011$ 101,969,285$ Franchise fees 3,076,891 2,755,030 2,831,378 2,821,431 Licenses and permits 5,443,388 4,966,017 4,846,681 5,846,046 Intergovernmental 20,125,635 9,727,861 9,016,736 11,584,134 Charges for services and fees 14,311,067 10,978,973 10,703,009 15,924,806 Use of money and property 2,248,055 1,572,433 1,753,319 5,077,127 Fines and forfeitures 1,725,785 1,706,291 1,852,674 2,194,948 Gas tax exchange - - - - Other revenues 4,732,645$ 11,495,612$ 4,783,149$ 4,108,287$ Total Revenues 129,455,313$ 134,665,145$ 128,761,957$ 149,526,064$ Expenditures:
Current:
General government 11,059,999$ 11,369,206$ 11,488,962$ 13,460,308$ Public safety 70,304,539 72,292,753 75,704,854 80,275,211 Community development 4,086,895 4,651,614 4,545,422 4,538,371 Parks and library 12,464,990 13,835,002 14,575,737 14,840,900 Public works 9,732,287 10,099,229 10,351,948 11,209,853 Economic development 2,519,124 2,115,151 2,354,318 1,037,149 Capital outlay 12,103,521 18,601,383 23,596,982 18,370,773 Debt service:
Principal - - - 92,339 Interest - - - - Total expenditures 122,271,355 132,964,338 142,618,223 143,824,904 Excess (deficiency) of revenues over (under)
expenditures 7,183,958$ 1,700,807$ (13,856,266)$ 5,701,160$ Other Financing sources (uses):
Loan proceeds -$ -$ -$ 570,619$ Lease proceeds - - - - Gain on sale of property - - - - Transfers in 1,500,000 3,765,260 1,042,261 2,000,000 Transfers out (2,952,143) (6,480,260) (3,257,261) (5,150,000) Bond proceeds - - - - Payment to pension liability - - - - Cost of issuance - - - - Retirement of long-term debt - - - - Total other financing sources (uses) (1,452,143) (2,715,000) (2,215,000) (2,579,381) Extraordinary gain/(loss) 31,406 - - - Net change in fund balances 5,763,221$ (1,014,193)$ (16,071,266)$ 3,121,779$ Debt service as a percentage of noncapital expenditures 0.00% 0.00% 0.00% 0.07% (1) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity Source:
City General Ledger
Fiscal Year
162
2020 2021 2022 2023 2024 2025
97,503,362$ 106,715,236$ 110,942,447$ 115,150,847$ 117,232,953$ 115,538,402$ 2,819,979 2,791,170 2,871,611 3,148,573 2,981,298 2,943,807 5,780,011 5,550,237 6,669,254 6,591,296 6,760,790 6,399,447 13,638,969 33,085,279 27,482,163 12,356,695 22,353,181 25,444,674 18,699,180 11,243,519 13,515,236 16,557,655 26,409,193 32,428,563 4,121,085 1,533,906 (2,775,150) 4,287,125 7,292,376 7,524,668 1,772,867 1,485,230 1,942,715 2,006,648 1,747,537 2,679,844 - - - - - - 3,661,149$ 4,483,183$ 20,252,480$ 23,939,387$ 35,919,580$ 20,549,629$ 147,996,602$ 166,887,760$ 180,900,756$ 184,038,226$ 220,696,908$ 213,509,034$ 16,680,796$ 15,518,693$ 11,134,810$ 16,509,249$ 13,129,355$ 19,770,249$ 85,168,745 88,567,963 90,723,202 95,857,843 100,859,676 108,402,646 4,842,271 4,844,971 3,404,436 3,910,804 6,467,589 10,388,606 14,763,471 14,581,024 16,188,815 18,141,773 18,348,348 18,002,509 11,062,997 10,901,569 13,033,667 15,824,350 15,145,288 16,901,816 435,243 420,264 4,457,229 8,265,884 1,538,893 212,437 17,107,265 24,762,286 32,146,704 16,745,964 21,863,315 13,944,116 237,778 237,778 8,452,778 10,826,439 11,403,028 11,524,692 - 947,783 9,250,095 7,800,774 7,737,264 7,266,745 150,298,566 160,782,331 188,791,736 193,883,080 196,492,756 206,413,816 (2,301,964)$ 6,105,429$ (7,890,980)$ (9,844,854)$ 24,204,152$ 7,095,218$ -$ -$ -$ -$ -$ 555,209$ - - 118,528 - - - - - 4,030,000 - - 700,000 - 5,847,783 7,300,000 9,400,000 2,629,049 3,487,680 (2,150,000) (8,027,783) (16,587,500) (24,276,946) (5,939,319) (3,487,680) - 295,582,983 - - - - - (259,566,751) - - - - - (2,000,429) - - - - - - - - - - (2,150,000) 31,835,803 (5,138,972) (14,876,946) (3,310,270) 1,255,209 - - - - - - (4,451,964)$ 37,941,232$ (13,029,952)$ (24,721,800)$ 20,893,882$ 8,350,427$
0.18% 0.88% 12.74% 11.75% 12.31% 10.82%
Fiscal Year
163
CITY OF ORANGE
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
2016 2017 2018 2019
Residential 13,322,413,898$ 13,907,361,557$ 14,610,327,072$ 15,319,876,353$ Commercial 3,272,604,405 3,337,299,634 3,512,922,693 3,724,151,268 Industrial 1,317,401,040 1,367,159,238 1,453,073,836 1,512,959,481 Agricultural 25,695,455 26,430,596 17,435,414 346,758 Govt. Owned 66,298 67,309 367,155 - Miscellaneous - - - 6,694,659 Vacant 87,731,861 73,143,425 91,026,028 117,601,015 SBE Nonunitary 1,058,273 747,053 746,977 2,695,673 Cross Reference 29,703,769 31,697,215 46,590,088 32,546,463 Unsecured 888,595,478 822,433,022 810,904,924 858,358,308 Exempt (1,043,553,396) (1,065,193,444) (1,086,877,533) (1,105,868,927) TOTALS 18,945,270,477$ 19,566,339,049$ 20,543,394,187$ 21,575,229,978$ Total Direct Rate 0.13666% 0.13660% 0.13668% 0.13680%
Notes:
Source:
HdL Coren & Cone
Orange County Assessor 2015/16-2024/25 Combined Tax Rolls Exempt values are not included in the Total.
Fiscal Year
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. 164
2020 2021 2022 2023 2024 2025
16,062,120,394$ 16,815,529,307$ 17,356,805,706$ 18,307,447,334$ 19,418,223,266$ 20,401,909,402$ 4,004,538,771 4,036,657,419 4,122,497,888 4,935,943,558 4,382,875,418 4,747,602,375 1,610,831,980 1,691,655,529 1,759,876,677 1,888,052,878 1,983,026,865 2,135,668,851 353,693 360,766 12,889,961 13,147,743 13,540,690 - - - 239,080,823 121,702,198 976,474 - 6,534,366 6,760,526 - - - 6,219,018 143,783,424 133,470,031 132,974,931 134,301,415 129,278,729 32,073,812 2,695,573 2,695,673 2,695,673 5,128,058 5,128,058 5,128,058 31,849,525 35,682,699 56,461,661 56,588,822 287,065,709 262,556,241 908,066,728 892,318,518 1,063,230,090 936,348,310 1,034,483,353 1,220,807,514 (1,150,701,872) (1,173,579,385) (1,199,563,810) (1,285,120,190) (1,698,954,084) (1,722,767,857) 22,770,774,454$ 23,615,130,468$ 24,746,513,410$ 26,398,660,316$ 27,254,598,562$ 28,811,965,271$
0.13657% 0.13653% 0.13620% 0.13770% 0.13699% 0.13695%
Fiscal Year
165
CITY OF ORANGE
Direct and Overlapping Property Tax Rates
(Rate per $100 assessed value)
Last Ten Fiscal Years
2016 2017 2018 2019
¹Basic levy 1.0000 1.0000 1.0000 1.0000 ²Overlapping Rates:
School Services:
Anaheim Elementary School District 0.04227 0.04461 0.04502 0.05059 Anaheim High School District 0.04948 0.04259 0.02211 0.04244 North Orange County Community College District 0.03043 0.02885 0.02927 0.02829 Orange USD - - - - Orange USD Elementary 2016 Series 2022 - - - - Orange USD Series 2018 2016 - - - 0.02685 Rancho Santiago Community College District 0.03063 0.04945 0.03013 0.02875 Santa Ana Unified School District - 0.06377 - - Tustin Unified School District SFID No. 2002-1 0.07751 0.07001 0.06873 0.06687 Total School Services 0.23032 0.29928 0.19526 0.24379 Irvine Ranch Water District 0.02803 0.02803 0.06901 0.06901 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Total Water District 0.03153 0.03153 0.07251 0.07251 Total Direct Rate 1.26185 1.33081 1.26777 1.31630 Notes:
Source:
HdL Coren & Cone
Orange County Assessor 2015/16-2024/25 Tax Rate Table
Fiscal Year
²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
¹In 1978, California voters passed Proposition 13 which set 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 any voter approved bonds. 166
2020 2021 2022 2023 2024 2025
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
0.05943 0.06595 0.06321 0.04667 0.04644 0.04223
0.03968 0.03971 0.03804 0.03016 0.03164 0.03256
0.02409 0.03198 0.02877 0.02778 0.01715 0.01735 - - - - 0.02533 0.02443 - - - 0.00946 - -
0.02288 0.01664 0.01656 0.01609 - -
0.02818 0.02768 0.02652 0.04691 0.04555 0.02596 - - - 0.06976 0.05893 -
0.06376 0.07102 0.06523 0.06647 0.05856 0.05761
0.23802 0.25298 0.23833 0.31330 0.28360 0.20014
0.06901 0.05001 0.05001 0.05001 0.05001 0.05001
0.00350 0.00350 0.00350 0.00350 0.00350 0.00700
0.07251 0.05351 0.05351 0.05351 0.05351 0.05701
1.31053 1.30649 1.29184 1.36681 1.33711 1.25715 Fiscal Year
167
CITY OF ORANGE
Principal Sales Tax Producers
Current Year and Nine Years Ago
Business Name Business Category Business Name Business Category ABC Supply Co Building Materials Albertsons Grocery Stores Beacon Roofing Supply Building Materials Beacon Roofing Supply Building Materials Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Chevron Service Stations Cal Wholesales Material Supply Building Materials David Wilsons Villa Ford New Motor Vehicle Dealers Chevron Service Stations DMG Corporation Business Services David Wilsons Villa Ford New Motor Vehicle Dealers Enterprise Rent A Car Transportation/Rentals DMG Corporation Business Services Foundation Building Materials Building Materials Enterprise Rent A Car Transportation/Rentals Henry Schein Medical/Biotech Foundation Building Materials Building Materials Home Depot Building Materials Home Depot Building Materials L&W Supply (Calply) Building Materials Mazda of Orange New Motor Vehicle Dealers Mazda of Orange New Motor Vehicle Dealers MS International Building Materials MS International Building Materials Nike Factory Store Shoe Stores Nike Factory Store Shoe Stores Nordstrom Rack Department Store SC Fuels Petroleum Prod/Equipment SC Fuels Petroleum Prod/Equipment SC Fuels Petroleum Prod/Equipment Sears Department Store SC Fuels Petroleum Prod/Equipment Selman Chevrolet New Motor Vehicle Dealers SC Lubricants Petroleum Prod/Equipment Stadium Nissan New Motor Vehicle Dealers Selman Chevrolet New Motor Vehicle Dealers Target Discount Department Stores Stadium Nissan New Motor Vehicle Dealers Tesoro Service Stations Target Discount Department Stores Thompson Building Materials Building Materials Thompson Building Materials Building Materials Toyota Lease Trust Auto Lease Toyota Scion of Orange New Motor Vehicle Dealers Toyota Scion of Orange New Motor Vehicle Dealers Verco Decking Contractors Villa Ford of Orange New Motor Vehicle Dealers Walmart Discount Department Stores Walmart Discount Department Stores Notes:
Firms listed alphabetically
*New in FY 2024-25
Source:
HdL Coren & Cone
State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Calendar Year 2025 Calendar Year 2016
168
CITY OF ORANGE
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage of (1) Percentage of
Taxable Total Taxable Taxable Total Taxable
Taxpayer Assessed Value Assessed Value Assessed Value Assessed Value St Joseph Hospital of Orange 418,019,091 1.45% 98,696,747 0.52% Orange City Mills LP 249,264,393 0.87% 152,616,753 0.81% Fairfield Town and Country LLC 193,807,585 0.67% - 0.00% Gateway Apartments I 170,364,843 0.59% - 0.00% Bex Portfolio Inc 148,210,164 0.51% 124,743,554 0.66% City Tower Properties LLC 146,004,114 0.51% 85,353,344 0.45% Mainstay Main Place LP 140,794,299 0.49% - 0.00% OC OET Owner LLC 130,391,095 0.45% - 0.00% WaterFord Property 127,912,800 0.44% - 0.00% RexFord Industrial Realty LP 125,328,124 0.43% - 0.00% Irvine Company LLC - 0.00% 152,065,579 0.80% Children's Hospital of Orange County - 0.00% 136,643,953 0.72% GPI-OCS LLC - 0.00% 115,461,664 0.61% Passco TVO-S LLC - 0.00% 100,353,028 0.53% TPG of Mullrock Orange Fee LLC - 0.00% 84,000,000 0.44% Orange County Realty Investors LLC - 0.00% 82,000,000 0.43% 1,850,096,508 6.42% 1,131,934,622 5.97%
Source:
HdL Coren & Cone
Orange County Assessor 2015/16 and 2024/25 Tax Rolls and the SBE Non Unitary Tax Roll 2025 2016
169
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 Levy 2016 45,251,635 26,539,570 58.65% 204,687 (154,193) 26,590,064 58.76% 2017 38,241,617 28,362,047 74.17% 194,368 (156,033) 28,400,382 74.27% 2018 40,644,711 29,514,238 72.62% 174,216 (112,829) 29,575,625 72.77% 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 32,699,503 77.87% 243,898 (611,668) 32,331,733 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% 2024 48,954,690 37,235,698 76.06% 243,129 (179,884) 37,298,943 76.19% 2025 51,720,479 39,188,356 75.77% 273,909 (116,299) 39,345,966 76.07% Notes:
to report delinquent taxes by collection year.
Source:
Orange County Auditor-Controller
http://acweb1.ocgov.com/acledger/report_eGov.asp
Information not available from the County of Orange for delinquent taxes by levy year. Therefore, the City has opted
CITY OF ORANGE
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within
Fiscal Year of Levy within the Fiscal Year
Total Collections
170
CITY OF ORANGE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Pension Lease Total Pension Total Total Percentage Year Ended Obligation Revenue Governmental Obligation Business-type Total Primary of Personal Debt June 30 Bonds Bonds Activities Bonds Activities Government Income Per Capita 2015 - - - - - - - - 2016 - - - - - - - - 2017 - - - - - - - - 2018 - - - - - - - - 2019 - - - - - - - - 2020 - - - - - - - - 2021 265,478,776
29,930,000 295,408,776 21,006,224 21,006,224 316,415,000 5.98% 2,303 2022 258,348,004 29,410,000 287,758,004 20,441,996 20,441,996 308,200,000 5.29% 2,239 2023 248,970,043 28,860,000 277,830,043 19,699,957 19,699,957 297,530,000 4.84% 2,140 2024 238,632,971 28,290,000 266,922,971 18,882,028 18,882,028 285,804,999 4.28% 2,062 2025 228,231,037 27,695,000 255,926,037 18,058,963 18,058,963 273,985,000 3.89% 1,961 Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source:
HdL Coren & Cone
Governmental Activities Business-type Activities
171
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 172
CITY OF ORANGE
Direct and Overlapping Property Tax Rate
(Rate per $100 assessed value)
Last Ten Fiscal Years
2024-2025 Assessed Valuation: $28,802,541,429
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable¹ Debt 6/30/25 Metropolitan Water District 17,155,000$ 0.707% 121,286$ Irvine Ranch Water District, Improvement District No. 125 150,979,527 0.856 1,292,385 Irvine Ranch Water District, Improvement District No. 225 222,230,406 0.008 17,778 Irvine Ranch Water District, Improvement District No. 153-253 17,739,735 0.044 7,805 North Orange County Joint Community College District 275,134,676 0.106 291,643 Rancho Santiago Community College District 132,145,756 27.798 36,733,877 Anaheim Union High School District 424,313,955 0.305 1,294,158 Anaheim School District 339,869,734 0.522 1,774,120
Tustin Unified School District School Facilities Improvement District No. 2002-1 32,340,000 0.046 14,876 Tustin Unified School District School Facilities Improvement District No. 2008-1 69,670,000 0.047 32,745 Tustin Unified School District School Facilities Improvement District No. 2012-1 42,090,000 0.034 14,311 Orange Unified School District 275,590,000 59.852 164,946,127 Orange Unified School District Community Facilities District No. 2005-1 4,845,000 100 4,845,000 Orange Unified School District Community Facilities District No. 2005-2 4,525,000 100 4,525,000 City of Orange Community Facilities District No. 91-2 12,714,000 100 12,714,000 City of Orange Community Facilities District No. 06-1 19,485,000 100 19,485,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 248,110,111.00$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations 429,065,000$ 3.553% 15,244,679.00$ Orange County Board of Education Certificates of Participation 9,120,000 3.553 324,034 North Orange County Regional Occupation Program Certificates of Participation 6,880,000 0.109 7,499 Orange Unified School District Certificates of Participation and Benefit Obligations 62,080,000 59.852 37,156,122 Anaheim Union High School District Certificates of Participation 26,880,000 0.305 81,984 City of Orange General Fund Obligations 27,695,000 100 27,695,000 City of Orange Pension Obligation Bonds 246,290,000 100 246,290,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 326,799,318$ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 21,410,000$ 100 21,410,000$ TOTAL DIRECT DEBT 273,985,000$
TOTAL OVERLAPPING DEBT 322,334,429$
COMBINED TOTAL DEBT² 596,319,429$
Ratios to 2024-2025 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 0.86%
Total Direct Debt ($273,985,000) 0.95%
Combined Total Debt 2.07%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($5,811,961,042):
Total Overlapping Tax increment Debt 0.37%
Source:
California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. 173
CITY OF ORANGE
Legal Debt Margin Information
Last Ten Fiscal Years
2016 2017 2018 2019
Assessed valuation 18,945,270,477$ 19,566,339,049$ 20,543,394,187$ 21,575,229,978$ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 4,736,317,619$ 4,891,584,762$ 5,135,848,547$ 5,393,807,495$ Debt limit percentage 15% 15% 15% 15%
Debt limit 710,447,643$ 733,737,714$ 770,377,282$ 809,071,124$ Total net debt applicable to limit -$ -$ -$ -$ Legal debt margin 710,447,643$ 733,737,714$ 770,377,282$ 809,071,124$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Fiscal Year
174
2020 2021 2022 2023 2024 2025
22,770,774,454$ 23,615,130,468$ 24,746,513,410$ 26,398,660,316$ 27,254,598,562$ 28,811,965,271$ 25% 25% 25% 25% 25% 25%
5,692,693,614$ 5,903,782,617$ 6,186,628,353$ 6,599,665,079$ 6,813,649,641$ 7,202,991,318$ 15% 15% 15% 15% 15% 15%
853,904,042$ 885,567,393$ 927,994,253$ 989,949,762$ 1,022,047,446$ 1,080,448,698$ -$ -$ -$ -$ -$ -$ 853,904,042$ 885,567,393$ 927,994,253$ 989,949,762$ 1,022,047,446$ 1,080,448,698$
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
175
CITY OF ORANGE
Demographic and Economic Statistics
Last Ten Fiscal Years
Pe
rsonal Income
Fiscal Year (expressed Per Capita Public School Unemployment Ended June 30 Population in thousands) Personal Income Enrollment ¹ Rate2 2016 140,882 4,401,212 31,240 14,581 3.8%
2017 141,952 4,471,463 31,500 14,256 3.8%
2018 141,691 4,785,561 33,775 14,072 2.9%
2019 140,065 4,998,706 35,688 13,958 2.7%
2020 137,366 5,294,743 38,545 13,852 8.2%
2021 137,676 5,827,067 42,324 13,105 5.6%
2022 139,063 6,146,433 44,199 13,187 3.1%
2023 138,621 6,671,674 48,129 12,850 3.6%
2024 139,724 7,041,451 50,395 12,981 3.8%
2025 139,724 N/A* N/A* 12,685 4.0%
Source:
HdL Coren & Cone
(1) Orange Unified School District
(2) Labor Force and Unemployment for Cities and Census Designated places * Information for 2025 not yet available
176
CITY OF ORANGE
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
UCI Health Medical Center 6,240 8.49% 4,000 5.67% Rady Children's Health 3,938 5.36% 2,900 4.11% Providence St. Joseph Hospital Orange 3,500 4.76% 4,850 (1) 6.87% Chapman University 1,300 1.77% 1,235 1.75% CalOptima Health 1,000 1.36% 900 1.28% Wilson Automotive 915 1.24% - 0.00% City of Orange 875 1.19% 800 1.13% Santiago Canyon College (SCC) 812 1.10% 913 1.29% MS International Inc. 514 0.70% - 0.00% Orange County Transportation Authority 500 0.68% 500 0.71% AECOM Technical Services 478 0.65% 450 0.64% Alignment Healthcare USA 469 0.64% - 0.00% Orange County Sheriff's Dept Theo Lacy J 450 0.61% - 0.00% Harvest Landscape Enterprises Inc 400 0.54% - 0.00% Letner Roofing Company 380 0.52% - 0.00% SA Recycling, LLC 375 0.51% - 0.00% AO Architects 365 0.50% - 0.00% GGG Demolition, Inc. 300 0.41% - 0.00% Reyes Coca-Cola Bottling 300 0.41% - 0.00% Chapman Global Medical Center 285 0.39% - 0.00% Children & Family Services (CFS) 275 0.37% 490 0.69% Orange County Assessor 260 0.35% - 0.00% Word and Brown Companies 260 0.35% - 0.00% California Choice 250 0.34% - 0.00% Doubletree by Hilton Anaheim-Orange Coun 250 0.34% - 0.00% American Advisors Group (AAG) - 0.00% 800 1.13% California Choice - 0.00% 490 0.69% NOV Rig Systems (fomerly National Oilwell
Varco) - 0.00% 400 0.57%
Western Dental Services, Inc. (formerly Sybron
Dental Specialists) - 0.00% 700 0.99% Notes:
1 Includes 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. 2025 2016
177
THTT IS PAPP GE INTETT NEE TITT ONANN LLY LEFEE T BLANK.KK 178
CITY OF ORANGE
Full-Time Equivalents by Function
Last Ten Fiscal Years
Full-Time Equivalents as of June 30
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Governmental Activities:
General Government³ 72 72 71 79 73 72 76 78 84 81 Public Safety 412 412 411 411 386 387 391 412 410 402 67 67 68 68 68 68 67 78 67 67 Community Development⁴ 36 36 36 36 33 33 33 24 39 39 Parks and Library 111 108 109 110 105 105 106 106 105 103 Economic Development¹ - - - - - - - - - - Sanitation² - - - - - - - - - - Subtotal governmental activities 698 695 695 704 665 665 673 698 705 692 Business-Type Activities:
Water 45 45 45 45 45 45 45 45 45 45 Sanitation² 21 21 21 22 19 19 19 22 22 22 Subtotal business-type activities 66 66 66 67 64 64 64 67 67 67 Total activities 764 761 761 771 729 729 737 765 772 759 Notes
(1) In fiscal year 2012-13, the Economic Development was transferred to City Manager, under General Government (2) In fiscal year 2015-16, the Sanitation fund was reclassified as a Business-Type Activity (3) In fiscal year 2018-19, Information Technology transferred from contract to in-house, under General Government (4) In fiscal year 2022-23, Building & Safety was transferred from Community Development to Public Works (5) In fiscal year 2023-24, Building & Safety was transferred back to Community Development Source:
City of Orange, Adopted Budget
Public Works⁵
179
CITY OF ORANGE
Operating Indicators by Department
Last Ten Fiscal Years
2016 2017 2018 2019
City Attorney:
Number of claims/cases handled 441 428 414 534 Number of resolutions/ordinances/agreements 288 240 288 292 City Clerk:
Number of passports processed (1, 3)
2,669 3,183 2,611 2,686 Number of documents scanned (4)
2,184 2,544 4,658 7,168 Number of public records requested (4)
- - 230 374 Finance:
Number of business licenses issued 20,721 20,487 20,659 20,659 Number of water accounts billed 35,380 35,388 35,216 36,490 Human Resources:
Number of recruitments held 60 87 81 100 Number of applications processed 8,968 7,590 7,193 10,744 Library:
Number of items checked out (2, 5)
616,388 541,270 536,202 418,033 Total library cards (5)
59,162 57,078 55,644 56,992 Number of patrons/visitors 469,700 426,861 413,582 422,142 Fire:
Number of calls:
Medical 12,327 12,048 12,463 12,592 Fire 622 664 688 692 Other 3,022 2,336 2,457 2,218 Number of inspections performed 6,866 6,868 4,999 5,612 Police:
Number of calls for service 99,728 100,876 109,192 108,371 Number of arrests 4,771 4,568 5,667 5,353 Public Works:
Lane miles of streets resurfaced 35 37 24 23 Miles of streets swept 39,850 40,766 37,617 39,664 Water Division:
Number of active water connections 36,372 36,391 36,431 36,435 Million gallons of daily average distribution 21 23 25 24 Sanitation Division:
Number of active sewer connections 33,950 33,951 33,956 33,950 1,983 1,983 1,910 1,985 Community Development:
Number of permits issued 4,153 4,229 3,552 3,396 Combined construction valuation 235,315,312$ 114,940,690$ 132,814,044$ 156,630,767$ Community Services:
Number of contract classes held (3)
1,148 1,044 1,188 1,201 Total participants at all activities/events (3)
918,805 1,060,893 1,060,872 1,000,000 Notes
(1) In Fiscal Year 2015-16, information was revised to improve accuracy. (2) In Fiscal Year 2016-17, information was revised to improve accuracy. (3) In 2019-20 and 2020-21, passports issued and classes/activities held were reduced due to COVID-19 Source:
City of Orange
Number of catch basins inspected
Fiscal Year
(4) Effective in 2020-21 we have revised are operating indicators to include public records requested, rather than documents scanned. The public records information was not available for years prior to 2017-18. (5) In Fiscal Year 2021-22, information was revised to improve accuracy. Effective in 21-22 we changed the reporting to the number of library cards issued, rather than the total number of library cards.
180
2020 2021 2022 2023 2024 2025
413 234 453 467 537 573 312 396 342 315 410 358 1,726 1,106 1,634 1,000 1,375 824 5,890 2,423 - - - - 439 669 1,203 810 934 1,154 20,771 20,849 20,678 20,385 19,526 18,157 36,456 36,508 35,492 35,513 35,547 35,387 68 83 123 128 114 77 5,725 7,051 7,622 7,851 6,836 6,025 402,449 266,537 462,847 602,683 654,713 435,034 60,209 61,107 5,354 6,664 6,981 6,369 339,659 76,152 217,211 258,478 311,012 276,129 13,426 11,789 13,014 14,467 14,993 15,194 709 729 845 806 731 790 2,348 2,291 2,496 2,457 2,443 2,379 4,004 3,421 4,864 5,949 5,466 5,837 92,730 88,853 91,179 94,091 97,836 89,876 4,589 5,715 5,339 5,335 5,969 5,175 22 22 27 30 42 11 39,664 39,664 39,664 40,872 40,872 40,872 36,485 36,508 36,508 36,536 36,593 33,617 24 24 24 20 21 22 33,647 33,662 33,667 33,667 33,460 33,483 1,985 1,985 1,985 1,983 1,983 1,862 3,406 3,576 3,676 4,151 3,572 3,676 174,844,204$ 158,963,749$ 192,982,847$ 408,001,641$ 151,134,837$ 178,533,190$ 863 278 611 521 500 465 622,373 32,039 878,457 804,521 856,677 755,923 181
CITY OF ORANGE
Capital Asset Statistics by Department
Last Ten Fiscal Years
Fiscal Year
2025 2024 2023 2022 2021
Library:
Number of libraries 3.00 3.00 3.00 3 3 Number of books & other items held 1
161,980.00 161,221.00 170,539.00 168,012 202,641 Fire:
Number of fire stations 8.00 8.00 8.00 8 8 Number of vehicles in fleet 64.00 63.00 62.00 62 62 Police:
Number of stations/sub-stations 2.00 2.00 2.00 2 2 Number of vehicles in fleet 136.00 132.00 136.00 133 131 Public Works:
Streets (in miles) 322.00 322.00 322.00 324 324 Number of streetlights 7,842.00 7,896.00 7,842.00 7,842 7,842 Number of traffic signals 158.00 158.00 158.00 158 158 Number of street trees 26,000.00 25,000.00 23,000.00 20,000 20,000 Water Division:
Number of wells 12.00 10.00 12.00 12 12 Water mains (in miles) 462.00 463.00 462.00 445 445 Number of hydrants 4,490.00 4,502.00 4,475.00 4,434 4,431 Sanitation Division:
Miles of sewer lines/storm drains 426.00 422.00 422.00 422 422 Facilities Maintenance Division:
Number of city buildings owned 82.00 82.00 82.00 82 82 Square feet of city buildings 2
533,384.00 533,384.00 533,384.00 533,384 533,384 Number of other city vehicles 275.00 269.00 270.00 277 275 Community Services:
Number of parks 22.00 22.00 22.00 22 22 Acres of parkland 1
290.00 278.00 267.00 267 267 Number of community pools 2.00 2.00 2.00 2 2 Notes:
2 In Fiscal Year 2017, information was revised to improve accuracy. 1 In Fiscal Years 2022, 2021, 2019 and 2014, information was revised to improve accuracy. 182
Fiscal Year
2020 2019 2018 2017 2016
3 3 3 3 3 192,927 196,198 218,688 231,715 223,161 8 8 8 8 8 59 58 58 58 58 2 2 2 2 2 132 133 132 132 132 324 324 324 324 331 7,836 7,836 7,836 3,182 3,182 157 157 157 157 157 19,716 22,000 22,000 22,000 22,000 12 12 12 14 17 446 446 462 462 452 4,450 4,439 4,434 4,389 4,417 422 436 436 436 436 82 82 82 82 82 533,384 533,384 512,000 512,000 529,995 275 274 272 271 271 22 22 22 22 22 260 260 258 258 258 2 2 2 2 2
1 In Fiscal Years 2022, 2021, 2019 and 2014, information was revised to improve accuracy. 183
City of Orange
Orange Civic Center
300 E. Chapman Ave.
Orange, CA 92866
(714) 744 - 5500
www.cityoforange.org/acfr
184