Agenda packet — Placentia City Council, July 5, 2022 (part 2 of 3)

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POLICY NUMBER: BKW56292391 COMMERCIAL GENERAL LIABILITY CG 20 37 04 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - COMPLETED OPERATIONS
modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s)

BLANKET AS REQUIRED BY WRITTEN

CONTRACT, AGREEMENT, OR PERMIT
701 N Hariton St
ORANGE, CA 92868
Location And Description Of Completed Operations

YOUR WORK AS DESCRIBED IN THE WRITTEN

CONTRACT, AGREEMENT, OR PERMIT

LOCATION(S) AS DESCRIBED IN THE WRITTEN

CONTRACT, AGREEMENT, OR PERMIT
Information required to complete this Schedule, if not shown A. Section II - Who Is An Insured is amended to
include as an additional insured the person(s)
or organization(s) shown in the Schedule, but
only with respect to liability for "bodily in-
jury" or "property damage" caused, in whole
or in part, by "your work" at the location des-
ignated and described in the Schedule of this
endorsement performed for that additional
insured and included in the "products -com-
pleted operations hazard".

However:

1. The insurance afforded to such additional
insured only applies to the extent permit-
ted by law; and

2. If coverage provided to the additional in-
sured is required by a contract or agree-
ment, the insurance afforded to such
additional insured will not be broader
than that which you are required by the
contract or agreement to provide for such
additional insured.
above, will be shown in the Declarations.

B. With respect to the insurance afforded to
these additional insureds, the following is
added to Section III - Limits Of Insurance:

If coverage provided to the additional insured
is required by a contract or agreement, the
most we will pay on behalf of the additional
insured is the amount of insurance:

1. Required by the contract or agreement;
or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the ap-
plicable Limits of Insurance shown in the Dec-
larations.

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Signature Flooring Inc.

BKW56292391

COMMERCIAL GENERAL LIABILITY
CG 20 01 04 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

PRIMARY AND NONCONTRIBUTORY -

OTHER INSURANCE CONDITION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
The following is added to the Other Insurance
Condition and supersedes any provision to the
contrary:

Primary And Noncontributory Insurance
This insurance is primary to and will not seek
contribution from any other insurance avail-
able to an additional insured under your poli-
cy provided that:
(1) The additional insured is a Named In-
sured under such other insurance; and
(2) You have agreed in writing in a contract
or agreement that this insurance would
be primary and would not seek contribu-
tion from any other insurance available
to the additional insured.

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BKW56292391
Signature Flooring Inc.

COMMERCIAL GENERAL LIABILITY
CG 88 70 12 08
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CONSTRUCTION PROJECT(S) - GENERAL AGGREGATE LIMIT
(PER PROJECT)
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
A. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under Section I - Coverage A - Bodily Injury And Property Damage Liability, and for all medical ex- penses caused by accidents under Section I - Coverage C Medical Payments, which can be attributed only to ongoing operations at a single construction project away from premises owned by or rented to you:

1. A separate Construction Project General Aggregate Limit applies to each construction project, and that limit is equal to the amount of the General Aggregate Limit shown in the Declarations .

2. The Construction Project General Aggregate Limit is the most we will pay for the sum of all damages under Coverage A, except damages because of "bodily injury" or "property damage" included in the "products -completed operations hazard", and for medical expenses under Cov- erage C regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims or bringing "suits".

3. Any payments made under Coverage A for damages or under Coverage C for medical expenses shall reduce the Construction Project General Aggregate Limit for that construction project. Such payments shall not reduce the General Aggregate Limit shown in the Declarations nor shall they reduce any other Construction Project General Aggregate Limit for any other construction project.

4. The limits shown in the Declarations for Each Occurrence, Fire Damage and Medical Expense continue to apply. However, instead of being subject to the General Aggregate Limit shown in the Declarations, such limits will be subject to the applicable Construction Project General Aggregate Limit.

B. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under Section I - Coverage A - Bodily Injury And Property Damage Liability, and for all medical ex- penses caused by accidents under Section I - Coverage C Medical Payments, which cannot be attrib- uted only to ongoing operations at a single construction project away from premises owned by or rented to you:

1. Any payments made under Coverage A for damages or under Coverage C for medical expenses shall reduce the amount available under the General Aggregate Limit or the Products -Completed Operations Aggregate Limit, whichever is applicable; and

2. Such payments shall not reduce any Construction Project General Aggregate Limit.

C. When coverage for liability arising out of the "products -completed operations hazard" is provided, any payments for damages because of "bodily injury" or "property damage" included in the "products - completed operations hazard" will reduce the Products -Completed Operations Aggregate Limit, and not reduce the General Aggregate Limit nor the Construction Project General Aggregate Limit.

D. If the applicable construction project has been abandoned, delayed, or abandoned and then restarted, or if the authorized contracting parties deviate from plans, blueprints, designs, specifications or timetables, the project will still be deemed to be the same construction project.

E. The provisions of Section III - Limits Of Insurance not otherwise modified by this endorsement shall continue to apply.

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Signature Flooring Inc.
12/31/2021
BKW56292391

COMMERCIAL GENERAL LIABILITY
CG 24 04 05 09

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Person Or Organization:

Blanket where required by a written contract.

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV — Conditions:

We waive any right of recovery we may have against
the person or organization shown in the Schedule
above because of payments we make for injury or
damage arising out of your ongoing operations or
"your work" done under a contract with that person
or organization and included in the
"products -completed operations hazard". This waiver
applies only to the person or organization shown in
the Schedule above.

CG 24 04 05 09
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POLICY NO. : BAW56292391

COMMERCIAL AUTO
AC 85 43 06 18
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CALIFORNIA BUSINESS AUTO COVERAGE

ENHANCEMENT ENDORSEMENT
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement.

If the policy to which this endorsement is attached also contains a Business Auto Coverage Enhancement Endorsement with a specific state named in the title, this endorsement does not apply to vehicles garaged in that specified state.

COVERAGE INDEX

SUBJECT PROVISION NUMBER
ACCIDENTAL AIRBAG DEPLOYMENT 12
ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT 3
AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS 20 AMENDED FELLOW EMPLOYEE EXCLUSION 5
AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE 14 BODILY INJURY REDEFINED 24
EMPLOYEES AS INSUREDS (Including Employee Hired Auto) 2 EXTRA EXPENSE -BROADENED COVERAGE 10
GLASS REPAIR - WAIVER OF DEDUCTIBLE 16
HIRED AUTO COVERAGE TERRITORY 22
HIRED AUTO PHYSICAL DAMAGE (Including Employee Hired Auto) 6 LOAN / LEASE GAP (Coverage Not Available In New York) 15 NEWLY FORMED OR ACQUIRED SUBSIDIARIES 1
PARKED AUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) 17 PERSONAL EFFECTS COVERAGE 11
PHYSICAL DAMAGE - ADDITIONAL TRANSPORTATION EXPENSE COVERAGE 8 PHYSICAL DAMAGE DEDUCTIBLE - VEHICLE TRACKING SYSTEM 13 PRIMARY AND NON-CONTRIBUTORY - WRITTEN CONTRACT OR WRITTEN AGREEMENT 23 RENTAL REIMBURSEMENT 9
SUPPLEMENTARY PAYMENTS 4
TOWING AND LABOR 7
TWO OR MORE DEDUCTIBLES 18
UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS 19
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US 21 SECTION II - LIABILITY COVERAGE is amended as follows:

1. NEWLY FORMED OR ACQUIRED SUBSIDIARIES
SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured":
d. Any legally incorporated subsidiary of which you own more than 50 percent interest during the policy period. Coverage is afforded only for 90 days from the date of acquisition or formation.

However, "insured" does not include any organization that:
(1) Is a partnership or joint venture; or
(2) Is an "insured" under any other automobile policy except a policy written specificall y to apply in excess of this policy; or
Has exhausted its Limit of Insurance or had its policy terminated under any other automobile policy.
(3)
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Coverage under this provision d. does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization.

2. EMPLOYEES AS INSUREDS
SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured":
e. Any "employee" of yours while using a covered "auto" you do not own, hire or borrow but only for acts within the scope of their employment by you. Insurance provided by this endorsement is excess over any other insurance available to any "employee". f. Any "employee" of yours while operating an "auto" hired or borrowed under a written contract or agreement in that "employee's" name, with your permission, while performing duties related to the conduct of your business and within the scope of their employment. Insurance provided by this endorsement is excess over any other insurance available to the "employee".

3. ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT
SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured":
g.

Any person or organization with respect to the operation, maintenance or use of a covered "auto", provided that you and such person or organization have agreed in a written contract, written agreement, or permit issued to you by governmental or public authority, to add such person, or organization, or governmental or public authority to this policy as an "insured".

However, such person or organization is an "insured":
(1) Only with respect to the operation, maintenance or use of a covered "auto"; (2) Only for "bodily injury" or "property damage" caused by an "accident" which takes place after you executed the written contract or written agreement, or the permit has been issued to you; and
(3) Only for the duration of that contract, agreement or permit.

The "insured" is required to submit a claim to any other insurer to which coverage could apply for defense and indemnity. Unless the "insured" has agreed in writing to primary noncontributory wording per enhancement number 24, this policy is excess over any other collectible insurance.

4. SUPPLEMENTARY PAYMENTS
SECTION II - LIABILITY COVERAGE, Coverage Extensions, 2.a. Supplementary Payments , Paragraphs (2) and (4) are replaced by the following:
(2) Up to $3,000 for cost of bail bonds (including bonds for related traffic violations ) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day because of time off from work.

5. AMENDED FELLOW EMPLOYEE EXCLUSION
In those jurisdictions where, by law, fellow "employees" are not entitled to the protection afforded to the employer by the workers compensation exclusivity rule, or similar protection, the following provi- sion is added:

SECTION II - LIABILITY, Exclusion B.5. Fellow Employee does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire if you have workers compensation insurance in force for all of your "employees" at the time of "loss".

This coverage is excess over any other collectible insurance.

SECTION III - PHYSICAL DAMAGE COVERAGE is amended as follows:

6. HIRED AUTO PHYSICAL DAMAGE
Paragraph A.4. Coverage Extensions of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended by adding the following:

If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes of Loss or Collision coverage are provided under the Business Auto Coverage Form for any "auto" you own, then the Physical Damage coverages provided are extended to "autos":

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a. You hire, rent or borrow; or
b. Your "employee" hires or rents under a written contract or agreement in that "employee's" name, but only if the damage occurs while the vehicle is being used in the conduct of your business, subject to the following limit and deductible:
a. The most we will pay for "loss" in any one "accident" or "loss" is the smallest of:
(1) $50,000; or
(2) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality, minus a deductible.
b. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage.
c. Subject to the limit, deductible and excess provisions described in this provision, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. d. Subject to a maximum of $1,000 per "accident", we will also cover the actual loss of use of the hired "auto" if it results from an "accident", you are legally liable and the lessor incurs an actual financial loss.
e. This coverage extension does not apply to:
(1) Any "auto" that is hired, rented or borrowed with a driver; or (2) Any "auto" that is hired, rented or borrowed from your "employee" or any member of your "employee's" household.

Coverage provided under this extension is excess over any other collectible insurance available at the time of "loss".

7. TOWING AND LABOR
SECTION III - PHYSICAL DAMAGE COVERAGE, Paragraph A.2. Towing , is amended by the addition of the following:

We will pay towing and labor costs incurred, up to the limits shown below, each time a covered "auto" classified and rated as a private passenger type, "light truck" or "medium truck" is disabled:
a. For private passenger type vehicles, we will pay up to $75 per disablement. b. For "light trucks", we will pay up to $75 per disablement. "Light trucks" are trucks that have a gross vehicle weight (GVW) of 10,000 pounds or less.
c. For "medium trucks", we will pay up to $150 per disablement. "Medium trucks" are trucks that have a gross vehicle weight (GVW) of 10,001 - 20,000 pounds.

However, the labor must be performed at the place of disablement.

8. PHYSICAL DAMAGE - ADDITIONAL TRANSPORTATION EXPENSE COVERAGE Paragraph A.4.a. Coverage Extensions, Transportation Expenses of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended to provide a limit of $50 per day and a maximum limit of $1,500.

9. RENTAL REIMBURSEMENT
SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage , is amended by adding the following:
a. We will pay up to $75 per day for rental reimbursement expenses incurred by you for the rental of an "auto" because of "accident" or "loss", to an "auto" for which we also pay a "loss" under Comprehensive, Specified Causes of Loss or Collision Coverages. We will pay only for those ex- penses incurred after the first 24 hours following the "accident" or "loss" to the covered "auto." b. Rental Reimbursement requires the rental of a comparable or lesser vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for the period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days.
c. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your tools and equipment from the covered "auto". This limit is excess over any other collectible insurance.

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d. This coverage does not apply unless you have a business necessity that other "autos" available for your use and operation cannot fill.
e. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under Paragraph 4. Coverage Extension .
f. No deductible applies to this coverage.

The insurance provided under this extension is excess over any other collectible insurance. g.

If this policy also provides Rental Reimbursement Coverage you purchased, this Enhancement Endorsement is in addition to the coverage you purchased.

For the purposes of this endorsement provision, materials and equipment effects" as defined in provision 11.B.

10. EXTRA EXPENSE - BROADENED COVERAGE
the coverage provided by
do not include "personal
Under SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage , we will pay for the expense of returning a stolen covered "auto" to you. The maximum amount we will pay is $1,000.

11. PERSONAL EFFECTS COVERAGE
A. SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage , is amended by adding the following:

If you have purchased Comprehensive Coverage on this policy for an "auto" you own and that "auto" is stolen, we will pay, without application of a deductible, up to $600 for "personal effects" stolen with the "auto."
The insurance provided under this provision is excess over any other collectible insurance.

B. SECTION V - DEFINITIONS is amended by adding the following:

For the purposes of this provision, "personal effects" mean tangible property that is worn or carried by an "insured." "Personal effects" does not include tools, equipment, jewelry, money or securi- ties.

12. ACCIDENTAL AIRBAG DEPLOYMENT
SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions is amended by adding the following:

If you have purchased Comprehensive or Collision Coverage under this policy, the exclusion for "loss" relating to mechanical breakdown does not apply to the accidental discharge of an airbag.

Any insurance we provide shall be excess over any other collectible insurance or reimbursement by manufacturer's warranty. However, we agree to pay any deductible applicable to the other coverage or warranty.

13. PHYSICAL DAMAGE DEDUCTIBLE - VEHICLE TRACKING SYSTEM SECTION III - PHYSICAL DAMAGE COVERAGE, D. Deductible, is amended by adding the following:

Any Comprehensive Deductible shown in the Declarations will be reduced by 50% for any "loss" caused by theft if the vehicle is equipped with a vehicle tracking device such as a radio tracking device or a global position device and that device was the method of recovery of the vehicle.

14. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph a. of the exception to exclu- sions 4.c. and 4.d. is deleted and replaced with the following:

Exclusions 4.c. and 4.d. do not apply to:
a. Electronic equipment that receives or transmits audio, visual or data signals, whether or not de- signed solely for the reproduction of sound, if the equipment is:
(1) Permanently installed in the covered "auto" at the time of the "loss" or removable from a housing unit that is permanently installed in the covered "auto"; and (2) Designed to be solely operated by use from the power from the "auto's" electrical system; and (3)
Physical damage coverages are provided for the covered "auto".

If the "loss" occurs solely to audio, visual or data electronic equipment or accessories used with this equipment, then our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a $100 deductible.
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15. LOAN / LEASE GAP COVERAGE (Not Applicable In New York) A. Paragraph C. Limit Of Insurance of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by adding the following:

The most we will pay for a "total loss" to a covered "auto" owned by or leased to you in any one "accident" is the greater of the:

1. Balance due under the terms of the loan or lease to which the damaged covered "auto" is subject at the time of the "loss" less the amount of:
a. Overdue payments and financial penalties associated with those payments as of the date of the "loss";
b. Financial penalties imposed under a lease due to high mileage, excessive use or abnormal wear and tear;
c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insur- ance purchased with the loan or lease;
d. Transfer or rollover balances from previous loans or leases; e. Final payment due under a "Balloon Loan";
f. The dollar amount of any unrepaired damage which occurred prior to the "total loss" of a covered "auto";
g. Security deposits not refunded by a lessor;
h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a result of the early termination of any warranty or extended service agreement on a covered "auto";
i. Any amount representing taxes;
j. Loan or lease termination fees; or

2. The actual cash value of the damage or stolen property as of the time of the "loss".

An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the "loss". This adjustment is not applicable in Texas.

B. Additional Conditions
This coverage applies only to the original loan for which the covered "auto" that incurred the "loss" serves as collateral, or lease written on the covered "auto" that incurred the "loss".

C. SECTION V - DEFINITIONS is changed by adding the following:

As used in this endorsement provision, the following definitions apply:
"Total loss" means a "loss" in which the cost of repairs plus the salvage value exceeds the actual cash value.

A "balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of the loan, thereby requiring a large final payment.

16. GLASS REPAIR - WAIVER OF DEDUCTIBLE
Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following:

No deductible applies to glass damage if the glass is repaired rather than replaced.

17. PARKED AUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following:

The deductible does not apply to "loss" caused by collision to such covered "auto" of the private passenger type or light weight truck with a gross vehicle weight of 10,000 lbs. or less as defined by the manufacturer as maximum loaded weight the "auto" is designed to carry while it is:
a. In the charge of an "insured";
b. Legally parked; and
c. Unoccupied.

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The "loss" must be reported to the police authorities within 24 hours of known damage.

The total amount of the damage to the covered "auto" must exceed the deductible shown in the Declarations.

This provision does not apply to any "loss" if the covered "auto" is in the charge of any person or organization engaged in the automobile business.

18. TWO OR MORE DEDUCTIBLES
Under SECTION III - PHYSICAL DAMAGE COVERAGE, if two or more company policies or coverage forms apply to the same "accident", the following applies to Paragraph D. Deductible :
a. If the applicable Business Auto deductible is the smaller (or smallest) deductible, it will be waived; or
b. If the applicable Business Auto deductible is not the smaller (or smallest) deductible , it will be reduced by the amount of the smaller (or smallest) deductible; or C. If the "loss" involves two or more Business Auto coverage forms or policies, the smaller (or smallest) deductible will be waived.

For the purpose of this endorsement, company means any company that is part of the Liberty Mutual Group.

SECTION IV - BUSINESS AUTO CONDITIONS is amended as follows:

19. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS
SECTION IV- BUSINESS AUTO CONDITIONS , Paragraph B.2. is amended by adding the following:

If you unintentionally fail to disclose any hazards, exposures or material facts existing as of the incep- tion date or renewal date of the Business Auto Coverage Form, the coverage afforded by this policy will not be prejudiced.

However, you must report the undisclosed hazard of exposure as soon as practicable after its discovery, and we have the right to collect additional premium for any such hazard or exposure.

20. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS SECTION IV - BUSINESS AUTO CONDITIONS , Paragraph A.2.a. is replaced in its entirety by the follow- ing:
a. In the event of "accident", claim, "suit" or "loss", you must promptly notify us when it is known to:
(1) You, if you are an individual;
(2) A partner, if you are a partnership;
(3) Member, if you are a limited liability company;
(4) An executive officer or the "employee" designated by the Named Insured to give such notice, if you are a corporation.

To the extent possible, notice to us should include:
(a) How, when and where the "accident" or "loss" took place; (b) The "insured's" name and address; and
(c) The names and addresses of any injured persons and witnesses.

21. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US SECTION IV - BUSINESS AUTO CONDITIONS , Paragraph A.5. Transfer Of Rights Of Recovery Against Others To Us, is amended by the addition of the following:

If the person or organization has in a written agreement waived those rights before an "accident" or "loss", our rights are waived also.

22. HIRED AUTO COVERAGE TERRITORY
SECTION IV - BUSINESS AUTO CONDITIONS , Paragraph B.7. Policy Period, Coverage Territory , is amended by the addition of the following:
f. For "autos" hired 30 days or less, the coverage territory is anywhere in the world, provided that the "insured's" responsibility to pay for damages is determined in a "suit", on the merits, in the United States, the territories and possessions of the United States of America, Puerto Rico or Canada or in a settlement we agree to.

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This extension of coverage does not apply to an "auto" hired, leased, rented or borrowed with a driver.

23. PRIMARY AND NON-CONTRIBUTING IF REQUIRED BY WRITTEN CONTRACT OR WRITTEN AGREE- MENT
The following is added to SECTION IV - BUSINESS AUTO CONDITIONS, General Conditions, B.5. Other Insurance and supersedes any provision to the contrary:

This Coverage Form's Covered Autos Liability Coverage is primary to and will not seek contribution from any other insurance available to an "insured" under your policy provided that:

1. Such "insured" is a Named Insured under such other insurance; and

2. You have agreed in a written contract or written agreement that this insurance would be primary and would not seek contribution from any other insurance available to such "insured".

SECTION V - DEFINITIONS is amended as follows:

24. BODILY INJURY REDEFINED
Under SECTION V - DEFINITIONS , Definition C. is replaced by the following:
"Bodily injury" means physical injury, sickness or disease sustained by a person, including mental anguish, mental injury, shock, fright or death resulting from any of these at any time.

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WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 06 34 (Ed. 8-00)

WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT - BLANKET We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us).

The additional premium for this endorsement shall be 2 % of the total California Workers' Compensation premium otherwise due.

Schedule
Person or Organization

ANY PERSON / ORG

WHEN REQUIRED BY

WRITTEN CONTRACT
Job Description

ALL CA OPERATIONS
This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 12/31/2021 Policy No. WSD 5038700 04 Insured SIGNATURE FLOORING INC
Insurance Company INSURANCE COMPANY OF THE WEST
Countersigned By
WC 99 06 34
(Ed. 8-00)

INSURED
68212910 22-23 CPL, 21-22 GL -AUTO -OMB -WC Sherry Young 5/13/2022 8:51:46 AM (PDT) Page 14 of 15 Endorsement No.

Premium $ INCL .

Starr Surplus Lines Insurance Company
Primary and Non-contributory, Additional Insured and
Waiver of Subrogation
Policy Number: 1000067640221 Effective Date: May 16, 2022 at 12:01 A.M.

Named Insured: SIGNATURE FLOORING, INC.

This endorsement modifies the insurance coverage form(s) listed below that have been purchased by you and evidenced as such on the Declarations page. Please read the endorsement and respective policy(ies) carefully.

Commercial General Liability Coverage Form
Owners and Contractors Protective Liability Coverage Form Products/Completed Operations Liability Coverage Form
Contractors Pollution Liability Coverage Form
Professional Liability Coverage Form
Site Pollution Liability Coverage Form

SCHEDULE
Where Required By Written Contract
A. SECTION II - WHO IS AN INSURED is amended to include as an insured the person or organization shown in the schedule of this endorsement, but only with respect to liability arising out of "your work" for that insured by or for you
B. As respects additional insureds as defined above, this insurance also applies to "bodily injury" or "property damage" arising out of your negligence when the following written contract requirements are applicable:

1. Coverage available under this coverage part shall apply as primary insurance. Any other insurance available to these additional insured's shall apply as excess and not contribute as primary to the insurance afforded by this endorsement.

2. We waive any right of recovery we may have against these additional insured's because of payments we make for injury or damage arising out of "your work" done under a written contract with the additional insured.

3. The term insured is used separately and not collectively, but the inclusion of more than one insured shall not increase the limits or coverage provided by this insurance.

Insureds and Agents are advised that certificates of insurance should be used only to provide evidence of insurance in lieu of an actual copy of the applicable insurance policy. Certificates should not be used to amend, expand or otherwise alter the terms of the actual policy.

All other terms and conditions of this Policy remain unchanged.

Signed for STARR SURPLUS LINES INSURANCE COMPANY
C a�
Steve Blakey, President
Nehemiah E. Ginsburg, Genera(Counsel
SL 023 (06/11) Page 1 of 1
Copyright © C. V. Starr & Company and Starr Surplus Lines Insurance Company. All rights reserved.

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Project No.

EXHIBIT E

CLAIMS PROCEDURE
SUMMARY OF PUBLIC CONTRACT CODE § 9204
The following procedure will apply to any claims by the Contractor on the City:

A "claim" is a separate demand on the City by a contractor on a public works project and sent by registered mail or certified mail with return receipt requested, for one or more of the following:
• A time extension, including relief from penalties for delay • Payment by the City of money damages under the terms of the contract • Payment of an amount that is disputed by the City
Initial Review
The claim must be supported by appropriate documentation. The City has 45 days within which to review the claim and provide the contractor with a written statement identifying the disputed and undisputed portions of the claim. If the City does not issue a written statement, the claim is deemed rejected in its entirety. The City will pay any undisputed portion of the claim within 60 days of issuing the statement.

Meet & Confer
If the contractor disputes the City's written response, or if the City does not issue one, the contractor may request in writing an informal conference to meet and confer for possible settlement of the claim. The City will schedule the meet and confer conference within 30 days of this request and provide a written statement identifying the remaining disputed and undisputed portions of the claim within 10 business days of the meet and confer. The City will pay the undisputed portion within 60 days of issuing this statement.

Mediation
With respect to any disputed portion remaining after the meet and confer, the City and contractor will submit the matter to nonbinding mediation, agree to a mediator within 10 business days after issuing the written statement, and share mediation costs equally. If mediation is unsuccessful, then the terms of the public works agreement and applicable law will govern resolution of the dispute.

Miscellaneous Provisions
Amounts not paid by the City in a timely manner bear interest at 7% per annum. Subcontractors may submit claims via this procedure through the general contractor. The City and contractor may waive the requirement to mediate but cannot otherwise waive these claim procedures.

Placentia Cit Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: JULY 5, 2022

AGENDA REPORT
SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO. 0-2022-07, AMENDING SECTION 22.28.021 (URBAN LOT SPLIT) AND CHAPTER 23.13 (TWO -UNIT HOUSING DEVELOPMENT) TO INCORPORATE OBJECTIVE

STANDARDS WITHIN SINGLE-FAMILY RESIDENTIAL DISTRICTS IN CONNECTION WITH THE IMPLEMENTATION OF SENATE BILL 9 (ZONING CODE AMENDMENT 2022-03)
FISCAL
IMPACT: NONE
SUMMARY:

Senate Bill 9 (SB 9) was approved by Governor Gavin Newson on September 16, 2021. It was effective starting on January 1, 2022 and provides for the ministerial approval of urban lot splits and housing development containing no more than two residential units on a lot in single family residential zones.

On January 18, 2022, Urgency Ordinance No. 0-2022-01 (Attachment 2) was adopted by City Council amending Title 22 (Subdivisions) to create an urban lot split process and amending Title 23 (Zoning) of the Placentia Municipal Code to create a process for the construction of two residential units per lot pursuant to the implementation of Senate Bill 9. At that time, Staff was directed to return to the Planning Commission to consider a possible recommendation to the City Council of a non -urgency version of an ordinance designed to comply with Senate Bill 9.

The Planning Commission conducted study sessions regarding the subject draft Ordinance on April 12, 2022 and May 10, 2022. Based on input received at those meetings, Staff prepared a final draft SB9 Ordinance that was presented to the Planning Commission on June 14, 2022. The Planning Commission reviewed the draft ordinance and recommended approval to the Council.

RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Open the public hearing concerning Ordinance No. 0-2022-07; and

2. Receive the Staff report, consider all Public Testimony, ask any questions of Staff; and

2.a.

July 5, 2022

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3. Close the public hearing; and

4. Find that adoption of Zoning Code Amendment No. 2022-03 is categorically exempt from environmental review and direct Staff to file a Notice of Exemption, pursuant to CEQA Section 15061(b)(3); and

5. Waive full reading, by title only, and introduce for first reading, Ordinance No. 0-2022-07, an Ordinance of the City Council of the City of Placentia, California, finding that approval of Zoning Code Amendment No. 2022-03 is not a "project" under the California Environmental Quality Act (CEQA) pursuant to SB 9 as adopted by the State of California; and, approving Zoning Code Amendment No. 2022-03, an Ordinance of the City of Placentia, California amending Section 22.28.021 (Urban Lot Split) And Chapter 23.13 (Two -Unit Housing Development) to incorporate objective standards.

BACKGROUND:

SB 9 Background Information
SB 9 was approved by Governor Gavin Newson on September 16, 2021. It went into effect on January 1, 2022 and has two main impacts to the City's local zoning laws. First, SB 9 adds Government Code section 66411.7 to the Subdivision Map Act to require cities to ministerially approve a parcel map for an "urban lot split" into two (2) lots if the existing lot meets specified requirements, such as the requirement that the lot is within a single-family residential zone. The City may impose standards for that urban lot split but those standards for ministerial approval must be objective standards.

Second, along with the ministerial approval of a proposed urban lot split, new Government Code Section 65852.21 requires the ministerial approval of a housing development containing no more than two residential units on a lot, without discretionary review nor a hearing, if the proposal meets certain objective requirements. For both new sections, there are certain requirements that must be met to utilize those new sections. These include:
• located in a single-family residential zone
• not a historic landmark or located in a historic district • not located in a very high fire hazard severity zone
• not located in a flood zone or on land identified for habitat conservation • proposal would not demolish more than 25 percent of existing exterior structural walls Further, the newly created parcels shall be no smaller than 1,200 square feet and one (1) of the parcels created cannot be smaller than 40% of the lot area of the original parcel. The lot cannot have been previously subdivided pursuant to these urban lot split standards. Neither the owner of the parcel being subdivided nor anyone acting in concert with that owner has previously subdivided an adjacent parcel using the urban lot split standards.

A local agency may impose objective zoning, subdivision, and design standards. "Objective" standards involve no personal or subjective judgement and are uniformly verifiable by reference to an external and uniform benchmark or criteria available and knowable by both the developer and the local agency, so long as those standards do not conflict with SB 9. Objective standards

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may not physically preclude the construction of two residential units on either of the resulting parcels or physically preclude either of the two units from being at least 800 square feet in floor area.

Cities do have some very limited discretion in what to include in an SB 9 Ordinance. Below are some examples of regulations that are included in both the urgency ordinance and the proposed ordinance:
• Demolition. The proposed ordinance prohibits housing developments that would demolish more than 25% of the existing structural walls on a lot where a tenant had resided within the last three (3) years. A city may opt to allow such demolition, per Government Code § 65852.21(a)(5).
• Access. Government Code 66411.7(e) requires cities to include "a requirement that the parcels have access to, provide access to, or adjoin the public right of way." The proposed ordinance adds language to clarify what is sufficient to meet this requirement. • Percolation. The city is allowed to require residential units connected to an onsite wastewater treatment system (septic tank) to have completed a percolation test in the last five (5) years, or if the percolation test has been recertified, within the last 10 years, which shows that the system meets acceptable infiltration rates. • Parking. Cities are sometimes allowed, but not required, to allow up to one (1) off street parking space per unit. The proposed ordinance would require parking be provided at the maximum permissible rate. However, the city cannot require off street parking if the parcel is located within one-half mile walking distance of a high-quality transit corridor or a major transit stop, or there is a car share vehicle located within one (1) block of the parcel. • Additional Unit. Due to the fact that the second unit on an existing lot or newly created lot is very similar in nature to an accessory dwelling unit (ADU), the proposed ordinance requires that the same standards, conditions, and requirements for accessory dwelling units be followed, unless those standards, conditions and requirements conflict with the proposed ordinance or state law, in which case, the proposed ordinance and state law would apply.

On January 18, 2022, Urgency Ordinance No. 0-2022-01 was adopted by City Council amending Title 22 (Subdivisions) to create an urban lot split process and amending Title 23 (Zoning) of the Placentia Municipal Code to create a process for the construction of two residential units per lot pursuant to the implementation of Senate Bill 9. At that time, Staff was directed to return to the Planning Commission to consider the possible recommendation to the City Council of a non - urgency version of an ordinance designed to comply with Senate Bill 9. That draft ordinance can be viewed as Attachment 1 to this report.

DISCUSSION:

April 12 and Mav 10, 2022 Plannina Commission Discussion and Direction At the April 12, 2022 and May 10, 2022 Planning Commission meetings, Planning Commission received a Staff Report and presentation from Staff related to SB 9. Staff and the Planning Commission discussed what can and cannot be included in a legally defensible SB 9 Ordinance.

Staff also worked with the City Attorney to identify development standards that can be included

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or amended in the aforementioned draft Ordinance. Those potential development standards, now incorporated in the proposed ordinance are as follows:

1. Unit Size: Limit the existing dwelling unit that exceeds 800 sq. ft. to its current size — no expansion.

2. Structure Height: Limit the height of a new unit based on distance of setback. For example, if rear and/or side set back is 4 feet, limit the height to 10 feet. The height can increase each additional foot the new structure is set back.

3. Stories: Limiting to only one story for new structures based on distance of setback, requiring a step back of the second floor and prohibiting balconies or decks.

4. Lot coverage: Require regulation to be the same as other single-family zoned properties, with the exception that the percentage of lot coverage does not apply if it prevents two, 800 sq. ft. dwelling units on the lot.

5. Landscaping: Require regulation to be the same as all single-family zoned properties, including all applicable water saving measures.

6. Architectural Style: Require regulation to be compatible with the existing unit or the two units being constructed. Can also require it to comply with ADU standards, so long as they do not conflict with SB 9.

7. Heating and Cooling: Can require that heating/cooling apparatus be placed away from certain locations, i.e. street facing elevations.

8. Grading: Require that all grading comply with Chapter 20.40 (Grading and Excavating) of the Municipal Code.

9. Lot Access: While the City cannot prevent an easement for access to the second unit, Staff can require a sufficient width driveway and fire access and clearance.

10. Utilities: Require utilities (and utility undergrounding) to be the same as with all city standards for construction and placement of utilities.

11. Fire Protection: Require that development pursuant to SB 9 meet the minimum requirements set forth in the Title 18 of the Municipal Code.

Draft Ordinance Refining the City's Local Regulations Related to SB 9 Based upon Planning Commission direction received on May 10, 2022, the attached draft ordinance addresses and/or clarifies all of the provisions above. As previously stated, objective standards may not physically preclude the construction of two residential units on either of the resulting parcels or physically preclude either of the two units from being at least 800 square feet in floor area. Generally speaking, the proposed Code amendments provides a distinction between units above/below 800 square feet, incentivizing the development of units larger than 800 square feet if said development can meet the objective standards of the underlying zone, including setbacks. The Planning Commission reviewed the draft ordinance and recommended approval to the Council.

Fees:

Although the Planning Commission has no prevue over City fees, as an informational item, there are existing fees related to accessory dwelling units and for Tentative Parcel Map applications.

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However, the City's standard Tentative Parcel Map fee includes staff time spent preparing for and conducting a public hearing. Urban lot splits and/or two units per lot cannot include a public hearing pursuant to SB 9. Therefore, as part of the recent Citywide User Fee Study, a unique fee for urban lot splits has been adopted by City Council and a fee specific to reviewing two residential units on one lot has been adopted by City Council. These fees became effective July 1, 2022 based on previous City Council action.

CEQA:

The proposed Zoning Code Amendment was reviewed by Staff in accordance with the requirements of the California Environmental Quality Act ("CEQA"). Based upon that review, Staff and the Planning Commission recommends that the City Council find that adoption of ZCA 2022- 03 is exempt from environmental review in that adoption of the resulting Ordinance is not a project under the requirements of CEQA and that there is no possibility that the activity in question may have a significant effect upon the environment. Pursuant to SB 9, adoption of regulations related to SB 9 is not considered a "project" and therefore, the resulting Ordinance is not subject to CEQA review.

Recommending Body Determination:

On June 14, 2022, the City of Placentia Planning Commission held a public hearing and recommended that the City Council adopt a Categorical Exemption for this project and approve ZCA 2022-02 with minor amendments to the draft ordinance as prepared by Staff.

Prepared by:

Jo•Ilh M. La1nbert
Director of Development Services
Reviewed and approved:

Attachments:

1. Ordinance 0-2022-07

2. Urgency Ordinance No. 0-2022-01

3. Questions & Answers Regarding SB 9
Damen R. Arrula
City Administrator

ORDINANCE NO. 0-2022-07

AN ORDINANCE OF THE CITY OF PLACENTIA,
CALIFORNIA AMENDING SECTION 22.28.021 (URBAN
LOT SPLIT) AND CHAPTER 23.13 (TWO -UNIT HOUSING

DEVELOPMENT) TO INCORPORATE OBJECTIVE

STANDARDS
City Attorney's Summary
This Ordinance amends Section 22.28.01 (Urban Lot Split) and Chapter 23.3 (Two -Unit Housing Development) of the Placentia Municipal Code (PMC), adopted on January 18. 2022, under Urgency Ordinance No. 0-2022-01, to add objective standards in connection with the implementation of Senate Bill 9 (SB9).

WHEREAS, the City of Placentia wishes to amend Section 22.28,021 and Chapter

23.13 of the PMC to establish objective standards for the development of an urban lot split and two -unit housing developments; and
WHEREAS, on June 14, 2022, the Planning Commission of the City of Placentia held a duly noticed public hearing and recommended to the City Council approval of the amendments to the PMC incorporated objective subdivision, zoning design standards for urban lot splits and two -unit housing developments; and WHEREAS, the City of Placentia provided notice of the City Council's public hearing in accordance with California Government Code section 65090 and the City of Placentia Municipal Code section 23.96.030; and
WHEREAS, on July 5, 2022, the City Council of the City of Placentia held a duly noticed public hearing at which time it considered all evidence presented whether written or oral; and
WHEREAS, all other prerequisites to the adoption of this ordinance have occurred; and
WHEREAS, pursuant to Government Code sections 65852.21(j) and 66411.7(n) the amendments implementing SB9 are not considered a project under CEQA.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. In all respects as set forth in the Recitals of this Ordinance.

SECTION 2. Severabilitv. If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such 1 decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional, or invalid, or ineffective, provided the basic purposes of this Ordinance and the benefits to the City and the public are not substantially impaired.

SECTION 3. CEQA. Pursuant to Government Code sections 65852.21(j) and 66411.7(n) the amendments implementing SB9 are not considered a project under CEQA.

SECTION 4. Section 22.80.021 of the Placentia Municipal Code is hereby amended as follows:

Urban Lot Split Requirements:

A. Definitions. For purposes of this Section, the following definition shall apply:

1. "Urban lot split" means a lot split of a single-family residential lot into two parcels that meets the requirements of this section.

B. The city shall ministerially approve a parcel map for a lot split that meets the following requirements:

1. The parcel is located within a single-family residential zone.

2. The parcel is located at least partially in an urbanized area or urban cluster as designated by the United States Census Bureau.

3. The parcel map divides an existing parcel to create no more than two new parcels of approximately equal lot area, provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel.

4. Both newly created parcels are no smaller than 1,200 square feet.

5. The parcel is not located in any of the following areas and does not fall within any of the following categories:
a. A historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city landmark or historic property or district pursuant to a city ordinance.
2 b. Prime farmland or farmland of statewide importance as further defined in Government Code section 65913.4(a)(6)(B).
c. Wetlands as defined in the Unites States Fish and Wildlife Service Manual, Part 660 FW 2(June 21, 1993).
d. A very high fire hazard severity zone as further defined in Government Code section 65913.4(a)(6)(D). This does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Section 51179, or sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
e. A hazardous waste site that is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. f. A delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law and by the city's building department.
g.

A special flood hazard area subject to inundation by the 1 percent annual chance flood (100 -year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by FEMA.

Program as further spelled out in Government Code section 65913.4(a)(6)(G)(ii);
h. A regulatory floodway as determined by FEMA in any of its official maps, published by FEMA unless the development has received a no -rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If an applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise eligible for streamlined approval under this section, the city shall not deny the application on the basis that the applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site. i. Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan as further spelled out in Government Code section 65913.4(a)(6)(I).

Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).
k. Lands under a conservation easement.

6. The proposed lot split would not require demolition or alteration of any of the following types of housing:
a. Housing that is subject to a recorded covenant, ordinance or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;
b. Housing that is subject to any form of rent or price control by the city; c. A parcel or parcels on which an owner of residential real property exercised rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date of the application; or
4 d. Housing that has been occupied by a tenant in the last three years.

7. The lot split does not create more than two units on a parcel, including any accessory dwelling units or junior accessory dwelling units.

8. Flag lots are not permitted, unless necessary to comply with this section.

C. Standards and Requirements. The following requirements shall apply:

1. The lot split must conforms to all applicable objective requirements of the California Subdivision Map Act (Government Code 66410, et seq.) and Title 22 of the Placentia Municipal Code, except as the same are modified by this section.

2. No setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

3. Except for those circumstances described in section C.2 above, the setback for side and rear lot lines for units 800 square feet or less shall be four feet.

For units 801 square feet and larger, the side and rear set back shall be the same as set forth in the single-family residential zone or applicable single- family residential specific plan land use designation. The front setback shall be as set forth in the applicable single-family residential zone or applicable single-family residential specific plan land use designation.

4. The applicant shall provide easements for the provision of public services and facilities as required to service the newly created lots.

5. All lots shall have a minimum street frontage of ten feet to provide for vehicular access and shall comply with driveway requirements of Title 23.

6. Off-street parking shall be limited to one space per unit and follow the standards in Title 23, unless they conflict with this section, in which case this section will prevail. Notwithstanding the above, no parking requirements shall be imposed in either of the following circumstances:
a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined by Public Resources Code section 21155(b) or a major transit stop as defined in Public Resources Code section 21064.3; or
b. There is a car share vehicle located within one block of the parcel. 5 7. Lot coverage shall be the same as set forth in the single-family residential zone, so long as it does not prevent the construction of two 800 square foot units.

8. All grading shall comply with Chapter 20.40 (Grading and Excavating) of this code.

9. Each resulting property must adioin the public right of way or have vehicular access to the public right of way through a fee interest or perpetual access easement.

10. Driveway locations are subject to Public Works standards and requirements in place at the time of the application. All driveways shall comply with the driveway development standards set forth in section 23.04.010 of this code.

11. Properties must have an approved route for firefighter access and hose pull to all existing or potential structures within 150 feet of the fire apparatus. All properties shall comply with all fire protection requirements set forth in the California Fire Code and Title 18 of this code.

12. Each resulting lot (properties) must have dedicated wet (water, sewer, storm drain) and dry (gas and electric) utilities which shall meet the following_ standards:
a. Location and size shall be determined in accordance with City standards.
b. Water shall include domestic, irrigation, and fire water systems. c. Property shall be responsible to install new or upsized connections to City facilities in accordance with City standards.
d. Unused connections shall be abandoned per City standard.

D. In connection with an application under this section, the city shall not:

1. Require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map.

2. Impose any objective zoning, subdivision, or design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.
6 3. Require the correction of nonconforming zoning provisions as a condition for the lot split.

4. Deny an application solely because it proposes adjacent or connected structures provided that that all building code safety standards are met and they are sufficient to allow a separate conveyance.

E. An applicant for an urban lot split shall be required to sign an affidavit in a form approved by the City Attorney to be recorded against the property stating the following:

1. That applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of approval. This requirement does not apply when the applicant is a "community land trust" or a "qualified nonprofit corporation" as the same are defined in the Revenue and Taxation Code.

2. That the uses shall be limited to residential uses.

3. That any rental of any unit created by the lot split shall be for a minimum of thirty-one days.

4. That the maximum number of units to be allowed on the parcels is two, including but not limited to units otherwise allowed pursuant to density bonus provisions, accessory dwelling units, and junior accessory dwelling units.

5. That prohibits the separate fee interest conveyance of any unit on the parcel.

6. That the parcel is formed by an urban lot split and is subiect to the city's urban lot split regulations, including all applicable limits on dwelling size and development.

F The city may deny the lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in Government Code section 65589.5(d)(2), upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

G. This section shall not apply to:

1. Any parcel which has been established pursuant to a lot split in accordance with this section; or
7 2. Any parcel where the owner of the parcel being subdivided or any person acting in concert with the owner has previously subdivided an adjacent parcel in accordance with this section. For purposes of this section, it will be assumed that where a lot owner purchased the property from an adjacent owner who subdivided his property pursuant to this division within five years of the lot split, the owner is acting in concert with the then owner of the adjacent lot. Acting in concert shall also include where the owner of a property proposed for an urban lot split is the same, related to, or connected by partnership to the owner, buyer or seller (if transferred within the previous three years) of an adjacent lot. However, acting in concert is not limited to these situations.

G. Any unit constructed must be compatible in design to the existing primary structure and must also comply with the existing accessory dwelling unit standards and requirements set forth in Chapter 23.73 of this Code unless those standards and requirements conflict with this section or state law, in which case this section and state law apply.

H. The provisions of this section supersede any provisions of the Titles 22 and 23 of the Municipal Code to the contrary.

J. An existing non -conforming or unpermitted dwelling unit may be legalized if it meets or can be improved to meet all requirements of Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code relating to enforcing building code standards. Nothing in this subsection shall be construed as a requirement for the correction of nonconforming zoning conditions as a condition of approval for a Two - Unit Housing Development.

SECTION 5. Chapter 23.13 of the Placentia Municipal Code is hereby amended as follows:

Section 23.13.010 Two -unit Housing Development
A. For purposes of this section, the following definition shall apply:

1. "Housing development" shall mean no more than two residential units within a single-family zone that meets the requirements of this section. The two units may consist of two new units or one new unit and one existing unit.

B. The city shall ministerially approve a housing development containing no more than two residential units if it meets the following requirements:

1. The parcel is located within a single-family residential zone. 8 2. The parcel is located at least partially in an urbanized area or urban cluster as designated by the United States Census Bureau.

3. The parcel is not located in any of the following areas and does not fall within any of the following categories:
a. A historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city landmark or historic property or district pursuant to a city ordinance.
b. Prime farmland or farmland of statewide importance as further defined in Government Code section 65913.4(a)(6)(B).
c. Wetlands as defined in the Unites States Fish and Wildlife Service Manual, Part 660 FW 2(June 21, 1993).
d. A very high fire hazard severity zone as further defined in Government Code section 65913.4(a)(6)(D). This does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Section 51179, or sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
e. A hazardous waste site that is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. f. A delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law and by the city's building department.
g. A special flood hazard area subject to inundation by the 1 percent annual chance flood (100 -year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by FEMA.

If an applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise 9 eligible for streamlined approval under this section, the city shall not deny the application on the basis that the applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site. A development may be located on a site described in this subparagraph if either of the following are met:
i. The site has been subject to a Letter of Map Revision prepared by FEMA and issued to the city; or
ii. The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the Nation Flood Insurance Program as further spelled out in Government Code section 65913.4(a)(6)(G)(ii);
h. A regulatory floodway as determined by FEMA in any of its official maps, published by FEMA unless the development has received a no -rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If an applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise eligible for streamlined approval under this section, the city shall not deny the application on the basis that the applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site. i. Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan as further spelled out in Government Code section 65913.4(a)(6)(I).

4. The proposed housing development would not require demolition or alteration of any of the following types of housing:
10 a. Housing that is subject to a recorded covenant, ordinance or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;
b. Housing that is subject to any form of rent or price control by the city; c. A parcel or parcels on which an owner of residential real property exercised rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date of the application; or
d. Housing that has been occupied by a tenant in the last three years.

5. Demolition of an existing unit shall not exceed more than 25 percent of the existing exterior structural walls unless the site has not been occupied by a tenant in the last three years.

C. Standards and Requirements. The following requirements shall apply in addition to all other objective standards pertaining to the single-family residential zone or applicable single-family residential specific plan land use designation, unless they conflict with state law:

1. No setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

2. Except for those circumstances described in section C.1 above, for units 800 square feet or less, the setback for side and rear lot lines shall be four feet.

For units 801 square feet and larger, the side and rear set back shall be the same as set forth in the applicable single-family residential zone or applicable specific plan designation. The front setback shall be as set forth in the single-family residential zone or applicable single family residential specific plan designation.

3. The applicant shall provide easements for the provision of public services and facilities as required.

4. All lots shall have a minimum street frontage of ten feet to provide for vehicular access and shall comply with driveway requirements of Title 23.

5. Off-street parking shall be limited to one space per unit and follow the standards in Title 23, unless they conflict with state law or this chapter, in which case state law and this chapter shall prevail. Notwithstanding the 11 above, no parking requirements shall be imposed in either of the following circumstances:
a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined by Public Resources Code section 21155(b) or a major transit stop as defined in Public Resources Code section 21064.3; or
b. There is a car share vehicle located within one block of the parcel.

6. For residential units connected to an onsite wastewater treatment system (septic tank), the applicant provides a percolation test completed within the last 5 years, or if the percolation test has been recertified, within the last 10 years, which shows that the system meets acceptable infiltration rates.

7. The front setback shall be 20 feet on a lot that fronts on a street., except on lots where the street facing side (width) io longor than ths—dopth, in ous# case the setback from the strcct facing lot line shall be 10 feet.

E. For landlocked parcels side yard sctba&c chc

9. The height of the structure shall be same as set forth in the single-family zone or applicable specific plan designation. However, any unit within the four feet rear set back shall be limited to one story. If the second structure meets the rear set back requirements of the single-family zone or applicable single-family residential specific plan land use designation, the height may be the same as required in said zone or land use designation, however, any second story must be stepped back a minimum of 5 feet from the first -floor wall plane. Decks and balconies are prohibited.

10. Lot coverage shall be the same as set forth in the single-family residential zone or applicable single-family residential specific plan land use designation, so long as it does not prevent the construction of two 800 square foot units.

11. All grading shall comply with Chapter 20.40 of this code.

12. Each resulting property must adjoin the public right of way or have vehicular access to the public right of way through a fee interest or perpetual access easement.
12 13. Driveway locations are subject to Public Works standards and requirements in place at the time of the application. All driveways shall comply with the driveway development standards set forth in section 23.04.010 of this code.

14. Properties must have an approved route for firefighter access and hose pull to all existing or potential structures within 150 feet of the fire apparatus. All properties shall comply with all fire protection requirements set forth in the California Fire Code and Title 18 of this code.

15. Each resulting lot (properties) must have dedicated wet (water, sewer, storm drain) and dry (gas and electric) utilities which shall meet the following standards:
a. Location and size shall be determined in accordance with Citv standards.
b. Water shall include domestic, irrigation, and fire water systems. c. Property shall be responsible to install new or upsized connections to City facilities in accordance with City standards.
d. Unused connections shall be abandoned per City standard.

16. Water heaters (excluding tank less) and laundry facilities (washer and dryer) may not be located on the exterior of a dwelling unit. Tank less water heaters, when installed on the exterior of structure may only be installed on the 1st floor, must not be installed on any street facing elevation, and must not be installed on the same elevation as the entrance to the dwelling.

17. HVAC units must not be installed on anv street facing elevation, and must not be installed on the same elevation as the entrance to the dwelling.

18. The total floor area of each primary dwelling unit built pursuant to this Ordinance mav be less than 800 sq. ft. and also consistent with the minimum standards required by state law (generally 220 sq. ft. minimum). A primary dwelling unit that was legally established on the subject site prior to the two -unit project that is smaller than 800 sq., ft. mav be expanded to 800 sq. ft. or larger after or as part of the two -unit project pursuant to the development standards enforced in this chapter. A primary dwelling unit that was previously legally established on the subiect site that is larger than 800 sq. ft. is limited to the lawful floor area at the time of the two -unit project approval and may not be expanded.

19. In addition to complying with the single family residential zone landscape provisions of this code, all developments shall plant mature landscaping consisting of (but not limited to) a minimum size 36" box trees, 15 gal shrubs, or a combination of both.
13 20. All development shall comply with the single family residential zone open space provisions of this code, to the extent that is does not prevent two primary dwelling units on the subiect property of 800 sa. ft. each.

D. The city shall not:

1. Impose any objective zoning, subdivision, or design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.

2. Deny an application solely because it proposes adjacent or connected structures provided that that all building code safety standards are met and they are sufficient to allow a separate conveyance.

E. An applicant for an urban lot split shall be required to sign an affidavit in a form approved by the City Attorney to be recorded against the property stating the following:

1. That the uses shall be limited to residential uses.

2. That the rental of any unit created pursuant to this section shall be for a minimum of thirty-one days.

3. For an urban lot split, that the parcel is formed by an urban lot split and is subiect to the city's urban lot split regulations, including all applicable limits on dwelling size and development. That tho maximum number of unito ta-be allowcd on the parccls is two, including but not limited to unito othcrwicc allowcd purcuant to density bonuo provisions, accessory dwelling unito, and - F. The city may deny the housing development if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in Government Code section 65589.5(d)(2), upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

G. Any unit constructed must be compatible in design to the existing primary structure and must also comply with the existing accessory dwelling unit standards and requirements set forth in Chapter 23.73 of this Code unless those standards and 14 requirements conflict with this section or state law, in which case this section and state law apply.

H. The provisions of this section supersede any provisions in the Titles 22 and 23 of the Municipal Code to the contrary.

Section 23.13.020 Parcel Maps for Urban Lot Splits.
"Notwithstanding anything else in this section to the contrary, if the lot was previously involved in a subdivision pursuant to Municipal Code section 22.80.021 (Urban Lot Split — Approval Process), then an ADU or JADU is allowed if, after construction, there would be no more than two housing units on the lot, including, but not limited to units otherwise allowed pursuant to density bonus provisions, ADU provisions, or JADU provisions."
SECTION 6. The City Council finds, in accordance with the requirements of Section

23.96.040 ("Amendments") of the Placentia Municipal Code, that the proposed amendments to the municipal code will not be detrimental to the health, safety or general welfare of the persons residing or working within the neighborhood of the proposed amendments or within the city, and that it will not be injurious to the property or improvements within the neighborhood or within the city. The City Council also finds that the amendment is consistent with the latest adopted General Plan.

SECTION 7. This Ordinance shall take effect on the 31st day after adoption.

SECTION 8. The City Clerk shall certify the passage of this ordinance and shall cause the same to be entered in the book of original ordinances of the City; shall make a minute passage and adoption thereof in the records of the meeting at which time the same is passed and adopted; and shall, within fifteen (15) days after passage and adoption thereof, cause the same to be published as required by law, in a publication of general circulation.

INTRODUCED at a regular meeting of the City Council of the City of Placentia held on the 5th day of July, 2022.

Passed, approved, and adopted this 19th day of July, 2022.

Rhonda Shader, Mayor
15 ATTEST:

Robert S. McKinnell, City Clerk
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Ordinance was introduced on the 5th day of July, 2022 and adopted at a regular meeting of the City Council of the City of Placentia, held on the 19th day of July 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmembers:

APPROVED AS TO FORM:

Christian Bettenhausen, City Attorney
ATTEST:

Robert S. McKinnell, City Clerk
16 URGENCY ORDINANCE NO. 0-2022-01

AN URGENCY ORDINANCE OF THE CITY OF
PLACENTIA, CALIFORNIA AMENDING TITLE 22
(SUBDIVISIONS) TO CREATE AN URBAN LOT SPLIT AND
AMENDING TITLE 23 (ZONING) OF THE PLACENTIA
MUNICIPAL CODE TO CREATE TWO (2) RESIDENTIAL

UNITS PER LOT PURSUANT TO THE IMPLEMENTATION
OF SENATE BILL 9
City Attorney's Summary
This Ordinance amends Title 22 (Subdivisions) of the Placentia Municipal Code (PMC) to create an urban lot split process and provisions, and also amends Title 23 (Zoning) of the PMC to create a process and provisions for two residential units per lot pursuant to the implementation of Senate Bill 9 (SB9). SB 9 adds two new sections to the Government Code, creating urban lot splits and the development of two units on a single-family residential lot. Therefore, this Ordinance will update the PMC as necessary to achieve compliance with recent State legislation regarding urban lot splits and to allow two residential units per single-family zoned lot.

WHEREAS, on September 16, 2021 Governor Gavin Newsom approved Senate Bill 9 (SB 9, Chapter 162) relating to the creation of two residential units per lot which requires local agencies to ministerially approve housing development containing no more than two residential units per lot and ministerially approve an urban lot split; and WHEREAS, SB 9 took effect on January 1, 2021; and
WHEREAS, SB 9 allows local agencies to impose objective zoning, subdivision, and design review standards; and
WHEREAS, given that SB 9 was not signed until mid-September, there was insufficient time to process this Ordinance through noticed hearings before the Planning Commission and City Council and have the Ordinance in place as close as possible to January 1, 2021; and
WHEREAS, the public is already beginning to express interest in developing under this new law and it is necessary to have standards in place as close as possible to the time SB 9 became effective.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Section 22.80.021 is hereby added to the Placentia Municipal Code to read as follows:
1 Urgency Ordinance 0-2022-01

Page 1 of 12 ends

Urban Lot Split Requirements:

A. Definitions. For purposes of this Section, the following definition shall apply:

1. "Urban lot split" means a lot split of a single-family residential lot into two parcels that meets the requirements of this section.

B. The city shall ministerially approve a parcel map for a lot split that meets the following requirements:

1. The parcel is located within a single-family residential zone.

2. The parcel is located at least partially in an urbanized area or urban cluster as designated by the United States Census Bureau.

4. Both newly created parcels are no smaller than 1,200 square feet.

Page 2 of 12 ends

Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. f. A delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law and by the city's building department.
g.

If an applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise eligible for streamlined approval under this section, the city shall not deny the application on the basis that the applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site. A development may be located on a site described in this subparagraph if either of the following are met:
i. The site has been subject to a Letter of Map Revision prepared by FEMA and issued to the city; or
ii. The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the Nation Flood Insurance Program as further spelled out in Government Code section 65913.4(a)(6)(G)(ii);
h. A regulatory floodway as determined by FEMA in any of its official maps, published by FEMA unless the development has received a no -rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If an applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this subparagraph and is otherwise eligible for streamlined approval under this section, the city shall not deny the application on the basis that the applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site. i. Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural 3 Urgency Ordinance 0-2022-01

Page 3 of 12 ends

resource protection plan as further spelled out in Government Code section 65913.4(a)(6)(I).

6. The proposed lot split would not require demolition or alteration of any of the following types of housing:
a. Housing that is subject to a recorded covenant, ordinance or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;
b. Housing that is subject to any form of rent or price control by the city; c. A parcel or parcels on which an owner of residential real property exercised rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date of the application; or
d. Housing that has been occupied by a tenant in the last three years.

7. The lot split does not create more than two units on a parcel, including any accessory dwelling units or junior accessory dwelling units.

8. Flag lots are not permitted, unless necessary to comply with this section.

C. Standards and Requirements. The following requirements shall apply:

1. The lot split conforms to all applicable objective requirements of the Subdivision Map Act and Title 22 of the Placentia Municipal Code, except as the same are modified by this section.

2. No setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.
4 Urgency Ordinance 0-2022-01

Page 4 of 12 ends

Except for those circumstances described in section C.2 above, the setback for side and rear lot lines shall be four feet. The front setback shall be as set forth in the single-family residential zone.

The applicant shall provide easements for the provision of public services and facilities as required to service the newly created lots.

5. All lots shall have a minimum street frontage of ten feet to provide for vehicular access and shall comply with driveway requirements of Title 23.

D. In connection with an application under this section, the city shall not:

Require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map.

Impose any objective zoning, subdivision, or design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.

3. Require the correction of nonconforming zoning provisions as a condition for the lot split.

E. An applicant for an urban lot split shall be required to sign an affidavit in a form approved by the City Attorney to be recorded against the property stating the following:
5 Urgency Ordinance 0-2022-01

Page 5 of 12 ends

That applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of approval. This requirement does not apply when the applicant is a "community land trust" or a "qualified nonprofit corporation" as the same are defined in the Revenue and Taxation Code.

That the uses shall be limited to residential uses.

That any rental of any unit created by the lot split shall be for a minimum of thirty-one days.

The city may deny the lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in Government Code section 65589.5(d)(2), upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

G. This section shall not apply to:
1 Any parcel which has been established pursuant to a lot split in accordance with this section; or
Any parcel where the owner of the parcel being subdivided or any person acting in concert with the owner has previously subdivided an adjacent parcel in accordance with this section. For purposes of this section, it will be assumed that where a lot owner purchased the property from an adjacent owner who subdivided his property pursuant to this division within five years of the lot split, the owner is acting in concert with the then owner of the adjacent lot. Acting in concert shall also include where the owner of a property proposed for an urban lot split is the same, related to, or connected by partnership to the owner, buyer or seller (if transferred within the previous three years) of an adjacent lot. However, acting in concert is not limited to these situations.

H. Any unit constructed must be compatible in design to the existing primary structure and must also comply with the existing accessory dwelling unit standards and requirements set forth in Chapter 23.73 of this Code unless those standards and 6 Urgency Ordinance 0-2022-01

Page 6 of 12 ends

requirements conflict with this section or state law, in which case this section and state law apply.

The provisions of this section supersede any provisions of the Titles 22 and 23 of the Municipal Code to the contrary.

SECTION 2. Chapter 23.13 is hereby added to the Placentia Municipal Code to read as follows:

Section 23.13.010 Two -unit Housing Development
A. For purposes of this section, the following definition shall apply:

B. The city shall ministerially approve a housing development containing no more than two residential units if it meets the following requirements:

1. The parcel is located within a single-family residential zone.

The parcel is located at least partially in an urbanized area or urban cluster as designated by the United States Census Bureau.

Page 7 of 12 ends

mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
e. A hazardous waste site that is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. f. A delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law and by the city's building department.
g.

Page 8 of 12 ends

j�
applicant did not comply with any additional permit requirement, standard, or action adopted by the city that is applicable to that site.

Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan as further spelled out in Government Code section 65913.4(a)(6)(I).

The proposed housing development would not require demolition or alteration of any of the following types of housing:
a. Housing that is subject to a recorded covenant, ordinance or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;
b. Housing that is subject to any form of rent or price control by the city; c. A parcel or parcels on which an owner of residential real property exercised rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date of the application; or
d. Housing that has been occupied by a tenant in the last three years.

Demolition of an existing unit shall not exceed more than 25 percent of the existing exterior structural walls unless the site has not been occupied by a tenant in the last three years.

C. Standards and Requirements. The following requirements shall apply in addition to all other objective standards pertaining to the single-family residential zone, unless they conflict with state law:
9 Urgency Ordinance 0-2022-01

Page 9 of 12 ends

No setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

2. Except for those circumstances described in section C.1 above, the setback for side and rear lot lines shall be four feet. The front setback shall be as set forth in the single-family residential zone.

3. The applicant shall provide easements for the provision of public services and facilities as required.

All Tots shall have a minimum street frontage of ten feet to provide for vehicular access and shall comply with driveway requirements of Title 23.

5. Off-street parking shall be limited to one space per unit and follow the standards in Title 23, unless they conflict with this chapter, in which case this chapter shall prevail. Notwithstanding the above, no parking requirements shall be imposed in either of the following circumstances:
a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined by Public Resources Code section 21155(b) or a major transit stop as defined in Public Resources Code section 21064.3; or
b. There is a car share vehicle located within one block of the parcel.

7. The front setback shall be 20 feet on a lot that fronts on a street, except on lots where the street -facing side (width) is longer than the depth, in such case the setback from the street -facing lot line shall be 10 feet.

8. For landlocked parcels side yard setbacks shall apply to all property lines.

The city shall not:
1 _ Impose any objective zoning, subdivision, or design review standards that would have the effect of physically precluding the construction of two units 10 Urgency Ordinance 0-2022-01

Page 10 of 12 ends

on either of the resulting parcels or that would result in a unit size of Tess than 800 square feet.

E. An applicant for an urban lot split shall be required to sign an affidavit in a form approved by the City Attorney to be recorded against the property stating the following:

1. That the uses shall be limited to residential uses.

2. That the rental of any unit created pursuant to this section shall be for a minimum of thirty-one days.

3. That the maximum number of units to be allowed on the parcels is two, including but not limited to units otherwise allowed pursuant to density bonus provisions, accessory dwelling units, and junior accessory dwelling units.

F The city may deny the housing development if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in Government Code section 65589.5(d)(2), upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

H. The provisions of this section supersede any provisions in the Titles 22 and 23 of the Municipal Code to the contrary.

Page 11 of 12 ends

but not limited to units otherwise allowed pursuant to density bonus provisions, ADU provisions, or JADU provisions."
SECTION 3. This adoption of this Ordinance is not a project under CEQA pursuant to SB

9. SECTION 4. This Ordinance shall take effect immediately because of the need for the preservation of the public peace, health, and safety as set forth in the Whereas clauses in the beginning of this Ordinance.

Passed, approved, and adopted this 18th day of January, 2022.

ATTEST:

Robert S. McKinnell, City Clerk
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I, Robert S. McKinnell, City Clerk of the City of Placen Th/,"dostlefeby certify that the foregoing Urgency Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Placentia, held on the 18th day of January 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED
Councilmembers:

Councilmembers:

Christian Bettenhausen, City A
Urgency Ordinance 0-2022-01

Page 12 of 12 ends

Green, Smith, Yamaguchi, Wanke, Shader
None
None
None
ey
ATTEST:

Robert S. McKinnell, City Clerk
12 This memo addresses many of the questions that have arisen since the adoption of Senate Bill 9 (SB 9).

Q: What is the impact of SB 9 on the Housing Element?
A: At this time SB 9 is not expected to have an impact on the housing element, especially for jurisdictions in the SCAG region whose elements are due October 15, 2021. For sites to count towards affordable housing, they must meet minimum density and size requirements that would not be met with developments allowed under SB 9. For subsequent cycles, and for cities in COG areas that have later housing element revision dates, the city may be able to show a historical pattern to account for moderate and above -moderate sites.

Q: What is the impact of SB 9 on the ADU ordinance?
A: To the extent that SB 9 prohibits ADUs/JADUs on developments allowed under SB 9, it would override the ADU ordinance.

Q: Can someone split a lot that has a home with a JADU/ADU on it or build a second unit if there is an ADU/JADU on the lot?
A: The language of SB 9 is only clear as to situations in which a person uses both the authority contained in section 65852.21 allowing two units on a lot and section 66411.7 allowing a subdivision of a single-family lot. In this case, no more than two units can be provided per lot, including an ADU and JADU. This language is contained in both section 65852.21(f) and section 66411.7(j).

However, no similar provisions are contained in section 65852.21 authorizing the development of two units on a lot. While the Legislative Counsel's Digest states that SB 9 would require a proposed housing development containing no more than two residential units to be considered ministerially, the argument for allowing ADUs and JADUs would be that the Legislature clearly knew how to draft the statute to prohibit these units if that was the intent. Additionally, HCD's Guidebook on ADUs provides that where there are two detached single-family dwellings on a lot, one ADU per lot is allowed. The HCD's Guidebook does not carry the same weight as legislation and is not necessarily binding.

As the language of sections 65852.21(f) and 66411.7(j) provide that "a local agency shall not be required to permit" an ADU and JADU on parcels using both procedures, the city would have the discretion to specifically allow ADUs and JADUs.

Q: What is the impact of SB 9 on a small lot ordinance? A: SB 9 would supersede a small lot ordinance to the extent that it is more restrictive.

The city must allow lots as small as 1,200 square feet with the setbacks provided in SB 9. Additionally, other objective standards could not be applied if it prohibited development of units that were at least 800 square feet in size.

Q: How does the building code impact living units on property lines? A: As with ADUs, a development would still have to meet building code requirements.

Q: Can the city prohibit lot splits and units in the very high fire hazard severity zone?
A: SB 9 provides that a lot split must meet the requirements of Government Code section 65913.4(a)(6)(B) to (K). Subsection (D) provides "Within a very high fire hazard severity zone (VHFHSZ), as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subparagraph does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Section 51179, or sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development." This language basically seems to mean that if the city has adopted the California Building Code, including Chapter 7A, and is following the law regarding requiring 100 feet of defensible space, then SB 9 would apply to a VHFHSZ.

Q: What is the impact of the requirement that an applicant for an urban lot split sign an affidavit stating an "intent" to live in one of the homes? A: Unfortunately, this requirement is not really enforceable. While someone can be required to sign such an affidavit, they are only stating that it is their intent to reside in one of housing units for a minimum of three years. There is no penalty if a person does not actually so reside. Additionally, this requirement does not make sense as it states that the occupancy will be for a minimum of three years from the date of the approval of the urban lot split (emphasis added). After a lot split, a person may still need to submit building plans and then construct the home, which could take a significant portion of those three years. Nevertheless, we suggest have a form affidavit prepared that will require a person to sign under penalty of perjury.

Q: Can the city deny an urban lot split if it knows that regardless of the affidavit, the applicant has no intent to actually live one the property? A: We think that it would be very difficult to deny as the city cannot really know what someone's intent is.

Q: Can someone continually divide a lot until the lots are down to 1,200 square feet?
A: No. Section 66411.7(a)(3)(F) specifically provides that the ministerial lot split cannot be used for any parcel that has been established through prior exercise of an urban lot split.

Q: What does it mean to be "working in concert" with someone as far as adjacent properties being divided?
A: This language is not clear. Presumably the intent is to prevent speculators from coming in and buying up and developing a number of lots. Possible scenarios could be:
• A owns lots 1 and 2. A subdivides lot 1 and very close to that time frame sells lot 2 to B who then files an application to subdivide.
• Brothers A, B, and C own lots 1, 2, and 3. After brother B subdivides lot 2, Brothers A and C file applications to subdivide lots 1 and 3 on either side of lot 2 and the plans show development that is designed to look like one development. • Related entities own the adjacent lots.

This issue will probably have to be examined on a case-by-case basis. It is also important to note that the statute does not prohibit the subdivision of adjacent parcels at the same time.

Q: Can the city require that there be a minimum right of way frontage as opposed to providing access through a common easement or private street, or allowing a flag lot?
A: The language of SB 9 is unclear. Newly added section 66411.7(e)(2) provides that a local agency may require "that the parcels have access to, provide access to, or adjoin the public right-of-way." This could mean that the city has to allow any of these options or that the city could require that it adjoin the public right-of-way. Keep in mind that section 66411.7(c)(2) provides that even objective standards cannot be imposed on a lot split if it would have the effect of physically precluding the construction of two units on either of the resulting parcels.

Q: Can the city set a maximum size restriction on the units? A: SB 9 does not address size limitations except to state that objective standards cannot physically preclude either of the two units from being at least 800 square feet in floor area.

Q: What if the single-family residence is located in a zone other than single-family residential?
A: SB 9 only applies to single-family residential zones, regardless of whether the code allows single-family residences in multi -family residential zones (see sections 65852.21(a) and 66411.7(a)(3)(A)).

Q: Must the city allow a lot split if it reduces the lot below the city's minimum lot size?

A: Yes. Section 66411.7(a)(2)(A) provides that the newly created lots must be at least 1,200 square feet, thereby imposing that as the minimum. The city could allow smaller lots if it wanted to.

Q: Must the city allow a unit that does not meet the setback requirements of the single-family residential zone?
A: Yes. Both sections 65852.21(b)(2)(B) and 667411.7(b)(3) provide that the city is limited to requiring a four -foot side and rear yard setback. Furthermore, both of these sections provide that no setback shall be required if an existing structure is being converted or a new structure constructed in the same location and to the same dimensions as an existing structure.

Q: What can the city require for the one parking space, i.e., enclosed, covered, etc.?
A: SB 9 does not limit the type of parking space that the city may require so long as it is an objective standard. The city could therefore require an enclosed parking space of a specified dimension.

Q: Can the city use its standard parcel map fee for the ministerial lot splits? A: If the city's standard parcel map procedure includes a noticed, public hearing, then the fee would not be applicable. Fees cannot exceed the reasonable cost of providing the service.

Q: What other fees can be imposed?
A: Unlike the ADU legislation, there is no limit on imposing applicable impact fees on new residential units. Additionally, the development would be subject to all other applicable application and permit fees.

Q: Can the city require separate utility connections for new residences? A: Yes. SB 9 does not include any limitations on utility connections.

Q: Can the city require that units developed under SB 9 are affordable? A: We do not believe that SB 9 provides the city with authority to restrict the units to affordable units. Of course, the city can provide incentives to encourage the units be affordable.

Q: Are there time frames for approval?
A: Unlike the ADU legislation, there are no independent time frames in which the city must approve a housing development project or urban lot split. The time limits to process a parcel map under the Subdivision Map Act should apply to parcel maps under SB 9. As the map is exempt from CEQA, the time frame will generally be 50 days, assuming that the tentative map does not go to the City Council. The housing

development project would be subject to the Permit Streamlining Act and should be acted upon within 60 days of a complete application.

Q: Is there any way to deny a project under SB 9?
A: Both a housing development project and a lot split may be denied if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a specific, adverse impact upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid such specific adverse impact.

A preponderance of the evidence means more than 50 percent.

A specific, adverse impact means "a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as the existed on the date the application was deemed complete."
Q: When must the city have an ordinance in place?
A: SB 9 takes effect on January 1, 2022 and it is recommended that the city have an ordinance in place by that time to make sure that any objective standards it wishes to apply are clearly spelled out. There is no penalty for failing to adopt an ordinance as the city would simply have to follow state law and allow the housing developments and lot splits on the single-family residential lots in accordance with the provisions of SB 9. The city may adopt an ordinance through the urgency procedures in order to have something in place by January 1, 2022.

Q: Why would the city want to adopt an ordinance if state law would apply? A: SB 9 provides that the city may impose objective standards that do not conflict with the provisions of SB 9. The city should therefore be able to impose different development standards on SB 9 housing developments and lot splits than on other single-family residential developments and parcel maps.

Q: Will HCD provide guidance?
A: HCD intends to provide a technical assistance (TA) memo, but at this time is still gathering questions. It is unknown when the TA memo will be available, but it is very unlikely it will be prior to SB 9 taking effect.

Placentia City Council

AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF FINANCE
DATE: JULY 5, 2022
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE PERIOD ENDING JUNE 30, 2021
FISCAL
IMPACT: NONE
SUMMARY:

The Annual Audit of the City's financial records has been completed by the City's audit firm, The Pun Group Accountants & Advisors ("PG"). Part of the audit contract includes working with Staff to complete the Annual Comprehensive Financial Report ("ACFR"). The ACFR was reviewed with the Financial Audit Oversight Committee ("FAOC") on June 15, 2022. The FAOC approved the report and recommended for the City Council to receive and file without any material modifications.

RECOMMENDATION:

It is recommended that the City Council take the following actions:

Receive and file the Annual Comprehensive Financial Report for the period ending June 30, 2021, as recommended by the Financial Audit Oversight Committee.

DISCUSSION:

Each year the City has an external audit performed by an independent auditing firm. At the conclusion of the audit process, the auditors and the City's Finance Department completed the ACFR. As required by the Government Accounting Standards Board (GASB), the report's format includes standardized reporting information such as the Management Discussion and Analysis, Required Supplementary Information, and Government -wide Financial Statements including the Statement of Net Position and Statement of Activities.

Also, included in the report is the Independent Auditors' Report. In the opinion of the auditors (PG), the financial statements are presented fairly in all material respects. The audit of the City's Financial records were completed in accordance with generally accepted auditing standards

3.a.

July 5, 2022

City Council Agenda
July 5, 2022- FY20/21 ACFR

Page 2 of 2 ends

applicable to financial audits contained in Government Audit Standards issued by the Government Accountability Office. The City received a "clean" or unmodified opinion for the audit this year, in that there were no findings issued. Due to various actions taken by the City over the past several years, including establishing additional internal controls, the City has not received any findings since the 2015-16 embezzlement.

The ACFR was presented to the FAOC at its meeting on June 15, 2022, at which time the report was approved and recommended for the City Council to receive and file. The ACFR will also be submitted to the Government Finance Officers Association, for consideration of the Achievement for Excellence in Financial Reporting Award. Staff received notice from the Government Finance Officers Association in October 2021, that the City was awarded the Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year 2019-20 ACFR and believes this report will also qualify for the award.

FISCAL IMPACT:

There is no fiscal impact to the recommended action.

Prepared by.

Jennifer Lampman
Director of Finance
Reviewed and approved:

Damien ' . Arrula -
City Administrator
Attachments:

1. Annual Comprehensive Financial Report for Year ended June 30, 2021

2. Presentation from Pun Group

Comprehensive Annual
Financial Report
For Fiscal Year Ending June 30, 2021

Prepared by the Finance Department
of the City of Placentia

City of Placentia
Placentia, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Prepared by the
Finance Department of City of Placentia

City of Placentia
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal
Organization Chart viii
Principal Officials ix
GFOA Certificate of Achievement for Excellence in Financial Reporting x

FINANCIAL SECTION
Independent Auditors' Report on Financial Statements 1
Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) 5 Basic Financial Statements:

Government -Wide Financial Statements:

Statement of Net Position 20
Statement of Activities 22
Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet 29
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position 30
Statement of Revenues, Expenditures, and Changes in Fund Balances 31 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government -Wide Statement of Activities 32
Proprietary Fund Financial Statements:

Statement of Net Position 34
Statement of Revenues, Expenses, and Changes in Net Position 37 Statement of Cash Flows 38
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 41
Statement of Change in Fiduciary Net Position 42
Notes to the Basic Financial Statements 47
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule — General Fund 93
Budgetary Comparison Schedule — American Rescue Plan Special Revenue Fund 94 Budgetary Comparison Schedule — Citywide Development Impact Fee Special Revenue Fund 95 Notes to the Budgetary Comparison Schedule 97
Schedules of City's Proportionate Share of the Net Pension Liabilities and Related Ratios 98 Schedules of City's Pension Contributions 100
Schedules of Changes in Net OPEB Liability and Related Ratios 104 Schedules of City's OPEB Contributions 105

City of Placentia
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
FINANCIAL SECTION (Continued)
Page
Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet... 110
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 117 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual:

Miscellaneous Grants Special Revenue Fund 124
Street Lighting Special Revenue Fund 125
Measure M Special Revenue Fund 126
Thoroughfare Construction Special Revenue Fund 127
Asset Seizure Special Revenue Fund 128
Supplemental Law Enforcement Special Revenue Fund 129
Air Quality Special Revenue Fund 130
Landscape Maintenance District 92-1 Special Revenue Fund 131 Housing and Community Development Special Revenue Fund 132 Gasoline Tax Special Revenue Fund 133
PEG Special Revenue Fund 134
SB1 RMRA Gas Tax Special Revenue Fund 135
North Orange County (NOC) Public Safety Grant Special Revenue Fund 136 Community Based Transitional Housing Grant Special Revenue Fund.... 137 Placentia Regional Navigation Center Special Revenue Fund 138 General Plan Update Fee Special Revenue Fund 139
Technology Impact Fee Special Revenue Fund. 140
Housing Successor Special Revenue Fund 141
City Capital Projects Fund 142
Gas Tax Debt Service Fund 143
Internal Service Funds:

Combining Statement of Net Position 146
Combining Statement for All Internal Service Funds of Revenues, Expenses, and Changes in Net Position 147
Combining Statement of Cash Flows 148
Fiduciary Funds — Custodial Funds:

Combining Statement of Assets and Liabilities 152
Statement of Change in Fiduciary Net Position 153

City of Placentia
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Pa2e
STATISTICAL SECTION (Unaudited)
Net Position by Component Last Ten Fiscal Years 158
Changes in Net Position Last Ten Fiscal Years 160
Fund Balances of Governmental Funds Last Ten Fiscal Years 165 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years 166 Revenues by Source — General Fund Last Ten Fiscal Years 168 Assessed Value of Taxable Property Last Ten Fiscal Years 170 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years 171 Principal Property Taxpayers Current and Nine Years Ago 172 Property Tax Levies and Collections Last Ten Fiscal Years 173 Ratios of Outstanding Debt by Type Last Ten Fiscal Years 174 Direct and Overlapping Governmental Activity Debt 175
Legal Debt Margin Information Last Ten Fiscal Years 176 Demographic and Economic Statistics Last Ten Calendar Years 177 Taxable Sales by Category Last Ten Calendar Years 178
Budgeted Full -Time Employees by Department Last Ten Fiscal Years 181 Operating Indicators by Function Last Ten Fiscal Years 182 Capital Asset Statistics by Function/Program Last Ten Fiscal Years 184

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Mayor

RHONDA SHADER
Mayor Pro Tem
CHAD P. WANKE
Councilmembers:

CRAIG S. GREEN
WARD L. SMITH
JEREMY B. YAMAGUCHI
May 5, 2022
The People are the City
PL ACF.NTIA
401 East Chapman Avenue - Placentia, California 92870
City Clerk:

ROBERT S. MCKINNELL
City Treasurer
KEVIN A. LARSON
City Administrator
DAMIEN R. ARRULA
To the Honorable Mayor, Members of the City Council, and Citizens of Placentia:

It is our pleasure to present the Annual Comprehensive Financial Report (ACFR) of the City of Placentia for the fiscal year ended June 30, 2021. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the City. It is our opinion that the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of the operations of the City and contains all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs.

The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Placentia, California. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from Toss, theft, or misuse and to compile sufficient and reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City's financial statements have been audited by the Pun Group, LLP., a public accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Placentia, California for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Placentia, California's financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis

(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Placentia's MD&A can be found immediately following the report of the independent auditors in the financial section of the CAFR.

CITY PROFILE
The City of Placentia is located in north Orange County, in the heart of Southern California, with Los Angeles County to the north and San Diego County to the south. Orange County is the third largest county in California, trailing only Los Angeles and San Diego counties, and represents 8% of the state's population. There are currently 34 cities within the County. The City consists of approximately 6.7 square miles of land area and serves a population of 52,000.

The City was founded in 1910 and incorporated in 1926. It was home to major citrus growing companies. Under the City Charter adopted in 1965, the City government is organized in the Council -Administrator form. The City Council includes five (5) members, each of whom is elected at -large to overlapping four-year terms. In 2018, the City was divided into five districts with two of the districts electing a Councilmember in November of that year and the three remaining districts electing their Councilmembers in 2020. The City Council annually selects a Mayor and Mayor Pro Tem for a one-year term. The City Council serves as the legislative and policy-making body of the City government. The City Council appoints a City Administrator and a City Attorney.

The City Administrator is the City's chief executive officer and appoints all other City staff. The City Administrator is responsible for the daily administration of the City government and provides overall direction to all City departments. The City Clerk and City Treasurer are separately elected by the voters.

The City provides a full range of municipal services including police, fire and life safety, maintenance of streets and parks, community development (e.g., building, planning, code compliance), recreational and cultural activities, economic development, and administrative services (e.g., personnel, finance, information services). Refuse collection is franchised to a private waste company, Republic Services.

FINANCIAL POLICIES
Budget: The annual budget serves as the foundation for the City's financial planning and control.

The Finance Department, with City Administrator direction, develops revenue estimates and budget guidelines for each department every year in January. The departments then submit expenditure appropriation requests which are summarized by the Finance Department and presented to the City Administrator for review. The City Administrator then meets with each department and prepares a proposed budget document for the City Council.

The City's Charter requires that the City Administrator submit a proposed budget to the City Council at least 35 days prior to the start of each fiscal year. After the budget has been presented, it must be adopted by the City Council following a noticed public hearing.

The annual budget includes all the City's governmental and proprietary funds. The legal level of budgetary control is the fund level. The City Administrator has the discretion to transfer II

appropriations between departments within a fund but transfers between funds and additional appropriations and transfers must be approved by City Council.

General Fund Reserve Policy: The City's General Fund Reserve Policy provides guidance in the creation, maintenance, and use of reserves. The policy covers the allocation of new and one- time revenues to different committed reserves such as infrastructure, vehicles, and equipment reserve; post -employment benefits sustainability reserve; employee recruitment and retention reserve; and the General Fund contingency reserve. To ensure the availability of adequate reserves for potential contingencies or emergencies, the City Council established the City's General Fund Reserve Policy with a required general fund contingency reserve of 25% of annual General Fund operating expenditures. While the unrestricted fund balance of the General Fund was approximately $19.7 million on June 30, 2021, the unassigned fund balance was approximately $9.9 million, a significant increase over the balance of $3.9 million at June 30, 2020. A relatively Targe portion of the current unrestricted fund balance is committed for the City's contribution toward the parking structure to be constructed in conjunction with the Metrolink Station. The purpose of this public investment is to further economic growth and prosperity in the downtown area in concert with the Transit -Oriented District (TOD) and Old Town Master Plans.

Fees: In FY 2017-18, the Council adopted Citywide Development Impact and Residential Affordable Housing Impact Fees and •updated its Comprehensive Fee Schedule following a comprehensive cost of services/user fee study. The fee schedule was proposed to be updated annually based upon consumer price index with another fee study to be conducted in the fifth year. Both the Citywide Development Impact Fees and the Comprehensive Fee Schedule will be updated in FY 2021-22.

FACTORS AFFECTING THE CITY'S ECONOMIC CONDITION
Local Economy: Placentia's economic outlook is promising. Taxes represent eighty-seven (87%) of the City's total General Fund operating revenue and primarily include property taxes, sales and use taxes (including Measure U), utility users tax, franchise fees, and other taxes. Tax revenues for FY 2020-21 generally met or exceeded budget and are expected to exceed budgeted amounts for FY 2021-22 as well, with both property taxes and sales and use taxes showing continued growth.

In addition, Springhill Suites by Marriott, a 116 -room hotel situated on 2.1 -gross acres, began operations in 2021. It is estimated that the annual Transient Occupancy Tax (TOT) from the hotel site will generate approximately $400,000 in new ongoing revenue to the City.

LONG-TERM FINANCIAL PLANNING
Pension Unfunded Accrued Liability: On November 12, 2020, the City of Placentia issued lease revenue bonds through the Placentia Public Financing Authority taking advantage of the historic low interest rate environment. This bond issuance funded 100% of the City's CaIPERS unfunded actuarial liability (UAL) for the miscellaneous and safety plans. Upon issuance of the bonds, the City paid approximately $43.8 million to CaIPERS for deposit to the CaIPERS payment fund, which represented the unfunded liability for the miscellaneous and safety plans as of June 30, 2019. pit

This transaction will provide $14.3 million in savings over the term of the bonds and over $600,000 annually during the first 15 years.

Debt Refinancing: As previously mentioned, interest rates continue to hover around historic lows. As such, the City is evaluating all outstanding debt to determine if refinancing the debt would result in material savings.

Section 115 Trust: The City's General Fund Reserve Policy includes provisions to set-aside 10% of ongoing new revenue and 10% of one-time new revenue for unfunded liabilities. In addition, when the General Fund reaches its minimum fund balance of 25%, an additional 10% of one-time new revenue will be allocated toward funding this liability for a total of 20% annually.

DEVELOPMENT INITIATIVES
Enhanced Infrastructure Financing District: In response to the elimination of redevelopment agencies the California Senate Bill 628, effective January 1, 2015, and California Assembly Bill 313, effective January 1, 2016, authorized the formation of an Enhanced Infrastructure Financing District ("EIFD"), which is intended to succeed the former Redevelopment financing mechanism and provide more flexibility than Infrastructure Financing Districts ("IFDs"). An EIFD is a governmental entity, separate and distinct from the city or county that establishes it and is governed by a Public Financing Authority ("PFA"). EIFDs can aid local government entities in funding public capital facilities, or other specified projects of communitywide significance, primarily by capturing tax increment revenue ("TI") generated within the district. EIFDs provide an opportunity for agencies to issue bonds for an array of public infrastructure projects as well as supporting economic development efforts in specific areas.

At the April 23, 2019 Orange County Board of Supervisors meeting, the Board Members approved a partnership to participate in an EIFD with the City of Placentia. This is one of four EIFDs established in California, and the first EIFD in the State of California to involve a partnership between a city and county for improved infrastructure.

The City of Placentia and the Southern California Association of Governments (SCAG) worked on a comprehensive plan for the establishment of an EIFD in Placentia. Under this plan, the County would contribute 46% of its share of property tax increment within the boundary of the District, which would amount to approximately $3.5 million over 20 years, or $175,000 annually. The City's contribution would be 46% of its property taxes generated in the District, or about $8.2 million over two decades. The total partnership between the County and the City would amount to $11.7 million to make the necessary infrastructure improvements to the Old Town Placentia area. This includes public infrastructure improvements near the Metrolink Station, Placentia Old Town area, and the Transit -Oriented Development District near the 57 and 91 freeways. With this unique City -County partnership, the City will be able to produce over 1,600 new units of housing, create 3,900 construction jobs, and over 1,100 permanent jobs at full build -out.

Transit -Oriented Development: The City has been given a unique opportunity with the development of a new state-of-the-art Metrolink train station and 246 -space parking structure within the Old Town Placentia area. The proposed station will help transform the Packing House District (near Melrose Street and Crowther Avenue) into an active, vibrant destination. Transit- Lv

Oriented Development (TOD) is a type of community development that includes a mixture of housing, office, retail, and/or other amenities integrated into a walkable neighborhood and located within a half -mile of a public transportation stop. It will also support existing retail and restaurant business while growing the City's local economy.

Based on an economic development analysis conducted by Kosmont Associates, the public and private investments in the future TOD and Old Town Revitalization Plan (OTP) areas are expected at build -out to generate up to $540 million in local economic output and $800 million in Countywide economic output. Upon completion, the TOD and OTP areas are estimated to generate approximately $92 million annually in local economic output. Additionally, the proposed District areas would assist with reconstructing streets and street improvements, utilizing non -General Fund resources. In total, construction of the TOD and Old Town District is estimated to generate approximately 3,900 construction jobs and 1,100 permanent jobs.

Placentia's Old Town is a 33 -acre area located in the southern and western portions of the City, north of a section of the Burlington Northern Santa Fe (BNSF) railroad. To take advantage of the upcoming Metrolink station and parking structure developments scheduled to begin construction in 2022, the Old Town Placentia Revitalization Plan was adopted by the City Council in July 2017. The plan's primary goal is to create a vibrant, safe, and pedestrian friendly area that respects the community's historical and cultural diversity, while also creating new opportunities for development and investment into the area. This comprehensive plan incorporates well- designed private and public physical improvements and amenities.

Based on the Plan's expectation of 853,000 square feet of new improvements at build -out, the Old Town Revitalization Plan is expected to generate $217 million of private development activity, development impact fees of $8.3 million and additional annual tax revenues for the City of $900,000. In addition, 1,057 construction jobs and 823 of new on-site permanent jobs are anticipated as a result of the Plan.

As mentioned previously, to expedite these improvements in Old Town Placentia, the City partnered with the County of Orange to establish an EIFD near the City's future Metrolink Station, including the Old Town Placentia area and TOD Packing House District. The purpose of this district is to create a funding mechanism that can facilitate the construction of public infrastructure improvements in this area. A portion of the property tax increment (the amount above the property taxes collected in base year 2019) that the City and the County of Orange receive would be specifically restricted to pay for the infrastructure projects listed in the Infrastructure Financing Plan (IFP) at an estimated cost of $8.2 million. These infrastructure improvements include street improvements, pedestrian connectivity, and landscaping and lighting upgrades. The EIFD does not result in new taxes or fees to the property owners in the EIFD boundaries or the City's residents.

Car Dealership: On December 10, 2019, the City Planning Commission approved the development of a new Audi dealership on a vacant 4 -acre area located on the north side of Yorba Linda Boulevard, east of Rose Drive at 1275 E. Yorba Linda Boulevard. This is the first Audi dealership in north Orange County. The new dealership will include a two-story 25,000 square foot building that will contain an indoor vehicle display area, sales areas, offices, and a parts department. Two smaller facilities will be located behind the main dealership building and v

include service bays, detail/wash bays, and a vehicle photo booth. The architecture is a contemporary design consistent with modern Audi dealerships in California. Grading of the site began in January 2021, with construction completion and a business opening date anticipated for the first part of 2022. The new Audi dealership will generate approximately $400,000 to $500,000 annually in sales tax revenue, in addition to creating a significant number of new jobs and increasing discretionary spending in the City.

Commercial/Residential Development: One of the last remaining undeveloped parcels within the City of Placentia, located at the southeast corner of Alta Vista Street and Rose Drive, is an

8.45 -acre parcel within the East Placentia Specific Plan (SP -7). Approved in July 2018, SC Placentia Development, LP, is slated to develop a 2 -acre parcel located at the southeast corner of Alta Vista Street and Rose Drive with two single -story retail commercial buildings with a cumulative building size of approximately 10,420 square feet, with the remainder of the site to be developed for single-family residential uses (54 detached residences on approximately 6.46 -acres).

SC Placentia Development, LP partnered with Shea homes to construct the residential portion of the project. Shea homes completed the grading activities for the residential portion of the site, with the sales office and model homes completed in the first half of 2021.

JP! Luxury Apartments is the second development in the City's Transit -Oriented Development (TOD) Zone is currently under construction. The project site comprises seven adjacent properties located between 505-551 W. Crowther Avenue, directly east of Tyler Lighting on the north side of Crowther Avenue. This particular development will feature 418 residential units and is a mixed- use development, featuring approximately 10,500 square feet of retail -commercial space on the ground floor accessible from Crowther Avenue.

Toffoli Investments and Landsea Homes will be constructing a 139 -unit residential townhome development called "Hudson." Hudson will be located at 443 S. Van Buren Street and will consist of 22 separate three-story buildings. Six floor plans are proposed consisting of 25 one -bedroom units, 52 two-bedroom units, and 62 three-bedroom units. The unit types will measure between 762 square feet and 1,349 square feet in overall floor area and feature an attached one or two - car garage per unit. Hudson amenities will include a tot lot, barbeques, fire pits, bike racks, a dog run, and more.

In December 2019, the City of Placentia Planning Commission approved a facade rehabilitation project for the "Village Plaza" retail shopping center that will remodel all the aging buildings with new architecture, including various hardscape and landscape improvements. Project features will include new light fixtures for brighter lighting throughout the plaza, Targe concrete planters with seating along pedestrian walkways, and additional shade structures and awnings to make the public spaces more inviting and provide comfortable access to retail spaces.The shopping center remodel is anticipated to be completed in the first quarter of 2022.

Awards and Acknowledgments
Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to government units that publish an easily readable and efficiently organized comprehensive annual financial report.

A Certificate of Achievement is valid for a period of one year only. The City received this award for its June 30, 2020 CAFR. We believe this year's comprehensive annual financial report meets the required criteria, and we will be submitting it for award consideration this year.

Acknowledgments: The preparation of this report could not have been accomplished without the efficient and dedicated service of the entire Finance Department. Special recognition is also given to the audit firm of the Pun Group, LLP. We also wish to recognize the commitment of the City Council to the high standards embodied in this report and express appreciation to them and each City department for their cooperation and support in conducting the fiscal operations of the City.

Respectfully submitted,
Jennifer Lampman
Director of Finance
Damien R. Arrula
City Administrator

Admin J
Succession Planning and Reorganization Chart
Phase I
City Treasurer
City Attorney
Deputy CA
Support Services, Police &
Emergency Services
rL
HR/
IT
I I
Deputy City
li Clerk 1!
Office Asst.

Risk Mgmt
HR Mgmt.

Analyst
Finance
Finance
Director
IT Contract Sr.Financial
GST Analyst
GIS
Mgmt.

Analyst
Acctg
Mgr.
ti
Emergency
Services &
Comm. Ctr.

Electorate
r
ouncil
City Administrator
Legislative Affairs &
Emergency Public Safety
Svcs.Coordinator IL Comm. Mgr.

Police
Chief of
Il Police 11
I
Captains
Sr. Mgmt.

Analyst
Fire Chief J
Management
Analyst
City rk
Firtommissions/
Committees
Deputy CA
Public Services, Fire &
infrastructure
dpi
Engineering
City Engineer
Transportation
Manager
Develop. 1
Services
Dev.Svcs.

Director
Senior
Planner
Public
Works
PW
1 Superintendent
Mgmt. Analyst
Community
Services
CS Director
CS
Supervisor

CITY OF PLACENTIA

PRINCIPAL OFFICIALS
June 30, 2021

CITY COUNCIL
Rhonda Shader
Chad P. Wanke
Craig S. Green
Ward L. Smith
Jeremy B. Yamaguchi
Mayor
Mayor Pro Tempore
Councilmember
Councilmember
Councilmember

CITY OFFICIALS
Robert S. McKinnell
Kevin A. Larson
Damien R. Arrula
Christian L. Bettenhausen
Jennifer Lampman
Rosanna Ramirez
Karen Crocker
Joseph M. Lambert
Luis Estevez
Brad Butts
Jason Dobine
ix
City Clerk
City Treasurer
City Administrator
City Attorney
Director of Finance
Director of Administrative Services
Director of Community Services
Director of Development Services
Director of Public Works
Police Chief
Fire Chief

G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Placentia
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
x

FINANCIAL SECTION

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THE

PUN GROUP

ACCOUNTANTS & ADVISORS

INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Placentia
Placentia, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of the City of Placentia, California (the "City"), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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 Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 www.pungroup.cpa

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

Page 2 ends

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, 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.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Budgetary Comparison Schedule -General Fund, Budgetary Comparison Schedule -American Rescue Plan Special Revenue Fund, Budgetary Comparison Schedule -Citywide Development Impact Fee Special Revenue Fund, Schedules of City's Proportionate Share of the Net Pension Liabilities and Related Ratios, Schedules of City's Pension Contributions, Schedules of Changes in Net OPEB Liability, and Schedules of City's OPEB Contributions on pages 5 to 16 and 93 to 105, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other 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 Introductory Section, Combining and Individual Nonmajor Fund Financial Statements, and the Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual, and Statistical Sections, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements and the Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual on pages 110 through 143 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and the Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual are fairly stated in all material respects in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 2 To the Honorable Mayor and Members of the City Council of the City of Placentia
Placentia, California

Page 3 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 5, 2022, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ‘4Agri-/
Santa Ana, California
May 5, 2022
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4 City of Placentia
Management's Discussion and Analysis (Unaudited)
For the Fiscal Year Ended June 30, 2021
This discussion and analysis section of the City of Placentia's ("City") annual comprehensive financial report provides a narrative overview of the City's financial activities for the fiscal year ended June 30, 2021. This information should be read in conjunction with the basic financial statements and the notes, which accompany the basic financial statements.

FINANCIAL HIGHLIGHTS
• The City's net position equaled $47.8 million at June 30, 2021. Net position is the amount by which total assets and deferred outflow of resources exceed total liabilities and deferred inflows of resources. The net position from governmental activities on June 30, 2021, was $39.3 million, and from business -type activities, $8.6 million.
• The City's overall net position increased by approximately $6.3 million during the fiscal year, compared to the net position on June 30, 2020. The net position from governmental activities increased by $3.8 million while the net position from business -type activities increased by $2.5 million.

The governmental activities increased as the result of the receipt of COVID-19 Relief Funds, reserves related to debt issuance, the increase in development, and higher inflow of taxes.

Business -type activities net position increased by $2.5 million, primarily due to approximately $1.3 million decrease in Pension related liabilities and Pension related expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are presented in three parts:

1. Government -wide Financial Statements

2. Fund Financial Statements

3. Notes to the Financial Statements
This section of the management's discussion and analysis is intended to introduce and explain the basic financial statements. The report also includes supplementary information which is intended to furnish additional detail to support the basic financial statements themselves.

Government -wide Financial Statements
The government -wide financial statements are designed to give the reader a picture of the City from the economic resources measurement focus using the accrual basis of accounting. This broad overview is like the financial reporting used in private -sector business. The government -wide financial statements present governmental activities and business -type activities separately. Governmental activities of the City include general government (legislative, administration, City Council, human resources, and finance), public safety (police and Fire and Life Safety), public works, community development, and community services. The City's business -type activities include refuse and sewer maintenance. Governmental activities are primarily supported by taxes, charges for services, and grants, while business -type activities are self-supporting through user fees and charges.

The Statement of Net Position presents financial information on all the City's assets, deferred inflows and outflows of resources, and liabilities with the difference between these categories reported as net position. Over time, increases or decreases in net position may be one indicator of improvement or deterioration in the City's overall financial health.

The focus of the Statement of Activities is to present the major program costs with corresponding major resources.

To the extent a program's cost is not recovered by direct charges and grants, it is funded from general taxes and other resources. This statement assists the user in determining the extent to which programs are self-supporting and/or 5 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
subsidized by general revenues. All activity on this statement is reported on the accrual basis of accounting, which requires that revenues be reported when earned and expenses be reported when incurred, regardless of when cash is received or disbursed.

Fund Financial Statements
A fund is a fiscal and accounting entity with a self -balancing set of accounts used to account for specific activities or meet certain objectives. Funds are often set up in accordance with special regulations, restrictions, or limitations. The City, like other state and local governments, uses fund accounting to ensure and show compliance with finance - related legal requirements. The City's funds are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
■ Governmental Funds
Governmental funds are used to account for the governmental activities reported in the government -wide financial statements. Most of the City's basic services are included in the governmental funds. The basis of accounting is different between the governmental fund statements and the government -wide financial statements.

The governmental funds focus on near-term revenues/financial resources and expenditures, while the government -wide financial statements include both near-term and long-term revenues/financial resources and expenses. The information in the governmental fund statements can be used to evaluate the City's near- term financing requirements and immediate fiscal health. Comparing the governmental fund statements with the government -wide financial statements can help the reader better understand the long-term impact of the City's financing decisions. To assist in this comparison, reconciliations between the governmental fund statements and the government -wide financial statements are included with the governmental fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances. • Proprietary Funds
The City maintains two different types of proprietary fund: enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for refuse and sewer services.

Internal service funds are used to accumulate and allocate costs internally among the City's various functions.

The internal service funds primarily benefit the governmental activities and, therefore, the internal service fund information has been included with the governmental activities in the government -wide financial statements.

Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for each of the two business -type activities individually, but combined information for the City's three internal service funds. In the Supplementary Information section of this report, information for each of the three internal service funds is provided.
• Fiduciary Funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds.

Fiduciary funds are not included in the government -wide financial statements because their assets are not available to support the City's activities.
6 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
Notes to the Financial Statements
The notes to the financial statements provide additional information that is important to obtain a full understanding of the data in the government -wide and fund financial statements. The notes are located immediately following the basic financial statements.

Other Information
In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements. The combining statements for other governmental funds, the individual fund schedules, the internal service fund statements, and agency -type fiduciary fund schedules are presented immediately following the required supplementary information.

GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
Statement of Net Position
Governmental Activities Business -type Activities Total 2021 2020 2021 2020 2021 2020
ASSETS
Cash andlnrestmeats 5 41,168;842 S 16,049,065 5 1,210,737 5 1,084,775 5 42,379,579 S 17,133.340 Other Assets 10,759,633 14,280,415 111,721 165,178 10,871,404 14,446,543 Capitat Assets 93,264,063 91,479,363 9,220,855 3,743,171 101,484,916 100,228,034 Total An 145,192;586 121,809,343 9,543 313 10.004,124 154,735,899 131,313,467

DEFERRED OUTFLOW OF
RESOURCES 57,149,618 9,432;269 2;076,895 573;205 5 59.226,513 S 10;005;474

LIABILITIES
Cwt tt Liabilities 11,436;049 6,856:980 332,450 295;331 11,163.499 7,152,311 Lost -Tenn Liabilities 145,322,148 81,603;439 2,519,713 3,809,723 147;342,161 35,413.162 Total Liabilitis 156;753;497 88.460.419 2;852,163 4,105;054 159;610.660 92,565.473

DEFERRED INFLOW OF
RESOURCES 6329.504 7;295,166 136,637 406.032 5 6,516.191.00 S7,701,198,00 NET pos1TIo\
Net Insestment
in Capital Anus 36,061.117 81,105,306 8,220,855 3,748;171 94,231,972 39,853,977 Restricted 21,455.621 7,731,960 21,455,621 7,731,960
Unrestricted (68,262335) (53,351.739) 360,503 (2,681;92.8) (67;902;032) (56,033,667) Total Net Position. 5 39,254,203 S 35,486,027 5 3,531358 S 6;066,243 S 47.835,561 $ 41,552;270 7 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
The City's net position can serve as a useful indicator of the City's financial position. As of June 30, 2021, the City's combined net position (governmental and business -type activities) totaled $47.8 million, an increase of $6.3 million over the prior year.

Net Position consists of three categories: net investment in capital assets, restricted, and unrestricted. The largest portion of the City's net position, approximately $94.3 million on June 30, 2021, is the City's investment in capital assets (land, buildings, machinery, equipment, and infrastructure). Because capital assets are used to provide service to citizens, they are not available to fund the City's day—to-day activities. Restricted net position totaled $21.5 million on June 30, 2021, reflecting an increase of $13.7 million dollars primarily due to an increase in development impact fees and debt service proceeds. These resources are subject to external restrictions on how they can be used. The remaining unrestricted net position was a negative $68 million Change in Net Position
The following is a summary of activities for the years ending June 30, 2021, and 2020:

Charge in Net Position
Governmental Activities $seines-rypeActivities Total
2021 2020 2021 2020 2021 2020
REVEcfas
Program Revenues:

Charms for Service& S 6,400:408 S 6,013,193 4,471,631 3;975.300 5 10,872,039 5 9.985493 Opsating contribution and grants 6.102,506 9.587,519 6,102,506 9;537,519 Capital contributions and grants 8026,712 2,994,419 8,026,712 2.994,419 Gist Revenues:

Taxis 37;856,465 34,888,960 37;856,465 34,388,960
investment income 13.028 311;601 4.233 26;670 17,316 333.271 Gain on sale of property - 214;574 214,574
Contributions from Successor Agency - 19,000. 19_.000
Contributions from C ,tcdial Fund 30,000 30,000
Miscellaneous 2.80,2293 447,281 280.293 447,231
Total revenues 58;709;412 54;476547 4;475,919 4;001,970 63,155;331 58,478517 EX?ENSFS
Gsntral rovernment 12;849,875 11;654;352 - 12;849,875 1L654.352 Public safety 26,045,332 26,139,005 - 26,045,332 26,139,005 Publicccork-s 9;846,347 4.925;452 9.346.347 4,925,452
Community d.evelopnimt 2.893.489 1,639;947 2.393,489 1;639,947 Commuity sentices 2,530,108 1,757,311 2.580;108 1,757,311 Interest 764.752 475,137 - 764.752 475.187
Reese 3,286,816 3.127.283 3,286;816 3,127,288

84. Yes maintm nce - (1,364;679) 1,336,237 (1,364;679) 1,836.237 Total. Expenses 54,979,903 46,591;254 1;922.,137 4,963;525 56,902,040 51;554,779 Increase in net position
b4.5or4 transfers & speciat items 3,729,509 7;885;293 2;553;732 (961:555) 6;283;291 6,923,733 Transfers from Successor Annoy -
Transfers 38,667 192,.000 (33;667) (192;000)
Changs in net position 3,768,176 8.077.293 2,515,115 (1,153,555) 6;283,291 6,923,733 Net position, beginning or ye7r(ristued) 35,436,027 27,408 734 6,066,243 7.219.798 41;552;270 34,625,532 Net position, end of year 5 39,254,203 S 35,486,02.7 S 8,581,358 S 6,066,243 S 47,835,561 S 41,552;270 8 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
Governmental Activities:

Overall, governmental activities increased the City's net position by $3.8 million. There were several factors that contributed to this change.

Revenues
Total revenue from governmental activities equaled $58.7 million for the year. While there are differences in all revenue categories, the overall increase was $4.2 million, or 7.7% compared to the prior year.

The following chart shows the percentage breakdown of revenue derived from governmental activities:

Taxes, 64.48%
Revenue Sources
Governmental Activities
Fiscal Year Ended June 30, 2021
Investment
Income, 0.02%
Miscellaneous,

0.53%
Charges For
Services, 10.90%
Operating
IlpContributions &
Grants, 10.39%
Capital
Contributions &
Grants, 13.67%
As shown in the chart, revenue received from taxes makes up the largest portion of the City's revenue derived from governmental activities. This fiscal year, tax revenue increased by almost $3 million, or 8.5%. Measure U sales tax accounted for $1.4 million of the increase. Additionally, the Wayfair Act allowed for sales tax to be collected from online sales for products being shipped to the city which helped mitigate any local sales tax decrease. Taxes increased by approximately $3 million or 8.5% largely due to an increase in property taxes and sales taxes. Property taxes had an increase of $.8 million composed of current year -secured, property tax VLF, the addition of pass-through property taxes, and various miscellaneous property taxes. Sales taxes had an increase of $1.98 million mostly due to Measure U.

Revenue from Operating Contributions and Grants decreased in the current fiscal year by $3.5 million, or

36.4%. There was a significant decrease in public safety grants due to the HEAP grant for the Navigation Center being fully recognized in the previous year which reduced revenues by $0.9 million and approximately $0.92 million in COVID relief, county grants from OCTA, asset seizure funds, and POST reimbursements. There was also a decrease of approximately $1 million in unavailable revenues and a decrease of $0.6 million in community services due to a delay in county grants for the Navigation Center. 9 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
The Capital Contributions and Grants reflects an increase of $5 million primarily due to receipt of developer impact fees for new construction projects within the city including development impact fees for parks & recreation, citywide traffic, citywide public safety, citywide affordable housing, TOD Traffic, TOD sewer, and TOD streetscape.

Developer impact fees are fees approved by the city to mitigate the effects of new developments on the citywide infrastructure.

Charges for Services increased by approximately $0.4 million largely due to the increase in the number of permits issued during the fiscal year. Encroachment permits, building permits, and HVAC increased by $327,444 in the current fiscal year. Additionally, due to the establishment of the Placentia Fire Life & Safety Department, the City received $42,633 in revenue from fire plan checks.

Investment income decreased by approximately $.3 million or 95% compared to last fiscal year. The decrease in Investment Income reflects a decrease in the interest income in investments such as LAIF.

Expenses
Total expenses from governmental activities equaled approximately $55 million, representing an increase of $8.4 million, or 18%, over the previous year. There was an increase in expenditures due increased expenditure in the Risk Management internal service fund, increase in depreciation expenditures, and increase in pension and OPEB related expenditures.

The following chart shows the percentage breakdown of expenses related to governmental activities:

Public Safety,

47.37%
Functional Expenses
Governmental Activities
Fiscal Year Ended June 30, 2021
Public Works,
10 17.91%
Interest Expense,

1.39%
Community
Development,

5.26%
NCommunity
Services, 4.69%
General
Government,

23.37%

City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
Business -Type Activities:

Operating Revenues S 4,471,631
Operating Exp ens es (1,922,137)
Operating Income (loss) 2,549,494
Non-operating Income 4,288
Income(loss)before Transfers & Special Items 2,553,7S2
Transfers (3%667)
Change inNet Position S 2,515,115
The business -type activities include the City's refuse and sewer system activities. Total operating revenues for the business -type activities were approximately $4.5 million and the operating expenses were $1.9 million, for a net operating income of approximately $2.5 million.

Refuse
The refuse operation generated an operating income of $401,640. Revenue from sales and service charges increased by approximately $400,000 due the increased receipts of contractor related Secured tax collection. Additionally, the increase in salaries and contract services expense was offset by the valuation change of the Pension. This change resulted in a reduction of over $300k of Pension expenditures.

Sewer
The sewer system operation generated a profit of $2.1 million. This was mainly the result of the decrease in salaries allocated to sewer which resulted in a decreased UAL allocation and a decrease in pension liability which in turn reduced the pension expense.

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

Governmental Funds
The focus of the City's governmental funds is to provide information on near term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, the assigned fund balance and unassigned fund balance may serve as a useful measurement of the government's net resources available for spending at the end of the fiscal year. The unassigned fund balance represents the portion of fund balance that has not yet been obligated for a particular purpose by either an external party, the City Council, or anyone delegated the authority to assign resources.

As of the end of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $39.7 million, an increase of $20.14 million from the prior year. 11 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$3,357,360
Components of Fund Balance
Fiscal Year Ended June 30, 2021
(Governmental Funds)
$21,455,621
Nonspendable Restricted
$6,433,605
•
$8,488,366
$-
Committed Assigned Unassigned
The total fund balance constitutes of $3.4 million nonspendable fund balance; specifically, long-term loans receivable, inventories of supplies and prepaid expenditures, which cannot be used to finance operating expenditures.

The restricted fund balance of $21.5million reflects resources that can only be spent for specific purposes, due to constraints either (1) externally imposed by creditors (stated in the debt covenants), grantors, laws, or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. This is approximately an increase of $13 7 million compared to last year primarily due to an increase of special revenue funds including City developer impact fees and debt proceeds left for reserve related to the 2020A Lease Revenue Bonds. One of the larger DIF -generated developments was a residential development.

The City Council, the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts are classified as committed fund balance. As of June 30, 2021, $6 4 million is committed for the future Metrolink train station and parking structure, Measure U funded CIP projects and OPEB following the General Fund Reserve Policy No. 460.

Assigned fund balance represents funds that are constrained by the City's intent to use the funds for specific purposes.

The City had no assigned fund balance as of June 30, 2021.

Unassigned fund balance represents the portion of fund balance that does not fall into any of the other four fund balance categories and does not have any specific spending limitations. The unassigned fund balance at June 30, 2021 for all governmental funds combined is $8.5 million, consisting of $9.9 million in unassigned fund balance in the General Fund and combined unassigned deficits of a total of $1.4 million in capital projects fund, the Navigation Center Fund, the PEG fund, the Housing and Community Development Fund, LMD 92-1, and the Street Lighting Fund. The governmental fund deficits were the result of expenditures incurred in advance of reimbursements that were unavailable or otherwise not received by fiscal year-end. 12 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
General Fund:

The General Fund is the main operating fund of the City. As of June 30, 2021, total fund balance of the General Fund was $20.2 million, compared to $14 million on June 30, 2020, representing an increase of $6.3 million.

Committed and unassigned portions of the fund balance increased from the prior year due to an increase in cash and investments.

Revenue
The General Fund had revenues of $43.4 million, compared to $41.6 million in the prior year, an increase of $1.8 million, or 4%. This increase is due primarily to the tax's categories with the highest increases in general sales and use tax and property tax. This is offset by the slight decrease in parking code violation collections and a decrease in in interest revenue.

Expense
General Fund expenditures for FY 2020-21 were $37.4 million, compared to $44.5 million last year, which represents a decrease of $7.1 million. The major projects impacting the decrease of expenditures are related to capital expenditures and a decrease in the fire authority services start-up costs for the Placentia Fire Life & Safety Department.

Public Safety
Public safety expenditures decreased by $6.5 million dollars primarily due to the elimination of the contracted fire services. The decrease in Fire Authority Services was approximately $6.9 million which was offset by an increase of approximately $1.46 million in salaries and benefits. Additionally, there was a decrease of approximately $0.8 million in miscellaneous startup expenditures related to the development of the Placentia Fire & Life Safety Department.

Public Works
Public works expenditures had a net decrease of $550,253 due to a change in salary allocation in the Gas Tax Fund and the Sewer Fund. Expenses that have been originally budgeted expensed and budgeted in the general funds were reclassified into their respective funds.

Community Develonment
Community development expenditures increased by approximately $17,683. This is partially due to increased personnel related expenditures which was offset by a decrease in professional services for litigation.

Community Services
Community services expenditures decreased by $99,457 primarily due to COVID-19 restrictions in activities and programs which included the cancellation of the 2020 Heritage Festival and a pause in activities for recreation and senior services. Additionally, the decrease in expenditures was offset by an increase in personnel related expenditures.

Capital Outlay
Capital Outlay decreased by $3.5 million compared to the prior year. The city decreased the number of expenditures related to the startup of the Placentia Life & Safety department. During the fiscal year, the city continued high expenditure projects for road rehabilitation, such as the Arterial Roadway Rehab Project, the continuation of the Slurry Seal Project, replacement vehicles for the police department, and support vehicles for the fire department. 13 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
Debt Service
The most significant increase was in the acquirement of the 2020A Lease Revenue bonds for a total of $52,950,000 of outstanding debt. This bond was acquired to fully pay the outstanding UAL liability with Ca1PERS.

Proprietary Funds
The City maintains proprietary funds for sewer maintenance and refuse operations. The combined net position of these two funds at the end of the fiscal year amounted to $8.6 million. The sewer maintenance fund had a net position of $8.6 million (of which $8.2 million represents investment in capital assets). The refuse fund had a negative net position of $0.5 million. Sewer's increase in net position is related to the deferred outflows of pension and other post - employment benefit. Refuse had an increase in net position by approximately $0.4 million due to the increase of deferred outflows of pension and other post -employment benefit.

The combined internal service funds have a negative net position of $1.8 million on June 30, 2021. This is a decrease of $1.2 million compared to prior year due to an increase in current and long-term claims.

GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there were adjustments made to both the estimated revenues and appropriations in the General Fund to more closely reflect actual amounts received and expended. It is also customary for the City to conduct a thorough analysis of estimated revenues and appropriations at the end of the first six (6) months of the fiscal year. Per City policy, increases to total General Fund appropriations for the year were approved by the City Council.

The adopted general fund budget for FY 2020-21 included estimated revenues including transfers from other funds was nearly $37.3 million but was increased by budget amendments totaling $3.4 million, for a final budget of $40.8 million. Actual revenues were $41.8 million, with the largest positive budget variance of $540,245 occurring in general sales and use tax revenue. Measure U and general sales tax both performed well even during the COVID-19 Pandemic and an increase in property taxes due to improved valuations. The variance is due to the recognizing the entire Debt Service payment of $425,000 from the RDA to the GF A 12 for the 2003 COP for the RDA portion of the bond. Only the interest should have been recorded as lease revenue since the principal would go against the receivable.

The adopted general fund expenditure budget for this fiscal year was $36.2 million; however, Council approved amendments and increased appropriations by $3.4 million for a final amended budget of $39.7 million. The biggest contributors to the increases are debt repayment and Capital Outlay. The debt was incurred to pay off the UAL liability with CALPERS. (The City issued debt to take advantage of the low market interest rate for bonds and the increased credit rating for the City. The issuance of the bond allowed produced an estimated net savings of $13,000,000 over the life of the bond). Capital outlay expenses were to improvements to the City's streets, Fire station, park improvements, and purchase machinery/equipment. During April 2021, the City Administrator issued a stop spending order because of the unknown effects of the COVID-19 Pandemic. Due to the stop spending order, the City was able to reduce expenses to essential purchases and increase fund balance in the General fund by $4.7M in operating surplus and $1.5M from Measure U contributions to fund balances for a net change to fund balance of approximately $6.2M.
14 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets, net of accumulated depreciation, for its governmental and business -type activities as of June 30, 2021, totaled $101.4 million, an increase of approximately $1.3 million, or 1.25%, from the prior year.

Capital assets include land, buildings, infrastructure, and equipment.

Governmental activities grew by $1 8 million, net of accumulated depreciation. The growth is mostly due to a $6 million construction in progress (CIP) activity and an $11.2 million increase of depreciable assets. The $6 million CIP activity is mostly composed of large street improvement projects. $3.3 million of the increase was due to street repairs for roadway rehabilitation and street resurfacing. $1.08 million of the increase was due to equipment purchases for public safety. Most of the purchases were related to police department vehicle purchases and enhancements. The remaining $0.7 million increase was due to renovations of city - owned buildings for ADA improvements and Fire Station interiors. These increases were offset by $4.2 million of depreciation for this fiscal year.

Total business -type capital assets, net of accumulated depreciation, declined $527,316 during the fiscal year due to depreciation of capital assets.

Land
Land - Right of \Vay
Construction in Progress
Structures & Improvements
Equipment
Land Lnprvvements
Infrastructure
Trees
Streets Network
Streets Appurtenances
Storm Drains

CAPITAL ASSETS
Governmental Activities Business -type Activities
2021 2020
S 25,201,872
255,83?
5,170,579
11,792,712
7,033,621
54;768
3,114,540
29,074,719

9.212.273
2350..155
S 25,201,872.
258,822
10,427567
8,800,655
6,513,888
60,564

3.114.540
24,500,671

9.774.588
2;526,696
2021 2020
2021
Total
2020
5 5 5 25,2.01,872 5 25,201,872
258,822 25a,833
- 5.170,579 10,427,567
8,154,020 8.669.120 19,946,732 17,469,775
66,835 79,051 7.100,456 6,892,939
54,768 60,564
3,114.540 3.114 540

29.074,719 24,500,671
9212.273 9.774.588
2,350,155 2526,694
S 93 264.061 S 91.479.863 5 8.220.855 5 8.748.171 S 101.434916 5100.228.034 For further detailed information see Note 5, Capital Assets.

Debt Administration
As of June 30, 2021, the City's long-term debt totaled $151.4 million, representing an increase of $64 million from the prior year. Debt increased by $53 million due newly acquired 2020A Lease Revenue Bond used to pay the UAL liability to CALPERS. Pension Liabilities and OPEB liabilities also increased by $8.5 million due to assumption changes. However, Next fiscal year will reflect a significant decrease to the Pension Liability as a result of proceeds used for payment. Additionally, there was a $3.3 million increase due to the increase in the liability related to compensated absences due to the increase of staff and claims payable due to surge in COVID-19 related Workers' compensation cases.
15 City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
LLLIB1L1TIES
Governmental Activities Business -type Activities
2021
2x03 Refunding Cert. of Participation S 2,845000
2011 Gas Tax Cert. of Participation
Capital Leases
OCTA Advance
Fire Leased
Fire Lease#2
2021 Installment Sale Agreement
2020A Lease Revenue Bond
Claims Payable
Compensated Absences
Other Postemplo}ment Benefit
Pension Liabilities
837351

1.960 677
3,116.360
1,634,287
3,355,000
52;950,000
3,870,503

3.596,558
30,40,033
44,254,407
S 148,900,176
2020 2021
5 3,180,000 S
3;915,000
955,;55
2,232,199
2,855,359
1,362,742
x,235244
1;843,503

25.303,090
39,627,497
S 33.568.389
44,357
845,793
1,632,065
S 2.522,215
For further detailed information see Note 6, Long -Term Liabilities.

NEXT YEAR'S BUDGET, TAX RATES AND FEE LEVELS
Total
2020 2021
S 2,845,000
837,351
12,677
3,116.360
1,634.287
3,355,000
52950400
3,870,503
49,155 3,610;915
1,186,144 31325,826
2534.083 45,886,472
S 151.421391
S 3,819982
2020
S 3,180,000

3.915;000
953,755
2,282,199
2,855359

1.362,742
2,235244
1,897,658
26,439,834
42,211,530
S 87,338,371
The Fiscal Year 2021-22 adopted General Fund budget was balanced, with a surplus of revenues and transfers from other funds over expenditures and transfers to other funds of $1,396,000.

General Fund revenues and transfers from other funds are currently estimated at $43.1 million for FY 2021-22, which represents a $2.8 million or 6.9% increase from actuals FY 2020-21 revenues and transfers from other funds. This increase is primarily due to increased property valuations and the City meeting the General Fund reserve goal set by the City's Policy 460. Due to the unknown effects of the COVID-19 Pandemic the City was conservative with revenue projections with being flat or lowered due to the stay-at-home order issued by the state.

The amended FY21-22 General Fund budget includes $41.7 million of appropriations for expenditures (including CIP expenditures) and transfers to other funds. This represents an increase of $5.5 million or 15.2% over FY 2020 - 21 actual expenditures and transfers to other funds.

The increase is due to the issuance of debt related to the separation of the City from the Orange County Fire Authority (OCFA) the formation of the Fire and Life Safety Department, the issuance of the 2020A Lease Revenue Pension bonds and anticipated issuance of debt related to a proposed Public Safety building.

Approved staffing for FY 2021-22 is 178 full time positions, four unfunded overhires, and 33 elected and appointed personnel. As in prior years, contracts for services in all departments were reviewed during budget development, and in instances where contracts offered no potential cost savings, or where a higher level of service could be provided for the same or less cost, contract personnel were replaced by City employees.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. If you have questions concerning any of the information provided in this report or need additional financial information, please contact the City's Finance Department at the City of Placentia, 401 East Chapman Avenue, Placentia, California 92870, call (714) 993-8237 or visit our website at www.Dhacentia.ore . 16 BASIC FINANCIAL STATEMENTS
17 This page intentionally left blank.
18 GOVERNMENT -WIDE FINANCIAL STATEMENTS
19 City of Placentia
Statement of Net Position
June 30, 2021
Primary Govemment
Governmental Business -Type
Activities Activities
ASSETS
Total
Current assets:

Cash and investments $ 34,070,729 $ 1,210,737 $ 35,281,466 Receivables, net of allowance
Accounts 950,632 76,629 1,027,261
Taxes 3,925,039 35,092 3,960,131
Grants 372,653 372,653
Interest 13,867 - 13,867
Loans 4,253,536 - 4,253,536
Prepaid items 110,121 110,121
Inventory 97,075 97,075
Total current assets 43,793,652 1,322,458 45,116,110
Noncurrent assets:

Land held for resale 1,036,760 1,036,760
Restricted assets:

Cash and investments with fiscal agent 7,098,113 7,098,113 Capital assets - nondepreciable 33,745,813 - 33,745,813 Capital assets - depreciable, net 59,518,248 8,220,855 67,739,103 Total noncurrent assets 101,398,934 8,220,855 109,619,789 Total assets 145,192,586 9,543,313 154,735,899

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 355,892 355,892
Deferred outflows of resources related to pensions 51,498,883 1,929,968 53,428,851 Deferred outflows of resources related to OPEB 5,294,843 146,927 5,441,770 Total deferred outflows of resources 57,149,618 2,076,895 59,226,513 See accompanying Notes to the Basic Financial Statements 20 City of Placentia
Statement of Net Position (Continued)
June 30, 2021

LIABILITIES
Current liabilities:

Accounts payable
Accrued payroll and benefits
Accrued interest payable
Unearned revenues
Long-term debt due within one year
Claims payable due within one year
Compensated absences due within one year
Total current liabilities
Noncurrent liabilities:

Long-term debt due in more than one year
Claims payable due in more than one year
Compensated absences due in more than one year
Aggregate net OPEB liabilities
Aggregate net pension liabilities
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Deferred pension -related items
Deferred OPEB-related items
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Public safety
Public works
Community development
Community services
Debt service
Grant programs
Transportation
Park development
Street maintenance
Air quality
Affordable housing
Total restricted
Unrestricted (deficit)
Total net position
See accompanying Notes to the Basic Financial Statements 21 Primary Government
Governmental Business -Type
Activities Activities
2,346,964
900,308
63,039
4,548,010
2,409,669
967,626
200,433
11,436,049
64,289,006
2,902,877
3,396,125
30,480,033
44,254,407
145,322,448
156,758,497
2,587,905
3,741,599
6,329,504
86,061,117
830,909
3,734,029
1,043,728
4,781,161
7,176,707
303,747
26,201
•
2,502
332,450
Total
2,650,711
926,509
63,039
4,548,010
2,409,669
967,626
202,935
11,768,499
64,289,006
2,902,877
41,855 3,437,980
845,793 31,325,826
1,632,065 45,886,472
2,519,713 147,842,161
2,852,163 159,610,660
82,861
103,826
186,687
8,220,855
1,145,813
20,152
660,395
153,057
1,909,670
21,455,621
(68,262,535) 360,503
$ 39,254,203 $ 8,581,358
2,670,766
3,845,425
6,516,191
94,281,972
830,909
3,734,029
1,043,728
4,781,161
7,176,707
1,145,813
20,152
660,395
153,057
1,909,670
21,455,621
(67,902,032)
$ 47,835,561

City of Placentia
Statement of Activities
For the Year Ended June 30, 2021
Expenses
Program Revenues
Capital Grants
Charges for Operating Grants and
Services and Contributions Contributions
Functions/Programs
Governmental Activities:

General government $ 12,849,875 $ 2,754,323 $ 260,827 8 Public safety 26,045,332 566,676 2,230,099 -
Public works 9,846,347 916,708 2,254,681 8,026,712
Community development 2,893,489 2,014,334 1,327,899 -
Community services 2,580,108 148,367 29,000
Interest 764,752 - - -
Total Governmental Activities 54,979,903 6,400,408 6,102,506 8,026,712 Business -Type Activities:

Refuse 3,286,816 3,688,456
Sewer maintenance (1,364,679) 783,175 -
Total Business -Type Activities 1,922,137 4,471,631 -
Total Primary Government $ 56.902.040 $ 10,872,039 $ 6,102,506 $ 8,026,712 See accompanying Notes to the Basic Financial Statements 22 City of Placentia
Statement of Activities (Continued)
For the Year Ended June 30, 2021
Net (Expense) Revenue and Changes in Net Positions
Governmental Business -Type
Activities Activities
Total
Functions/Programs
Governmental Activities:

General government $ (9,834,725) $ $ (9,834,725)
Public safety (23,248,557) (23,248,557)
Public works 1,351,754 1,351,754
Community development 448,744 448,744
Community services (2,402,741) (2,402,741)
Interest (764,752) (764,752)
Total Governmental Activities (34,450,277) (34,450,277) Business -Type Activities:

Refuse 401,640 401,640
Sewer maintenance 2,147,854 2,147,854
Total Business -Type Activities 2,549,494 2,549,494
Total Primary Government (34,450,277) 2,549,494 (31,900,783) General Revenues:

Taxes:

Property taxes 16,752,112 16,752,112
Sales taxes 15,112,657 15,112,657
Utility users tax 2,502,705 2,502,705
Franchise taxes 2,466,185 2,466,185
Transient occupancy taxes 674,854 674,854
Real property transfer taxes 312,328 312,328
Other taxes 35,624 35,624
Investment earnings 13,028 4,288 17,316
Contributions from custodial funds 30,000 30,000
Miscellaneous 280,293 280,293
Total General Revenues 38,179,786 4,288 38,184,074
Transfers:

Transfers 38,667 (38,667)
Total Transfers 38,667 (38,667) 38,494,367
Changes in Net Position Before Special Items 3,768,176 2,515,115 44,777,658 Changes in Net Position 3,768,176 2,515,1 15 6,283,291
Net Position - Beginning of Year 35,486,027 6,066,243 41,552,270 Net Position - End of Year $ 39,254,203 $ 8,581,358 S 47,835,561 See accompanying Notes to the Basic Financial Statements 23 This page intentionally left blank.
24 FUND FINANCIAL STATEMENTS
25 This page intentionally left blank.
26 GOVERNMENTAL FUND FINANCIAL STATEMENTS
27 This page intentionally left blank.
28 City of Placentia
Balance Sheet
Governmental Funds
June 30, 2021
Major Funds
Citywide
American Development
Rescue Plan Impact Fee Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds
Total
ASSETS
Cash and investments $ 14,701,605 $ 4,544,465 $ 4,896,172 $ 78,594 $ 7,689,315 $ 31,910,151 Receivables:

Accounts 253,961 696,618 950,579
Taxes 3,646,695 278,344 3,925,039
Grants - 372,653 372,653
Accrued interest 13,867 13,867
Loans and notes 3,462,484 - 791,052 4,253,536
Prepaid items 93,658 10,463 6,000 110,121
Due from other funds 1,371,540 - - 1,371,540
Inventories 97,075 - 97,075
Land held for resale - 1,036,760 1,036,760
Restricted assets:

Cash and investments with fiscal agents 556,084 6,542,029 7,098,113 Total assets $ 24,196,969 $ 4,544,465 $ 4,906,635 $ 6,620,623 $ 10,870,742 $ 51,139,434

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 2,012,903 $ - $ 115,011 $ - $ 152,937 $ 2,280,851 Accrued liabilities 885,312 - 14,801 900,113
Due to other governments 190 - 190
Duc to othcr funds - - 1,371,540 1,371,540
Unearned revenue 6,483 4,541,527 - 4,548,010
Total liabilities 2,904,888 4,541,527 115,011 - 1,539,278 9,100,704 Deferred inflows of resources:

Unavailable revenues 1,061,610 - - 1,242,168 2,303,778
Total deferred inflows of resources 1,061,610 1,242,168 2,303,778 Fund balances:

Nonspendable 3,346,897 10,463 3,357,360
Restricted 556,084 2,938 4,781,161 6,620,623 9,494,815 21,455,621 Committed 6,433,605 - - 6,433,605
Unassigned (deficit) 9,893,885 - (1,405,519) 8,488,366
Total fund balances 20,230,471 2,938 4,791,624 6,620,623 8,089,296 39,734,952 Total liabilities, deferred inflows
of resources, and fund balances $ 24,196,969 $ 4,544,465 $ 4,906,635 $ 6,620,623 $ 10,870,742 $ 51,139,434 See accompanying Notes to the Basic Financial Statements 29 City of Placentia
Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position
June 30, 2021
Total Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Nondepreciable $ 33,745,813
Depreciable 59,518,248
The loss incurred by the City resulting from the refunding of long-term liabilities are recorded as deferred outflows of resources and amortized over the remaining service life, equal to the lesser of the remaining bond -years on the refunded debt or the bond years on the refunding debt.

Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government -Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. $ 39,734,952
93,264,061
355,892
2,303,778
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds. (63,039) Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities.

All liabilities, both current and long-term, are reported in the Statement of Net Position:

Long-term debt
Capital leases
OCTA advance
Compensated absences
$ (59,150,000)
(5,587,998)
(1,960,677)
(3,596,558)
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension related deferred outflows of resources
Aggregate net pension liability
Pension related deferred inflows of resources
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

OPEB related deferred outflows of resources
Aggregate net OPEB liability
OPEB related deferred inflows of resources
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government -Wide Statement of Net Position.

Net Position of Governmental Activities
See accompanying Notes to the Basic Financial Statements 30 (70,295,233)
51,498,883
(44,254,407)
(2,587,905)
5,294,843
(30,480,033)
(3,741,599)
(1,775,990)
$ 39,254,203

City of Placentia
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
Major Funds
Citywide
American Development
Rescue Plan Impact Fee Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds Total Revenues:

Taxes $ 37,858,390 $ - $ - $ $ - $ 37,858,390
Intergovernmental 9,743 635,803 6,054,112 6,699,658
Licenses and permits 2,827,761 - 2,827,761
Fines & forfeitures 290,534 - - - 23,730 314,264
Investment earnings (losses) (28,258) 2,938 13,095 222 25,031 13,028 Charges for services 879,298 - 4,170,643 - 4,284,137 9,334,078 Leases and rents 1,079,979 - 10,100 1,090,079
Contributions 30,000 768,751 798,751
Miscellaneous 460,006 - - 187,458 647,464
Total revenues 43,407,453 638,741 4,183,738 222 11,353,319 59,583,473 Expenditures:

Current:

General government 10,911,110 - 83,500 10,994,610
Public safety 14,899,543 833 2,037,417 16,937,793
Public works 3,430,456 1,618,263 5,048,719
Community development 1,215,937 - 1,029,314 2,245,251
Community services 1,437,912 - 109,535 1,547,447
Capital outlay 3,811,664 - 494,788 1,871,294 6,177,746
Debt service:

Principal retirement 1,270,240 - 633,926 1,904,166
Interest and fiscal charges 391,808 - 372,944 764,752
Total expenditures 37,368,670 495,621 7,756,193 45,620,484 Revenues over (under)
expenditures 6,038,783 638,741 3,688,117 222 3,597,126 13,962,989 Other financing sources (uses):

Issuance of debt - 52,950,000 3,656,000 56,606,000
Issuance of capital lease 976,899 - 976,899
Payment to escrow for refunding debt (3,915,000) (3,915,000) Contributions to pension trust (47,526,199) (47,526,199) Transfers in 725,096 1,196,600 927,544 2,849,240
Transfers out (1,476,758) (635,803) (698,012) (2,810,573) Total other financing
sources (uses) 225,237 (635,803) 6,620,401 (29,468) 6,180,367 Net change in fund balances 6,264,020 2,938 3,688,117 6,620,623 3,567,658 20,143,356 Fund balances:

Beginning of year 13,966,451 1,103,507 4,521,638 19,591,596 End of year $ 20,230,471 $ 2,938 $ 4,791,624 $ 6,620,623 $ 8,089,296 $ 39,734,952 See accompanying Notes to the Basic Financial Statements 3l

City of Placentia
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities For the Year Ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds $ 20,143,356 Governmental activities in the Statement of Activities were reported differently because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds.

Capital outlay $ 5,946,342
Depreciation (4,162,144)
Net effect on disposal of capital assets 1,784,198
Amortization of the deferred charges on refunding is recognized as interest expense in the Statement of Activities. (50,358) Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the Statement of Activities. (874,062)
Proceeds from the issuance of long-term debt is not a revenue in the Statement of Activities, but is reported as a liability on the Government -Wide Statement of Net Position. (57,582,899) Principal repayment on long-term debt is not an expense in the Statement of Activities, but is considered an expenditure in governmental funds.

Long-term debt $ 4,551,000
Capital leases 565,757
OCTA advance 321,522 5,438,279
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year. 47,894
Compensated absences were reported in the Government -Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds. (1,748,055)
Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (411,229) Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (8,185,454) Contributions to pension trust were other financing uses in the governmental funds, but were included as pension -related deferred outflows of resources on the Government -Wide Statement of Net Position 47,526,199 Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities. (2,319,693) Change in Net Position of Governmental Activities $ 3,768,176 See accompanying Notes to the Basic Financial Statements 32 PROPRIETARY FUND FINANCIAL STATEMENTS
33 City of Placentia
Statement of Net Position
Proprietary Funds
June 30, 2021
Business -Type Governmental
Major Enterprise Funds Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds
ASSETS
Current assets:

Cash and investments $ 485,738 $ 724,999 $ 1,210,737 $ 2,160,578 Receivable:

Accounts - 76,629 76,629 53
Taxes 35,092 35,092
Total current assets 520,830 801,628 1,322,458 2,160,631 Noncurrent assets:

Capital assets, net of accumulated depreciation 8,220,855 8,220,855 Total noncurrent assets - 8,220,855 8,220,855
Total assets 520,830 9,022,483 9,543,313 2,160,631

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 398,032 1,531,936 1,929,968 Deferred outflows of resources related to OPEB 54,673 92,254 146,927 Total deferred outflows of resources 452,705 1,624,190 2,076,895 See accompanying Notes to the Basic Financial Statements 34 City of Placentia
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
Business -Type Governmental
Major Enterprise Funds Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 293,450 10,297 303,747 66,113
Accrued liabilities 8,593 17,608 26,201 5
Compensated absences - due within one year 632 1,870 2,502 Claims and judgments - due within one year - - 967,626
Total current liabilities 302,675 29,775 332,450 1,033,744 Noncurrent liabilities:

Compensated absences - due in more than one year 10,566 31,289 41,855 Claims and judgments - due in more than one year - - 2,902,877 Net OPEB liability 314,729 531,064 845,793
Aggregate net pension liability 336,593 1,295,472 1,632,065 Total noncurrent liabilities 661,888 1,857,825 2,519,713 2,902,877 Total liabilities 964,563 1,887,600 2,852,163 3,936,621

DEFERRED INFLOW OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources

NET POSITION
Investment in capital assets
Unrestricted (deficit)
Total net position
See accompanying Notes to the Basic Financial Statements 17,089 65,772 82,861
38,635 65,191 103,826
55,724 130,963 186,687
•
8,220,855 8,220,855
(46,752) 407,255 360,503 (1,775,990)
$ (46.752) 5 $.628,110 $ 8,581358 S (1,775,990]
35 This page intentionally left blank.
36 City of Placentia
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2021
OPERATING REVENUES:

Reimbursements
Sales and service charges
Total operating revenues
OPERATING EXPENSES:

Administration
Reinsurance premiums
Claims
Medical and dental premiums
Liability insurance premiums
Maintenance
Landfill and contractor charges
Depreciation expense
Total operating expenses

OPERATING INCOME (LOSS)
NONOPERATING INCOME (LOSS):

Investment income
Gain on disposal of capital assets
Total Nonoperating Income

NET INCOME (LOSS) BEFORE TRANSFERS
Refuse
Business -Type Activities
Sewer
Maintenance
Total
Governmental
Activities
Internal
Service
97,552
3,688,456 783,175 4,471,631 2,183,935
3,688,456 783,175 4,471,631 2,281,487
(29,422)
3,316,238
3,286,816
401,640
1,302
1,302
(18,334)
(1,873,661)
527,316
(1,364,679)
2,147,854
2,986
2,986
402,942 2,150,840
(47,756)
(1,873,661)
3,316,238
527,316
1,922,137
2,549,494
4,288
4,288
2,553,782
TRANSFERS:

Transfers out - (38,667) (38,667)
Total Transfers (38,667) (38,667)
400,519
169,696
2,223,984
987,691
819,290
4,601,180
(2,319,693)
(2,319,693)
CHANGES IN NET POSITION 402,942 2,112,173 2,515,115 (2,319,693) NET POSITION:

Beginning of the year (449,694) 6,515,937 6,066,243 543,703 End of the year $ (46,752) $ 8,628,110 $ 8,581358 $ (1,775,990) See accompanying Notes to the Basic Financial Statements 37 City of Placentia
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash paid for insurance claims
Net cash provided by (used in) operating activities

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash transfers in (out)
Net cash used in noncapital financing activities

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets
Net cash provided by capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:

Beginning of year
End of year
Reconciliation of operating income (loss) to
to net cash provided by (used in) operating activities:

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

Depreciation
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables
(Increase)/decrease in taxes receivables
(Increase)/decrease in deferred outflows of resources
related to pension
(Increase)/decrease in deferred outflows of resources
related to OPEB
Increase/(decrease) in accounts payable
Increase/(decrease) in accrued liabilities
Increase/(decrease) in compensated absences
Increase/(decrease) in claims payable
Increase/(decrease) in net pension liabilities
Increase/(decrease) in net OPEB liabilities
Increase/(decrease) in deferred inflows of resources
related to pension
Increase/(decrease) in deferred inflows of resources
related to OPEB
Net cash provided by (used in) operating activities
See accompanying Notes to the Basic Financial Statements Refuse
Business-Typc Activities
Sewer
Maintenance Total
$ 3,699,126
(3,270,497)
(379,521)
49,108
$ 826,962 $ 4,526,088 $
(224,622) (3,495,119)
(496,107) (875,628)
106,233 155,341
(38,667) (38,667)
(38.667) (38,667)
Governmental
Activities
Internal
Service
2,281,434
(781,647)
(2,223,984)
(724,197)
1,302 2,986 4,288
L302 7 986 4.288
50,410 70,552 120,962 (724,197)
435,328 654,447 1,089,775 2,884,775
$ 485.738 $ 724.999 S 1.210.737 $ 2.160.578
$ 401,640 $ 2,147,854 $ 2,549,494 $ (2,319,693)
527,316
19,148 43,787
(8,478)
(322,207) (1,098,563)
(38,814) (44,106)
45,741 1,182
2,347 (4,394)
3,206 (8,004)
(48,206) (903,812)
20,692 (361,643)
(11,406) (97,090)
(14,555) (96,294)
$ 49.108 $ 106.233
38 527,316
62,935
(8,478)
(1,420,770)
(82,920)
46,923
(2,047)
(4,798)
(952,018)
(340,951)
(108,496)
(110,849)
$ I55.341
(53)
(39,715)
5 1,635,259
$ (724.197)

FIDUCIARY FUND FINANCIAL STATEMENTS
39 This page intentionally left blank.
40 City of Placentia
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
RDA
Successor Custodial
Agency Funds
ASSETS
Pooled cash and investments $ 617,137 $ 78,539
Receivables:

Miscellaneous 1,392
Restricted assets:

Cash and investments with fiscal agents 829,501 -
Total assets 1,446,638 79,931

LIABILITIES
Accounts payable 29
Accrued liability 7,132 14
Accrued interest 162,073
Deposits payables - 35,041
Unearned revenues 640,432
Long-term liabilities:

Due in one year 941,320
Due in more than one year 13,150,074
Total liabilities 14,901,060 35,055

NET POSITION (DEFICIT)
Restricted for individuals, organizations, and
other governments
Total net position (deficit)
See accompanying Notes to the Basic Financial Statements 41 (13,454,422)
(13,454,422) $
44,876
44,876

City of Placentia
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
RDA
Successor Custodial
Agency Funds
ADDITIONS:

Property taxes $ 1,954,111 $
Investment income 23
Total additions 1,954,134
DEDUCTIONS:

Program costs 130,668
Administrative expenses 159,053
Interest expense 387,915
Contributions to City
Total deductions 677,636
Change in net position
NET POSITION:

Beginning of year, as restated (Note 14)
End of year
See accompanying Notes to the Basic Financial Statements. 42 1,276,498
30,000
30,000
(30,000)
(14,730,920) 74,876
$ (13,454,422) $ 44,876

NOTES TO THE BASIC FINANCIAL STATEMENTS
43 This page intentionally left blank.
44 City of Placentia
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Page
Note 1 — Summary of Significant Accounting Policies 47
A. Financial Reporting Entity 47
B. Basis of Accounting and Measurement Focus 47
C. Cash and Investments 50
D. Fair Value Measurement 51
E. Property Taxes Receivable 51
F. Prepaid Items 51
G. Inventories 51
H. Interfund Transactions 51
I. Capital Assets 52
J. Unearned and Unavailable Revenue 52
K. Compensated Absences Payable 53
L. Claims Payable 53
M. Pensions 53
N. Other Postemployment Benefits ("OPEB") 53
O. Long -Term Obligations 54
P. Net Position 54
Q. Fund Balances 54
R. Spending Policy 55
S. Use of Estimates 55
T. Accounting Changes 56
Note 2 — Cash and Investments 56
A. Demand Deposits 57
B. Investments Authorized by the California Government Code and the City's Investment Policy 58
C. Investments Authorized by Debt Agreements 58
D. Fair Value Measurement 59
E. Risk Disclosures 59
F. Investment in Local Agency Investment Fund ("LAIF") 61 Note 3 — Interfund Transactions 61
A. Due From/To Other Funds 61
B. Transfers 62
Note 4 — Loans Receivables 62
A. 2003 Certificates of Participation Reimbursement 63
B. Owner's Participation Agreement 63
C. Real Property Loan Obligation Receivable 63
D Placentia Veterans Village Loan Receivable 63
Note 5 — Capital Assets 64
Note 6 — Long -Term Liabilities 65
A. Governmental Activities 65
B. Business -Type Activities 71
C. Fiduciary Activities 71
45 City of Placentia
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
Page
Note 7 — Deferred Compensation Plans 74
Note 8 — Pension Plans 75
A. Summary 75
B. General Information about the Pension Plans 76
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 78
D. Payable to the Pension Plan 82
Note 9 — Other Postemployment Benefit Plan 82
A. Summary 82
B. General Information about OPEB 83
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB 83
Note 10 — Risk Management and Self Insurance Program 86 A. General Liability 86
B. Worker's Compensation 86
C. Other Insurance 86
Note 11 — Classification on Fund Balances 87
Note 12 — Commitments and Contingencies 88
A. Commitments 88
B. Contingencies 88
C. Grants 88
Note 13 — Other Required Fund Disclosures 89
A. Expenditures in Excess of Appropriation 89
B. Deficit Net Positions and Fund Balances 89
Note 14 — Prior Period Adjustments 90
Note 15 — Subsequent Events 90
A. ARPA Funding
B. Debt Issuance 90
46 City of Placentia
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies
The basic financial statements of the City of Placentia, California, (the "City") have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") as applied to governmental agencies.

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

A. Financial Reporting Entity
The City was incorporated on December 2, 1926, under the General Laws of the State of California. The City operates under a Council -Administrator form of government and under provisions of a City Charter adopted on June 29, 1965.

In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Blended Component Units:

Management determined that the following entities should be reported as blended component units based on the criteria above. Although the following is legally separate from the City, it has been "blended" as though it is part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

The Placentia Public Financine- Authority — The Placentia Public Financing Authority (the "Authority") was formed in 1996 to issue Tax Revenue Bonds. The proceeds of the debt were used to refund the existing Mello -Roos Community Facilities District 89-1 bonds, originally issued in September 1996. The Authority is governed by a five -member board that is the City Council of the City. Separate financial statements are not prepared.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues and expenditures or expenses, as appropriate. City 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.
47 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows o/ Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time.

Government -Wide Financial Statements
The government -wide financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
➢ Charges for services
➢ Operating grants and contributions
➢ Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated:
➢ Due from and to other funds, which are short-term loans within the primary government ➢ Transfers in and out, which are flows of assets between funds without the requirement for repayment Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
48 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues and other taxes. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Reconciliations of the fund financial statements to the government -wide financial statements are provided to explain the differences.

The City reports the following major Governmental Funds:

General Fund — The General Fund is the City's principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund.

American Rescue Plan Act Special Revenue Fund — This fund is used to account for the receipts and expenditures related to the American Rescue Plan Act which was provided to fund additional relief for individuals and businesses affected by the coronavirus pandemic.

Debt Service Fund — This fund is used to account for the debt service related to the governmental activities of the City.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. The City's internal service funds include four individual funds that provide services directly to other City funds. These services include risk management, health and welfare, and equipment replacement.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and deferred inflows of resources are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 49 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Conlinued)
The City reports the following major Proprietary Funds:

Refuse Fund — This fund is used to account for the provision of refuse services to the residents of the City.

All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operation, acquisition of equipment, and related debt service.

Sewer Maintenance Fund — This fund is used to account for the operations and maintenance of the sewer lines located in the City's sewer system, including administration and capital improvements. Fees are computed from water consumption amounts provided by local water companies. All residents and businesses connected to the City's sewer system are placed in billing categories based on a percentage of water consumption that is returned to the City sewer system.

Internal service funds are presented in the proprietary fund financial statements. However, internal service balances and activities have been combined with the governmental activities in the government -wide financial statements.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.

The City reports the following fiduciary funds:

Private -purpose Trust Fund — This fund is used to account for the balances and transactions of the Successor Agency to the former Placentia Redevelopment Agency.

Custodial Funds — These funds account for resources held by the City in a custodial capacity as an agent for individuals, private organizations, other governments, and/or other funds.

C. Cash and Investments
The City's cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes.

Investments are stated at fair value (quoted market price or best available estimate thereof). 50 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

The three levels of the fair value measurement hierarchy are described below:
➢ Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
➢ Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date. ➢ Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

E. Property Taxes Receivable
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.

Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day of January preceding the fiscal year for which the taxes are levied. Taxes are levied on July 1 and cover the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1 each year, and are delinquent, if unpaid, on August 31.

F. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method.

G. Inventories
Inventories within the various fund types consist of materials and supplies which are valued at cost on a weighted average basis. Reported expenditures reflect the consumption method of recognizing inventory -related expenditures.

H. Interfund Transactions
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due from/to other funds" (i.e., current portion of interfund loans). 51 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) I. Capital Assets
In the government -wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets with an initial, individual cost of more than $2,500 and an estimated useful life of one year or more.

The City defines infrastructure as the basic physical assets that allow the City to function. The assets include street network, street appurtenances, and storm drains.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed.

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

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The estimated useful lives used for depreciation purposes are as follows:

Structures and improvements 5-50 years
Civic Center structures and improvements 50 years
Automotive equipment 2-10 years
Computer equipment 3 years
Other equipment 5 years
Infrastructure:

Roadways 35 years
Street appurtenances 10-50 years
Wastewater 50-60 years
Storm drains 50 years
J. Unearned and Unavailable Revenue
In the government -wide financial statements, unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government -wide financial statements are cell phone site license lease payments received in advance, prepaid charges for services and facility rentals paid in advance.

In the fund financial statements, unearned and unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unearned revenue for transactions for which revenues have not been earned, and unavailable revenue when funds are not available to meet current financial obligations in accordance with GASB Statement No. 65. Typical transactions for which unearned or unavailable revenue is recorded are lease payments, quarterly encroachment fees, and advance registration for recreation classes which were not yet earned. 52 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) K. Compensated Absences Payable
City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government -wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term liability of the fund.

L. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" ("IBNR") claims. There is no fixed payment schedule to pay these liabilities.

M. Pensions
For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans (Note 9). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The City has both Miscellaneous and Safety defined benefit pension plans.

The following timeframes are used for pension reporting:

Ca1PERS
Valuation Date
Measurement Date
Measurement Period
June 30, 2019
June 30, 2020
July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years.

All other amounts are amortized straight-line 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.

The General Fund is typically used to pay pension benefits. In proprietary funds, pension benefits are expensed to the various funds in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term liability of the fund.

N. Other Postemployment Benefits ("OPEB")
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the plan (Note 10).
53 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) N. Other Postemployment Benefits ("OPEB") (Continued)
For this purpose, the OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

The following timeframes are used for OPEB reporting:

OPEB
Valuation Date
Measurement Date
Measurement Period
June 30, 2019
June 30, 2020
July 1, 2019 to June 30, 2020
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over five years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

O. Long -Term Obligations
In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

P. Net Position
Q.

In the government -wide financial statements and proprietary fund financial statements, net position is classified as follows:

Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, related debt, and deferred outflows of resources.

Restricted — This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable — Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as loans receivable or inventory, or because resources legally or contractually must remain intact.
54 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) Q.

Fund Balances (Continued)
Restricted — Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation.

Committed — Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment.

Assigned — Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose.

Unassigned — Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

R. Spending Policy
Government -Wide Financial Statements and the Ptonrietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:

D Committed
D Assigned
➢ Unassigned
S. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 55 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 — Summary of Significant Accounting Policies (Continued) T. Accounting Changes
GASB Statements No. 84. Fiduciary Activities. This statement establishes standards relating to accounting and financial reporting for identifying and reporting fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. See Note 14.

GASB Statement No. 90. Majority Equity Interests. This statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. Those provisions are effective for reporting periods beginning after December 15, 2019. Application of this statement did not have a material effect on the City's financial statements for the fiscal year ending June 30, 2021.

GASB Statement No. 93. Replacement of Interbank Offered Rates. This statement addresses those and other accounting and financial reporting implications that result from the replacement of London Interbank Offered Rate (LIBOR). The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. Application of this statement did not have a material effect on the City's financial statements for the fiscal year ending June 30, 2021.

GASB Statement No. 98. The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021.

The City has elected early implementation of this statement. Application of this statement did not have a material effect on the City's financial statements for the fiscal year ending June 30, 2021.

Note 2 — Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments with fiscal agents.

The City had the following cash and investments at June 30, 2021:

Government -Wide Statement of Net Position Statement of Governmental Business -type Fiduciary
Activities Activities Net Position Total
Cash and investments $ 34,070,729 $ 1,210,737 $ 695,676 $ 35,977,142 Cash and investment with fiscal agent 7,098,113 829,501 7,927,614 Total cash and investments $ 41,168,842 $ 1,210,737 $ 1,525,177 $ 43,904,756 56 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 — Cash and Investments (Continued)
The City's cash and investments at June 30, 2021 in more detail:

Cash and cash equivalents:

Demand deposits
Petty cash
Total cash and cash equivalents
Investments:

Local Agency Investment Fund
Negotiable certificates of deposit
Federal agency securities
Investments with Fiscal Agent:

Money Market Mutual Fund
Total investments
Total cash and investments
A. Demand Deposits
$ 8,353,241
17,565
8,370,806
26,106,517
496,945
1,002,874
7,927,614
35,533,950
$ 43,904,756
The carrying amounts of the City's demand deposits were $8,353,241 at June 30, 2021. Bank balances at that date were $8,474,630, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City's name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC"). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held • by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 57 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 — Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Authorized Investment Type
United States (U.S.) Treasury Obligation
Federal Agency Securities
Negotiable Certificates of Deposits
Non -Negotiable Certificates of Dep osit
Money Market Funds
Passbook Savings
Commercial Pap er
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
Maximum
Maximum Percentage of
Maturity Portfolio
5 years None
5 years 30%
5 years 30%
5 years 40%
N/A 20%
N/A None
270 days 25%
180 days 30%
N/A None
N/A None
M aximum
Investment in One
Issuer
None
15%
$250,000
$250,000
10%
None
10%
30%
None
None
*The table is based on state law requirements or investment policy requirements, whichever is more restrictive.

C. Investments Authorized by Debt Agreements
Authorized Investment Type
United States (U.S.) Treasury Obligation
Federal Agency Securities
Negotiable Certificates of Deposits
Non -Negotiable Certificates of Deposit
M oney M arket Funds
Passbook Savings
Commercial Paper
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
M aximum
M aximum Percentage of
M aturity Portfolio
N/A None
N/A None
N/A None
N/A None
N/A None
N/A None
270 days None
180 days None
N/A None
N/A None
M aximum
Investment in One
Issuer
None
None
None
None
None
None
None
None
None
None
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk. 58 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 — Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2021, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within the GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2021:

Measurement Input
Significant other
Observable Input
Investment Type (Level 2) Uncategorized (3) Total
Local Agency Investment Fund $ - $ 26,106,517 $ 26,106,517 Negotiable Certificates of Deposit (I) 496,945 496,945
Federal Agency Securities (I) 1,002,874 1,002,874
Held by Fiscal Agent:

Money Market Mutual Funds - 7,927,614 7,927,614
Total $ 1,499,819 $ 34,034,131 $ 35,533,950
(I) Pricing based on institutional bond quotes - evaluations based on various market and industry inputs. (2) Evaluations based on various market factors.
(3) Cash and cash equivalents
Disclosures Relatine to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Investment Type
Investment Maturities (in Years)
Fair value Less than 1 1 to 2 2 to 3 3 to 4
4to5
Local Agency Investment Fund S 26,106,517 $ 26,106,517 S - $ - S $ Negotiable Certificates of Deposit 496,945 - 496,945
Federal Agency Securities 1,002,874 7,239 497,115 498,520 Held by Fiscal Agent:

Money Market Mutual Funds 7,927,614 7,927,614 -
Total 5 35,533,950 $ 34,041,370 5 $ S 497,115 $ 995,465 59 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 — Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Disclosures Relatine, to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Minimum
Legal Not
Investment Type Total Rating AAA Rated
Local Agency Investment Fund $ 26,106,517 N/A $ $ 26,106,517 Negotiable Certificates of Deposit 496,945 N/A 496,945
Federal Agency Securities 1,002,874 N/A 1,002,874
Held by Fiscal Agent:

Money Market Mutual Funds 7,927,614 AAA 7,927,614
Total $ 35,533,950 $ 8,930,488 $ 26,603,462
Concentration af Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City has no investments in any one issuer (other than mutual funds and external investment pools) that represent 5% or more of total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the provision for deposits as disclosed in Note 2A.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. At June 30, 2021, the investments held by bond trustee were held in money market mutual funds, which are considered to be cash equivalents.
60 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 — Cash and Investments (Continued)
F. Investment in Local Agency Investment Fund ("LAIF,
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments with LAIF at June 30, 2021 included a portion of the pool funds invested in Structured Notes and Asset -Backed Securities, which included the following:

Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset -Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables.

As of June 30, 2021, the City had $26,106,517 invested in LAIF, which had invested 1.10% of the pool investment funds in structured notes and asset-backed securities. The fair value of the City's portion in the pool is the same as the value of the pool shares and reported at amortized cost.

Note 3 — Interfund Transactions
A. Due From/To Other Funds
At June 30, 2021, the City had the following due from/to other funds:

Due To Other Funds
Due From Other'
Funds
General Fund Total
Nonmajor Special Revenue Funds:

Miscellaneous Grants Fund $ 40,622 $ 40,622
Landscape Maintenance District 92-1 31,873 31,873
Housing and Community Development 86,784 86,784
PEG 40,948 40,948
Placentia Regional Navigation Center 821,745 821,745
Nonmajor Cap ital Projects Funds:

City Projects 349,568 349,568
Total $ 1,371,540 $ 1,371,540
The above amounts resulted from when one fund reflects a deficit in its pooled cash account. Short-term loans were made from the General Fund to address these deficits. 61 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 3 — Interfund Transactions (Continued)
B. Transfers
During the year ended June 30, 2021, the City had the following transfers:

Transfers Out
American Nonmajor Sewer
Rescue Plan Special Governmental Maintenance
1 Transfers In General Fund Revenue Fund Funds Enterprise Fund Total General Fund $ $ 635,803 $ 89,293 $ - $ 725,096
Debt Service Fund 1,118,006 - 78,594 - 1,196,600
Nonmajor Governmental Funds 358,752 530,125 38,667 927,544 Total $ 1,476,758 $ 635,803 $ 698,012 $ 38,667 $ 2,849,240 In general, transfers are used to 1) use revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services. Some of the more significant transfers are detailed below.

Transfers from non -major governmental funds to the General Fund of $89,293 and $45,625 to other non -major governmental funds were to fund police, street maintenance, and other operating costs.

The American Rescue Plan Special Revenue Fund transferred $635,803 of the ARPA funds to the General Fund to reimburse eligible ARP expenditures.

The General Fund transferred $338,852 to the Street Lighting Special Revenue Fund to subsidize street lighting districts, $19,900 to nonmajor funds as operating subsidies and $1,118,006 to the Debt Service Fund to fund debt service on the 2020A PFA Lease Revenue Bonds.

The Gas Tax Special Revenue Fund transferred $484,500 to the Gas Tax Debt Service Fund to fund the 2011 Gas Tax Certificate of Participation debt service. The Gas Tax Debt Service Fund transferred $78,594 to the Debt Service fund to consolidate the Citywide debt service and close out the Gas Tax Debt Service Fund.

Note 4 — Loans Receivables
At June 30, 2021, the City had following loans receivable:

Housing Successor
General Fund Special Revenue Fund Total
2003 Certificates of Participation Reimbursement $ 2,489,944 $ $ 2,489,944 Owner's Participation Agreement - 47,916 47,916
Real Property Loan Obligation Receivable 972,540 243,136 1,215,676 Placentia Veterans Village Loan - 500,000 500,000
Total $ 3,462,484 $ 791,052 $ 4,253,536
62 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 4 — Loans Receivables (Continued)
A. 2003 Certificates of Participation Reimbursement
On April 16, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for a portion of the lease payment paid by the City to the bond trustee, with respect to the 2003 Certificates of Participation (COP).

The portion reimbursed (87.52 percent) is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the related debt issue that were within the confines of the development project area. The $2,489,944 notes receivable balance as of June 30, 2021 represents 78.3 percent of the $3,180,000 outstanding principal balance of the 2003 COP at June 30, 2021.

B. Owner's Participation Agreement
The Placentia Redevelopment Agency entered into an owner participation agreement dated January 5, 2001.

Pursuant to that agreement, the Agency loaned $150,000 to a small-business in Placentia. The term of the loan is 30 years and does not bear interest, except upon default. The loan was recorded in the Low and Moderate Housing fund of the former Redevelopment Agency of Placentia. Upon dissolution of the Redevelopment Agency at February 1, 2012, the outstanding loan receivable balance was transferred to the Housing Successor Fund. During the 2021 fiscal year, the City received $5,000 in principal payments. The ending loan receivable balance at June 30, 2021 is $47,916.

C. Real Property Loan Obligation Receivable
On January 20, 2009, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a Purchase and Sale agreement between the City and the former Placentia Redevelopment Agency. This agreement provided that the Placentia Redevelopment Agency would finance and purchase two real properties from the City; 312 South Melrose Street and 110 South Bradford Avenue for $2,270,000 based on appraised property values at an interest rate of 7%.

Due to the dissolution of the former Placentia Redevelopment Agency at February 1, 2012, the interest rate was decreased to 3% and the recalculated loan shall be applied first to principal and second to interest in compliance with Health and Safety Code 34191.4 (b) (3). In addition, 20% of the outstanding loan receivable balance was transferred from the City's General Fund to the Housing Successor Agency fund in compliance with Health and Safety Code 34191.4 (b) (3) (C). The total principal and interest loan obligation receivable balance as of June 30, 2021 is $972,540 to the City's General Fund and $243,136 to the Housing Successor Agency Fund for a total of $1,215,676.

D. Placentia Veterans Village Loan Receivable
On November 13, 2018, the City Council of the Housing Successor Agency to the former Redevelopment Agency of the City of Placentia approved a loan agreement of $500,000 between the Housing Successor Agency and Mercy Housing California to initiate construction of the Placentia Veterans Village. The loan receivable balance at June 30, 2021 is $500,000.
63 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 5 — Capital Assets
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2021:

Balance Balance
June 30, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated.'
Land $ 25,201,872 $ - $ - $ - $ 25,201,872
Land -Right of Way 258,822 - 258,822
Infrastructure - Trees 3,114,540 - - 3,114,540
Construction in progress 10,427,567 5,946,342 (11,203,330) 5,170,579 Total capital assets not being depreciated 39,002,801 5,946,342 (11,203,330) 33,745,813 Capital assets being depreciated.-
Structures
epreciated:Structures and improvements 15,145,356 - 3,600,473 18,745,829 Equip ment 12,883,562 1,603,275 14,486,837
Land improvements 172,528 - - 172,528
Infrastructure:

Streets network 47,995,833 5,999,582 53,995,415
Street appurtenances 24,120,429 - 24,120,429
Storm drain 9,027,054 - 9,027,054
Total capital assets being depreciated 109,344,762 11,203,330 120,548,092 Less accumulated depreciation for:

Structures and improvements (6,344,701) (608,416) - (6,953,117) Equipment (6,069,674) (1,383,542)
(7,453,216)
Land improvements (111,964) (5,796) (117,760)
Infrastructure:

Streets network (23,495,162) (1,425,534) (24,920,696)
Street appurtenances (14,345,841) (562,315) (14,908,156) Storm drain (6,500,358) (176,541) (6,676,899)
Total accumulated depreciation (56,867,700) (4,162,144) - (61,029,844) Total capital assets being depreciated, net 52,477,062 (4,162,144) 11,203,330 59,518,248 Total governmental activities $ 91,479,863 $ 1,784,198 $ $ - $ 93,264,061 Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2021 as follows:

General government $ 379,012
Public safety 1,202,515
Public works 2,343,181
Community services 237,436
Total depreciation expense $ 4,162,144
64 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 5 — Capital Assets (Continued)
The following is a summary of changes in capital assets for the business -type activities for the year ended June 30, 2021:

Capital assets being depreciated:

Structures and improvements
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:

Structures and improvements
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Total business -type activities
Balance
June 30, 2020 Additions
$ 28,155,969 $
122,158
28,278,127
(19,486,849)
(43,107)
(19,529,956)
8,748,171
$ 8,748,171
(515,100)
(12,216)
(527,316)
(527,316)
$ (527,316) $
Balance
Deletions June 30, 2021
- $ 28,155,969
122,158
28,278,127
(20,001,949)
(55,323)
(20,057,272)
8,220,855
$ 8,220,855
Depreciation expense was charged to the Sewer Maintenance Fund within business -type activities.

Note 6 — Long -Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2021 is as follows:

Long -Term Debt:

Certificates of Participation:
2003 Refunding and Improvement
Project Certificates of Participation
2011 Gas Tax Certificates of Participation
Direct Borrowings and Placements:

Capital Lease - electric vehicles
Capital Lease - radio
OCTA Advance
Fire Lease #1
Fire Lease #2
2021 Installment Sale Agreement
(2011 Gas Tax Refunding)
2020A Lease Revenue Bonds
Balance
June 30, 2020
$ 3,180,000 $
3,915,000
11,435
947,320
2,282,199
2,855,359
1,362,742
Total long-term debt 14,554,055
Claims payable 2,235,244
Compensated absences 1,848,503
Total Tong -term liabilities $ 18,637,802
Additions
544,641
432,258
3,656,000
52,950,000
57,582,899
2,388,001
1,981,104
S 61,952,004
65 Deletions
Balance
June 30, 2021
Classification
Due within Due in more
One Year than One Year
$ (335,000) $ 2,845,000 $ 350,000 S 2,495,000
(3,915,000)
(11,435)
(109,969)
(321,522)
(283,640)
(160,713)
(301,000)
(5.435.279)
(752,742)
(233,049)
$ (6,424,070)
837,351
1,960,677
3,116,360
1,634,287
3,355,000
52,950,000
66,698,675
3,870,503
3,596,558
$ 74,165,736
143,861
330,971
173,837
693,490
1,960,677
2,785,389
1,460,450
351,000 3,004,000
1,060,000 51,890,000
2,409,669 64,289,006
967,626 2,902,877
200,433 3,396,125
S 3,577,728 $ 70,588,008

City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
2003 Refunding and Inwrovements Proiect Certificates afParticivatian On November 13, 2003, the City issued certificates of participation in the amount of $11,145,000 to (a) refinance certain obligations relating to the Placentia Redevelopment Agency's 2003 Taxable Convertible Certificates of Participation (2003 Financing Project), (b) refinance certain obligations relating to the City's 2001 Certificates of Participation (Traffic Circulation Project) and (c) finance and refinance certain capital improvements in the City. The certificates are in denominations of $5,000 each and bear interest ranging from 2 to 4.4 percent.

Certificates maturing on or after January 1, 2014, are subject to call for prepayment at the option of the City at a price equal to principal plus accrued interest without premium. Certificates maturing on January 1, 2028, are subject to mandatory prepayment on January 1, each year commencing January 2, 2021, from lease payments made by the City at a price equal to the principal payment.

Principal is payable annually on January 1. Interest is payable semiannually on January 1 and July 1 commencing July 1, 2004. The required reserve for the certificates was fully funded as of June 30, 2015.

Each certificate represents a direct, undivided fractional interest of the owner thereof in lease payments to be made by the City to the former Placentia Redevelopment Agency for the right to use and occupancy of an existing corporate yard and an existing public park (the Project), the property to which the City has rights of use and occupancy is subleased by the City from the former Placentia Redevelopment Agency as lessee and sub- lessor of the leased property. In accordance with the Lease Agreement, the City is required to pay lease payments to the bond trustee, which is designed to be sufficient in both time and amount, to pay, when due, the principal and interest with respect to the Certificates, due on January 1 and July 1 of each year. The City has covenanted that it will provide the necessary appropriations in each annual budget.

On April 17, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for apportion of the lease payment paid by the city to the Bond trustee, with respect to the 2003 Certificates of Participation. The portion reimbursed (87.52 percent) is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the related debt issue that were within the confines of the redevelopment project area.

The 2003 Certificates of Participation is the obligation of the City, and is reported in full in the government -wide Statement of Net Position, within the governmental activities. A portion of the 2003 Certificates of Participation, which constitutes 87.52 percent of the total obligation amount, is to be repaid by the former Placentia Redevelopment Agency, pursuant to the reimbursement agreement mentioned above. As such, an amount reflecting the 87.52 percent of the total obligation is reported on the Statement of Fiduciary Net Position within the RDA Successor Agency Private -Purpose Trust Fund (See Note 17 for additional details). A note receivable is reported in the General Fund, relating to the 87.52 percent of the total obligation that the city is expected to have reimbursement by the former Placentia Redevelopment Agency (See Note 3 for additional details). The outstanding balance of the 2003 Certificates of Participation as of June 30, 2021 is $2,845,000. 66 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 350,000 $ 135,138 $ 485,138
2023 370,000 118,512 488,512
2024 385,000 100,938 485,938
2025 405,000 82,650 487,650
2026 425,000 63,413 488,413
2027-2028 910,000 65,312 975,312
Total $ 2,845,000 $ 565,963 $ 3,410,963
2020 Lease Revenue Bonds
On November 12, 2020 the City issued the 2020A Lease Revenue Bonds through the Placentia Public Financing Authority to pay the City's currently unamortized, unfunded accrued actuarial liability to Ca1PERS for the benefit of City employees, to fund certain anticipated increases to the accrued liability to Ca1PERS, to fund a reserve account for the bonds and to pay the costs incurred in connection with the issuance of the bonds. The bonds are issued in denominations or $5,000 and bear interest ranging from 1.7% to 4.0%. Interest on the bonds will be paid semiannually on June 1 and December 1 of each year, commencing June 1, 2021.

The bonds are secured under an indenture as of November 1, 2020 by the authority and US Bank as trustee. The bonds are payable from the revenues pledged under the indenture. Under the indenture, the revenues are defined as base rental payment made by the City to the Authority as the rental for real property and improvements thereon. The City is required under the lease agreement to pay to the Authority specified amounts for use and possession of the leased property which amounts are calculated to be sufficient in both time and amount to pay, when due, the principal of and interest on the Bonds. Except for the Authority's right, title and interest in and to the base rental payments and otherwise to the lease agreement which have been assigned to the trustee, no funds or properties of the Authority or the City are pledged to or otherwise liable for the bonds or any other obligations of the Authority.

The bonds are being issued to fund 100% of the City's unfunded liability for the miscellaneous plan and safety plan. Upon the issuance of the bonds, the city paid $43,777,218 to CaIPERS for deposit to the Ca1PERS payment fund. This amount represents the June 30, 2019 unfunded liability for the miscellaneous and safety plans shown in the 2019 Ca1PERS reports, rolled forward to November 12, 2020 and taking into account payments made during the Fiscal Years 2020 and 2021. The City also paid the $1,932,562 remaining monthly unfunded liability payments due for the miscellaneous plan and safety plan for the balance of fiscal year 2021. 67 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
2020 Lease Revenue Bonds (Continued)
The bonds maturing on or after June 1, 2031 are subject to optional redemption prior to maturity on or after June 1, 2030 at the option of the City, in whole, or in part, on any date, at a redemption price equal to the principal amount of the bonds to be redeemed, plus accrued but unpaid interest to the redemption date, without premium. The bonds maturing on June 1, 2035 and June 1, 2045 are subject to mandatory redemption on June 1 in each year until maturity, from mandatory sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, provided however, that in lieu of redemption thereof, such term bonds may be purchased by the Authority and tendered to the trustee.

The bonds are reported in full in the government -wide Statement of Net Position, within the governmental activities. The outstanding balance of the 2020A Lease Revenue Bonds as of June 30, 2021 is $52,950,000. The annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 1,060,000 $ 2,022,522 $ 3,082,522
2023 1,500,000 2,004,248 3,504,248
2024 1,860,000 1,975,342 3,835,342
2025 2,190,000 1,933,772 4,123,772
2026 2,405,000 1,878,036 4,283,036
2027-2031 13,255,000 8,161,044 21,416,044
2032-2036 15,980,000 5,445,970 21,425,970
2037-2041 11,115,000 2,161,774 13,276,774
2042-2045 3,585,000 342,430 3,927,430
Total $ 52,950,000 $25.925.138 $ 78,875,138
2021 Installment Sale A'reemenl
On March 1, 2021 the City entered into an installment sale agreement with Truist Bank to refund all outstanding 2011 Gas Tax Certificates of Participation and to pay the costs of issuance in connection with such refunding.

The agreement constitutes the legal and valid binding agreement of the City enforceable against the City. The installment payment, in the aggregate, are $3,656,000 and include interest components, calculated at the rate of

1.65%, on the unpaid principal payable on the respective installment payment date. On the closing date, the City used the proceeds to pay (1) the amount of $3,531,754 to the escrow fund and $124,246 to the custodial account used to pay all costs of issuance related to the installment agreement. 68 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
2021 Installment Sale A'reemmnt (Continued)
The City's obligation to pay the installment payments is a special obligation of the City limited solely to the Gas Tax revenues and all amounts on deposit in the Gas Tax Fund. Under no circumstances is the City required to advance moneys derived from any source of income other than the Gas Tax revenues and other sources specifically identified in the agreement. The City has the option to prepay the principal components of the installment payments in whole, on any date, commencing on December 1, 2025. The bonds are reported in full in the government -wide Statement of Net Position, within the governmental activities. The outstanding balance of the 2021 Installment Sale Agreement as of June 30, 2021 is $3,355,000. The annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 351,000 $ 53,906 $ 404,906
2023 353,000 48,106 401,106
2024 358,000 42,265 400,265
2025 368,000 36,316 404,316
2026 373,000 30,220 403,220
2027-2031 1,552,000 58,129 1,610,129
Total $ 3,355,000 $ 268,942 $ 3,623,942
Capital Leases
Electric Vehicles
On October 22, 2015, the City entered into a Purchase Agreement for financing the acquisition of ten electric vehicles. The assets acquired through the capital lease were included in the machinery and equipment for governmental activities in the amount of $275,200. The lease is for a period of five years with interest rate of

3.99% for one of the ten vehicles for a total of $2,501. Rental payments are payable monthly in arrears of the period to which they relate. The title to the purchased equipment is in the name of the City.

The City made the final lease payment during fiscal year 2021. 800 MHz CCCS Public Safety Radio Upgrade
On October 1, 2016, the City entered into a Purchase Agreement to finance the acquisition and implementation of Citywide public safety radios and dispatch site with the Orange County 800MHz Countywide Coordinated Communications System (CCCS). The assets acquired through the capital lease were included in the machinery and equipment for governmental activities in the amount of $1,319,360. The lease is for a period of 10 years with an interest rate of 3.13% for a total of $187,871. Lease payments are payable quarterly in arrears of the period to which they relate to.

Year ending
June 30, Principal Interest Total
2022 $ 143,861 $ 23,609 $ 167,470
2023 148,417 19,053 167,470
2024 153,118 14,352 167,470
2025 157,967 9,503 167,470
2026 233,988 4,826 238,814
Total $ 837,351 $ 71,343 $ 908,694
69 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Capital Leases (Continued)
Fire Lease #1
On August 27, 2019, the City entered into a lease agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the capital lease were included in the machinery and equipment for governmental activities in the amount of $3,400,000. The lease is for a period of ten years with an interest rate of 2.69%. Rental payments are payable on February 1 and August 1 commencing August 1, 2020. The title to the purchased equipment is in the name of the City. The lease funds are provided on a reimbursement basis after equipment has been purchased. Through June 30, 2021, the City had has drawn down $3,400,000, all of the available lease funds. Therefore, future debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 330,971 $ 81,619 $ 412,590
2023 339,935 72,656 412,591
2024 349,140 63,450 412,590
2025 358,596 53,995 412,591
2026 368,307 44,284 412,591
2027-2030 1,369,411 74,659 1,444,070
Total $ 3,116,360 $ 390,663 $ 3,507,023
Fire Lease #2
On November 25, 2019, the City entered into a lease agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the capital lease were included in the machinery and equipment for governmental activities in the amount of $1,795,000. The lease is for a period of ten years with an interest rate of 2.65%. Rental payments are payable on February 1 and August 1 commencing August 1, 2020. The title to the purchased equipment is in the name of the City. Through June 30, 2021, the City had drawn down $1,795,000, all of the available lease funds. Therefore, future debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 173,837 $ 42,165 $ 216,002
2023 178,474 37,527 216,001
2024 183,235 32,766 216,001
2025 188,123 27,879 216,002
2026 193,141 22,860 216,001
2027-2030 717,477 38,527 756,004
Total $ 1,634,287 $ 201,724 $ 1,836,011
OCTA Advance
On February 16, 2010, the City entered into a cooperative agreement with the Orange County Transportation Authority (the "OCTA"). Terms of the cooperative agreement required OCTA to repay CalTrans $1.5 million for previously disallowed costs in exchange for the City's support of OCTA's direction to CalTrans for any eligible project in Orange County.
70 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
OCTA Advance (Continued)
In addition, OCTA advanced the City $4.1 million of future Measure M funds to the City. Principal and accrued but unpaid interest payments are deducted from future Measure M funds over approximately 19 years. Interest is equal to the yield on OCTA's short-term investment portfolio, and resets annually on June 30. The outstanding principal as of June 30, 2021 is $2,282,199.

Claims Pavable
Estimated claims payable from general liability and workers' compensation claims as determined by outside claims administrator. Outstanding balance as of June 30, 2021 is as follows:

General liability claims $ 435,330
3,435,173
Total claims payable $ 3,870,503
Workers' compensation claims
B. Business -Type Activities
A summary of changes in long-term liabilities for business -type activities for the year ended June 30, 2021 is as follows:

Balance
June 30, 2020
Compensated absences $ 49,155 $
$ 49,155 $
C. Fiduciary Activities
Additions
Balance
Deletions June 30, 2021
$ (4,798) $
$ (4,798) $
Classification
Due within Due in more
One Year than One Year
44,357 $ 2,502 $ 41,855
44,357 $ 2,502 $ 41,855
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2021 is as follows:

Balance
June 30, 2020 Additions
Bonds Payable:
2013 Tax Allocation Refunding Bonds $ 9,955,000 $
Bond Premium:

Balance
Deletions June 30, 2021
Classification
Due within Due in More
One Year Than One Year
$ (600,000) $ 9,355,000 $ 635,000 $ 8,720,000
2013 Tax Allocation Refunding Bonds 43,021 (3,561) 39,460 Other Liabilities:
2003 Refunding and Improvement
Project Certificates of Participation
SERAF Obligation
Real Property Loan Obligation
2,783,136
991,314
1,458,632
$ 15,231,103 $
71 (293,192)
(242,956)
$ (1,139,709)
39,460
2,489,944 306,320 2,183,624
991,314 991,314
1,215,676 1,215,676
$ 14,091,394 $ 941,320 $ 13,150,074

City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2013 Tax Allocation Refundine Bonds
On December 1, 2013, the Successor Agency to the Redevelopment Agency of the City of Placentia issued a tax allocation refunding bond (`TARB") in the amount of $13,120,000. Proceeds of the bond were used to refund the 2002 Series A & Series B Tax Allocation Bonds and the 2009 Subordinate Tax Allocation Note. The bond proceeds, together with other funds deposited from reserves, redeemed the 2002 Series A outstanding principal of $2,445,000, the 2002 Series B outstanding principal of $3,670,000, and the 2009 Subordinate TAN outstanding principal of $6,850,000. In lieu of funding the Reserve Account with proceeds of the Bonds, the Successor Agency has determined to purchase a Municipal Bond Debt Service Reserve Insurance Policy issued by the Insurer.

The bond is a special obligation of the Successor Agency. The bond does not constitute a debt or liability of the City of Placentia, County of Orange, State of California, or of any political subdivision thereof, other than the Successor Agency. The Successor Agency shall only be obligated to pay the principal of the bond, or interest thereon, from the funds described within the Official Statement. Neither the faith and credit nor the taxing power of the City of Placentia, the County of Orange, the State of California or any of its political subdivisions is pledged to the payment of the principal of or the interest on the bond. The Successor Agency has no taxing power. As of June 30, 2021, the outstanding principal on this bond is $9,355,000.

The annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 635,000 $ 379,450 $ 1,014,450
2023 650,000 360,175 1,010,175
2024 670,000 339,538 1,009,538
2025 695,000 315,619 1,010,619
2026 720,000 288,188 1,008,188
2027-2031 4,080,000 943,437 5,023,437
2032-2033 1,905,000 91,556 1,996,556
Total $ 9,355,000 $ 2,717,963 $ 12,072,963
Debt Related Pledge of Revenue
The Successor Agency has pledged a portion of future tax increment revenues to repay the 2013 TARB as the source of repayment of this debt. Tax increment revenues were projected to produce a certain percentage of the debt service requirements over the life of the debt. Due to the dissolution of the former Placentia Redevelopment Agency, the pledged revenue is deposited to the County of Orange Redevelopment Property Tax Trust Fund (RPTTF). The County forwards the City funds to pay these recognized obligations. 2003 Certificates of Participation City Reimbursement
On April 17, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for a portion of the lease payment paid by the City to the bond trustee, with respect to the 2003 Certificates of Participation.
72 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 — Long -Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2003 Certificates of Participation City Reimbursement (Continued) The portion reimbursed (87.52 percent) is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the related debt issue that were within the confines of the redevelopment project area. The updated long-term liability balance as of June 30, 2021 of $2,489,944 represents

87.52 percent of the outstanding principal balance of the 2003 COP at June 30, 2021 of $2,845,000, less 87.52 percent of the 2021 principal payment on the 2003 Certificate of Participation, which was paid to the City in June 2021.

The annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 306,320 $ 379,450 $ 685,770
2023 323,824 360,175 683,999
2024 336,952 339,538 676,490
2025 354,456 315,619 670,075
2026 371,960 288,188 660,148
2027-2028 796,432 91,556 887,988
Total $ 2,489,944 $ 1,774,526 $ 4,264,470
Supplemental Education Revenue Augmentation Fund (SERAF) Obligation The Successor Agency has accrued a liability in the amount of $991,314 in regards to its Supplemental Education Revenue Augmentation Fund (SERAF) obligation. This amount includes the unpaid portions from fiscal years 2009-10 and 2010-11. In 2009, the State of California issued a mandate that shifted redevelopment funds to education purposes. This action required each local redevelopment agency to make payment to their respective County Auditor -Controller. The Placentia Redevelopment Agency did not make payment on this obligation for two fiscal years, as it did not have the means to do so. Non-payment of SERAF obligations would usually result in suspension of redevelopment activity. Upon dissolution of redevelopment in 2012, this unpaid obligation was transferred to the Successor Agency. The Successor Agency will continue working to resolve this matter.

Outstanding balance of SERAF Obligation as of June 30, 2021 was $991,314.

Real Property Loan Obligation
On January 20, 2009, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a Purchase and Sale agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the Placentia Redevelopment Agency will finance and purchase 2 real properties from the City; 312 South Melrose Street and 110 South Bradford Avenue for $2,270,000 based on appraised property values at an interest rate of 7%.

Due to the dissolution of the former Placentia Redevelopment Agency at February 1, 2012, the obligation was transferred to the Successor Agency. The interest rate was decreased to 3% and the recalculated loan is applied first to principal and second to interest in compliance with Health and Safety Code 34191.4 (b) (3). Since the Successor Agency has no taxing ability, repayment of the obligation is from County of Orange Redevelopment Property Tax Trust Fund (RPTTF) proceeds distributed to the Successor Agency based on an annual tax increment distribution formula. The total principal and interest loan obligation due to the City as of June 30, 2021 is $1,215,676.
73 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 7 — Deferred Compensation Plans
Section 457 Plan
The City has made available to its employees two deferred compensation plans, created in accordance with Internal Revenue Code (the "IRC") Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. There are several options available for employees to invest, including annuities, life insurance, savings accounts and mutual funds. Funds may be withdrawn by participants upon termination of employment, retirement, or a certified emergency. The City makes no contribution under the plans.

Pursuant to changes in IRC Section 457, the City amended its plans and established a trust into which all assets and income of the 457 plan were transfen-ed during the year ended June 30, 1998. The assets and all income attributable to such amounts are held in trust for the exclusive benefit of the participant and their beneficiaries. These assets are no long the property of the City, and therefore, are no long subject to the claims of the City's general creditors. As a result, the assets of the 457 deferred compensation plans are no longer presented in an agency fund of the City's financial statements. The City has minimal involvement in the administration of the 457 plans, and therefore, lacks the fiduciary accountability that would require the 457 assets be recorded in an expendable trust fund.

The Defined Compensation Plan assets are not included in the accompanying basic financial statements.

Section 401(a) Qualified Defined Contribution Pension Plan All City sworn full time fire personnel are eligible to participate in the Section 401(a) qualified defined contribution pension plan as allowed under the Internal Revenue Code. The plan type sponsored by the City is the Money Purchase Plan (Plan), which was last amended on January 1, 2020. The Plan is a defined contribution retirement plan in which the employer's contribution is nondiscretionary and is based on a formula that is not related to profits. The Plan sponsor guarantees no benefit and bears no investment risk while the Plan participants bear all investment risk and have no guaranteed level of benefits.

An administrative committee comprised of City personnel governs the Plan. The City Council has the authority to establish or amend the Plan's provisions. The Plan's provisions and contribution requirements are established and may be amended by City Council resolution.

Eligible employees begin participating the first day of the month following their employment date of work. The Plan is entirely funded by City contributions of 10% of the participants' gross pay to the deferred compensation plan. The City's contributions vest at 100% after completion of four years of uninterrupted employment.

Participants are eligible to begin receiving benefits at age 50 and are required to begin receiving benefits no later than April after age 70-1/2. The employees may also roll their funds to another retirement plan upon separation of service.

The City's payroll for employees covered by the Plan for the year ended June 30, 2021, was $2,180,704. Total employee contributions paid by the City amounted to $190,644 or 8.74% of covered payroll and of total payroll.

The Plan's assets are invested with ICMA Retirement Corporation Governmental Money Purchase Plan & Trust, a mutual fund company that offers participants multiple mutual fund category selections from which they can choose.

As of June 30, 2021, the Plan had 26 participants and the market value of the Plan amounted to $16,035,262. 74 Note 8 — Pension Plans
A. Summary
City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Governmental Business -Type
Activities Activities
Total
Deferred outflows of resources:

Pension contribution made after measurement date:

CalPERS M is cellaneous $ 15,907,877 $ 1,755,766 $ 17,663,643 CaIPERS Safety 30,597,527 30,597,527
Total pension contribution made after measurement date 46,505,404 1,755,766 48,261,170 Difference between projected and actual investment earnings:

CaIPERS M iscellaneous 439,274 48,483 487,757
CaIPERS Safety 640,449 - 640,449
Total difference between projected and actual investment earnings: 1,079,723 48,483 1,128,206
Adjustment due to difference in proportions
CaIPERS M iscellaneous 377,032 41,613 418,645
CaIPERS Safety 436,233 - 436,233
Total adjustment due to difference in proportions 813,265 41,613 854,878 Difference between expected and actual experience
CaIPERS M iscellaneous 762,024 84,106 846,130
CaIPERS Safety 2,285,040 - 2,285,040
Total difference between expected and actual experience 3,047,064 84,106 3,131,170 Employer contributions in excess of proportionate share of contribution
Ca1PERS Safety 53,427 - 53,427
Total employer contributions in excess of proportionate share of contribution 53,427 53,427
Total deferred outflows of resources
CaEPERS M iscellaneous 17,486,207 1,929,968 19,416,175
CaIPERS Safety 34,012,676 - 34,012,676
Total deferred outflows of resources $ 51,498,883 $ 1,929,968 $ 53,428,851 75 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
A. Summary (Continued)
Net pension liabilities:

CaIPERS Miscellaneous
CaIPERS Safety
Total net pension liabilities
Governmental Business -Type
Activities Activities
Total
$ 14,787,104 $ 1,632,065 $ 16,419,169
29,467,303 - 29,467,303
$ 44,254,407 $ 1,632,065 $ 45,886,472
Deferred inflows of resources:

Change in assumptions
CalPERSMiscellaneous $ 105,467 $ 11,641 $ 117,108
CaIPERS Safety 98,156 - 98,156
Total change in assumptions 203,623 11,641 215,264
Adjustment due to difference in proportions
CaIPERS Safety 504,068 504,068
Total adjustment due to difference in proportions 504,068 504,068 Employer contributions in excess of proportionate share of contribution
CaIPERS Miscellaneous 645,283 71,220 716,503
Ca1PERS Safety 1,234,931 - 1,234,931
Total employer contributions in excess of proportionate share of contribution 1,880,214 71,220 1,951,434
Total deferred inflows of resources
CaIPERS Miscellaneous
CaIPERS Safety
Total defen-ed inflows of resources
Pension expenses:

Ca1PERS M iscellaneous
Ca1PERS Safety
Total net pension expenses
B. General Information about the Pension Plans
Plan Descrivtion
750,750 82,861 833,611
1,837,155 - 1,837,155
2,587,905 $ 82,861 $ 2,670,766
$ 1,946,704 $ 214,859 $ 2,161,563
4,277,579 4,277,579
$ 6,224,283 $ 214,859 $ 6,439,142
The City contributes to the California Public Employees' Retirement System ("Ca1PERS"), a cost-sharing multiple -employer defined benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the Ca1PERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.
76 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
B. General Information about the Pension Plans (Continued) Emolovees Covered by Benefit Terms
At the June 30, 2020 measurement date the following employees were covered by the benefit terms:

Miscellaneous Miscellaneous Safety
Miscellaneous Tier2 PEPRA Safety PEPRA
Active employees 23 7 64 24 20
Transferred employees 54 12 26 20 9
Separated employees 34 2 28 11 7
Retired employees and beneficiaries 179 2 115
Total 290 21 120 170 36
Benefit Provided
Ca1PERS provide retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety Ca1PERS members become eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Miscellaneous Miscellaneous Safety
Miscellaneous Tier2 PEPRA Safety PEPRA
Benefit formula 2.0% @ 55 2.0% @ 60 2.0% @ 62 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life monthly for life Retirement age 55 62 62 50 50-57
Monthly benefits, as a % of
eligible compensation 2.0% 2.0% 2.0% 3.0% 2.7%
Required employee contribution rate 7.000% 7.000% 6.750% 9.000% 13.000% Required employer contribution rate 11.031% 9.281% 7.732% 23.674% 13.044% Contributions
For the year ended June 30, 2021, the contributions recognized as part of pension expense for each Plan were as follows:

Contributions - employer
Miscellaneous Safety Total
$ 17,663,643 $ 30,597,527 $ 48,261,170
77 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Proportionate Share of Nei Pension Liability and Pension Expense The following table shows the plan's proportionate share of the risk pool collective net pension liability over the measurement period:

Miscellaneous
Balance at: 6/30/19 (Valuation date)
Balance at: 6/30/20 (M easurement date)
Net changes during 2020-2021
S afety
Balance at: 6/30/19 (Valuation date)
Balance at: 6/30/20 (Measurement date)
Net changes during 2020-2021
Plan Total Pension
liability
$ 56,351,656
57,082,960
731,304
$ 96,387,562
98,921,800
2,534,238
Plan Fiduciary
Net Position
$ 41,142,220
40,663,791
(478,429)
$ 69,385,418
69,454,497
69,079
Net Pension
Liability/(Asset)
$ 15,209,436
16,419,169
1,209,733
$ 27,002,144
29,467,303
2,465,159
The City's net pension liability/(asset) for each Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of each of the Plans is measured as of June 30, 2020, and the total pension liability/(asset) for each Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City's proportion of the net pension liability/(asset) was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability/(asset) for each Plan as of the June 30, 2019 measurement date (June 30, 2020 reporting date) and 2020 measurement date (June 30, 2021 reporting date) was as follows:

Proportion - June 30, 2020
Proportion - June 30, 2021
Change - Increase/(Decrease)
Miscellaneous S afety

0.37981% 0.43255%

0.38926% 0.44230%

0.00945% 0.00975%
78 Total

0.41194%

0.42173%

0.00979%

City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2021, the City recognized pension expense of $2,161,563 and $4,277,579, for the Miscellaneous and Safety plans, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date $ 17,663,643 $ - Difference between expected and actual
experience 846,130
Changes of assumptions 117,108
Net difference between projected and actual
earnings on pension plan investments 487,757
Employer contributions in excess/(under)
proportionate share of contributions 716,503
Adjustments due to difference in proportions 418,645
Total $ 19,416,175 $ 833,611
Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date $ 30,597,527 $ - Difference between expected and actual
experience 2,285,040
Changes of assumptions - 98,156
Net difference between projected and actual
earnings on pension plan investments 640,449
Employer contributions in excess/(under)
proportionate share of contributions 53,427 1,234,931
Adjustments due to difference in proportions 436,233 504,068 Total $ 34,012,676 $ 1,837,155
Aggregate Total
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date $ 48,261,170 $ Difference between expected and actual
experience 3,131,170
Changes of assump tions - 215,264
Net difference between projected and actual
earnings on pension p lan investments 1,128,206
Employer contributions in excess/(under)
proportionate share of contributions 53,427 1,951,434
Adjustments due to difference in proportions 854,878 504,068 Total $ 53,428,851 $ 2,670,766
79 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the Miscellaneous Plan and Safety Plan, $17,663,643 and $30,597,527, respectively, were reported as deferred outflows of resources related to pensions resulting from City's contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement Period Deferred Outflows/(Inflows) of Resources Ended June 30 Miscellaneous Plan
2022
2023
2024
2025
2026
Thereafter
Total
Actuarial Assu,nrtions
$ (19,549)
368,585
335,941
233,944
Safety Plan
$ 21,411 $
592,615
643,067
320,901
918,921 $
Total
1,862
961,200
979,008
554,845
1,577,994 $ 2,496,915
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Entry Age Normal

7.15%

2.50%
Varies by Entry Age and Service

7.15%
Derived using CalPERS' Membership Data for all Funds.

Contract COLA up to 2.5% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.5% thereafter.

The mortality table used was developed based on Ca1PERS-specific data. The probabilities of mortality are based on the 2017 Ca1PERS experience study for the period from 1997 to 2015. Pre -retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP -2016 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and review of Actuarial Assumptions report from December 2017 that can be found on the Ca1PERS website. 80 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
In determining the long-term expected rate of return, Ca1PERS took into account, both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

New Strategic Real Return Years Real Return Years
Asset Class Allocation 1 - 10 1 11 + 2
Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
An expected inflation of 2.0% was used for this period. 2 An expected inflation of2.92%was used for this period.

The discount rate used to measure the total pension liability was 7.15% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, Ca1PERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained from the Ca1PERS website under the GASB 68 Section.

According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.00% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. The difference was deemed immaterial to the Public Agency Cost Sharing Multiple -Employer Defined Benefit Pension Plan. 81 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 — Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Pronortionate Share of the Net Pension Liability to Chanes in the Discount Rate The following presents the City's proportionate share of the net position liability for the Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower or 1 -percentage point higher than the current rate:

Plan's Net Pension Lability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous $ 24,015,519 $ 16,419,169 $ 10,142,545
Safety $ 42,901,251 $ 29,467,303 $ 18,443,478
Total $ 66,916,770 $ 45,886,472 $ 28,586,023
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued Ca1PERS financial reports.

D. Payable to the Pension Plan
At June 30, 2021, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2021.

Note 9 — Other Postemployment Benefit Plan
A. Summary
Governmental Business -Type
Activities Activities
Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date $ 1,115,214 $ 30,946 $ 1,146,160 Changes in assumptions 4,179,629 115,981 4,295,610
Total deferred outflows of resources $ 5,294,843 $ 146,927 $ 5,441,770 Total OPEB liability $ 30,480,033 $ 845,793 $ 31,325,826 Total OPEB liability $ 30,480,033 $ 845,793 $ 31,325,826 Deferred inflows of resources:

Change in assumptions $ 1,910,134 $ 53,005 $ 1,963,139
Difference between expected and actual experience 1,831,465 50,821 1,882,286 Total deferred inflows of resources $ 3,741,599 $ 103,826 $ 3,845,425 OPEB Expense $ 995,058 $ 27,612 $ 1,022,670
82 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 — Other Postemployment Benefit Plan (Continued)
B. General Information About OPEB
Plan Description
The City provides single employer post -employment defined benefits to retired employees in the form of a contribution towards their health insurance premiums under the Ca1PERS health plan which provides health insurance benefits to eligible retirees in accordance with various labor agreements. The minimum required retiree contributions are established by Ca1PERS. Survivor benefits are not provided. Copies of the Ca1PERS' annual financial report can be obtained from the Ca1PERS Executive Office, 400 P Street, Sacramento, California 95814.

ElieibiIlIv
All employees hired prior to November 21, 1995 are in Tier I and become eligible for these benefits as long as they are 50 years of age or older and have worked for the City a minimum of five years and elect a service retirement from the City. The health benefits for Tier I retirees include medical, dental, optical, and life. These benefits are considered to be vested for Tier I employees. The City pays the same contribution for these benefits to Tier I employees as is paid to active employees. Vision benefits are also provided to Tier I employees who retired after September 30, 1990. The life insurance is available to Tier I retirees until they reach age of 70.

All employees hired on or after November 21, 1995 are Tier II. The City pays the minimum required medical insurance contribution established by Ca1PERS for Tier II employees.

Membership in the plan consisted of the following at June 30, 2020, the date of the latest actuarial valuation:

Active plan members 132
Retirees 106
Total 238
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Contributions
The obligation of the City to contribute to the plan is established and may be amended by the City Council. The City Council has established a policy of funding the actuarially determined contribution (ADC) on a pay as you go basis. For the fiscal year ended June 30, 2021, the City's average contribution rate was 8.16% of covered payroll. Employees are not required to contribute to the plan.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The total OPEB liability at June 30, 2021 was $31,325,826.
83 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 — Other Postemployment Benefit Plan (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial As sump tions:

Discount Rate 2.21% (Bond Buyer 20 -Bond Index)
Inflation 2.75% annually
Aggregate payroll increases 3.00%
Expected long -teen investment rate of return n/a
M ortality, Termination, and Disability Ca1PERS 1997-2015 Experience Study Mortality Improvement Scale Modified projected fully generational with Scale MP -2019 Healthcare Trend Rate - Non -Medicare An annual healthcare cost trend rate of 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076
Healthcare Trend Rate - Medicare An annual healthcare cost trend rate of 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of the December 2017 Ca1PERS experience study covering 1997 to 2015.

Discount Rate
The discount rate used to measure the total OPEB liability was 2.21% percent. This discount rate is the mid- point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20 -Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

ChanEe in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2019 (Measurement Date) $ 26,489,834 Changes Recognized for the Measurement Period:

Service Cost 359,454
Interest on the total OPEB liability 919,732
Changes of benefit terms -
Difference between expected and actual experience -
Changes of assumptions 4,699,120
Contributions from the employer
Net investment income
Administrative expenses
Benefit payments (1,142,314)
Net Changes during July 1, 2019 to June 30, 2020 4,835,992 Balance at June 30, 2020 (Measurement Date) $ 31,325,826 84 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 — Other Postemployment Benefit Plan (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate 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 a discount rate that is 1 -percentage -point lower (1.21 percent) or 1 -percentage - point higher (3.21 percent) than the current discount rate:

Plan's Total OPER Liability
Discount Rate - 1% Current Discount Discount Rate+ 1%
(1.21%) Rate(2.21%) (3.21%)
$ 36,542,459 $ 31,325,826 $ 27,203,607
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 -percentage -point lower or 1 -percentage -point higher than the current healthcare cost trend rates:

Plan's Total OPEB Liability
Healthcare Cost
-1% Trend Rates 1%
$ 26,910,362 $ 31,325,826 $ 36,914,001
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $1,022,670. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Difference between expected and actual experience
Changes in assumptions
Employer contributions made
subsequent to the measurement date
Total
Deferred outflows Deferred inflows
of Resources of Resources
$ $ 1,882,286
4,295,610 1,963,139
1,146,160
$ 5,441,770 $ 3,845,425
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five- year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 7.1 years, which was determined as of July 1, 2019, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date. $1,146,160 was reported as a deferred outflow of resources related to OPEB resulting from the City's contributions subsequent to the measurement date and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022.
85 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 — Other Postemployment Benefit Plan (Continued)
C. Total OPER Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPER (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year
Ended June 30
2022
2023
2024
2025
2026
Thereafter
Deferred Outflows/
(Inflows) of Resources
$ (256,519)
(256,519)
(256,519)
133,481
312,587
773,674
$ 450,185
Note 10 — Risk Management and Self Insurance Program
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in municipal agency risk pools for their property, workers' compensation, and excess liability coverage.

A. General Liability
The City is a member of the Public Agency Risk Sharing Authority of California ("PARSAC"), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers' compensation, and property claims. Under the program, the City has a $100,000 retention limits similar to a deductible with the PARSAC being responsible for losses above that amount up to $1 million.

The PARSAC has additional coverage of $34 million in excess of its $1 million retention limit affiliated risk management authorities. The PARSAC also provides $1 billion aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance.

B. Worker's Compensation
The City is a member of the Local Agency Workers' Compensation Excess (the "LAWCX"), a joint powers authority, which provides joint protection programs for public entities covering worker's compensation claims.

Under the program, the City has a $250,000 retention limits similar to a deductible with the LAWCX being responsible for losses above that amount up to $4.7 million. The City has purchased excess coverage for Workers' Compensation excess of $5 million.

C. Other Insurance
The City has Crime Bond Insurance coverage as a member of PARSAC under Alliant Crime Insurance Program (the "ACIP") excess of $2,500 up to $1 million. This insurance includes coverage for faithful performance of duty, forgery or alteration, inside premises theft of money and securities, inside premises robbery and safety burglary other property, outside the premises, computer fraud, funds transfer fraud, and money orders and counterfeit paper currency fraud.
86 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 10 - Risk Management and Self Insurance Program (Continued) C. Other Insurance (Continued)
A reconciliation of changes in aggregates for claims filed in the current and prior fiscal years are as follows:

Workers' Compensation
2018-2019
2019-2020
2020-2021
General Liability
2018-2019
2019-2020
2020-2021
Beginning
of Year
Liability
Current Year
Claims and
Changes in
Estimates
Claim
Payments
End
of Year
Liability
Amounts
Due within
One Year
Amounts
Due in
more than
One Year
$ 1,927,153 $ 944,772 $ (663,980) $ 2,207,945 $ 551,986 $ 1,655,959 2,207,945 153,342 (385,700) 1,975,587 493,897 1,481,690 1,975,587 2,157,487 (697,901) 3,435,173 858,793 2,576,380 $ 69,015 $ 19,428 $
23,901 264,501
259,657 230,514
Note 11 - Classification of Fund Balances
(64,542) $
(28,745)
(54,841)
23,901 $ 5,975 $
259,657 64,914
435,330 108,833
At June 30, 2021, fund balances are classified in the governmental funds as follows:

Nonspendable
Inventory
Prepaid items
Loans receivable
Total nonspendable
Restricted
Public safety
Public works
Community development
Community services
Debt service
Transportation
Park development
Street maintenance
Air quality
Housing
Total restricted
Committed
Measure U - infrastructure
M ensure U - OPEB
Metrolink station
Total committed
Unassigned
Total fund balances
Citywide
American Development
Rescue Plan Impact Fee
General Special Special
Fund Revenue Fund Revenue Fund
$ 97,075 $
93,658
3,156,164
3,346,897
556,084
556,084
2,263,010
770,595
3,400,000
6,433,605
9,893,885
$ 20,230,471 $
2,938
2,938
2,938 S
87 10,463
10,463
4,781,161
4,781,161
4,791,624 $
2020A PFA
Lease Revenue
Bonds Debt
Service Fund
6,620,623
6,620,623
17,926
194,743
326,497
Nonmajor
Governmental
Funds Total
$ $ 97,075
104,121
3,156,164
3,357,360
830,909
3,734,029
1,043,728
1,145,813
20,152
660,395
153,057
1,906,732
9,494,815
(1,405,519)
6,620,623 $ 8,089,296 $
830,909
3,734,029
1,043,728
4,781,161
7,176,707
1,145,813
20,152
660,395
153,057
1,909,670
21,455,621
2,263,010
770,595
3,400,000
6,433,605
8,488,366
39,734,952

City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 12 — Commitments and Contingencies
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2021. These projects are evidenced by contractual commitments with contractors or other agencies and include:

Project Commitment
Roadway Rehabilitation Project $ 2,047,516
Parque del Arroyo Verde Renovation Project 1,627,240
HSIP Traffic Safety Improvement Project 1,163,178
Metrolink Station 705,011
La Placita Parkette Improvements 630,400
Total $ 6,173,345
The City has various outstanding purchase commitments. Total commitments at June 30, 2021 are as follows:

Governmental funds:

General fund
Other governmental funds
Enterprise funds:

Sewer maintenance fund
Outstanding
Purchase
Commitments
$ 197,584
284,287
78,871
$ 481,871
B. Contingencies
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.

While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City. 88 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 13 — Other Required Fund Disclosures
A. Expenditures in Excess of Appropriation
Excess of expenditures over appropriations occurred in individual funds during the year ended June 30, 2021 as follows:

Special Revenue Funds:

Street Lighting
Landscape Maintenance District 92-1
Gasoline Tax
Community Based Transitional Housing Grant
Debt Service Funds:
2011 Gas Tax COP
B. Deficit Net Position and Fund Balances
Expenditures
$ 462,507
511,429
648,320
273,596
646,311
Exp enditure
in Excess of
Appropriation Appropriations
$ 410,600
443,900
234,793
269,000
484,500
Funds with deficit net position/fund balance at June 30, 2021 are as follows:

Capital Projects Fund:

City Capital Projects
Proprietary Fund:

Refuse
Internal Service Fund:

Risk Management
Special Revenue Funds:

Miscellaneous Grants
Street Lighting
Landscape Maintenance District 92-1
Housing and Community Development
Public, Eucational, and Government (PEG)
Placentia Regional Navigation Center
OCATT
Deficit
Fund Balance
$ (350,441)
$ (55,501)
(1)
(93,156)
(86,784)
(29,731)
(789,905)
$ (116,515)
$ (51,907)
(67,529)
(413,527)
(4,596)
(161,811)
Deficit
Net Position
$ (46,752)
$ (1,833,884)
Fiduciary Funds:

Public Safety CFD 2014-01 $ (3,802)
At June 30, 2021, the City had an unrestricted net position deficit of $(65,260,587) on the Statement of Activities. This deficit was created from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 and the implementation of GASB Statement 75 (Total OPEB Liability) in 2018. The City expects to eliminate the deficit via increased pension and OPEB contributions consistent with the amortization schedules provided by the City's pension and OPEB administrators. 89 City of Placentia
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 14 — Prior Period Adjustments
The City made the following prior period adjustments to the Fiduciary Funds in order to implement GASB Statement No. 84, Fiduciary Activities:

Custodial Funds
Community Public
Facilities Safety
District CFD 2014-01
Total
Fiduciary Funds
Net position at June 30, 2020, as previously reported $ - $ - S - $ Restatement due to implementation of GASB 84 48,678 26,198 74,876 Net position at June 30, 2020, as restated $ 48,678 $ 26,198 S 74,876 $ Note 15 — Subsequent Events
A. ARPA Funding
Custodial
Funds
74,876
74,876
As part of its budget process, the U.S. Department of the Treasury allocated $9,083,054 of American Rescue Plan Act (ARPA) funds to the City. Allocations to the City started in July 2021 when the City received $4,541,527 in the first tranche. The Department of Treasury is expected to allocate the second tranche of $4,541,527 in ARPA funding to the City in July of 2022.

B. Debt Issuance
On April 12, 2022, City Council approved issuance of a private placement lease financing not to exceed $2,500,000 to assist the City in refinancing the Certificates of Participation (2003 Refunding and Improvement Project). The City plans to lease certain real property to the counterparty and the counterparty will sublease the leased property back to the City pursuant to a lease agreement. The lease will carry an interest rate of 2.35%, assuming no default.
90 REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
91 This page intentionally left blank.
92 City of Placentia
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2021
Revenues:

Taxes
Intergovernmental
Licenses and permits
Fines and forfeitures
Investment income
Charges for services
Leases and rents
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Budgeted Amounts
Original Final
$ 33,211,800
20,000
1,915,000
444,000
50,000
891,500
1,428,500
416,000
38,376,800
11,007,300
16,590,200
4,392,900
1,241,100
1,693,500
2,173,600
1,127,900
369,000
38,595,500

REVENUE OVER
(UNDER) EXPENDITURES (218,700)
Other Financing Sources (Uses):

Transfers in
Transfers out
Proceeds from capital lease
Total other financing
sources (uses)
1,260,488
(548,000)
712,488
$ 35,581,447
20,000
2,230,000
444,000
50,000
916,500
1,428,500
NET CHANGE IN FUND BALANCE $ 493,788 $
FUND BALANCE:

Beginning of Year
End of Year
93 416,000
41,086,447
11,588,377
17,045,181
4,587,998
1,283,047
1,873,598
4,346,264
1,127,900
369,000
42,221,365
(1,134,918)
2,561,091
(2,330,805)
962,399
230,286
(904,632)
Actual
Amount s
$ 37,858,390
9,743
2,827,761
290,534
(28,258)
879,298
1,079,979
30,000
460,006
43,407,453
10,911,110
14,899,543
3,430,456
1,215,937
1,437,912
3,811,664
1,270,240
391,808
37,368,670
Variance with
Final Budget
Positive
(Negative)
$ 2,276,943
(10,257)
597,761
(153,466)
(78,258)
(37,202)
(348,521)
30,000
44,006
2,321,006
677,267
2,145,638
1,157,542
67,110
435,686
534,600
(142,340)
(22,808)
4,852,695
6,038,783 7,173,701
725,096
(1,476,758)
976,899
(1,835,995)
854,047
14,500
225,237 (967,448)
6,264,020 $ 7,168,652
13,966,451
$ 20,230,471

City of Placentia
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule — American Rescue Plan Special Revenue Fund For the Year Ended June 30, 2021
Revenues:

Intergovernmental
Investment earnings
Total Revenues
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
$
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 635,803 $ 635,803 $
- 2,938 2,938
635,803 638,741
(635,803) (635,803)
(635,803) (635,803)
$ - $ 2,938 $
FUND BALANCE:

Beginning of Year
End of Year $ 2,938
94 City of Placentia
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule — Citywide Development Impact Fee Special Revenue Fund For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services $ 5,986,200 $ 6,346,200 $ 4,170,643 $ (2,175,557) Investment eamings - 13,095 13,095
Total Revenues 5,986,200 6,346,200 4,183,738 (2,162,462) Expenditures:

Current:

Public safety - 833 (833)
Capital outlay 548,000 600,000 494,788 105,212
Total Expenditures 548,000 600,000 495,621 104,379
NET CHANGE IN FUND BALANCE $ 5,438,200 $ 5,746,200 3,688,117 $ (2,058,083) FUND BALANCE:

Beginning of Year 1,103,507
End of Year $ 4,791,624
95 This page intentionally left blank.
96 City of Placentia
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2021
Budgetary Control and Accounting Policy
The City prepares its budgets on the basis of estimated revenues and expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles. Encumbrance accounting is utilized during the fiscal year, whereby purchase orders, contracts and other commitments are recorded in order to control appropriations. However, at fiscal year-end, all appropriations lapse. Accordingly, encumbrances are cancelled and generally are re -appropriated as part of the following year's budget. Encumbrances are not included in reported expenditures.

Annual budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. In 2021, the City did not create a budget for the following governmental special revenue funds: Park Development, Storm Drain Construction, Affordable Housing, Traffic Offender, Sewer Construction, and TOD Impact Fee. The City also did not create a budget for the major Debt Service Fund.

The budgetary level of control for all governmental fund types is the fund level. The City Administrator has the discretion to transfer appropriations between departments within a fund, but transfers between funds must be approved by the City Council.
97 City of Placentia
Schedule of the City's Proportionate Share of the Net Pension Liabilities and Related Ratios Last Ten Fiscal Years
For the Year Ended June 30, 2021
Miscellaneous Plan
Measurement period, year ended ' 6/30/2020
Plan's proportion of the net pension liability 0.38926% Plan's proportionate share of the net pension liability $ 16,419,169 Plan's covered payroll $ 4,453,916
Plan's proportionate share of the net pension liability as a percentage of covered payroll 368.65%
Plan's fiduciary net position $ 42,161,022
Plan's fiduciary nct position as a percentage of the total pension liability 71.97%
Plan's proportionate share of aggregate employer contributions S 1,383,994 Notes to Schedule:

Changes in assomalions Nonc in 2019. In 2018 demographic assumption and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65 percent to 7,15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). in 2014, amounts reported were based on the 7.5% discount rate, Historical information is presented only for measurement periods after GASB 68 implementation.

Measurement period, year ended
Plan's proportion of the net pension liability
Plan's proportionate sharc of the net pension liability Miscellaneous Plan
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.14843°/ 0.14479% 0.14212% 0.14024% 0.13337% 0.13850%
$ 15,209,436 S 13,952,246 $ 14,094,828 S 12,135,165 $ 9,154,245 $ 8,617,803 Plan's covered payroll $ 4,324,190 S 4,198,243 $ 4,075,964 $ 4,140,888 S 3,220,454 $ 3,712,315 Plan's proportionate sharc of the net pension liability as a percentage of covered payroll 351.73% 332.34% 345.80% 293.06% 284.25% 232.14% Plan's fiduciary net position $ 41,142,220 S 40,682,189 $ 39,816,871 $ 38,103,697 S 40,735,920 $ 42,161,022 Plan's fiduciary net position as a percentage of the total pension liability 7101% 74.46% 73.86% 75.85% 81.65% 83.03% Plan's proportionate share of aggregate employer contributions $ 1,139,534 S 932,993 $ 785,438 S 667,441 $ 383,155 $ 412,406 Notes to Schedule:

Chanprs in assumption' Nonc in 2019_ In 2018 demographic assumption and inflation rate wcrc changed in accordance to the CaIPERS Experience Study and Review of Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). in 2014, amounts reported were based on the 7.5% discount rate.

Historical information is presented only for measurement periods after GASB 68 implementation. 98 City of Placentia
Schedule of the City's Proportionate Share of the Net Pension Liabilities and Related Ratios Last Ten Fiscal Years (Continued)
For the Year Ended June 30, 2021
Safety Plan
Measurement period, year ended' 6/30/2020
Plan's proportion of the net pension liability 0.44230% Plan's proportionate share of the net pension liability $ 29,467,303 Plan's covered payroll $ 4,254,013
Plan's proportionate share of the net pension liability as a percentage of covered payroll 692.69%
Plan's fiduciary net position $ 69,454,497
Plan's fiduciary net position as a percentage of the total pension liability 70,21%
Plan's proportionate share of aggregate employer contributions $ 30,597,527 Notes to Schedule:

Charges in assumptions None in 2019, In 2018 demographic assumption and inflation rate were changed in accordance to thc CaIPERS Experience Study and Review of Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). in 2014, amounts reported were based on the 7.5% discount rate.

Historical information is presented only for measurement periods after GASB 68 implementation.

Safety Plan
Measurement period, year ended 1 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's proportion of the nct pension liability 0.26351% 0.27222% 0.27242% 0.28572% 0.30267% 0,30596% Plan's proportionate share of the net pension liability $ 27,002,144 $ 26,231,540 S 27,017,047 $ 24,723,412 $ 20,774,757 $ 19,038,500 Plan's covered payroll $ 4,130,110 $ 4,009,816 S 3,893,025 $ 4,142,921 $ 4,074,947 $ 4,323,789 Plan's proportionate share of the net pension liability as a percentage of covered payroll 653.79% 654.18% 693.99% 596.76% 509.82% 440.32% Plan's fiduciary net position $ 69,385,418 $ 65,913,238 $ 62,459,293 $ 58,150,629 $ 60,121,518 $ 61,484,214 Plan's fiduciary net position as a percentage of the total pension liability 71.99% 71.53% 69.81% 70.17% 74.32°/ 76.36% Plan's proportionate share of aggregate employer contributions S 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 S 2,157,763 Notes to Schedule:

Chanties in assumptions None in 2019. In 2018 demographic assumption and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). in 2014, amounts reported wcrc bascd on thc 7.5% discount rate.

Historical information is presented only for measurement periods after GASB 68 implementation. 99 City of Placentia
Schedule of City's Pension Contributions
Last Ten Fiscal Years
For the Year Ended June 30, 2021
Miscellaneous Plan
Fiscal year
Contractually determined contribution (actuarially determined) Contributions in relation to the actuarially determined contributions Contribution deficiency (excess)
2020-21 2019-20
$ 1,516,621 S 1,383,994
(17,663,643) (1,383,994)
$ (16,147,022) S
Covered payroll $ 4,453,916 $ 4,453,916
Contributions as a percentage of covered payroll 396.59% 31.07% Historical information is presented only for measurement periods after GASB 68 implementation.

Notes to Schedule
Valuation date: 6/30/2019 6/30/2018
The actuarial methods and assumptions uscd to set the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2019 public agency valuations.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period
Asset valuation method
Level percentage of payroll
Fair Value
Inflation 2,75%
Salary increases Varies by entry age and service
Payroll growth 2.875%
Investment rate of return 7.25%, net of pension plan investment and administrative expenses, including inflation Retirement age The probabilities of retirement are based on the 2014 CaIPERS Experience study for the period from 1997 to 2015.

Mortality
The probabilities of mortality arc based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015. Pre -retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP -2016 published by the Society of Actuaries, For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CaIPERS website.
100

City of Placentia
Schedule of City's Pension Contributions
Last Ten Fiscal Years
For the Year Ended June 30, 2021
Miscellaneous Plan
Fiscal year' 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Contractually determined contribution (actuarially determined) S 1,139,534 $ 932,993 $ 785,438 S 667,441 $ 383,155 $ 412,406 Contributions in relation to the actuarially determined contributions (1,139,534) (932,993) (785,438) (667,441) (383,155) (412,406) Contribution deflciency (excess) S $ $ S $ $
Covered payroll S 4,324,190 $ 4,198,243 $ 4,075,964 S 4,140,888 $ 3,220,454 $ 3,712,315 Contributions as a percentage of covered payroll 26,35% 22.22% 19.27% 16.12% 11.90% 11.11% 1 Historical information is presented only for measurement periods after GASB 68 implementation.

Notes to Schedule
Valuation date: 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2019 public agency valuations, Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period Level percentage of payroll
Asset valuation method Fair Value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll growth 2.875%
Investment rate of return 7.25%, net of pension plan investment and administrative expenses, including inflation Retirement age The probabilities of retirement are based on the 2014 CaIPERS Experience study for the period from 1997 to 2015.

Mortality The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015. Prc-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90%of Scale MP -2016 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CaIPERS website.
101

City of Placentia
Schedule of City's Pension Contributions (Continued)
Last Ten Fiscal Years
For the Year Ended June 30, 2021
Safety Plan
Fiscal year 2020-21 2019-20
Contractually determined contribution (actuarially determined) $ 2,561,365 $ 2,519,683 Contributions in relation to the actuarially determined contributions (30,597,527) (2,519,683) Contribution deficiency (excess) $ (28,036,162) $
Covered payroll $ 4,381,634 $ 4,254,014
Contributions as a percentage of covered payroll 698.31% 59.23% Historical information is presented only for measurement periods after GASB 68 implementation.

Notes to Schedule
Valuation date:
6/30/2019 6/30/2018
The actuarial methods and assumptions used to sct the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2019 public agency valuations.

Methods and assumt+tions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period Level percentage of payroll
Assct valuation method Fair Value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll growth 2.875%

7.25%, net of pension plan investment and administrative expenses, including inflation Investment rate of return
Retirement age
M ortality
The probabilities of retirement are based on the 2014 Ca1PERS Experience study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015, Pre -retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP -2016 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CaIPERS website.
102

Fiscal year
City of Placentia
Schedule of City's Pension Contributions (Continued)
Last Ten Fiscal Years
For the Year Ended June 30, 2021
Safety Plan
2018-19 2017-18 2016-17 2015-16 2014-15 2013-14r
Contractually determined contribution (actuarially determined) S 2,108,590 S 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 S 2,157,763 Contributions in relation to the actuarially determined contributions (2,108,590) (3,034,432) (2,753,462) (2,568,441) (2,175,167) (2,157,763) Contribution deficiency (excess) $ - $ 5 - $ g $
Covered payroll $ 4,130,110 $ 4,009,816 $ 3,893,025 $ 4,142,921 S 4,074,947 $ 4,323,789 Contributions as a percentage of covered payroll 51.05% 75.68% 70.73% 62.00% 53.38% 49.90% Historical information is presented only for measurement periods after GASB 68 implementation, Notes to Schedule
Valuation date: 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2019 public agency valuations.

Methods and assumptions used to determine contribution rates:

7.25%, net of pension p lan investment and administrative expenses, including inflation Investment rate of return
Retirement age
Mortality
The probabilities of retirement arc based on the 2014 CaIPERS Experience study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015. Pre -retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP -2016 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CaIPERS website.
103

City of Placentia
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Fiscal Years
For the Year Ended June 30, 2021
Measurement period, year ending.
6/30/2020 6/30/2019 6/30/2018 6/30/2017
Total OPEB liability
Service cost $ 359,454 $ 542,976 $ 569,606 $ 675,000
Interest 919,735 1,092,405 1,032,870 899,000
Changes of benefit terms
Differences between expected and actual experience (2,606,242) - Changcsofassumplions 4,699,117 332,593 (1,089,486) (3,058,000) Benefit p ayments, including refunds of member contributions (1,142,314) (1,112,888) (1,107,000) (1,116,000) Net change in total OPEB liability 4,835,992 (1,751,156) (594,010) (2,600,000) Total OPEB liability - beginning 26,489,834 28,240,990 28,835,000 31,435,000 Total OPEB liability - ending (a) $ 31,325,826 $ 26,489,834 $ 28,240,990 $ 28,835,000 OPEB fiduciary net position
Contributions - employer $ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,116,000 Net investment income
Benefit payments, including refunds of member contributions (1,146,160) (1,142,314) (1,112,888) (1,116,000) Administrative expense
Net change in plan fiduciary net position -
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net OPEB liability - ending (a) - (b) $ 31,325,826 $ 26,489,834 $ 28,240,990 $ 28,835,000 Plan fiduciary net position as a percentage of the total OPEB lial 0.00% 0.00% 0.00% 0.00% Covered payroll $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 9,367,000 Plan net OPEB liability as a percentage of covered payroll 224% 216% 239% 308% Historical information is only presented for measurement periods after GASB 75 implementation.

Notes to Schedule:

For the June 30, 2020 measurement date, the discount rate was updated based on the municipal bond rate as of the measurement date. 104

Fiscal year
City of Placentia
Schedule of City's OPEB Contributions
Last Ten Fiscal Years
For the Year Ended June 30, 2021
2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution $ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,107,000 Contributions in relation to the actuarially determined contribution (1,146,160) (1,142,314) (1,112,888) (1,107,000) Contribution deficiency (excess) S $ - $ S
Coveredpayroll $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 11,466,203 Contributions as apercentage of covered payroll 8,19% 9,30% 9.42% 9.65% Historical information is only presented for measurement periods after GASB 75 implementation.

Notes to Schedule
Valuation date: 6/30/2020 6/30/2019 6/30/2017 6/30/2017 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period Level percentage of payroll
Inflation 2.75% annually
Salary increases Aggregate 3% annually, Merit - CaIPERS 1997-2015 Experience Study Payroll growth 3.00%
Discount rate 2,21% (Bond Buyer 20 -Bond Index)
Mortality, retirement, disability. Ca1PERS Experience Study 1997-2015 termination
Mortality improvement Post-retirement mortality projected fully generational with Scale MP -2019 105

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106

SUPPLEMENTARY INFORMATION
107

NONMAJOR GOVERNMENTAL FUNDS
Miscellaneous Grants Special Revenue Fund — to account for Federal, State, County or other grants received which are not otherwise separately accounted for in other funds.

Park Development Special Revenue Fund— to account for in lieu fees charged to developers on a per unit basis for park development and rehabilitation.

Street Lighting Special Revenue Fund - to account for funds received from special assessments on property owners to provide street lighting in areas of the City not covered by the County lighting district.

Measure M Special Revenue Fund — to account for funds received by the City as a result of the voter -approved ballot measure in 1990 and extended by voter approval in 2006 to increase sales tax by 1/2 percent in Orange County to fund transportation projects.

Storm Drain Construction Special Revenue Fund — to account for funds restricted by State law to be spent on storm drain construction, which are received from acreage fees placed on developers at the time of development. The City is divided into eight storm drain areas and funds can be expended only within the area in which funds are collected.

Thoroughfare Construction Special Revenue Fund — to account for funds restricted by City ordinance to be spent for traffic signal, bridge and culvert construction, which are received from acreage fees placed on developers at the time of development.

Asset Seizure Special Revenue Fund — to account for monies seized from criminal activities. Revenues are restricted for use in law enforcement.

Traffic Offender Special Revenue Fund — to account for revenue generated from driving under the influence (DUI) administrative impound fees that are restricted to be spent on traffic enforcement activities, including but not limited to personnel, training, and equipment costs.

Supplemental Law Enforcement Special Revenue Fund — to account for the receipts and expenditures of funds resulting from the Citizen's Option for Public Safety (COPS) program, a state funded program, which are restricted for front line municipal police services.

Air Quality Special Revenue Fund — to account for the City's portion of motor vehicle registration fees collected pursuant to AB2766 passed during the 1990 State legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources, such as cars, trucks, and buses.

Landscape Maintenance District 92-1 Special Revenue Fund — to account for benefit assessments levied under the Landscaping and Lighting Act of 1972, restricted for maintenance, operation, and administration of landscape improvements in certain areas of the City.

Housing and Community Development Special Revenue Fund — to account for U.S. Housing and Community Development Department grants requiring segregated fund accounting, such as the Community Development Block Grant program.

Gasoline Tax Special Revenue Fund — to account for receipts and expenditures of money apportioned under Streets and Highways Code Sections 2103, 2105, 2106, 2107, and 2107.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of public streets.

Sewer Construction Special Revenue Fund— to account for funds restricted by State law to be spent on sewer construction, which are received from acreage fees placed on developers at the time of development.

PEG Special Revenue Fund - to account for a portion of funds received from cable television franchise fees that are restricted for use for Public, Educational and Governmental (PEG) access channels and related programming.

Affordable Housing In Lieu Fund - to account for the receipt and expenditure of developer fees restricted for affordable housing purposes.
108

NONMAJOR GOVERNMENTAL FUNDS (Continued)
SBl Gas Tax Fund - to account for the receipts and expenditures of Road Maintenance and Rehabilitation Account (RMRA) funds resulting from the Road Repair and Accountability Act of 2017 (SB 1). Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges and other transit related improvements.

North Orange County Public Safety Grant Fund - to account for the receipts and expenditures of the North Orange County Public Safety Task Force (NOC) grant funds to the City. Funds are restricted to be used for law enforcement activities, including but not limited to pertaining to violence prevention, intervention and suppression activities.

Community Based Transitional Housing Grant Fund - to account for the receipts and expenditures of the Community -Based Transitional Housing Program Grant awarded by the State of California Department of Finance. Funds are restricted to be used to provide transitional support housing that provides treatment and reentry programming to individuals who will benefit from those services.

TOD Impact Fee Special Revenue Fund - to account for the receipts and expenditures of new development impact on the City's sewer collection system in the City's Transit -Oriented Development Zone (TOD). Funds are restricted within the TOD project area, including but not limited to acquisition, financing, construction and reconstruction of sanitary or sewer facilities and infrastructure in the TOD.

Placentia Regional Navigation Center Special Revenue Fund - to account for the receipts and expenditures related to the construction and operation of the Placentia Regional Navigation Center. Revenues include the Homeless Emergency Aid Program ("HEAP") Grant and SB2 funds. Future revenue sources will include reimbursements from the North Orange County Cities.

General Plan Update Fee Fund - to account for the accumulation of General Plan update fees that are charged on building permits.

Expenditures are restricted to update the City General Plan or other specific plans.

Technology Impact Fee Fund - to account for the accumulation of technology fees charged on building permits. Expenditures are restricted for the acquisition and construction of technology improvements.

OCATT Fund - to account for public safety staff assigned to the Orange County Auto Theft Task Force (OCATT). Activities include auto theft, including, but not limited to, prevention, intervention, and suppression activities.

Housing Successor Fund - to account for for the residual balance of the former low and moderate income housing fund of the former Placentia Redevelopment Agency, and revenues and expenditures related to such housing projects and programs.

City Capital Projects Fund - to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of major capital facilities within the boundaries of the City.

Gas Tax Debt Service Fund - to account for the receipt and expenditure of gas tax revenues pledged for the payment of debt service on debt payable from Gas Tax proceeds.
109

City of Placentia
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
Miscellaneous Park Street
Grants Development Lighting Measure M
ASSETS
Cash and investments $ $ 20,152 $ 39,170 $ 571,339
Receivables:

Accounts
Taxes - 1,381 94,726
Grants
Loans and notes _
Prepaid items
Land held for resale _
Total assets $ - $ 20,152 $ 40,551 $ 666,065

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
12,950 $
1,929
40,622
Total liabilities 55,501
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
$ 40,552 $ 6,123
40,552 6,123
Fund balances:

Restricted 20,152 659,942
Unassigned (deficit) (55,501) (1) -
Total fund balances (55,501) 20,152 (1) 659,942
Total liabilities, deferred inflows of
resources, and fund balances $ $ 20,152 $ 40,551 $ 666,065 (Continued)
110

City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
Storm Drain Thoroughfare
Construction Construction
Asset Seizure
Traffic
Offender
ASSETS
Cash and investments $ 24,519 $ 5,568 $ 365,608 $ 4,559 Receivables:

Accounts - 1,124
Taxes -
Grants
Loans and notes -
Prepaid items - - 6,000
Land held for resale
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
$ 24,519 $ 5,568 $ 371.608 $ 5,683
Liabilities:

Accounts payable $ $ $ 8,392 $
Accrued liabilities
Due to other funds
Total liabilities 8,392
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
24,519 5,568 363,216 5,683
24,519 5,568 363,216 5,683
$ 24,519 $ 5,568 $ 371,608 $ 5,683
(Continued)
111

City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Supplemental
Law
Enforcement
Special Revenue Funds
Air Quality
Landscape Housing and
Maintenance Community
District 92-1 Development
ASSETS
Cash and investments $ 152,452 $ 135,960 $ $ 168
Receivables:

Accounts 17,097 -
Taxes - 8,277
Grants
Loans and notes
Prepaid items
Land held for resale
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
$ 152,452 $ 153,057 $ 8,277 $ 168
Liabilities:

Accounts payable $ $ $ 64,945 $
Accrued liabilities 4,615
Due to other funds - - 31,873
Total liabilities - 101,433
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
168
86,784
86,952
Fund balances:

Restricted 152,452 153,057
Unassigned (deficit) - (93,156) (86,784)
Total fund balances 152,452 153,057 (93,156) (86,784)
Total liabilities, deferred inflows of
resources, and fund balances $ 152,452 S 153,057 $ 8,277 $ 168 (Continued)
112

ASSETS
Cash and investments
Receivables:

Accounts
Taxes
Grants
Loans and notes
Prepaid items
Land held for resale
City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Gasoline Tax
Special Revenue Funds
Sewer
Construction
PEG
Affordable
Housing
In -Lieu
9,596 $ 21,977 $ $ 55,192
20,168
Total assets $ 9,596 $ 21,977 $ 20,168 $ 55,192

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
9,143 $
9,143
8,951 $
40,948
49,899
Fund balances:

Restricted 453 21,977 55,192
Unassigned (deficit) - (29,731) -
Total fund balances 453 21,977 (29,731) 55,192
Total liabilities, deferred inflows of
resources, and fund balances $ 9,596 $ 21,977 $ 20,168 $ 55,192 (Continued)
113

City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
SB 1 Gas Tax
Special Revenue Funds
Community Based
NOC Public Transitional TOD
Safety Grant Housing Grant Impact Fee
ASSETS
Cash and investments $ 971,853 $ 318,655 $ - $ 3,681,965 Receivables:

Accounts - -
Taxes 173,960 -
Grants -
Loans and notes
Prepaid items -
Land held for resale _
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
$ 1,145,813 $ 318,655 $ $ 3,681,965
Liabilities:

Accounts payable $ $ 840 $ $
Accrued liabilities - 8,257
Due to other funds
Total liabilities - 9,097
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
1,145,813 309,558 3,681,965
1,145,813 309,558 3,681,965
$ 1,145,813 $ 318,655 $ $ 3,681,965
(Continued)
114

City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
Placentia
Regional General Plan Technology
Navigation Center Update Fee Impact Fee
ASSETS
Cash and investments $ $ 709,122 $ 334,596 $
Receivables:

Accounts 658,219 10
Taxes _
Grants
Loans and notes
Prepaid items _
Land held for resale _
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
$ 658,219 $ 709,122 5 334,606 $
Liabilities:

Accounts payable $ $ $ $
Accrued liabilities
Due to other funds 821,745
Total liabilities 821,745
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
626,379
626,379
Fund balances:

Restricted 709,122 334,606
Unassigned (deficit) (789,905)
Total fund balances (789,905) 709,122 334,606
Total liabilities, deferred inflows of
resources, and fund balances $ 31,840 $ 709,122 $ 334,606 $ 115
OCATT
(Continued)

City of Placentia
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Capital Debt
Fund Projects Fund Service Fund
Total Other
Housing City Capital Governmental
Successor Projects Gas Tax Funds
ASSETS
Cash and investments $ 266,864 $ $ $ 7,689,315
Receivables:

Accounts 696,618
Taxes 278,344
Grants 372,653 372,653
Loans and notes 791,052 791,052
Prepaid items - - 6,000
Land held for resale 1,036,760 - 1,036,760
Total assets $ 2,094,676 $ 372,653 $ $ 10,870,742

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ $ 873 $ $ 152,937
Accrued liabilities - 14,801
Due to other funds 349,568 1,371,540
Total liabilities - 350,441 1,539,278
Deferred inflows of resources:

Unavailable revenues 243,136 372,653 1,242,168
Total deferred inflows of resources 243,136 372,653 1,242,168 Fund balances:

Restricted 1,851,540 - 9,494,815
Unassigned (deficit) (350,441) (1,405,519)
Total fund balances 1,851,540 (350,441) 8,089,296
Total liabilities, deferred inflows of
resources, and fund balances $ 2.094.676 $ 372,653 $ $ 10.870.742 (Concluded)
116

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES:

Intergovernmental
Fines and forfeitures
Investment earnings
Charges for services
Lease revenue
Contributions
Miscellaneous
Total revenues
$
Special Revenue Funds
Miscellaneous Park Street
Grants Development Lighting Measure M
- $ $ $ 862,250
175 79 2,716
- 133,960
29,000
29,175
79 133,960 864,966
EXPENDITURES:

Current:

General government -
Public safety 23,504
Public works - 462,507
Community development -
Community services 4,161
Capital outlay 144,778 559,714
Debt service:

Principal retirement - 321,522
Interest and fiscal charges 8,593
Total expenditures 172,443 - 462,507 889,829

REVENUES OVER (UNDER)
EXPENDITURES (143,268) 79 (328,547) (24,863)
OTHER FINANCING SOURCES (USES):

Issuance of debt
Payment to escrow for refunding debt
Transfers in 338,852
Transfers out
Total other financing
sources (uses) 338,852
NET CHANGES IN FUND BALANCES (143,268) 79 10,305 (24,863) FUND BALANCES:

Beginning of year 87,767 20,073 (10,306) 684,805
End of year $ (55,501) $ 20,152 $ (1) $ 659,942
(Continued)
117

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES:

Intergovernmental
Fines and forfeitures
Investment earnings
Charges for services
Lease revenue
Contributions
Miscellaneous
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Issuance of debt
Payment to escrow for refunding debt
Transfers in
Transfers out
Total other financing
sources (uses)

NET CHANGES IN FUND BALANCES
FUND BALANCES:

Beginning of year
End of year
$
Special Revenue Funds
Storm Drain Thoroughfare
Construction Construction
Asset Seizure
$ - $ - $
- 23,730
96 71 1,779
Traffic
Offender
16 96 71 25,509 16
78,156
20,100 99,140
20,100 177,296
96 (20,029) (151,787) 16
96 (20,029) (151,787) 16
24,423 25,597 515,003 5,667
$ 24,519 $ 5,568 $ 363,216 $ 5,683
118
(Continued)

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
Supplemental Landscape Housing and
Law Maintenance Community
Enforcement Air Quality District 92-1 Development
REVENUES:

Intergovernmental $ 156,731 $ 83,560 $ $ 1,153,466
Fines and forfeitures -
Investment earnings 691 492 -
Charges for services - - 451,345
Lease revenue
Contributions
Miscellaneous
Total revenues
EXPENDITURES:

Current:

General government
Public safety 100,000
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 100,000
157,422 84,052 451,345 1,153,466

REVENUES OVER (UNDER)

EXPENDITURES
511,429
40,610
11,404
40 767,374
97,700
165,650
52,054 511,429 1,030,724
57,422 31,998 (60,084) 122,742
OTHER FINANCING SOURCES (USES):

Issuance of debt
Payment to escrow for refunding debt
Transfers in
Transfers out (17,747)
Total other financing
sources (uses) (17,747)
NET CHANGES IN FUND BALANCES 57,422 31,998 (77,831)
FUND BALANCES:

Beginning of year 95,030 121,059 (15,325)
End of year $ 152,452 $ 153,057 $ (93,156) $
119
122,742
(209,526)
(86,784)
(Continued)

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
Affordable
Sewer Housing
Gasoline Tax Construction PEG In -Lieu
REVENUES:

Intergovernmental $ 1,132,820 $
Fines and forfeitures
Investment earnings 453 87
Charges for services - - 82,031
Lease revenue
Contributions _
Miscellaneous
Total revenues
532
1,133,273 87 82,031 532
EXPENDITURES:

Current:

General government
Public safety
Public works 644,327
Community development
Community services
Capital outlay 3,993
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 648,320

REVENUES OVER (UNDER)

EXPENDITURES
•
83,500
540
83,500 540
484,953 87 (1,469) (8)
OTHER FINANCING SOURCES (USES):

Issuance of debt
Payment to escrow for refunding debt
Transfers in
Transfers out (484,500)
Total other financing
sources (uses) (484,500)
•
NET CHANGES IN FUND BALANCES 453 87 (1,469) (8)
FUND BALANCES:

Beginning of year 21,890 (28,262) 55,200
End of year $ 453 $ 21,977 $ (29,731) $ 55.192
(Continued)
120

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
Community Based
NOC Public Transitional TOD
SB 1 Gas Tax Safety Grant Housing Grant Impact Fee
REVENUES:

Intergovernmental $ 954,625 $ 483,998 $ $
Fines and forfeitures -
Investment earnings 2,930 1,144 6,901
Charges for services - 2,938,876
Lease revenue - -
Contributions
Miscellaneous
Total revenues 957,555 485,142 2,945,777
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
556,062
225,088 5,146
261,400
542 7,050
4,948 -
Total expenditures 556,062 230,578 273,596

REVENUES OVER (UNDER)
EXPENDITURES 401,493 254,564 (273,596) 2,945,777
OTHER FINANCING SOURCES (USES):

Issuance of debt
Payment to escrow for refunding debt
Transfers in - 104,192
Transfers out - (21,432)
Total other financing
sources (uses) (21,432) 104,192
NET CHANGES IN FUND BALANCES 401,493 233,132 (169,404) 2,945,777 FUND BALANCES:

Beginning of year 744,320 76,426 169,404 736,188
End of year $ 1,145.813 $ 309,558 $ $ 3.681.965
(Continued)
121

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
Placentia
Regional General Plan Technology
Navigation Center Update Fee Impact Fee
REVENUES:

Intergovernmental $ 1,068,947 $ $ $
Fines and forfeitures - -
Investment earnings 1,787 993
Charges for services 433,324 244,601
Lease revenue - -
Contributions 768,751
Miscellaneous -
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
1,837,698
1,605,523
82 214,448
19,000
1,839,053
(1,355)
435,111 245,594
435,111 245,594
OTHER FINANCING SOURCES (USES):

Issuance of debt _
Payment to escrow for refunding debt
Transfers in _
Transfers out (10,739) (85,000)
Total other financing
sources (uses) (10,739) (85,000)
NET CHANGES IN FUND BALANCES (12,094) 435,111 160,594
FUND BALANCES:

Beginning of year (777,811) 274,011 174,012
End of year $ (789.905) $ 709,122 $ 334.606 $
122
OCATT
(Continued)

City of Placentia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES:

Intergovernmental
Fines and forfeitures
Investment earnings
Charges for services
Lease revenue
Contributions
Miscellaneous
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Special Revenue Capital Debt
Fund Projects Fund Service Fund
Total Other
Housing City Capital Governmental
Successor Projects Gas Tax Funds
$ 157,715 $ $ 6,054,112
23,730
4,089 25,031
- 4,284,137
10,100 - 10,100
768,751
94,436 64,022 187,458
104,536 221,737 4,089 11,353,319
•
61,851
301,000
345,311
83,500
2,037,417
1,618,263
1,029,3 14
109,535
1,871,294
633,926
372,944
61,851 646,311 7,756,193
104,536 159,886 (642,222) 3,597,126
OTHER FINANCING SOURCES (USES):

Issuance of debt 3,656,000 3,656,000
Payment to escrow for refunding debt - (3,915,000) (3,915,000) Transfers in - 484,500 927,544
Transfers out - (78,594) (698,012)
Total other financing
sources (uses) - 146,906 (29,468)
NET CHANGES IN FUND BALANCES 104,536 159,886 (495,316) 3,567,658 FUND BALANCES:

Beginning of year 1,747,004 (510,327) 495,316 4,521,638 End of year $ 1,851,540 $ (350,4411 $ $ 8.089.296
(Concluded)
123

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 812,300 $ 1,196,137 $ $ (1,196,137) Investment earnings - - 175 175
Miscellaneous 48,000 65,000 29,000 (36,000)
Total Revenues 860,300 1,261,137 29,175 (1,231,962)
Expenditures:

Current:

Public safety 42,100 42,100 23,504 18,596
Community services 60,500 55,500 4,161 51,339
Capital outlay 855,200 913,700 144,778 768,922
Total Expenditures 957,800 1,011,300 172,443 838,857
NET CHANGE IN FUND BALANCE $ (97,500) $ 249,837 (143,268) $ (2,070,819) FUND BALANCE:

Beginning of Year
End of Year
124
87,767
$ (55,501)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:

Charges for services
Total Revenues
Expenditures:

Current:

Public works
Total Expenditures

REVENUE OVER
(UNDER) EXPENDITURES
Other Financing Sources:

Transfers in
Total Other Financing Sources

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 135,000 $ 135,000 $ 133,960 $ (1,040)
135,000 135,000 133,960 (1,040)
410,600 410,600 462,507 (51,907)
410,600 410,600 462,507 (51,907)
(275,600) (275,600) (328,547) (52,947)
276,000 276,000 338,852 62,852
276,000 276,000 338,852 62,852
$ 400 $ 400 10,305 $ 9,905
125
(10,306)
$ (1)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 736,200 $ 896,200 $ 862,250 $ (33,950) Investment income - 2,716 2,716
Total Revenues 736,200 896,200 864,966 (31,234)
Expenditures:

Capital outlay 676,000 711,823 559,714 152,109
Debt service:

Principal retirement 246,000 246,000 321,522 (75,522)
Interest and fiscal charges 32,600 32,600 8,593 24,007
Total Expenditures 954,600 990,423 889,829 100,594
NET CHANGE IN FUND BALANCE $ (218,400) $ (94,223) (24,863) $ 69,360 FUND BALANCE:

Beginning of Year
End of Year
126
684,805
$ 659,942

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Thoroughfare Construction Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:

Investment income
Total Revenues
Expenditures:

Capital outlay
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ $ 71 $ 71
71 71
$ 16,900 $ 25,100 $ 20,100 $ 5,000
16,900 25,100 20,100 5,000
$ (16,900) $ (25,100) (20,029) $ 5,071
127
25,597
$ 5,568

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:

Fines and forfeitures
Investment earnings
Total Revenues
Expenditures:

Current:

Public safety
Capital outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ 23,730 $ 23,730
1,779 1,779
25,509 25,509
105,000 132,201 78,156 54,045
95,500 115,200 99,140 16,060
200,500 247,401 177,296 70,105
$ (200,500) $ (247,401) (151,787) $ 95,614
128
515,003
$ 363,216

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
OriginaI Final Amounts (Negative)
Revenues:

Intergovernmental $ 100,000 $ 100,000 $ 156,731 $ 56,731 Investment earnings 691 691
Total Revenues 100,000 100,000 157,422 57,422
Other Financing (Uses):

Transfers out (f 00,000) (100,000) 100,000
Total Other Financing (Uses) (100,000) (100,000) 100,000 NET CHANGE IN FUND BALANCE $ $ 157,422 $ 157,422
FUND BALANCE:

Beginning of Year
End of Year
129
95,030
$ 252,452
100,000

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Air Quality Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 66,000 $ 66,000 $ 83,560 $ 17,560
Investment earnings - - 492 492
Total Revenues 66,000 66,000 84,052 18,052
Expenditures:

Capital outlay 86,248 40,610 45,638
Debt service:

Principal retirement 11,500 11,500 11,404 96
Interest and fiscal charges 40 (40)
Total Expenditures 11,500 97,748 52,054 45,694
NET CHANGE IN FUND BALANCE $ 54,500 $ (31,748) 31,998 $ 63,746 FUND BALANCE:

Beginning of Year 121,059
End of Year $ 153,057
130

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Landscape Maintenance District 92-1 Special Revenue Fund For the Year Ended June 30, 2021
Revenues:

Charges for services
Total Revenues
Expenditures:

Current:

Public works
Total Expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 447,500 $ 447,500 $ 451,345 $ 3,845
447,500 447,500 451,345 3,845
443,900 443,900 511,429 (67,529)
443,900 443,900 511,429 (67,529)
$ 3,600 $ 3,600 (77,831) $ (81,431)
131
(15,325)
$ (93,156)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing and Community Development Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
Original Final
Revenues:

Intergovernmental $ 352,000 $ 1,971,555
Total Revenues 352,000 1,971,555
Expenditures:

Current:

Community development
Capital outlay
Total Expenditures

REVENUE OVER
(UNDER) EXPENDITURES
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
62,500 1,252,129
220,400
62,500 1,472,529
289,500 499,026
(97,700) (97,700)
(97,700) (97,700)
$ 191,800 $ 401,326
132
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 1,153,466 $ (818,089)
1,153,466 (818,089)
767,374
165,650
933,024
220,442
484,755
54,750
539,505
(278,584)
- 97,700
97,700
220,442 $ (180,884)
(209,526)
$ 10,916

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gasoline Tax Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 1,169,608 $ 1,169,608 $ 1,132,820 $ (36,788) Investment earnings 453 453
Total Revenues 1,169,608 1,169,608 1,133,273 (36,335)
Expenditures:

Current:

Public works 230,800 230,800 644,327 (413,527)
Capital outlay 3,993 3,993 -
Total expenditures 230,800 234,793 648,320 (413,527)

REVENUE OVER
(UNDER) EXPENDITURES 938,808 934,815 484,953 (449,862)
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
(1,084,500) (1,084,500) (484,500) 600,000
(1,084,500) (1,084,500) (484,500) 600,000
$ (145,692) $ (149,685) 453 $ 150,138
133
$ 453

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual PEG Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:

Charges for services
Total Revenues
Expenditures:

Current:

General government
Total Expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 80,000 $ 80,000 $ 82,031 $ 2,031
80,000 80,000 82,031 2,031
94,400 98,285 83,500 14,785
94,400 98,285 83,500 14,785
$ (14,400) $ (18,285) (1,469) $ 16,816
134
(28,262)
$ (29,731)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB1 RMRA Gas Tax Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 871,649 $ 871,649 $ 954,625 $ 82,976 Investment earnings - 2,930 2,930
Total Revenues 871,649 871,649 957,555 85,906
Expenditures:

Capital outlay 407,800 733,276 556,062 177,214
Total Expenditures 407,800 733,276 556,062 177,214
NET CHANGE IN FUND BALANCE $ 463,849 $ 138,373 401,493 $ 263,120 FUND BALANCE:

Beginning of Year
End of Year
135
744,320
$ 1,145,813

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual North Orange County (NOC) Public Safety Grant Special Revenue Fund For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 404,000 $ 404,000 $ 483,998 $ 79,998 Investment earnings 1,144 1,144
Total Revenues 404,000 404,000 485,142 81,142
Expenditures:

Current:

Public safety 336,200 336,200 225,088 111,112
Community services 14,700 14,700 542 14,158
Capital outlay 27,000 27,000 4,948 22,052
Total Expenditures 377,900 377,900 230,578 147,322

REVENUE OVER
(UNDER) EXPENDITURES
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
26,100 26,100
254,564 228,464
(21,432) (21,432)
(21,432) (21,432)
$ 26,100 $ 26,100 233,132 $ 207,032
FUND BALANCE:

Beginning of Year 76,426
End of Year $ 309.558
136

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Based Transitional Housing Grant Special Revenue Fund For the Year Ended June 30, 2021
Variance with
Final Budget
Budgetcd Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:

Current:

Public safety $ 7,600 $ 7,600 $ 5,146 $ 2,454
Community development 261,400 261,400 261,400 -
Community services 7,050 (7,050)
Total Expenditures 269,000 269,000 273,596 (4,596)

NET CHANGE IN FUND BALANCE
$ (269,000) $ (269,000) (169,404) $ 99,596
FUND BALANCE:

Beginning of Year
End of Year $
137
169,404

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Placentia Regional Navigation Center Special Revenue Fund For the Year Ended June 30, 2021
Revenues:

Intergovernmental
Contributions
Budgeted Amounts
Original Final
1,140,925
Total Revenues 1,140,925
Expenditures:

Current:

Public safety
Community services
Capital outlay
Debt service:

Interest and fiscal charges
Total Expenditures

REVENUE OVER
(UNDER) EXPENDITURES
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
$ 286,863
1,790,439
2,077,302
1,781,655 1,631,655
11,000
100,000 540,898
19,010
1,881,655 2,202,563
(740,730) (125,261)
(10,739)
(10,739)
$ (740,730) $ (136,000)
138
Actual
Amounts
$ 1,068,947
768,751
1,837,698
1,605,523
82 214,448
19,000
1,839,053
(1,355)
Variance with
Final Budget
Positive
(Negative)
$ 782,084
(1,021,688)
(239,604)
26,132
10,918
326,450
10 363,510
123,906
(10,739)
(10,739)
(12,094) $ 123,906
(777,811)
$ (789,905)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Plan Update Fee Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment earnings $ $ $ 1,787 $ 1,787
Charges for services 100,000 100,000 433,324 333,324
Total Revenues 100,000 100,000 435,111 335,111
NET CHANGE IN FUND BALANCE $ 100,000 $ 100,000 435,111 $ 335,111 FUND BALANCE:

Beginning of Year
End of Year
139
274,011
$ 709,122

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Technology Impact Fee Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:

Investment earnings
Charges for services
Total Revenues
Other Financing (Uses):

Transfers out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ $ 993 $ 993
50,000 50,000 244,601 194,601
50,000 50,000 245,594 195,594
(85,000) (85,000) (85,000)
(85,000) (85,000) (85,000)
$ (35,000) $ (35,000) 160,594 $ 195,594
140
174,012
$ 334,606

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Successor Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Lease revenue $ 9,600 $ 9,600 $ 10,100 $ 500
Miscellaneous 48,600 48,600 94,436 45,836
Total Revenues 58,200 58,200 104,536 46,336
NET CHANGE IN FUND BALANCE $ 58,200 $ 58,200 104,536 $ 46,336 FUND BALANCE:

Beginning of Year
End of Year
141
1,747,004
$ 1.851,540

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual City Capital Projects Fund
For the Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ $ 1,314,295 $ 157,715 $ (1,156,580) Miscellaneous - 64,022 64,022
Total Revenues 1,314,295 221,737 (1,092,558)
Expenditures:

Capital outlay - 1,330,467 61,851 1,268,616
Total Expenditures 1,330,467 61,851 1,268,616
NET CHANGE IN FUND BALANCE $ $ (16,172) 159,886 $ 176,058 FUND BALANCE:

Beginning of Year
End of Year
142
(510,327)
$ (350,441)

City of Placentia
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Debt Service Fund
For the Year Ended June 30, 2021
Revenues:

Investment earnings
Total Revenues
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ $ 4,089 $ 4,089
4,089 4,089
Expenditures:

Debt service:

Principal retirement 275,000 275,000 301,000 (26,000)
Interest and fiscal charges 209,500 209,500 345,311 (135,811) Total Expenditures 484,500 484,500 646,311 (161,811)

REVENUE OVER
(UNDER) EXPENDITURES (484,500) (484,500) (642,222) (157,722) Other Financing Sources (Uses):

Proceeds from issuance of debt 3,656,000 3,656,000
Payment to escrow for refunding debt (1,818,004) (3,915,000) (2,096,996) Transfers in 484,500 484,500 484,500 -
Transfers out (78,594) (78,594)
Total Other Financing Sources (Uses) 484,500 (1,333,504) 146,906 1,480,410 NET CHANGE IN FUND BALANCE $ - S (1,818,004) (495,316) $ 1,322,688 FUND BALANCE:

Beginning of Year
End of Year $
143
495,316

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144

INTERNAL SERVICE FUND FINANCIAL STATEMENTS
145

City of Placentia
Combining Statement of Net Position
All Internal Service Funds
June 30, 2021
Risk Health and Equipment
Management Welfare Replacement
ASSETS
Total
Current assets:

Cash and investments $ 2,089,375 $ 32,326 $ 38,877 $ 2,160,578 Receivable:

Accounts - 53 53
Total current assets 2,089,375 32,379 38,877 2,160,631
Total assets 2,089,375 32,379 38,877 2,160,631

LIABILITIES
Current liabilities:

Accounts payable 52,751 13,362 - 66,113
Accrued liabilities 5 - 5
Accrued claims and judgments - due within one year 967,626 967,626 Total current liabilities 1,020,382 13,362 1,033,744
Noncurrent liabilities:

Accrued claims and judgments - due in more than one year Total noncurrent liabilities
Total liabilities

NET POSITION
Unrestricted
Total net position
See accompanying Notes to the Basic Financial Statements 2,902,877
2,902,877
3,923,259
2,902, 877
2,902,877
13,362 3,936,621
(1,833,884) 19,017 38,877 (1,775,990)
$ (1,833,884) $ 19,017 $ 38,877 $ (1,775,990)
146

City of Placentia
Combining Statement for All Internal Service Funds of
Revenues, Expenses, and Changes in Net Position
For the Year Ended June 30, 2021
OPERATING REVENUES:

Reimbursements
Sales and service charges
Total operating revenues
OPERATING EXPENSES:

Administration
Reinsurance premiums
Claims
Medical and dental premiums
Liability insurance premiums
Total operating expenses

OPERATING INCOME (LOSS)
Net Income (Loss)

CHANGES IN NET POSITION
NET POSITION:

Beginning of the year
End of the year
See accompanying Notes to the Basic Financial Statements Governmental Activities
Risk
Management
1,327,131
1,327,131
351,177
2,223,984
814,173
3,389,334
(2,062,203)
(2,062,203)
(2,062,203)
Health and
Welfare
$ 97,329 $
856,804
954,133
228,319
$ (1,833,884) $
147
169,696
987,691
5,117
1,162,504
(208,371)
(208,371)
(208,371)
227,388
19,017 $
Equipment
Replacement
223 $
223
49,342
49,342
(49,119)
(49,119)
(49,119)
Total
97,552
2,183,935
2,281,487
400,519
169,696
2,223,984
987,691
819,290
4,601,180
(2,319,693)
(2,319,693)
(2,319,693)
87,996 543,703
38,877 $ (1,775,990)

City of Placentia
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid for insurance claims
Net cash (used in) operating activities
Net decrease in cash and cash equivalents

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:

Beginning of year
End of year
Risk Health and Equipment
Management Welfare Replacement Total
$ 1,327,131 $ 954,080 $ 223 $ 2,281,434
434,568 (1,166,873) (49,342) (781,647)
(2,223,984) (2,223,984)
(462,285) (212,793) (49,119) (724,197)
(462,285) (212,793) (49,119) (724,197)
2,551,660 245,119 87,996 2,884,775
$ 2,089,375 $ 32,326 $ 38,877 $ 2,160,578
Reconciliation of operating income to
to net cash provided by operating activities:

Operating income $ (2,062,203) $ (208,371) $ (49,119) $ (2,319,693) Adjustments to reconcile operating income
to net cash provided by (used in) operating activities:

Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (53) - (53) Increase/(decrease) in accounts payable (35,346) (4,369) - (39,715) Increase/(decrease) in accrued liabilities 5 _ 5
Increase/(decrease) in claims payable 1,635,259 1,635,259 Net cash (used in) operating activities $ (462,285) $ (212,793) $ (49,119) $ (724,197) See accompanying Notes to the Basic Financial Statements 148

FIDUCIARY FUNDS FINANCIAL STATEMENTS
149

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150

FIDUCIARY FUNDS
Custodial Funds
Community Facilities District Fund — to account for the Community Facilities Districts No. 89-1 (East Placentia) and 2018-1 (Transit Oriented District) providing a special tax to pay for certain public facilities within such community facilities district, to levy such special tax and to provide non -General Fund and sustainable funding source to pay for the ongoing maintenance and repairs of the public streetscape improvements constructed within the Transit Oriented District. This fund also accounts for the service of $25,000,000 of Community Facilities District No. 89-1 (East Placentia) Special Tax Bonds issued to finance the construction of street and drainage infrastructure improvements and to fund development of a 13 -acre park/recreation sports complex to benefit properties within the District.

Public Safety CFD 2014-01 Fund— to account for revenues and expenditures to provide public safety services associated with new development within Placentia including, but not limited to, police protection, fire protection, and ambulance and paramedic services.

The services would be partially paid for through the levy of a Special Tax on real property. 151

City of Placentia
Combining Statement of Assets and Liabilities
Fiduciary Funds
June 30, 2021
Custodial Funds
Community
Facilities Public Safety
District CFD 2014-01
Total
Assets:

Cash and investments $ 48,869 $ 29,670 $ 78,539
Miscellaneous receivables - 1,392 1,392
Total Assets $ 48,869 $ 31,062 $ 79,931
Liabilities:

Accrued liabilities - 14 14
Deposits payable 191 34,850 35,041
Total Liabilities $ 191 $ 34,864 $ 35,055

NET POSITION (DEFICIT)
Restricted for individuals, organizations and
other governments 48,678 (3,802) 44,876
Total net position (deficit) $ 48,678 $ (3,802) $ 44,876 152

City of Placentia
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
Custodial Funds
Community
Facilities Public Safety
District CFD 2014-01
Total
DEDUCTIONS:

Contributions to City $ - $ 30,000 $ 30,000
Total deductions 30,000 30,000
Change in net position (30,000) (30,000)
NET POSITION:

Beginning of year, as restated (Note 14) 48,678 26,198 74,876 End of year $ 48,678 $ (3,802) $ 44,876
See accompanying Notes to the Basic Financial Statements. 153

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154

STATISTICAL SECTION
155

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156

City of Placentia
Description of Statistical Section Contents
This part of the City of Placentia's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents:

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

Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information - These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs.
157
Pages
158 - 167
168 - 173
174 - 176
177 - 180
181 - 185

City of Placentia
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets $ 70,726 $ 78,273 $ 74,238 $ 66,333 $ 66,799 Restricted 2,981 3,630 2,901 7,027 7,681
Unrestricted (7,936) (14,229) (9,273) (34,145) (30,490) Total governmental activities net position $ 65,771 S 67,674 $ 67,866 $ 39,215 $ 43,990.

Business -type activities
Net investment in capital assets $ 12,686 $ 12,275 $ 11,760 $ 11,280 $ 10,765 Unrestricted (874) (1,115) (680) 1,289 845
Total business -type activities net position $ 11,812 8 1 1,160 $ 1 1,080 $ 12,569 $ 11,610 Primary government
Net investment in capital assets $ 83,412 $ 90,548 $ 85,998 $ 77,613 $ 77,564 Restricted 2,981 3,630 2,901 7,027 7,681
Unrestricted (8,810) (15,344) (9,953) (32,856) (29,645) Total primary government net position $ 77,583 $ 78,834 $ 78,946 $ 51,784 $ 55,600 Source: City of Placentia, Finance Department
158

City of Placentia
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets $ 67,960 $ 67,915 $ 72,176 $ 81,106 $ 86,061 Restricted 6,199 5,819 6,090 7,732 21,456
Unrestricted (32,780) (52,089) (50,858) (53,352) (68,263) Total governmental activities net position $ 41,379 $ 21,645 $ 27,408 $ 35,486 $ 39,254 Business -type activities
Net investment in capital assets S 10,303 $ 9,778 $ 9,275 $ 8,748 $ 8,221 Unrestricted 1,066 (1,514) (2,055) (2,682) 361
Total business -type activities net position $ 11,369 $ 8,264 $ 7,220 $ 6,066 $ 8,582 Primary government
Net investment in capital assets $ 78,263 $ 77,693 $ 81,451 $ 89,854 5 94,282 Restricted 6,199 5,819 6,090 7,732 21,456
Unrestricted (31,714) (53,603) (52,913) (56,034) (67,902) Total primary government net position $ 52,748 $ 29,909 $ 34,628 5 41,552 5 47,836 Source: City of Placentia, Finance Department
159

City of Placentia
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012 2013 2014 2015 2016
Expenses
Governmental activities:

General government $ 10,833 $ 10,516 $ 9,673 $ 9,248 $ 5,343 Public safety 16,104 16,965 16,915 15,689 18,556
Public works 6,525 6,506 5,720 6,644 7,445
Community development 1,034 1,011 1,142 1,845 1,373
Community services - - - 1,263
Redevelopment 658 -
Interest on long-term debt 1,414 603 667 861 837
Total governmental activities 36,568 35,601 34,117 34,287 34,817 Business -type activities:

Refuse 2,880 2,933 2,950 2,795 2,555
Compressed natural gas 100 137 _ -
Sewer maintenance 1,1 1 4 1,143 1,071 1,069 1,418
Total business -type activities 4,094 4,213 4,021 3,864 3,973 Total primary government expenses $ 40,662 $ 39,814 $ 38,138 $ 38,151 $ 38,790 Program Revenues
Governmental activities:

Charges for services
General government $ 2,091 $ 2,268 $ 2,408 $ 2,053 $ 1,956 Public safety 1,556 1,570 1,282 1,469 1,340
Public works 1,548 1,539 3,238 854 679
Community development 776 317 590 277 1,211
Community services - - 221
Operating grants 2,137 1,656 700 1,407 4,744
Capital grants and contributions 1,605 1,256 1,634 3,216 145 Total governmental activities program
revenues 9,713 8,606 9,852 9,276 10,296
Business -type activities:

Charges for services
Refuse 2,730 2,749 2,865 2,874 2,890
Compressed natural gas 76 335 119 25
Sewer maintenance 858 876 884 819 688
Total business -type activities program revenues 3,664 3,960 3,868 3,718 3,578 Total primary government program
revenues $ 13,377 $ 12,566 $ 13,720 $ 12,994 $ 13,874
Net (expense)/revenue
Governmental activities $ (26,855) $ (26,995) $ (24,265) $ (25,011) $ (24,521) Business -type activities (430) (253) (153) (146) (395) Total primary government net expenses $ (27,285) $ (27,248) $ (24,418) $(25,157) $ (24,916) Source: City of Placentia, Finance Department
160

City of Placentia
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2017 2018 2019 2020 2021
Expenses
Governmental activities:

General government $ 10,579 $ 10,046 $ 9,346 $ 11,654 $ 12,850 Public safety 19,188 18,114 20,547 26,139 26,045
Public works 7,246 4,328 2,465 4,926 9,846
Community development 1,904 1,068 1,502 1,640 2,893
Community services 1,318 1,690 4,401 1,757 2,580
Redevelopment - - - -
Interest on long-term debt 783 717 588 475 765
Total governmental activities 41,018 35,963 38,850 46,591 54,979 Business -type activities:

Refuse 2,571 3,034 3,164 3,127 3,287
Compressed natural gas - - -
Sewer maintenance 954 1,943 1,593 1,836 (1,365)
Total business -type activities 3,525 4,977 4,757 4,963 1,922 Total primary government expenses $ 44,543 $ 40,940 $ 43,607 $ 51,554 $ 56,901 Program Revenues
Governmental activities:

Charges for services
General government $ 2,136 $ 2,206 $ 2,356 $ 2,651 $ 2,754 Public safety 1,092 1,078 742 771 567
Public works 597 670 1,100 776 917
Community development 1,074 1,251 1,011 1,670 2,014
Community services 194 314 213 145 148
Operating grants 4,637 4,575 7,709 9,588 6,103
Capital grants and contributions 465 4,528 1,117 2,994 8,027 Total governmental activities program
revenues 10,195 14,622 14,251 18,595 20,530
Business -type activities:

Charges for services
Refuse 2,958 3,039 3,148 3,252 3,688
Compressed natural gas - -
Sewer maintenance 722 760 722 723 783
Total business -type activities program revenues 3,680 3,799 3,870 3,975 4,471 Total primary government program
revenues $ 13,875 $ 18,421 $ 18,121 $ 22,570 $ 25,001
Net (expense)/revenue
Governmental activities $ (30,823) $ (21,341) $ (24,598) $ (27,996) $ (34,449) Business -type activities 155 (1,178) (887) (988) 2,549 Total primary government net expenses $ (30,668) $ (22,519) $ (25,485) $ (28,984) $ (31,900) Source: City of Placentia, Finance Department
161

City of Placentia
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012 2013 2014 2015 2016
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property $ 12,452 $ 11,389 $ 11,804 $ 12,449 $ 13,259
Sales and use 4,225 4,160 4,512 6,284 6,848
Utility users 2,851 2,863 2,800 2,874 2,750
Franchise 2,056 2,186 2,228 2,338 2,332
Other 805 998 1,029 1,177 1,258
Miscellaneous 1,386 1,359 1,336 1,451 35
Investment income 199 197 24 576 34
Other 1,047 2,918 708 - -
Special item - - (2,764)
Contribution from Successor Agency
Contribution from Custodial Fund -
Extraordinary item (0,880 - - (1,035)
Transfers 76 248 4 165 646
Total governmental activities 35,977 26,318 24,445 24,550 26,127 Business -type activities
Investment income 8 5 2 5 7
Special item - - 2,764
Other 75 75 75 75 75
Transfers (76) (478) (4) (165) (646)
Total business -type activities 7 (398) 73 2,679 (564)
Total primary government $ 35,984 $ 25,920 $ 24,518 $ 27,229 $ 25,563 Change in Net Position
Governmental activities $ 8,982 $ 2,053 $ (566) $ 29 $ (4,696) Business -type activities (246) (551) (73) 2,284 (409)
Total primary government $ 8,736 $ 1,502 $ (639) $ 2,313 $ (5,105) Source: City of Placentia, Finance Department
162

City of Placentia
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2017 2018 2019 2020 2021
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property $ 13,972 $ 14,560 $ 15,478 $ 15,981 $ 16,752
Sales and use 7,020 6,948 8,184 13,141 15,113
Utility users 2,637 2,545 2,461 2,362 2,503
Franchise 2,244 2,270 2,340 2,358 2,466
Other 1,365 1,316 1,267 1,047 1,022
Miscellaneous 41 125 136 447 280
Investment income 31 72 227 312 13
Other - 215 -
Special item
Contribution from Successor Agency - - 19 -
Contribution from Custodial Fund 30
Extraordinary item - - -
Transfers 402 251 268 192 39
Total governmental activities 27,712 28,087 30,361 36,074 38,218 Business -type activities
Investment income 7 24 34 27 4
Special item
Other -
Transfers (402) (251) (192) (192) (39)
Total business -type activities (395) (227) (158) (165) (35) Total primary government $ 27,317 $ 27,860 $ 30,203 $ 35,909 $ 38,183 Change in Net Position
Governmental activities $ 6,371 $ 6,746 $ 30,361 $ 8,078 $ 3,769 Business -type activities (1,573) (1,405) (158) (1,153) 2,514 Total primary government $ 4,798 $ 5,341 $ 30,203 $ 6,925 $ 6,283 Source: City of Placentia, Finance Department
163

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164

City of Placentia
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable $ 4,368 $ 3,450 $ 4,104 $ 3,881 $ 3,354 $ 4,955 $ 4,706 $ 3,734 $ 3,347 Restricted - 439 1,030 1,030 1,024 1,019 571 555 556
Committed 119 3,600 3,600 3,400 4,528 5,811 6,434
Assigned - 185 286 40 -
Unassigned 1,385 1,001 2,510 72 56 (1,346) 543 3,866 9,894 Total General Fund S 5,753 S 4,890 $ 7,948 $ 8,869 $ 8,074 $ 8,028 $ 10,349 $ 13,966 $ 20,231 All Other Governmental Funds
Nonspendable $ 88 $ 84 $ - $ - $ - $ - $ - $ - $ 10
Restricted 3,630 2,930 5,999 6,651 5,175 4,800 5,518 7,177 20,900 Assigned - 485 - - -
Unassigned (2,196) (761) (368) (531) (1,045) (1,552) (1,406) Total All Other
Governmental Funds 1,522 2,253 6,484 6,651 4,807 4.269 4,473 5,625 19,504 Governmental
Funds $ 7,275 $ 7,143 $ 14,432 $ 15,520 $ 12,881 $ 12,297 $ 14,823 $ 19,591 $ 39,735 Source: City of Placentia, Finance Department
165

City of Placentia
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012 2013 2014 2015 2016
Revenues
Property Tax 12,451 $ 11,389 $ 11,804 $ 12,449 $ 13,259 Sales Tax 5,611 5,519 5,848 6,284 7,257
Other Tax 5,712 6,047 6,138 6,316 6,318
Intergovernmental 3,742 3,143 3,531 4,033 2,998
Licenses and permits 1,730 1,211 1,618 1,690 1,733
Fines and forfeitures 753 842 575 733 1,154
Investment income 423 161 210 177 34
Charges for services 2,370 1,800 1,912 2,228 2,216
Other 1,786 4,598 2,087 2,424 2,108
Total Revenues 34,578 34,710 33,723 36,334 37,077
Expenditures
Current:

General Government 4,690 4,275 4,409 6,432 6,571
Public Safety 15,978 16,845 16,853 16,500 17,880
Public Works 6,617 10,826 5,760 4,246 4,824
Community development 1,033 1,011 1,142 1,824 952
Community services - - 1,191
Redevelopment 659 - - -
Capital Outlay 441 347 79 2,042 1,262
Debt Service
Principal 1,186 355 723 1,070 1,333
Interest 1,617 594 577 813 837
Total Expenditures 32,221 34,253 29,543 32,927 34,850
Excess of Revenues Over/(Under) Expenditures 2,357 457 4,180 3,407 2,227 Other Financing Sources/(Uses)
Transfers In 10,869 12,072 6,998 4,939 7,000
Transfers Out (17,020) (17,827) (11,310) (4,552) (6,354) Issuance of debt 399 - 251
Other 193 (2,764)
Total Other Financing Sources (5,559) (5,755) (4,312) (2,377) 897 Extraordinary Items - (2,035)
Net Change in Fund Balances $ (3,202) $ (5,298) $ (132) $ 1,030 $ 1,089 Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures
Source: City of Placentia, Finance Department

9.67% 2.88% 4.62% 6.49% 6.91%
166

City of Placentia
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2017 2018 2019 2020 2021
Revenues
Property Tax $ 13,972 $ 14,551 $ 15,478 $ 15,981 $ 16,752 Sales Tax 7,020 6,948 10,646 13,141 15,113
Other Tax 6,222 6,043 3,548 5,708 5,993
Intergovernmental 3,572 6,487 7,530 8,459 6,700
Licenses and permits 1,572 1,702 1,922 2,454 2,828
Fines and forfeitures 1,297 592 613 819 314
Investment income 32 69 228 307 13
Charges for services 1,743 2,197 2,003 4,056 9,334
Other 1,892 2,151 2,289 2,327 2,536
Total Revenues 37,322 40,740 44,258 53,252 59,583
Expenditures
Current:

General Government 10,450 8,109 7,889 8,389 10,995
Public Safety 18,436 19,156 18,718 23,442 16,938
Public Works 5,050 5,951 6,078 5,938 5,049
Community development 1,858 1,291 1,171 1,693 2,245
Community services 1,292 1,526 4,405 1,793 1,547
Redevelopment -
Capital Outlay 2,340 2,971 1,047 11,534 6,178
Debt Service
Principal 1,654 1,855 2,105 1,177 1,904
Interest 783 717 587 475 765
Total Expenditures 41,863 41,576 42,000 54,441 45,621
Excess of Revenues Over/(Under) Expenditures (4,541) (836) 2,258 (1,189) 13,962 Other Financing Sources/(Uses)
Transfers In 8,010 4,778 1,515 1,882 2,849
Transfers Out (7,607) (4,527) (1,247) (1,690) (2,811)
Issuance of debt - 5,766 57,583
Other - - - (51,441)
Total Other Financing Sources 403 251 268 5,958 6,180
Extraordinary Items 1,S00
Net Change in Fund Balances $ (2,638), $ (585). S 2,526 $ 4,769 S 20,142 Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures 6.57% 7.14% 7.04% 4.00% 7.26% Source: City of Placentia, Finance Department
167

City of Placentia
Revenues by Source - General Fund
Last Ten Fiscal Years
(modified accrual basis of accounting)
Sales Licenses Fines Use of
Property and Other and Forfeitures & Money and
Fiscal Year Taxes Use Taxes Taxes Permits Penalties Property 2011-12 $ 11,160,051 $ 5,611,105 $ 2,860,703 $ 1,730,070 $ 595,239 $ 391,869 2012-13 11,388,950 5,518,907 3,183,996 1,210,722 468,229 160,212 2013-14 11,804,238 5,847,742 3,338,556 1,618,068 459,123 206,104 2014-15 12,448,958 6,207,771 3,394,915 1,690,191 484,676 170,892 2015-16 13,259,241 7,257,004 3,550,183 1,733,049 542,253 2016-17 13,971,691 7,019,906 3,578,424 1,571,584 587,005 2017-18 14,551,076 6,948,279 6,042,998 1,701,878 562,390 2018-19 15,477,587 10,646,101 3,547,567 1,922,689 438,581 2019-20 15,980,879 13,140,914 5,708,333 2,453,827 418,752 2020-21 16,752,112 15,112,657 5,993,621 2,827,761 290,534 * Investment Earnings and Rents previously reported as Use of Money and Property Leases previously reported as Other Revenues.

Source: City of Placentia, Annual Comprehensive Financial Reports Source: City of Placentia, Finance Department
168

City of Placentia
Revenues by Source - General Fund (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Inter- Charges
Investment Leases governmental for Current Other
Fiscal Year Earnings* and Rents* Revenue Services Revenues Totals 2011-12 $ $ $ 54,850 $ 1,350,666 $ 1,239,397 $ 24,993,950 2012-13 127,867 1,256,723 4,597,034 27,912,640
2013-14 58,058 1,189,249 1,571,109 26,092,247
2014-15 - - 224,246 1,383,803 1,778,619 27,784,071
2015-16 24,157 670,631 466,271 1,091,250 1,053,220 29,647,259 2016-17 3,645 1,199,161 297,831 863,387 629,737 29,722,371 2017-18 31,161 1,255,240 252,963 1,284,507 708,662 33,339,154 2018-19 164,724 1,230,532 353,354 1,070,821 944,874 35,796,830 2019-20 170,567 1,211,622 701,864 885,206 885,076 41,557,040 2020-21 (28,258) 1,079,979 9,743 879,298 490,006 43,407,453 * Investment Earnings and Rents previously reported as Use of Money and Property Leases previously reported as Other Revenues.

Source: City of Placentia, Annual Comprehensive Financial Reports Source: City of Placentia, Finance Department
169

City of Placentia
Assessed Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
City
Fiscal Year Taxable
Ended Public Assessed Direct
June 30 Secured Utility Unsecured Value Rate
2012 $ 4,849,370 390 $ 157,793 $ 5,007,553 0.1644
2013 4,934,183 292 145,927 5,080,402 0.1644
2014 5,065,170 292 141,308 5,206,770 0.1644
2015 5,359,402 292 155,890 5,515,584 0.1644
2016 5,706,871 292 169,843 5,877,006 0.1644
2017 5,948,117 292 186,698 6,135,107 0.1644
2018 6,259,165 292 183,716 6,443,173 0.1644
2019 6,564,402 544 210,294 6,775,240 0.1644
2020 6,862,623 544 189,948 7,053,115 0.1644
2021 7,160,394 544 191,112 7,352,050 0.1644
Note:

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

Source: County of Orange
170

Placentia City
Placentia City Street Lighting Reorg.

Direct City Rate
City of Placentia
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340

0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304

0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 Overlapping Rates:

OC Water District - Water Reserve 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 OC Vector Control 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 OC Transportation Authority 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 Orange County Water District 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 OC Harbor Beaches & Parks 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 OC Department of Education 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 Orange County Flood Control 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 OC Sanitation District #2 Operating 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 Placentia Library District 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 Orange County General Fund 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 North OC Comm. College General Fund 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 Education Revenue Augmentation Fund 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 Placentia Yorba Linda Unified Gen. Fund 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 Total Direct City and Overlapping Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Metropolitan Water District 0.0037 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Placentia Yorba Linda Unified 0.0585 0.0620 0.0653 0.0582 0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 N. Orange County Community College 0.0174 0.0190 0.0170 0.0170 0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 Total Rate 1.0796 1.0845 1.0858 1.0787 1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 Note:

In 1978, the voters of the State of California 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.

Source: HdL Coren Cone
171

fpxpaYer
City of Placentia
Principal Property Tax Payers
Current and Nine Years Ago
(amounts expressed in thousands)
2021
Taxable Estimated
Assessed Total
Value Tax
Percent of
Total City
Taxable
Assessed
Value Taxpayer
Fairfield Placentia Place LLC $ 111,664 $ 1,117 1.52%
Placentia 422 59,991 600 0.82%
Villa Angelina Apartment Fund LTD 57,374 574 0.78%
MG Union Place Apartments LLC 46,958 470 0.64%
Placentia -Linda Hospital Inc. 41,821 418 0.57%
Sedona-Placentia Owner LLC 39,243 392 0.53%
NMC Placentia LLC 37,168 372 0.51%
Arlon Graphics LLC 32,034 320 0.44%
Reef imperial Rose Inc. 31,315 313 0.43%
Donahue Schriber Realty Group 29,127 291 0.40%
$ 486,695 $ 4,867 6.62%
Source: HdL Coren Cone
OC of SD Holdings
Placentia 422
Villa Tierra Apartments LLC
Placentia -Linda Hospital Inc.

Donahue Schriber Realty Group
Reef Imperial Rose Inc.

Inland Western Placentia LLC
Hartwell Corporation
Western Oak Tree Court Partners LP
Bradford Terrace Placentia Apartments
172
2012
Taxable Estimated
Assessed Total
Value Tax
Percent of
Total City
Taxable
Assessed
Value
$ 64,294 $ 643 1.28%
51,210 512 1.02%
33,680 337 0.67%
30,776 308 0.61%
24,643 246 0.49%
23,397 234 0.47%
22,240 222 0.44%
18,582 186 0.37%
14,710 147 0.29%
14,386 144 0.29%
$ 297,918 $ 2,979 5.95%

Fiscal Year Taxes Levied
Ended for the
June 30 Fiscal Year Amount
City of Placentia
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of Levy
Percent
of Levy
2012 $ 14,121,383 $ 13,695,151
2013 12,064,669 11,889,799
2014 12,294,236 12,266,287
2015 13,012,736 12,973,298
2016 12,742,715 13,529,800
2017 12,831,914 12,865,221
2018 13,471,679 13,421,607
2019 14,144,498 14,244,954
2020 14,623,234 14,675,128
2021 15,211,067 15,384,500
Note:

Collections
in
Subsequent
Years

96.98% N/A

98.55% N/A

99.77% N/A

99.70% N/A
106.18% N/A
100.26% N/A

99.63% N/A
100.71% N/A
100.35% N/A
101.14% N/A
Total Collections to Date
Percent
Amount of Levy
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
The amounts presented include City property taxes, In -Lieu Vehicle License Fees, and "triple flip" property tax revenue in lieu of sales tax. 2016 includes final payment of "triple flip" property tax revenue.

Source: County of Orange Auditor -Controller
173

City of Placentia
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita)
Governmental Activities Business -type Activities
Tax Allocation Certificates Total Percent of Percent of Fiscal Bonds Capital of Capital Primary Assessed Per Personal Year and Notes Leases Participation Leases Government Valuation Capita Income 2012 $ 4,202 $ 299 $ 11,341 $ - $ 15,842 0.316% $ 310 1.04% 2013 4,062 189 10,471 14,722 0.290% 284 0.97%
2014 3,870 75 9,572 13,517 0.260% 259 0.89%
2015 3,579 41 9,147 12,767 0.231% 245 0.83%
2016 3,063 218 8,697 - 11,978 0.204% 229 0.76%
2017 2,242 162 8,237 - 10,641 0.173% 204 0.66%
2018 1,226 1,325 7,737 10,288 0.160% 195 0.60%
2019 1,144 7,680 - 8,824 0.130% 169 0.49%
2020 6,154 7,095 13,249 0.188% 257 0.70%
2021 58,266 5,587 2,845 66,698 0.907% 1,303 3.40%
Source: City of Placentia, Finance Department
174

City of Placentia
Direct and Overlapping Governmental Activity Debt
As of June 30, 2021
2020-21 Assessed Valuation:

Successor Agency Incremental Valuation:

Adjusted Assessed Valuation:

DIRECT DEBT:

Placentia 2003 Ref and Improv Cops
Placentia Capital Lease (Radio)
Placentia Fire Lease #1
Placentia Fire Lease #2
Placentia Fire UAL Loan Payoff
Placentia OCTA Advance
Placentia 2021 Installment Sale Agreement
Placentia PFA 2020A Lease Revenue Bonds
OVERLAPPING TAX AND ASSESSMENT DEBT:

Placentia -Yorba Linda Unified 2002 and 2008 Bond
Metropolitan Water District
N. OC Community College 2002, 2005, 2014 Bond

TOTAL OVERLAPPING DEBT

TOTAL DIRECT AND OVERLAPPING DEBT
$ 7,352,050
387,853
$ 6,964,197
Total Debt
06/30/21 % Applicable (1)
$ 2,845,000 100.00%
837,351 100.00%
3,116,360 100.00%
1,634,287 100.00%
1,431,676 100.00%
1,960,677 100.00%
3,355,000 100.00%
52,950,000 100.00%
$ 240,266,037
5,384,821
239,810,978
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.

Ratios of Direct vs. Overlannina Debt
Direct Debt
Overlapping Debt
Total Debt
Ratios of Debt to Assessed Valuation
Direct Debt
Overlapping Debt
Total Debt
Source - HdL, Coren Cone

51.03%

48.97%
100.00%

0.98%

0.94%

1.92%
175

22.027%

1.120%

5.165%
City's Share of
Debt 6/30/21
$ 2,845,000
837,351
3,116,360
1,634,287
1,431,676
1,960,677
3,355,000
52,950,000
$ 68,130,351
$ 52,923,400
60,310
12,386,237
$ 65,369,947
$ 133,500,298

City of Placentia
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation for the Current Year
Assessed value $ 7,554,145,292
Debt limit (3.75% of assessed value) 283,280,448
Debt applicable to limit
Legal debt margin - current year $ 283,280,448
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentage
Year Limit to Limit Margin of Limit
2012 $ 187,783,433 $ - $ 187,783,433 0%
2013 181,800,203 181,800,203 0%
2014 186,635,310 - 186,635,310 0%
2015 213,385,760 213,385,760 0%
2016 220,387,742 220,387,742 0%
2017 230,066,512 - 230,066,512 0%
2018 248,734,552 248,734,552 0%
2019 261,192,507 261,192,507 0%
2020 271,595,021 - 271,595,021 0%
2021 283,280,448 - 283,280,448 0%
Note: The City charter includes a debt limit of 15%; however, at the time the charter was established, only 25% of the market value was used. For the purpose of determining the debt limit, the City is following the intent of the charter and reducing the debt limit to 3.75% of assessed valuation.

Source: City of Placentia, Finance Department
176

City of Placentia
Demographic and Economic Statistics
Last Ten Calendar Years
(personal income in thousands, except per capita)
Per Capita
Calendar City Personal Personal Unemployment
Year Population Income Income Rate
2011 51,084 $ 1,526,645 $ 29,885 7.7%
2012 51,776 1,525,217 29,458 5.0%
2013 52,094 1,511,507 29,015 4.4%
2014 52,084 1,540,3 84 29,575 6.2%
2015 52,263 1,567,115 29,985 5.1%
2016 52,268 1,614,628 30,891 4.5%
2017 52,755 1,716,075 32,529 3.5%
2018 52,333 1,805,719 34,504 3.0%
2019 51,494 1,899,759 36,892 2.9%
2020 51,173 1,959,175 38,285 8.7%
Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HDL, Coren Cone
177

City of Placentia
Taxable Sales by Category
Last Ten Calendar Years
(amounts expressed in thousands)
Fiscal Year
2011 2012 2013 2014 2015
General merchandise $ 6,339 $ 6,227 $ 6,482 $ 6,459 $ 6,635 Food stores 16,462 17,718 17,541 17,898 18,529
Eating and drinking places 61,511 61,816 62,479 66,582 79,730 Building materials 36,868 39,460 37,884 48,092 38,156
Auto dealers and supplies 66,736 69,200 78,924 85,659 105,341 Service stations 68,726 83,112 80,210 78,562 70,961
Other retail stores 56,075 55,311 63,164 64,434 60,419
All other outlets 182,705 192,626 197,944 213,510 255,719 Total $ 495,422 $ 525,470 $ 544,628 $ 581,196 $ 635,490 Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's sales tax revenue.

Source: State of California Board of Equalization and The HdL Companies 178

City of Placentia
Taxable Sales by Category (Continued)
Last Ten Calendar Years
(amounts expressed in thousands)
Fiscal Year
2016 2017 2018 2019 2020
General merchandise $ 6,759 $ 7,178 $ 7,440 $ 7,649 $ 8,208 Food stores 17,919 17,102 17,530 18,363 20,539
Eating and drinking places 84,676 85,373 83,083 87,912 77,897 Building materials 55,996 60,664 68,803 74,767 69,616
Auto dealers and supplies 107,146 104,963 82,789 72,781 71,301 Service stations 62,495 68,101 74,924 73,200 49,981
Other retail stores 70,775 74,578 75,597 76,411 65,702
All other outlets 240,166 234,501 245,115 268,067 269,831 Total $ 645,932 $ 652,460 $ 655,281 $ 679,150 $ 633,075 Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's sales tax revenue.

Source: State of California Board of Equalization and The HdL Companies 179

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180

City of Placentia
Budgeted Full -Time Employees by Department
Last Ten Fiscal Years
Fiscal Year
Department 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 City Clerk 2.00 2.00 1.00 2.00 2.00 2.00 2.00 - 2.00 2.00 Administration 7.00 7.00 6.00 8.00 7.00 7.00 11.50 9.50 10.50 25.45 Finance 7.00 7.00 7.00 6.00 7.00 7.00 8.00 8.00 8.00 9.00 Development Services 3.00 3.00 - 4.00 4.75 6.50 8.50 8.50 8.55 Police 67.00 68.00 62.00 67.00 69.50 74.50 80.00 76.00 84.00 71.00 Fire & Life Safety - - - - - 25.00
Public Works 22.00 22.00 19.00 18.00 19.00 20.25 20.75 20.00 22.00 22.00 Community Services 4.00 4.00 4.00 4.00 6.00 6.50 7.25 7.00 7.00 7.00 Total 112.00 113.00 99.00 105.00 114.50 122.00 136.00 129.00 142.00 170.00 Source: City of Placentia, Finance Department
181

City of Placentia
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015 2016
Function/Program
Police
Physical arrests 2,067 1,289 1,600 1,732 1,373
Parking citations 8,211 6,970 7,147 11,141 12,729
Traffic citations 4,819 3,366 3,330 2,498 2,060
Community Development
Building permits 657 776 808 1,411 1,472
Building and zoning inspections 133 145 97 178 133
Public Works
Feet of sewer main cleaned 401,280 401,280 401,280 401,280 401,280 Streetsweeping miles 21,684 21,684 21,684 21,684 21,684 Traffic signals maintained 57 57 57 57 57
Culture and Recreation
Recreation classes 659 704 710 787 747
Source: City of Placentia, Finance Department
182

City of Placentia
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Fiscal Year
2017 2018 2019 2020 2021
Function/Program
Police
Physical arrests 1,250 1,381 1,282 1,053 1,257
Parking citations 13,161 2,359 7,398 4,646 3,742
Traffic citations 1,824 2,659 7,707 1,601 1,162
Community Development
Building permits 1,268 1,347 1,263 1,407 1,346
Building and zoning inspections 128 87 92 126 181
Public Works
Feet of sewer main cleaned 249,134 385,510 318,118 396,000 372,246 Streetsweeping miles 21,684 7,955 7,955 8,772 8,772
Traffic signals maintained 57 61 61 63 63
Culture and Recreation
Recreation classes 727 645 610 577 387
Source: City of Placentia, Finance Department
183

City of Placentia
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015 2016
Function/Program
Public Safety
Police stations 1 1 1 1 1
Sworn officers 46 47 46 46 46
Patrol vehicles 26 26 26 26 26
Fire stations 2 2 2 2 2
Highways and Streets
Miles of streets 107 107 107 107 107
Street trees 9,214 9,214 9,214 9,214 9,214
Traffic signals 229 229 229 229 229
Street lights 3,656 3,656 3,656 3,656 3,656
Sewer
Miles of sanitary sewers 76 76 76 76 76
Storm drains 506 506 506 506 506
Culture and Recreation
Parks 16 16 16 16 16
Area of parks (acres) 72.9 72.9 72.9 72.9 72.9
Community buildings 7 7 7 7 7
Community centers 3 3 3 3 3
Senior centers 1 1 1 1 1
Baseball diamonds 7 7 7 7 7
Basketball courts 7.5 7.5 7.5 7.5 7.5
Soccer fields 1 1 1 1 1
Pools 2 2 2 2 2
Gymnasiums 1 1 1 1 1
Source: City of Placentia, Finance Department
184

City of Placentia
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years
Fiscal Year
2017 2018 2019 2020 2021
Function/Program
Public Safety
Police stations 1 1 1 1 1
Sworn officers 46 51 51 46 51
Patrol vehicles 26 32 32 33 16
Fire stations 2 2 2 2 2
Highways and Streets
Miles of streets 107 107 132 132 132
Street trees 9,214 9,139 7,175 7,077 6,929
Traffic signals 229 230 230 230 230
Street lights 3,656 3,660 3,660 3,656 3,656
Sewer
Miles of sanitary sewers 76 76 76 84 84
Storm drains 506 506 506 506 506
Culture and Recreation
Parks 16 16 16 15 15
Area of parks (acres) 72.9 72.9 100.9 60.9 60.9
Community buildings 7 7 7 7 7
Community centers 3 3 3 3 3
Senior centers 1 1 1 1 1
Baseball diamonds 7 7 7 7 7
Basketball courts 7.5 7.5 7.5 7 7
Soccer fields 1 1 1 1 1
Pools 2 2 2 2 2
Gymnasiums 1 1 1 1 1
Source: City of Placentia, Finance Department
185

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186

TPUHE

N GROUP

ACCOUNTANTS & ADVISORS

CITY OF PLACENTIA
Presentation to the City Council
For the Fiscal Year Ended June 30, 2021
July 5, 2022
1 CONTENTS
• Scope of Work
• Required Communications (AU -C 260)
• Overview of Financial Statements
• Financial Indicators and Key Pension/OPEB Information • Audit Results
12 THE
PL!N GROUP
ACCOUNTANTS& ADti15OKS
2 PUN GROUP

ACCOUNTANTS& ADVISORS

SCOPE OF WORK

SCOPE OF WORK
• Audit of the Annual Comprehensive Financial Report (CAFR) • Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards
• Uniform Guidance Single Audit
• Communication with Those Charged with Governance

NN GROUP
ACCOl1NTANTS & ADVISORS

REQUIRED COMMUNICATIONS (AU -C 260)
12 APC
uN GROUP
ACCOUNTANTS& AUy15�Rc

Required Communications (AU -C 260)

NN GROUP
ACCOUNTANTS & AOV I5O RS
• Independence
• We complied with ALL relevant requirements regarding independence • Significant Accounting Policies
• The City disclosed all significant accounting policies in Note 1 to the financial statements. • The City implemented GASB Statement No. 84, Fiduciary Activities • Significant Estimates
• Fair value on investments
• Depreciation on capital assets
• Actuarial calculation of net other postemployment benefit liability • Actuarial calculation of net pension liability

Required Communications (AU -C 260)

NN GROUP
ACCOUNTANTS & AOV I5O RS
• Sensitive Disclosures
• Note 1 — Summary of Significant Accounting Policies
• Note 8 — Pension Plans
• Note 9 — Other Postemployment Benefits Plan
• Note 11 — Classification of Fund Balance
• Note 13 — Other Required Fund Disclosures
• Note 14 — Prior Period Adjustments
• Note 15 — Subsequent Events
• Misstatements
• There were no corrected or uncorrected misstatements reported. • Consultation with Other Accountants
• Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters.

Required Communications (AU -C 260)

NN GROUP
ACCOUNTANTS & AOV I5O RS
• Significant Difficulties
• We encountered no significant difficulties in dealing with management. • Disagreements with Management
• We did not have any disagreements with management in terms of accounting treatments or audit procedures performed.

OVERVIEW OF THE FINANCIAL

STATEMENTS
12 APC
uN GROUP
ACCOUNTANTS& AUy15�Rc

NNc UP
ACCOl1NTANTS & ADVISORS
City of Placentia
Government -Wide Summary
Statement of Net Position
June 30, 2021
Assets
Deferred Outflows of Resources
Liabilities
Deferred Inflows of Resources
Net Position:

Net investment in capital assets
Restricted
Unrestricted (deficit)
Total Net Position
Governmental
Activities
$ 145,192,586
57,149,618
156,758,497
6,329,504
86,061,117
21,455,621
(68,262,535)
$ 39,254,203
Business -Type
Activities Total
$ 9,543,313 $ 154,735,899
2,076,895
2,852,163
186,687
8,220,855
360,503
$ 8,581,358
59,226,513
159,610,660
6,516,191
94,281,972
21,455,621
(67,902,032)
$ 47,835,561

NN GROUP
ACCOl1NTANTS & ADVISORS
Expenses
City of Placentia
Government -Wide Summary
Statement of Activities
For the Year Ended June 30, 2021
Governmental Business -Type
Activities Activities Total
$ (54,979,903) $ (1,922,137) $ (56,902,040)
Program Revenues
Charges for services 6,400,408 4,471,631 10,872,039
Operating grants and contributions 6,102,506 - 6,102,506 Capital grants and contributions 8,026,712 - 8,026,712
Total program revenues 20,529,626 4,471,631 25,001,257
Net Cost of Services (34,450,277) 2,549,494 (31,900,783) General Revenues - Taxes 37,856,465 - 37,856,465
General Revenues - Others 323,321 4,288 327,609
Transfers 38,667 (38,667)
Change in Net Position $ 3,768,176 $ 2,515,115 $ 6,283,291

City of Placentia
General Fund
Condensed Balance Sheets
June 30, 2021 and 2020
June 30, 2021 June 30, 2020 Change
Assets $ 24,196,969 $ 18,869,550 $ 5,327,419
Liabilities $ 2,904,888 $ 3,222,594 $ (317,706)
Deferred Inflows of Resources 1,061,610 1,680,505 (618,895) Fund Balance
Nonspendable 3,346,897 3,734,003 (387,106)
Restricted 556,084 555,258 826
Committed 6,433,605 5,810,898 622,707
Unassigned 9,893,885 3,866,292 6,027,593
Total Fund Balance 20,230,471 13,966,451 6,264,020
Total Liabilities and Fund
Balance $ 24,196,969 $ 18,869,550 $ 5,327,419

ACCOUNTANTS & ADVISORS
•

City of Placentia
General Fund
Condensed Statements of Revenues, Expenditures and Changes in Fund Balance For the Years Ended June 30, 2021 and 2020
Revenues
Expenditures
Revenues over Expenditures
Other Financing Sources and Uses
Transfers (Net)
Proceeds from sale of property
Proceeds from issuance of debt
Total other financing sources/uses
Change in Fund Balance
NNc UP

ACCOUNTANTS & ADVISORS
2021 2020
$ 43,407,453 $ 41,557,041
Change
$ 1,850,412
(37,368,670) (44,474,766) (7,106,096)
6,038,783 (2,917,725) 8,956,508
(751,662)
976,899
225,237
$ 6,264,020
769,400
1,547,438
4,218,101
6,534,939
$ 3,617,214
(1,521,062)
(1,547,438)
(3,241,202)
(6,309,702)
$ 2,646,806
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ACCOl1NTANTS & ADVISORS
City of Placentia
Governmental Activities
Net Cost of Services to Tax Revenues
For the Years Ended June 30, 2021 and 2020
2021 2020
Net Cost of Services $ 34,450,277 $ 27,996,123
Tax Revenues $ 37,856,465 $ 34,855,960
Ratio 91.00% 80.32%
•

NNc UP
ACCOl1NTANTS & ADVISORS
City of Placentia
General Fund
Unassigned Fund Balance to Annual Expenditures
For the Years Ended June 30, 2021 and 2020
2021 2020
Unassigned Fund Balance $ 9,893,885 $ 3,866,292
Annual Expenditures 37,368,670 44,474,766
Ratio 26.48% 8.69%

NN GROUP
ACCOl1NTANTS & ADVISORS
GASB 68 — The Pension Standard
As of June 30, 2020 (Measurement Date)
Net Pension Liabilities @ 6.15%
Miscellaneous
Plan
$ 24,015,519
Safety
Plan
$ 42,901,251
Total
$ 66,916,770
Net Pension Liabilities @ 7.15%
$ 16,419,169
$ 29,467,303
$ 45,886,472
Net Pension Liabilities @ 8.15%
Plan's Proportionate Share of the
Fiduciary Net Position as a Percentage
of the Total Pension Liability
Prior year
$ 10,142,545

71.97%

73.01%
$ 18,443,478

70.21%

71.99%
$ 28,586,023
•

Total OPEB Liabilities @ 2.21% $ 31,325,826
NNc UP
ACCOl1NTANTS & ADVISORS
GASB 75 — The OPEB Standard
As of June 30, 2020 (Measurement Date)
Total OPEB Liabilities @ 1.21%
OPEB
$ 36,542,459
Total OPEB Liabilities @ 3.21 % $ 27,203,607
Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0.00%

PUN GROUP

ACCOUNTANTS& ADVISORS

AUDIT RESULTS

Audit Results

NN GROUP
ACCOUNTANTS & AOV I5O RS
• Opinions
• Unmodified Opinions issued to all Opinion Units
• Financial statements are fairly presented in all material respects • Accounting policies have been consistently applied
• Estimates used are reasonable
• Disclosures are properly reflected in the financial statements

Single Audit

NN GROUP
ACCOUNTANTS & AOV I5O RS
• Total Expenditures of Federal Awards = $1,861,693
• Major Programs (94.42% of total federal expenditures) • 14.218 Community Development Block Grant = $1,027,735 • 21.019 Coronavirus Relief Fund = $730,012
No findings related to internal control or compliance.

No questioned costs.
•

Other Results

NN GROUP
ACCOUNTANTS & AOV I5O RS
• No disagreements with management
• No material weaknesses/significant deficiencies were identified in internal control over financial reporting or compliance
• No accounting issues
• No inappropriate activities were noted
•

T_
GROUP

ACCOUNTANTS & ADVISORS
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HQ - ORANGE COUNTY
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Placentia Cit Council

AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR
DATE: JULY 5, 2022
SUBJECT: APPOINTMENTS TO FILL VACANCIES ON VARIOUS CITY COMMISSIONS

AND COMMITTEES
FISCAL
IMPACT: NONE
SUMMARY:

There are currently five (5) vacancies on the City's ten (10) Commissions and Committees. The City had previously advertised said vacancies and received a total of seven (7) applications. To ensure that these advisory bodies are able to operate effectively and with a full complement of members, Staff recommends City Council consider the actions listed below.

RECOMMENDATION:

It is recommended that the City Council consider the following actions:

1. Make the necessary appointments to fill the vacancies listed below:
a. One (1) vacancy on the Park Arts & Recreation Commission (PARC) b. One (1) vacancy on the Planning Commission
c. One (1) vacancy on the Senior Advisory Committee
d. Two (2) vacancies on the Veterans Advisory Committee

2. Direct Staff to update the City's master Commission and Committee vacancy list and continue the Commission and Committee Application/Recruitment process for any remaining vacancies and present to City Council at a future meeting for consideration of appointments.

DISCUSSION:

The City Clerk's Office received a total of seven (7) applications. Attached is a summary of applicants for consideration of appointment to the current vacancies (Attachment 1). At a Special Meeting held earlier today, the City Council interviewed seven (7) applicants for vacant positions.

3.b
July 5, 2022

City Council Agenda
July 5, 2022

Page 2 ends

Placentia City CouncilJuly 5, 2022

Placentia City Council
July 5, 2022