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CITY OF
PLACENTIA, CA
Annual Comprehensive
Financial Report
For Fiscal Year Ending June 30, 2022
CITY OF PLACENTIA
PLACENTIA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
PREPARED BY THE FINANCE DEPARTMENT
OF THE CITY OF PLACENTIA
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
ORGANIZATION CHART viii
PRINCIPAL OFFICIALS ix
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 5
GOVERNMENT -WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 19
STATEMENT OF ACTIVITIES 21
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUND FINANCIAL STATEMENTS
BALANCE SHEET 23
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION 24
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
PROPRIETARY FUNDS FINANCIAL STATEMENTS
25 26
STATEMENT OF NET POSITION 27
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION
28 STATEMENT OF CASH FLOWS 29
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY NET POSITION 31
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 32
NOTES TO BASIC FINANCIAL STATEMENTS 33
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND 89
BUDGETARY COMPARISON SCHEDULE - CITYWIDE DEVELOPMENT
IMPACT FEE SPECIAL REVENUE FUND 90
NOTES TO BUDGETARY COMPARISON SCHEDULES 91
SCHEDULES OF THE CITY'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITIES AND RELATED RATIOS 92
SCHEDULES OF CITY'S PENSION CONTRIBUTIONS 94
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED
RATIOS 96
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS 97
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND (MAJOR
FUND)
99 SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 104
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 109
SCHEDULES OF REVENUE, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 114
STREET LIGHTING SPECIAL REVENUE FUND 115
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
MEASURE M SPECIAL REVENUE FUND 116
STORM DRAIN CONSTRUCTION SPECIAL REVENUE FUND 117
THOROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND 118
ASSET SEIZURE SPECIAL REVENUE FUND 119
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 120
AIR QUALITY SPECIAL REVENUE FUND 121
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND 122 HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND 123 GASOLINE TAX SPECIAL REVENUE FUND 124
PEG SPECIAL REVENUE FUND 125
AFFORDABLE HOUSING IN LIEU SPECIAL REVENUE FUND 126
SB1 RMRA GAS TAX SPECIAL REVENUE FUND 127
NORTH ORANGE COUNTY (NOC) PUBLIC SAFETY GRANT SPECIAL
REVENUE FUND 128
TOD IMPACT FEE SPECIAL REVENUE FUND 129
PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE
FUND 130
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND 131
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND 132
HOUSING SUCCESSOR SPECIAL REVENUE FUND 133
CAL RECYCLE GRANT SPECIAL REVENUE FUND 134
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND 135
CITY CAPITAL PROJECTS FUND 136
GAS TAX DEBT SERVICE FUND 137
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 138
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 139
COMBINING STATEMENT OF CASH FLOWS 140
FIDUCIARY FUNDS - CUSTODIAL FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES 142
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION 143
STATISTICAL SECTION
NET POSITION BY COMPONENT 146
CHANGES IN NET POSITION 147
FUND BALANCES OF GOVERNMENTAL FUNDS 149
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 150
REVENUES BY SOURCE - GENERAL FUND 151
ASSESSED VALUE OF TAXABLE PROPERTY 152
DIRECT AND OVERLAPPING PROPERTY TAX RATES 153
PRINCIPAL PROPERTY TAX PAYERS 154
PROPERTY TAX LEVIES AND COLLECTIONS 155
RATIO OF OUTSTANDING DEBT BY TYPE 156
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT 157
LEGAL DEBT MARGIN INFORMATION 158
DEMOGRAPHIC AND ECONOMIC STATISTICS 159
TAXABLE SALES BY CATEGORY 160
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT 161
OPERATING INDICATORS BY FUNCTION 162
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM 163
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Mayor
WARD L. SMITH
Mayor Pro Tem
JEREMY B. YAMAGUCHI
Councilmembers:
KEVIN KIRWIN
RHONDA SHADER
CHAD P. WANKE
May 8, 2023
The People are the City
PLACEN IA
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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, 2022. 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 Clifton Larson Allen, 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, 2022, 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, 2022, 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 ACFR.
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.
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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 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 $23.6 million on June 30, 2022, the unassigned fund balance was approximately $7.2 million, a $2.7 million decrease of $9.9 million at June 30, 2021. A relatively large portion of the current unrestricted fund balance is committed for the City's capital projects which includes the sewer project in the Transit -Oriented District (TOD). The purpose of this public investment is to further economic growth and prosperity in the downtown area.
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 FY 2022-23.
FACTORS AFFECTING THE CITY'S ECONOMIC CONDITION
Local Economy: Placentia's economic outlook is promising. Taxes represent eighty- seven (86%) 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 2021-22 generally met or exceeded budget and are expected to exceed budgeted amounts for FY 2022-23 as well, with both property taxes and sales and use taxes showing continued growth.
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. Although this resulted in a long-term
liability, the city was also able to increase its assets as reported in FY 2021-22 as a result of this transaction.
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: Interest rates continued to hover around historic lows during fiscal year 21-22. As such, the City reevaluated all outstanding debt and determined that the 2003 Certificates of Participation could be refinanced at lower rates. The refinancing allowed the city to decrease the final maturity of the debt by one year or as soon as 2025 with estimated gross savings of $21,583 per year to be shared by all the affected taxing entities, including the City, with estimated net present value savings of approximately $98,369.
Post Employment Benefits: 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 iv
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.
The City include the design of improvements in the EIFD in their FY 2022-23 budget.
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 OId 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 -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 OId 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 OId Town District is estimated to generate approximately 3,900 construction jobs and 1,100 permanent jobs.
Placentia's OId 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 Pian 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 ofthe 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 OId 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. The Audi dealership opened for business at the beginning of May 2022. This is the first Audi dealership in north Orange County. The new dealership includes a single -story showroom, enclosed service drive, and up to 27 service bays. The total building area is nearly 36,000 square feet. The showroom building features an interior vehicle display, sales area, offices, and ample guest amenities. The rear buildings house the parts department, employee support areas, 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 has partnered with Shea Homes to construct 54 homes. As of June 30 2022 phases 1-5 have been completed. It is anticipated that construction for the commercial portion of the project to commence in the second half of 2023.
JPI 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. As of June 30, 2022 construction of the parking garage is complete and the framing of apartments has begun.
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 vi
include a tot lot, barbeques, fire pits, bike racks, a dog run, and more. As of June 30, 2022 site grading and building permits have been issued.
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 Tight 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. Construction is ongoing with finishing touches being installed on the facades of all four buildings. The buildings within the shopping center will reflect a Spanish Contemporary architectural design theme. The shopping center remodel is anticipated to be fully completed in the first quarter of 2023.
Buy Local Incentive Programs
Commercial Sign Waiver Program: As part of the City's Buy Local Incentive Program, the Placentia City Council approved the Commercial Sign Waiver Program. This program allows the City to waive all planning and building fees, up to $1,000 per business that is interested in upgrading their existing commercial building sign. Participating business must have an active business license. The Commercial Sign Waiver Program started on May 1, 2022 and was available for six months.
Residential Vehicle Rebate Program: Placentia residents purchasing or leasing a new vehicle from Fairway Ford or Audi North OC are eligible to receive a $500 rebate with proof of residency as part of the Buy Local Incentive Program. The Resident Vehicle Rebate Program will expire on April 30, 2025.
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 Clifton Larson Allen, 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,
54.64.4, Lameitaw,
Jennifer Lampman
Director of Finance
vII
Daimon Arad i (May 10, ?1123 19.32 PDT)
Damien Arrula
City Administrator
CITY OF PLACENTIA
ORGANIZATION CHART
City Attorney
Deputy CA
Support Services, Policy &
Emergency Services
Administration
Human Resources/IT
Finance
Emergency Services
City Administrator
Legislative Affairs &
Economic Development
Public Relations &
Marketing
Commissions/Committees
Deputy CA
Public Services, Fire &
Infrastructure
Fire
CIP/Engineering
Development Services
Public Works
Community Services
CITY OF PLACENTIA
PRINCIPAL OFFICIALS
JUNE 30, 2022
Rhonda Shader
Chad P. Wanke
Craig S. Green
Ward L. Smith
Jeremy B. Yamaguchi
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
CITY COUNCIL
Mayor
Mayor Pro Tempore
Councilmember
Councilmember
Councilmember
CITY OFFICIALS
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
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FINANCIAL SECTION
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the City Council
City of Placentia
Placentia, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Placentia (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, GASB No. 87, Leases. The guidance requires lessees to recognize right -to -use asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months. Our opinions are not modified with respect to this matter.
Restatement
As described in Note 14 to the financial statements, The City restated the governmental activities beginning net position. Our opinions are not modified with respect to this matter.
CLAglobal.com/disclaimer
(1)
Honorable Mayor and Members of the City Council
City of Placentia
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
(2)
Honorable Mayor and Members of the City Council
City of Placentia
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedules - General and Major Special Revenue Funds, the schedules of changes in net pension liability and related ratios and the schedules of plan contributions for the City's pension plans, the schedule of changes in the net other post -employment benefit (OPEB) liability and related ratios, the schedule of OPEB plan contributions, and the schedule of OPEB plan investment returns, identified as Required Supplementary Information (RSI) in the accompanying table of contents be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with GAAS, 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 RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements funds is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (3)
Honorable Mayor and Members of the City Council
City of Placentia
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 4, 2023, 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 City's internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
May 4, 2023
(4)
City of Placentia
Management's Discussion and Analysis (Unaudited)
For the Fiscal Year Ended June 30, 2022
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, 2022. 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 $92.5 million on June 30, 2022. 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, 2022, was approximately $83 million and from business - type activities, $9.5 million.
• The City's overall net position increased by approximately $44.6 million during the fiscal year, compared to the net position on June 30, 2021. The net position from governmental activities increased by $43.7 million while the net position from business -type activities increased by approximately $1 million.
Governmental activities increased significantly due to the employer contributions to pension that were made in prior fiscal year being reflected in the current fiscal year's most recent pension measurement date.
Business -type activities net position increased by $1 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 subsidized by general revenues. All activity on this statement is reported on the accrual basis of accounting, which (5)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
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, 2022
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 2022 20_1
2022 2021
ASSETS
Cash and investments S 47.351.462 5 41.165.542 1,231,595 5 ..210.-_- S 45,553.057 5 42.379.579 Other Assets 54.427.009 10,'59.653 :.035.376 -_ 55.455.355 10.57:.404 Capital Assets 95,60:.546 93.264.06: 7.693.539 5,220,555 106,295,355 101,454.916 Total Assets 200.350;317 :45.192.556 9.963.5:0 9.543.313 2:0.343.527 154,735.599
DEFERRED OUTFLOW OF
RES01.7.CE3 25.203,593 57,149.615 1.104.279 2,075.895 S 26,90S.:72 S 599.226.513
LLABILITIES
C: -rent L zliilities :S.933,738 11,436.039 345.929 332,450 :9,252.567 1:,76S.499 Lone -Term Liabilities 91,302.261 145.322.445 512.071 2.519.713 92.114.332 147.542.161 Total Lia3dlitis 110.235.999 156.755.497 1,161.000 2.552.163 .11,396.999 :59.6:0,660
DEFERRED INFLOW OF
RESOURCES 33.123,745 6.329,504 371,563 126,627 5 33,495.311 5 6.516,191 NET ?OSITION
:'e. 1....r.•e•Itnient
is Capital Assets 26.043,985 56.061.11- '.693.539 5.220.555 93,735.525 94.251.972 Restricted 20.1 5.228? 21,455.621 20.:7=.287 2:_455.621 Cr -restricted (23.395.810) (65.262.535) 1.531.657 350.503(21,554.123) (67.902.032) Total Net position 5 52.524.463 5 39.254.203 S 9,535.226 5 5.551.355 5 92.359.659 S 47.535,561 (7)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
The City's net position can serve as a useful indicator of the City's financial position. As of June 30, 2022, the City's combined net position (governmental and business -type activities) totaled $92.4 million, an increase of $44.5 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 $93.7 million on June 30, 2022, 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 $20.2 million on June 30, 2022, reflecting a decrease of $1.3 million dollars primarily due to a decrease in general fund debt service items. These resources are subject to external restrictions on how they can be used. The remaining unrestricted net position was a negative $21.6 million.
Change in Net Position
The following is a summary of activities for the years ending June 30, 2022, and 2021:
REVENUES
Program Revenues:
Charges for Services
Operating contribution and grants
Capital contributions and grants
Change in Net Position
Governmental Actir ides Business.t}pe Activities Total
2022 2021 2022 2021 2022 2021
5 6,468,453 5 6,4€0,403 4,522,691 4,471,631 S 10,991,144 5 10,872,039 6,499.104 6,102.506 6,499,104 6,102, 506
1.850,033 5.026,'122 1,350,038 5.026,712
General Revenues.
Taxes 41.621,461 37,856,465 41,621.461 37,556,465
Investment income (29',2210) 13.028 1.95' 4,258 (295.253) 17,316 Contributions from Custodial Fund 30,000 30,000
Miscellaneous 256,115 250,293 256,115 280.293
Total revenues 56,397,961 55.709,4122 4,524.645 4,475,919 60,912.609 63.135,331
EXPENSES
General government 9,242,047 12,349,8'5 - - 9,242,01' 12,849,875 Public safety (5,340,560) 26,045,332 (5,340,560) 26,045,332 Public works 3,159219 9,546.347 - 3.159,219 9,346.347
Community development 1,553,553 2.593.459 - 1.553.553 2,593,459 Commuity services 1,634.915 2,550,103 - 1,654915 2,580.105 interest 2,591,011 764,752 2,591,011 764,752
Refuse 3.420,538 3,286.816 3.420.535 3.2S6,816
Sewer rainy entice - 150,242 (1.364.679) 150.242 (1,364,679) Total Expenses 12,590.190 54,979,903 3,5 0,750 1,922.137 16,360,970 56.902,040 Increase in net position
before transfers & special items 43,507,771 3.729.509 953,865 2,553.732 44,461,639 6,283,291 Transfers from Successor Agency -
Transfers 38.667 (33,667) -
Change m net position 43.507,771 3,763,176 953:568 2,515,115 44,461.639 6.283,291 Net position, beginning ofvearirestated) 39,316.692 35,436,027 5,551,358 6,066,243 47,593,050 41,552:270 Net position, end of year 5 52,324,463 S 39,254,203 S 9.535 226 5 5.581.353 5 92,359.659 5 47,535,561 (8)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
Governmental Activities:
Overall, governmental activities increased the City's net position by $43.6 million. There were several factors that contributed to this change.
Revenues
Total revenue from governmental activities equaled $56.2 million for the year. While there are differences in all revenue categories, the overall decrease was $2.5 million, or 4.31% compared to the prior year.
The following chart shows the percentage breakdown of revenue derived from governmental activities:
Taxes, 74.09%
Revenue Sources
Governmental Activities
Fiscal Year Ended June 30, 2022
Investment
Income, -0.53%
Gain (Loss) on
Sale of Property, -
0.39%
Miscellaneous,
0.46%
Charges For
Services, 11.51%
Operating
Contributions &
Grants, 11.57%
Capital
_Contributions &
Grants, 3.29%
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 $3.8 million, or 9.95%. Measure U and General sales taxes accounted for $2.1 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. Property taxes had an increase of $.4 million composed of current year -secured, property tax VLF, pass- through property taxes, the addition of residual property taxes and various miscellaneous property taxes.
The Capital Contributions and Grants reflects a decrease of $6.2 million. Development in the current fiscal year was not as large as the prior year in which multiple housing developments were completed, such as The Herald and the Alta Vista and Rose housing community.
Investment income decreased by approximately $.3 million or -2381.32% compared to last fiscal year. The decrease in Investment Income reflects a decrease in the market value adjustment of investments, particularly TVI. (9)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
Expenses
Total expenses from governmental activities equaled approximately $12.9 million, representing a decrease of $42.1 million, or 76.55 %, over the previous year. There was a decrease which resulted from negative expenditures of approximately $34.6 million due to the UAL payoff in the prior year. Negative pension -related expenditures had the largest effect in the Public Safety and Public Works departments, which accounted for approximately $29 million in negative expenditures. and $1.1 million in negative OPEB-related expenditures.
The following chart shows the percentage breakdown of expenses related to governmental activities:
Functional Expenses
Governmental Activities
Fiscal Year Ended June 30, 2022
Community
Community Services, 13.07%
Development, Interest Expense,
12.05%� �- 20.10%
Public Works,
24.51%
Public Safety,
-41.43%
Business -Type Activities:
Operating Revenues
Operating Expenses
Operating Income (loss)
Non-operating Income
Income(loss)before Transfers & Special Items
Transfers
Change in Net Position
(10)
General
Government,
71.70%
S 4.522,691
(3.394.0S0)
1.125.611
1.95-
1,130.568
(176.700)
S 953..868
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
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 $ $3.4million, for a net operating income of approximately $ $1.1 million.
Refuse
The refuse operation generated an operating income of $311,188, a decrease of $90,452 compared to the previous fiscal year. Revenue from other sources increased by approximately $ 38,996 due to the additional revenue to help fund the Environmental Services Coordinator as a result of new state mandates AB341, SB1826, and SB1383.
Additionally, administration costs increased by approximately $231,455 primarily due to an increase in salaries and benefits as well as OPEB expenses. Landfill and contractor charges decreased by $68,311 due to a rate decrease in the per-unit residential service.
Sewer
The sewer system operation generated a profit of $640,723 compared to $2.15 million in the previous year. While there was minimal change in operating revenues, the maintenance costs for salaries and the construction services for the Arterial Roadway Rehab Project increased. Additionally, the GASB 68 journal entry to account for pension - related expenditures increased compared to prior year.
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 $41 million, an increase of $1.3 million from the prior year.
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Components of Fund Balance
Fiscal Year Ended June 30, 2022
(Governmental Funds)
$20,175,287
$2,528,067
Nonspendable Restricted
$13,855,723
$4,451,278
$111
-
Committed Assigned Unassigned
The total fund balance constitutes of $2.5 million non -spendable 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 $20.2 million 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 a decrease of $1.3 million compared to last year primarily due to a decrease in special revenue funds including Citywide Development Impact Fees and Debt Service. In the current year there were no large projects that materially contributed to the impact fees as compared to the previous year which included the development of apartments on Crowther Ave.
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, 2022, the city has committed $13.9 million from Measure U funds for the continuation of infrastructure projects and other capital projects.
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, 2022.
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 on June 30, 2022, for all governmental funds combined is $4.5 million, consisting of $7.2 million in unassigned fund balance in the General Fund and combined unassigned deficits with a total of $2.8 million in miscellaneous grants capital projects fund, the Navigation Center Fund, the Housing and Community Development Fund, and the LMD 92-1 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, 2022
General Fund:
The General Fund is the main operating fund of the City. As of June 30, 2022, total fund balance of the General Fund was $23.6 million, compared to $20.2 million on June 30, 2021, representing an increase of $3.4 million.
Committed portions of the fund balance increased from the prior year due to an increase in construction projects started but not completed.
Revenue
The General Fund had revenues of $48.7 million, compared to $43.4 million in the prior year, an increase of $5.3 million, or 12.11%. This increase is due primarily to the taxes category with the highest increases in Measure U sales tax. general sales/use tax, and property tax. There was also an increase in the intergovernmental funds as a result of transferring the American Rescue Plan Special Revenue Fund to the General Fund since funds received from ARPA are to cover revenue losses. Additionally, charges for services increased mostly due to an increase in engineering fees collected
Expense
General Fund expenditures as of June 30, 2022 were $42.1 million, compared to $37.4 million last year, which represents an increase of $4.7 million or 12.64%. The major areas impacting the increase of expenditures are related to capital expenditures, debt service, and general government expenditures. The completion of the FY20/21 Arterial Roadway Rehab project and the new project for the TOD/Crowther Sewer Line were the largest capital projects.
General government saw an increase in electricity costs, management consulting , legal services, and city admin costs to fund the Risk Management and Employee Health & Welfare funds.
Public Safety
Public safety expenditures slightly increased by $0.5 million resulting mostly from the salaries and benefits for the Placentia Fire Life & Safety department.
Public Works
Public works expenditures had a net increase of $84,825 due to an increase in construction inspection costs, an increase in fuel for fleet vehicles, and an increase in staff attendance at conferences and meetings. An increase in full- time staff was offset by a decrease in part-time salaries and a decrease in UAL payments as a result of the UAL bond.
Additionally, the department UAL allocation to help pay the bond did not take place in the current fiscal year but should be expected to resume in the following year. A decrease in landscaping costs further reduced the increases in Public Works expenditures due to the reclassification of park maintenance costs from Public Works to Community Services. .
Community Development
Community development expenditures increased by approximately $266,795. This is partially due to increased personnel related expenditures and an increase in contracted services for building plan check services and temporary building permit technician services.
Community Services
Community services expenditures increased by $852,028 primarily due to the increase in programs offered which resulted in an increase in full-time and part-time staff. Full-time staff increased due to the reclassification of a Public Works employee to the Community Services Department. The reclassification of park maintenance from the Public (13)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
Works department to Community Services had the second largest impact with an increase in maintenance costs of $376,963 compared to prior year.
Capital Outlay
Capital Outlay increased by $ 1.2 million compared to the prior year. The city increased the number of expenditures related to the ARPA funds received. The ARPA funds allowed for the city to invest in projects that benefited the general government of the city. Most notably, the city was able to complete the Arterial Roadway Rehab project.
Debt Service
Debt Service had an increase of approximately $.6 million or 37% due to the costs associated with the refunding of the 2003 COP with the 2022 lease agreement.
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 $9.5 million, an almost $1 million increase. The sewer maintenance fund had a net position of $9.3 million of which $7.7 million represents investment in capital assets.
Sewer's increase in net position is related to net pension which is no longer a liability and is instead a net pension asset. This positive change was partially offset by the deferred inflows related to pensions and OPEB which substantially increased compared to the prior year. The refuse fund had a positive net position of $264,949, an increase of $311,701 compared to the prior year. This increase was also related to the net pension no longer being a liability to the city but rather an asset of the city.
The combined internal service funds had a negative net position of $2.9 million on June 30, 2022. This is a decrease of $1.1 million compared to prior year due to a continued 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 2021-22 included estimated revenues including transfers from other funds was nearly $44.1 million but was increased by budget amendments totaling $8.4 million, for a final budget of $ 52.5 million. Actual revenues were $45.8 million, with the largest positive budget variance of $1.2 property taxes both performed well even during the COVID-19 Pandemic and an increase in property taxes due to improved valuations.
The adopted general fund expenditure budget for this fiscal year was $48.8 million; however, the Council approved amendments and increased appropriations by $9.5 million for a final amended budget of $58.3 million. The biggest contributor to the increases is 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 the fiscal year the City also received $9.1 million dollars from the American Recovery Plan Act ("ARPA"). During April 2022, the City Administrator issued a stop spending order to help eliminate non-essential spending and increase fund balance. 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 $4.0M in operating surplus.
(14)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
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, 2022, totaled $106.2 million, an increase of approximately $4.7 million, or 4.62%, from the prior year.
Capital assets include land, buildings, infrastructure, and equipment.
Governmental activities grew by $5.3 million, net of accumulated depreciation. The growth is mostly due to a $2.6 million construction in progress (CIP) activity, the implementation of GASB 87 for leases, and a $2.1 million increase of depreciable assets. The $2.6 million CIP activity is mostly composed of a large number of projects that were started in the fiscal year but were not completed.
Total business -type capital assets, net of accumulated depreciation, declined $527,316 during the fiscal year due to the depreciation of capital assets and no new additions.
Governmental Activities
CAPITAL ASSETS
Business -type Activities Total
-- 2021 ,0„ 2021 2022 2021
Land S 25.201.S72 S 25.201.72 S
Land - Rizht of Way 253,322 25S.322
Construction in Pro zress '.231,275 5.170,579
Trees 3.114.540 3.114.540 -
Structures & Improvements 11.511.755 12,792,712 7,638,920 Equipment 7,441.'7 7,033,621 54,619
Richt-to-Cse Lease Land S 532.707 S - S -
Right-to-Cse Lease Equipme- 110.090
Land Improvements 43.972 54.763 -
Infrastructure
Streets Network 31.932,649 29.074.719 -
Streets Appurtenances 8,846,752 9,212,273
Ston Drains 22.367.625 2.350.155
S S 25.201.72 S 25.201,572
253,322 258.822
7,234.275 i 170,579
3.114.540 3.114.540
S.154, 0220 19.150,675 19,946,732
66.535 7.496.406 7.100.456
S S 532.707 S
4S.972 54,763
31.932.649 29,074.719
8,346.752 9,212,273
2.36'.625 2.350.155
S 95.601.546 S 93.264.061 S 7.693.539 S 3220.555 S 106.185.295 S 101.484.916 For further detailed information see Note 5, Capital Assets.
Debt Administration
As of June 30, 2022, the City's long-term debt totaled approximately $73.1 million, representing a decrease of $78.3 million from the prior year. Although there was an increase in claims payable, the pension liabilities were negative $23.3 million which resulted in the recognition of an asset while OPEB liabilities decreased by $6.4 million due to assumption changes as a result of the payoff of the pension UAL which was reflected in the current measurement period. Additionally, there was a $3.1 million decrease in debt because of regularly scheduled debt payments. (15)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
LONG-TERM LIABILITIES
Governmental Activities
Business-t}pe Activities Total
2022 2021 2022 2021 2022 2021
2003 Refunding Cert. of Participation S S 2,845,000 S - 5 - S S 2,845,000 2022 Loan Payable (2003 COP) 2,1S9,027 - - 2,189,027 -
Capital Leases (Radio) 664,014 337;351 - 664,014 837,351 OCTA Advance 1557,622 1,960,677 1„557,622 1,960,677
Fire Lease -1 2,785,339 3,116,360 - 2:735,339 3,116,360 Fire Lease=2 1.460,450 1,634,237 1.460;450 1,634,237
Fire UAL Payoff Loan 1.076,463
2021 Installment Sale Agreement 3,004,000 3,355,000 3;004,000 3,355,000 2020A Lease Revenue Bond 51,890,000 52,950,000 - 51,890,000 52;950,000 Leases Payable 650,728 - 650,72S -
Claims Payable 5.015.211 3.370,503 5.015.211 3.570.503
Compensated Absences 2.195,349 3,596,553 42,491 44,357 2,237,340 3,640,915 Other Postemplovment Benefit 24,138;119 30,450,033 772,363 845;793 24,910.4S7 31,325,326 Pension Liabilities (Assets) (22,405,246) 44,254;407 (560,379) 1,632,065 (23,265.625) 45,886,472 S 74.221.126 S 148.900.176 5 (45,520) S 2.522215 S 73,099.143 S 151.422.391 For further detailed information see Note 6, Long -Term Liabilities.
NEXT YEAR'S BUDGET, TAX RATES AND FEE LEVELS
The Fiscal Year 2022-23 adopted General Fund budget was balanced, with a surplus of revenues and transfers from other funds over expenditures and transfers to other funds of $53,838.
General Fund revenues and transfers from other funds are currently estimated at $45.5 million for FY 2022-23, which represents a $5.2 million or 12.9% increase from actuals FY 2021-22 revenues and transfers from other funds. This increase is primarily due to increased property valuations, strong sales taxes, ARPA and the City meeting the General Fund reserve goal set by the City's Policy 460.
The adopted FY22-23 General Fund budget includes $45.4 million of appropriations for expenditures (including CIP expenditures) and transfers to other funds. This represents an increase of $9.2 million or 25.5% over FY 2021-22 actual expenditures and transfers to other funds.
The increase is due to the addition of new full-time positions and other personnel related expenses, reinstatement of programs in Community Services after pausing them during the pandemic, using ARPA for City projects, the purchase of servers and other computer equipment needed to replace outdated equipment citywide.
Approved staffing for FY 2022-23 is 187 full time positions, 5 unfunded over hires, and 73 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. (16)
City of Placentia
Management's Discussion and Analysis (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2022
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.placentia.org . (17)
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT -WIDE FINANCIAL STATEMENTS
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CITY OF PLACENTIA
STATEMENT OF NET POSITION
JUNE 30, 2022
Primary Government
Governmental Business -Type
Activities Activities Total
ASSETS
Current Assets:
Cash and Investments $ 40,822,136 $ 1,231,595 $ 42,053,731 Receivables, Net of Allowance:
Accounts 2,205,305 146,902 2,352,207
Taxes 4,222,000 31,095 4,253,095
Grants 37,429 37,429
Interest 210,518 - 210,518
Loans 3,291,259 3,291,259
Leases 628,913 628,913
Prepaid Items 102,191 102,191
Inventory 173,020 173,020
Total Current Assets 51,692,771 1,409,592 53,102,363
Noncurrent Assets:
Land Held for Resale 1,036,760 1,036,760
Leases Receivable 20,114,368 20,114,368
Aggregate Net Pension Assets 22,405,246 860,379 23,265,625 Restricted Assets:
Cash and Investments with Fiscal Agent 6,529,326 6,529,326 Capital Assets - Nondepreciable 35,809,509 35,809,509
Capital Assets - Depreciable, Net 62,792,337 7,693,539 70,485,876 Total Noncurrent Assets 148,687,546 8,553,918 157,241,464 Total Assets 200,380,317 9,963,510 210,343,827
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding 305,534 305,534
Deferred Outflows of Resources Related
to Pensions 20,907,480 957,381 21,864,861
Deferred Outflows of Resources Related
to OPEB 4,590,879 146,898 4,737,777
Total Deferred Outflows of Resources 25,803,893 1,104,279 26,908,172 See accompanying Notes to Basic Financial Statements.
(19)
CITY OF PLACENTIA
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2022
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Payroll and Benefits
Deposits Payable
Retentions Payable
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
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred Charges on Refunding
Leases Related
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
Transportation
Park Development
Street Maintenance
Air Quality
Affordable Housing
Total Restricted
Unrestricted (Deficit)
Total Net Position
See accompanying Notes to Basic Financial Statements.
Governmental
Activities
$ 2,669,752
1,042,131
1,207,237
122,245
213,415
8,354,847
3,926,264
1,253,803
144,044
18,933,738
Primary Government
Business -Type
Activities
Total
$ 308,538 $ 2,978,290
37,603 1,079,734
1,207,237
122,245
213,415
8,354,847
3,926,264
1,253,803
2,788 146,832
348,929 19,282,667
61,351,429 61,351,429
3,761,408 3,761,408
2,051,305 39,703 2,091,008
24,138,119 772,368 24,910,487
91,302,261 812,071 92,114,332
110,235,999 1,161,000 111,396,999
20,771,263 20,771,263
4,035,752 105,445 4,141,197
8,316,733 266,118 8,582,851
33,123,748 371,563 33,495,311
86,044,986 7,693,539 93,738,525
720,405
3,418,044
1,231,807
4,405,452
6,544,212
826,150
20,193
780,314
202,385
2,026,325
20,175,287
(23,395,810)
$ 82,824,463
(20)
720,405
- 3,418,044
1,231,807
- 4,405,452
6,544,212
826,150
20,193
780,314
202,385
2,026,325
20,175,287
1,841,687 (21,554,123)
$ 9,535,226 $ 92,359,689
CITY OF PLACENTIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net Revenue (Expense)
Program Revenues and Changes in Net Positions
Capital Grants
Charges for Operating Grants and Governmental Business -Type Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 9,242,047 $ 2,812,280 $ 648,944 $ - $ (5,780,823) $ $ (5,780,823) Public Safety (5,340,560) 927,962 2,771,449 - 9,039,971 - 9,039,971 Public Works 3,159,219 876,489 2,826,308 1,850,038 2,393,616 2,393,616 Community Development 1,553,558 1,598,318 252,403 - 297,163 - 297,163 Community Services 1,684,915 253,404 - - (1,431,511) - (1,431,511) Interest 2,591,011 - - - (2,591,011) (2,591,011)
Total Governmental Activities 12,890,190 6,468,453 6,499,104 1,850,038 1,927,405 1,927,405 Business -Type Activities:
Refuse 3,420,538 3,731,726 - - 311,188 311,188
Sewer Maintenance 150,242 790,965 - - 640,723 640,723
Total Business -Type Activities 3,570,780 4,522,691 - 951,911 951,911 Total Primary Government
$ 16,460,970 $ 10.991,144 $ 6,499,104 $ 1,850,038 1,927,405 See accompanying Notes to Basic Financial Statements.
951,911 2,879,316
GENERAL REVENUES
Taxes:
Property Taxes 17,191, 426 17,191,426
Sales Taxes 17,247,980 - 17,247,980
Utility Users Tax 2,689,314 - 2,689,314
Franchise Taxes 2,650,604 2,650,604
Transient Occupancy Taxes 1,385,271 1,385,271
Real Property Transfer Taxes 450,575 450,575
Other Taxes 6,291 - 6,291
Investment Earnings (297,210) 1,957 (295,253)
Miscellaneous 256,115 - 256,115
Total General Revenues 41,580,366 1,957 41,582,323
CHANGES IN NET POSITION 43,507,771 953,868 44,461,639
Net Position - Beginning of Year (as Restated) 39,316,692 8,581,358 47,898,050 NET POSITION - END OF YEAR $ 82,824,463 $ 9,535,226 $ 92,359,689 (21)
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FUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
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CITY OF PLACENTIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Major Funds
Citywide
Development
Impact Fee Other
General Special Debt Governmental
Fund Revenue Fund Service Fund Funds
Total
ASSETS
Cash and Investments $ 26,088,314 $ 4,436,323 $ - $ 8,114,372 $ 38,639,009 Receivables:
Accounts 228,067 1,973,201 2,201,268
Taxes 4,222,000 4,222,000
Grants 37,429 37,429
Accrued Interest 210,518 - 210,518
Loans and Notes 2,634,732 656,527 3,291,259
Leases 20,743,281 20,743,281
Prepaid Items 95,891 6,300 102,191
Due from Other Funds 2,620,039 2,620,039
Inventories 173,020 - 173,020
Land Held for Resale - 1,036,760 1,036,760
Restricted Assets:
Cash and Investments with Fiscal Agents 2,024 6,527,302 6,529,326 Total Assets $ 57,017,886 $ 4,442,623 $ 6,527,302 $ 11,818,289 $ 79,806,100
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 1,743,077 $ 30,871 $ 675 $ 814,665 $ 2,589,288 Accrued Payroll and Benefits 1,029,247 12,879 1,042,126 Deposits Payable 1,207,237 - 1,207,237
Retentions Payable 41,668 - 80,577 122,245
Due to Other Funds - 63,135 2,556,904 2,620,039
Unearned Revenue 8,185,730 - 169,117 8,354,847
Total Liabilities 12,206,959 30,871 63,810 3,634,142 15,935,782
DEFERRED INFLOWS OF RESOURCES
Leases 20,771,263 - 20,771,263
Unavailable Revenues 455,184 1,633,516 2,088,700
Total Deferred Inflows of Resources 21,226,447 1,633,516 22,859,963
FUND BALANCES
Nonspendable 2,521,767 6,300 - 2,528,067
Restricted 2,024 4,405,452 6,463,492 9,304,319 20,175,287 Committed 13,855,723 - 13,855,723
Unassigned (Deficit) 7,204,966 `2,753,688) 4,451,278
Total Fund Balances 23,584,480 4,411,752 6,463,492 ,550,631 41,010,355 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 57.017.886 $ 4.442,623 $ 6.527.302 $ 11.818.289 $ 79.806.100 See accompanying Notes to Basic Financial Statements.
(23)
CITY OF PLACENTIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT -WIDE STATEMENT OF NET POSITION
JUNE 30, 2022
Total Fund Balances - Governmental Funds $ 41,010,355
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 35,809,509
Depreciable 62,792,337
98,601, 846
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.
305,534
2,088,700
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. (213,415) 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
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 Asset
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 as Reported on the Statement of Net Position See accompanying Notes to Basic Financial Statements.
(24)
(58,810,218)
(4,909,853)
(1,557,622)
(2,195,349)
(67,473,042)
20,907,480
22,405,246
(4,035,752)
4,590,879
(24,138,119)
(8,316,733)
(2,908,516)
$ 82,824,463
CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Major Funds
Citywide
Development
Impact Fee Other
General Special Debt Governmental
Fund Revenue Fund Service Fund Funds
Total
REVENUES
Taxes $ 41,621,461 $ - $ - $ - $ 41,621,461
Intergovernmental 952,389 5,545,613 6,498,002
Licenses and Permits 2,440,102 - 2,440,102
Fines and Forfeitures 503,302 - - 503,302
Investment Earnings (Losses) (323,152) 9,138 1,582 15,226 (297,206) Charges for Services 1,263,215 1,004,014 2,267,229
Leases and Rents 1,422,831 - 7,600 1,430,431
Contributions - 730,492 - 730,492
Miscellaneous 785,684 - 633,541 1,419, 225
Total Revenues 48,665,832 739,630 1,582 7,205,994 56,613,038
EXPENDITURES
Current:
General Government 12,055,475 - 49,916 12,105,391
Public Safety 15,441,982 10,283 2,023,960 17,476,225
Public Works 3,514,281 1,747,796 5,262,077
Community Development 1,482,732 - 524,802 2,007,534
Community Services 2,289,940 14,692 2,304,632
Capital Outlay 5,034,753 1,109,219 - 3,911,978 10,055,950 Debt Service:
Principal Retirement 1,320,810 1,060,000 754,055 3,134,865 Payment to Refunding Bond Escrow Agent 488,521 - 488,521 Interest and Fiscal Charges 343,759 2,026,072 70,804 2,440,635 Debt Issuance Costs 117,995 63,810 - 181,805
Total Expenditures 42,090,248 1,119,502 3,149,882 9,098,003 55,457,635 REVENUES OVER (UNDER) EXPENDITURES 6,575,584 (379,872) (3,148,300) (1,892,009) 1,155,403
OTHER FINANCING SOURCES (USES)
Issuance of Debt 2,189,027 2,189,027
Payment to Refunding Bond Escrow Agent (2,069,027) (2,069,027) Transfers In 102,947 - 3,069,763 861,466 4,034,176
Transfers Out (3,444,522) (78,594) (511,060) (4,034,176) Total Other Financing Sources (Uses) 3,221,575) 2, 91,169 350,406 120,000 NET CHANGE IN FUND BALANCES 3,354,009 (379,872) (157,131) (1,541,603) 1,275,403 Fund Balances - Beginning of Year 20,230,471 4,791,624 6,620,623 8,092,234 39,734,952 FUND BALANCES - END OF YEAR $ 23,584,480 $ 4,411,752 $ 6,463,492 $ 6,550,631 $ 41,010,355 See accompanying Notes to Basic Financial Statements.
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CITY OF PLACENTIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net Change in Fund Balances - Total Governmental Funds
Governmental activities in the Statement of Activities were reported differently because:
$ 1,275,403
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in governmental funds.
Capital Outlay 9,567,530
Depreciation (4,836,109)
Net Effect on Disposal of Capital Assets (217,859)
4,513,562
Amortization of the deferred charges on refunding is recognized as interest expense in the statement of activities.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the statement of activities.
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. (50,358)
(215,078)
(2,189,027)
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 4,784,707
Capital Leases 678,145
OCTA Advance 403,055
5,865,907
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.
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.
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.
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.
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.
Change in Net Position of Governmental Activities as Reported in the Statement of Activities See accompanying Notes to Basic Financial Statements.
(26)
(150,376)
(92,955)
1,062,816
34,620,403
(1,132,526)
$ 43,507,771
PROPRIETARY FUND FINANCIAL STATEMENTS
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CITY OF PLACENTIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Business -Type Governmental
Major Enterprise Funds Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds
ASSETS
Current Assets:
Cash and Investments $ 507,826 $ 723,769 $ 1,231,595 $ 2,183,127 Receivables:
Accounts 64,004 82,898 146,902 4,037
Taxes 31,095 31,095 -
Total Current Assets 602,925 806,667 1,409,592 2,187,164 Noncurrent Assets:
Aggregate Net Pension Asset 177,442 682,937 860,379
Capital Assets, Net of Accumulated Depreciation 7,693,539 7,693,539 Total Noncurrent Assets 177,442 8,376,476 8,553,918
Total Assets 780,367 9,183,143 9,963,510 2,187,164
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources Related to Pensions 197,448 759,933 957,381 Deferred Outflows of Resources Related to OPEB 60,286 86 612 146,898 Total Deferred Outflows of Resources 257734 84645 1,10279
LIABILITIES
Current Liabilities:
Accounts Payable 298,486 10,052 308,538 80,464
Accrued Payroll and Benefits 14,169 23,434 37,603 5
Compensated Absences - Due Within One Year 824 1,964 2,788 - Claims And Judgments - Due Within One Year - - 1,253,803 Total Current Liabilities 313,479 35,450 348,929 '334,272 Noncurrent Liabilities:
Compensated Absences - Due in More Than One Year
Claims And Judgments - Due in More Than One Year
Net OPEB Liability
Total Noncurrent Liabilities
Total Liabilities
11,735 27,968 39,703 -
- 3,761,408
316,977 455,391 772,368 -
328,712 483,359 812,071 3,761,408
642,191 518,809 1,161,000 5,095,680
DEFERRED INFLOW OF RESOURCES
Deferred Inflows of Resources Related to Pensions 21,747 83,698 105,445 Deferred Inflows of Resources Related to OPEB 109,214 156 904 266,118 Total Deferred Inflows of Resources 130,661 24002 371,563
NET POSITION
Investment in Capital Assets 7,693,539 7,693,539
Unrestricted (Deficit) 264,949 1,576,738 1,841,687 (2.908,516) Total Net Position $ 264.949 $ 9,270.277 $ 9.535.226 $ (2.908.516) See accompanying Notes to Basic Financial Statements.
(27)
CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Governmental
Business -Type Activities Activities
Sewer Internal
Refuse Maintenance Total Service
OPERATING REVENUES
Reimbursements $ 38,996 $ - $ 38,996 $ 386,239
Sales and Service Charges 3,692,730 790,965 4,483,695 2,811,671 Other Revenues - - - 24,601
Total Operating Revenues 3,731,726 790,965 4,522,691 3,222,511
OPERATING EXPENSES
Administration 202,033 360,284 562,317 136,839
Reinsurance Premiums 122,162
Claims 1,945,174
Medical and Dental Premiums 954,142
Liability Insurance Premiums 1,196,720
Maintenance (737,358) (737,358) -
Landfill and Contractor Charges 3,218,505 3,218,505 -
Depreciation Expense - 527,316 527,316 -
Total Operating Expenses 3,420,538 15042 3,570,780 4,355,037 OPERATING INCOME (LOSS) 311,188 640,723 951,911 (1,132,526)
NONOPERATING INCOME (LOSS)
Investment Income 513 1,444 1 957
Total Nonoperating Income 513 1,444 1.957 -
CHANGES IN NET POSITION 311,701 642,167 953,868 (1,132,526) Net Position - Beginning of Year (46,752) 8,628,110 8,581,358 (1,775,990) NET POSITION - END OF YEAR $ 264,949 $ 9,270,277 $ 9,535,226 $ (2,908,516) See accompanying Notes to Basic Financial Statements.
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CITY OF PLACENTIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Governmental
Business -Type Activities Activities
Sewer Internal
Refuse Maintenance Total Service
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 3,671,719 $ 784,696 $ 4,456,415 $ 3,218,527 Cash Paid to Suppliers for Goods and Services (3,213,469) 737,113 (2,476,356) (1,250,804) Cash Paid to Employees for Services (436,675) (1,524,483) (1,961,158) - Cash Paid for Insurance Claims - - - (1,945,174)
Net Cash Provided (Used) by Operating Activities 21,575 (2,674) 18,901 22,549
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Cash Transfers In (Out)
Net Cash Provided (Used) by Noncapital Financing
Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds from Sale of Capital Assets
Net Cash Provided (Used) by Capital and Related
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest Received
Net Cash Provided (Used) by Investing Activities
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
CASH AND CASH EQUIVALENTS
Cash and Investments
Cash and Investments with Fiscal Agent
Total Cash and Cash Equivalents
See accompanying Notes to Basic Financial Statements.
513 1,444 1,957
513 1,444 1.957 -
22,088 (1,230) 20,858 22,549
485,738 724,999 1,210,737 2,160,578
$ 507.826 $ 723,769 $ 1.231.595 $ 2,183.127
$ 507,826 $ 723,769 $ 1,231,595 $ 2,183,127
$ 507.826 $ 723.769 $ 1.231,595 $ 2.183.127
(29)
CITY OF PLACENTIA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Governmental
Business -Type Activities Activities
Sewer Internal
Refuse Maintenance Total Service
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 311,188 $ 640,723 $ 951,911 $ (1,132,526) Adjustments to Reconcile Operating (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 527,316 527,316
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables (64,004) (6,269) (70,273) (3,984) (Increase) Decrease in Taxes Receivables 3,997 - 3,997
(Increase) Decrease in Deferred Outflows of
Resources Related to Pension 200,584 772,003 972,587
(Increase) Decrease in Deferred Outflows of
Resources Related to OPEB (5,613) 5,642 29 -
Increase (Decrease) in Accounts Payable 5,036 (245) 4,791 14,351 Increase (Decrease) in Accrued Liabilities 5,576 5,826 11,402 - Increase (Decrease) in Compensated Absences 1,361 (3,227) (1,866) - Increase (Decrease) in Claims Payable - - - 1,144,708
Increase (Decrease) in Net Pension Liabilities (514,035) (1,978,409) (2,492,444) - Increase (Decrease) in Net OPEB Liabilities 2,248 (75,673) (73,425) Increase (Decrease) in Deferred Inflows of
Resources Related to Pension 4,658 17,926 22,584
Increase (Decrease) in Deferred Inflows of
Resources Related to OPEB 70,579 91,713 162,292
Net Cash Provided (Used) by Operating Activities $ 21,575 $ (2,674) $ 18,901 $ 22,549 See accompanying Notes to Basic Financial Statements.
(30)
FIDUCIARY FUND FINANCIAL STATEMENTS
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CITY OF PLACENTIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
ASSETS
Pooled Cash and Investments
Receivables:
Miscellaneous
Restricted Assets:
Cash and Investments with Fiscal Agents
Total Assets
RDA
Successor Custodial
Agency Funds
$ 858,070 $ 119,596
- 427
650,107
1,508,177
LIABILITIES
Accounts Payable
Accrued Liability 5,399
Accrued Interest 154,135
Long -Term Liabilities:
Due in One Year 973,824
Due in More Than One Year 11,520,900
Total Liabilities 12,654,258
120,023
7,866
14 42,921
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and Other
Governments (11,146,082) 32,226
Total Net Position (Deficit)
See accompanying Notes to Basic Financial Statements.
(31)
$ (11,146,082) $ 32,226
ADDITIONS
Property Taxes
Investment Income
Total Additions
CITY OF PLACENTIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2022
RDA
Successor Custodial
Agency Funds
$ 2,258,333 $
- 39,904
115 188
2,258,448 40,092
DEDUCTIONS
Program Costs 110,997
Administrative Expenses 111,591
Interest Expense 367,952
Administrative Expenses 7,866
Total Deductions 590,540 7,866
CHANGE IN NET POSITION 1,667,908 32,226
Net Position - Beginning of Year (As Restated) (12,813,990) NET POSITION - END OF YEAR $ (11,146,082) $ 32,226
See accompanying Notes to Basic Financial Statements.
(32)
NOTES TO BASIC FINANCIAL STATEMENTS
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CITY OF PLACENTIA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Page
Note 1 — Summary of Significant Accounting Policies 35
A. Financial Reporting Entity 35
B. Basis of Accounting and Measurement Focus 36
C. Implementation of New Accounting Pronouncement 39
D. Cash and Investments 39
E. Fair Value Measurement 40
F. Property Taxes Receivable 40
G. Prepaid Items 40
H. Inventories 40
I. Interfund Transactions 41
J. Capital Assets 41
K. Leases 42
L. Unearned and Unavailable Revenue 42
M. Compensated Absences Payable 43
N. Claims Payable 43
O. Pensions 43
P. Other Postemployment Benefits (OPEB) 44
Q. Long -Term Obligations 45
R. Net Position 45
S. Fund Balances 45
T. Spending Policy 46
U. Use of Estimates 46
Note 2 — Cash and Investments 47
A. Demand Deposits 47
B. Investments Authorized by the California Government Code and the City's Investment Policy 48
C. Investments Authorized by Debt Agreements 49
D. Fair Value Measurement 49
E. Risk Disclosures 50
F. Investment in Local Agency Investment Fund (LAIF) 51 Note 3 — Interfund Transactions 52
A. Due From/To Other Funds 52
B. Transfers 52
Note 4 — Long -Term Receivables 53
A. Loans Receivable 53
B. Leases Receivable 55
Note 5 — Capital Assets 56
(33)
CITY OF PLACENTIA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Page
Note 6 — Long -Term Liabilities 58
A. Governmental Activities 58
B. Business -Type Activities 65
C. Fiduciary Activities 65
Note 7 — Deferred Compensation Plans 68
Note 8 — Pension Plans 70
A. Summary 70
B. General Information about the Pension Plan 72
C. Pension Liabilities, Pension Expenses, and Deferred
Outflows/Inflows of Resources Related to Pensions 73
D. Payable to the Pension Plan 79
Note 9 — Other Postemployment Benefit Plan 79
A. Summary 79
B. General Information about OPEB 80
C. Total OPEB Liability, OPEB Expense, and Deferred
Outflows/Inflows of Resources Related to OPEB 80
Note 10 — Risk Management and Self Insurance Program 84 A. General Liability 84
B. Worker's Compensation 84
C. Other Insurance 84
Note 11 — Classification on Fund Balances 85
Note 12 — Commitments and Contingencies 86
A. Commitments 86
B. Contingencies 86
C. Grants 86
Note 13 — Other Required Fund Disclosures 87
A. Expenditures in Excess of Appropriation 87
B. Deficit Net Positions and Fund Balances 87
Note 14 — Prior Period Adjustments 88
(34)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 Financing 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.
(35)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Financial Reporting Entity (Continued)
Blended Component Units (Continued)
Placentia Enhanced Infrastructure Financing District — The Placentia Enhanced Infrastructure Financing District (EIFD) was formed in September 2019 in partnership with the County of Orange near the City's future Metrolink Station including the Old Town Placentia area and Transit Oriented Development 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.
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.
The statement of net position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.
Deferred Outflows of 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.
(36)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Government -Wide Financial Statements (Continued)
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 regard 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.
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. (37)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
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 nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
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's sewer system.
(38)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
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. Implementation of New Accounting Pronouncements
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The City adopted the requirements of the guidance effective July 1, 2021, and has applied the provisions of this standard to the beginning of the period of adoption.
D. 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).
(39)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. 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.
F. 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.
G. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method.
H. 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. (40)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. 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" (Le., current portion of interfund loans).
J. Capital Assets
In the government -wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, infrastructure (e.g., roads, sidewalks, and similar items), and right -to -use leased assets, 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/amortized over their estimated useful lives using the straight-line method. The estimated useful lives used for depreciation/amortization purposes are as follows:
Structures and Improvements 5 to 50 Years
Civic Center Structures and Improvements 50 Years
Right -to -Use Lease Land 4 to 5 Years
Automotive Equipment 2 to 10 Years
Computer Equipment 3 Years
Other Equipment 5 Years
Right -to -Use Lease Equipment 2 to 4 Years
Infrastructure:
Roadways 35 Years
Street Appurtenances 10 to 50 Years
Wastewater 50 to 60 Years
Storm Drains 50 Years
(41)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Leases
Lessee
The City is a lessee for noncancellable leases of land and improvements and equipment.
The City recognizes a lease liability and an intangible right -to -use asset (lease asset) in the governmental activities in the government -wide statement of net position. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lessor
The City is a lessor for a noncancellable leases of land, buildings and improvements.
The City recognizes a lease receivable and a deferred inflow of resources in the statement of net position and in the governmental fund balance sheet. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
L. 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.
(42)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. 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.
N. 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.
O. 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:
CaIPERS:
Valuation Date
Measurement Date
Measurement Period
(43)
June 30, 2020
June 30, 2021
July 1, 2020 to June 30, 2021
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Pensions (Continued)
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 five 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.
P. 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).
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, 2021
June 30, 2021
July 1, 2020 to June 30, 2021
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.
(44)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. 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.
R. Net Position
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.
S. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable Fund Balance — These amounts 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.
Restricted Fund Balance — These 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 Fund Balance — These have 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.
(45)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Fund Balances (Continued)
Assigned Fund Balance — These have 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 Fund Balance — These 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.
T. Spending Policy
Government -Wide Financial Statements and the Proprietary 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:
• Committed
• Assigned
• Unassigned
U. 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.
(46)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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, 2022:
Cash and Investments
Cash and Investments with
Fiscal Agent
Total Cash and
Investments
Government -Wide
Statement of Net Position
Governmental Business -Type
Activities Activities
$ 40,822,136 $ 1,231,595
6,529,326
Statement of
Fiduciary
Net Position Total
$ 977,666 $ 43,031,397
650,107 7,179,433
$ 47,351,462 $ 1,231,595 $ 1,627.773 $ 50,210,830
The City's cash and investments at June 30, 2022, in more detail:
Cash and Cash Equivalents:
Demand Deposits $ 14,341,986
Petty Cash 17,565
Total Cash and Cash Equivalents 14,359,551
Investments:
Local Agency Investment Fund 15,660
Money Market Mutual Fund 22,931
Negotiable Certificates of Deposit 911,026
U.S. Treasury Securities 26,794,065
Federal Agency Securities 928,060
Investments with Fiscal Agent:
Money Market Mutual Fund 7,179,537
Total Investments 35,851,279
Total Cash and Investments $ 50,210,830
A. Demand Deposits
The carrying amounts of the City's demand deposits were $14,341,986 at June 30, 2022. Bank balances at that date were $15,371,170, 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. (47)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
A. Demand Deposits (Continued)
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.
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 Deposit
Money Market Funds
Passbook Savings
Commercial Paper
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
CalTrust (JPA)
California Asset Management Program
Repurchase Agreements
*The table is based on state law
whichever is more restrictive.
Maximum
Maturity
5 Years
5 Years
5 Years
5 Years
N/A
N/A
270 Days
180 Days
N/A
N/A
N/A
N/A
1 year
Maximum
Percentage of
Portfolio
None
30%
30%
40%
20%
None
25%
30%
None
None
None
None
30%
Maximum
Investment
in One
Issuer
None
15%
$250,000
$250,000
10%
None
10%
30%
None
None
None
None
None
requirements or requirements,
(48)
investment policy
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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
Money Market Funds
Passbook Savings
Commercial Paper
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
Maximum
Maturity
N/A
N/A
N/A
N/A
N/A
N/A
270 Days
180 Days
N/A
N/A
Maximum
Percentage of
Portfolio
None
None
None
None
None
None
None
None
None
None
Maximum
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.
D. Fair Value Measurement
At June 30, 2022, 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, 2022:
Investment Type
Local Agency Investment Fund
Money Market Mutual Funds
Negotiable Certificates of Deposit (1)
U.S. Treasury Securities (1)
Federal Agency Securities (1)
Held by Fiscal Agent:
Money Market Mutual Funds
Total
Measurement Input
Significant Other
Observable Input
(Level 2)
911,026
26,794,065
928,060
Uncateoorized (3)
$ 15,660
22,931
7,179,537
$ 28,633,151 $ 7,218,128
Total
$ 15,660
22,931
911,026
26,794,065
928,060
7,179,537
$ 35,851,279
(1) 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
(49)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
D. Fair Value Measurement (Continued)
Disclosures Relatina 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 Maturities (in Years
Investment Type Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment
Fund $ 15,660 $ 15,660 $ - $ - $ $
Money Market Mutual Funds 22,931 22,931
Negotiable Certificates of
Deposit 911,026 233,715 226,712 450,599
U.S. Treasury Securities 26,794,065 5,754,883 9,943,280 6,675,731 2,951,345 1,468,826 Federal Agency Securities 928,060 - - 466,605 461,455
Held by Fiscal Agent:
Money Market Mutual Funds 7,179,537 7,179,537 - -
Total $ 35,851,279 $ 12,973,011 $ 9,943,280 $ 7,376,051 $ 3,639,512 $ 1,919,425 Disclosures Relatina 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 $ 15,660 N/A $ - $ 15,660
Money Market Mutual Funds 22,931 AAA 22,931 -
Negotiable Certificates of Deposit 911,026 N/A - 911,026 U.S. Treasury Securities 26,794,065 N/A 26,794,065
Federal Agency Securities 928,060 N/A 928,060
Held by Fiscal Agent:
Money Market Mutual Funds 7,179,537 AAA 7,179,537
Total $ 35,851,279 $ 34,924,593 $ 926,686
(50)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
E. Risk Disclosures (Continued)
Concentration of 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, 2022, the investments held by bond trustee were held in money market mutual funds, which are considered to be cash equivalents.
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, 2022, 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. (51)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
F. Investment in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2022, the City had $15,660 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, 2022, the City had the following due from/to other funds:
Due To Other Funds
Debt Service Fund
Due From
Other Funds
General Fund
$ 63,135
Nonmajor Special Revenue Funds:
Miscellaneous Grants Fund 164,903
Landscape Maintenance District 92-1 39,490
Housing and Community Development 713,863
Gasoline Tax 87,245
PEG 18,205
Community Based Transitional Housing 118
Placentia Regional Navigation Center 1,208,745
Nonmajor Capital Projects Funds:
City Projects 324,335
Total $ 2,620,039
Total
$ 63,135
164,903
39,490
713,863
87,245
18,205
118
1,208,745
324,335
$ 2,620,039
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.
B. Transfers
During the year ended June 30, 2022, the City had the following transfers:
Transfers Out
Transfers In General Fund
General Fund $ -
Debt Service Fund 3,069,763
Nonmajor Governmental
Funds
Total
Debt Service
Fund
Nonmajor
Governmental
Funds
$ 102,947
374,759 78,594
$ 3,444,522 $ 78,594 $
(52)
Total
$ 102,947
3,069,763
408,113 861,466
511,060 $ 4,034,176
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 INTERFUND TRANSACTIONS (CONTINUED)
B. Transfers (Continued)
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 nonmajor governmental funds to the General Fund of $102,947 were to fund police, street maintenance, and other operating costs.
The General Fund transferred $374,747 to the Street Lighting Special Revenue Fund to subsidize street lighting districts, $12 to nonmajor funds as operating subsidies and $3,069,763 to the Debt Service Fund to fund debt service.
The Gas Tax Special Revenue Fund transferred $486,716 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 LONG-TERM RECEIVABLES
A. Loans Receivable
At June 30, 2022, the City has the following loans receivable:
Housing
Successor
Special
General Revenue
Fund Fund
Total
Certificates of Participation
Reimbursement $ 2,183,624 $ $ 2,183,624
Owner's Participation Agreement 43,749 43,749
Real Property Loan Obligation
Receivable 451,108 112,778 563,886
Placentia Veterans Village Loan - 500,000 500,000
Total $ 2,634,732 $ 656,527 $ 3,291,259
(53)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
A. Loans Receivable (Continued)
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 2003 COP were refinance with the 2022 COP during the year (see note 7).
The portion reimbursed (87.52%) is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the 2003 COP related debt issue that were within the confines of the development project area.
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 $4,167 in principal payments. The ending loan receivable balance at June 30, 2022, is $43,749.
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, 2022, is $501,108 to the City's General Fund and $112,778 to the Housing Successor Agency Fund for a total of $563,886.
(54)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
A. Loans Receivable (Continued)
Placentia Veterans Villaae 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, 2022, is $500,000.
B. Leases Receivables
The City, acting as lessor, leases land and improvements under thirteen long-term, noncancellable lease agreements. The leases expire at various dates through July 1, 2065. The net present values of the leases receivable were determined using discount rates ranging from 0.218% to 2.184%. Rent payments ranging from $300 to $3,543, are received monthly or ranging from $75,000 to $250,000, received annually. During the year ended June 30, 2022, the City recognized $799,597 and $244,298 in lease revenue and interest revenue respectively, pursuant to these lease agreements.
The leases provide for increases in future minimum monthly rent payments, subject to certain stated increases.
(55)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 5 CAPITAL ASSETS
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2022:
Balance
June 30, 2021 Balance
Restated (1) Additions Deletions Reclassifications June 30, 2022 Capital Assets Not Being
Depreciated/Amortized:
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 5,170,579 7,861,915 (212,557) (5,585,662) 7,234,275 Total Capital Assets Not
Being Depreciated 33,745,813 7,861,915 (212,557) (5,585,662) 35,809,509 Capital Assets Being
Depreciated/Amortized:
Structures and Improvements 18,745,829 361,718 19,107,547 Right -to -Use Lease Land 684,909 - 684,909
Right -to -Use Lease Equipment 139,314 - - - 139,314
Equipment 14,486,837 1,705,615 (115,641) 473,760 16,550,571 Land Improvements 172,528 - 172,528
Infrastructure:
Streets Network 53,995,415 4,402,385 58,397,800
Street Appurtenances 24,120,429 - 149,829 24,270,258
Storm Drain 9,027,054 197,970 9,225,024
Total Capital Assets
Being Depreciated/Amortized 121,372,315 1,705,615 (115,641) 5,585,662 128,547,951 Less: Accumulated
Depreciation/Amortization for:
Structures and Improvements (6,953,117) (642,675) (7,595,792) Right -to -Use Lease Land (152,202) (152,202)
Right -to -Use Lease Equipment (29,224) (29,224)
Equipment (7,453,216) (1,765,907) 110,339 (9,108,784)
Land Improvements (117,760) (5,796) - - (123,556)
Infrastructure:
Streets Network (24,920,696) (1,544,455) (26,465,151)
Street Appurtenances (14,908,156) (515,350) (15,423,506) Storm Drain (6,676,899) (180,500) (6,857,399)
Total Accumulated
Depreciation/Amortization (61,029,844) (4,836,109) 110,339 (65,755,614) Total Capital Assets Being
Depreciated/Amortized, Net 60,342,471 (3,130,494) (5,302) 5,585,662 62,792,337 Total Governmental
Activities $ 94,088,284 $ 4.731.421 $ (217,859) $ $ 98,601,846 (1) The beginning balance was restated to add right -to -use lease assets due to the implementation of GASB Statement No. 87, Leases. See Note 11.
Depreciation/amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2022, as follows:
General Government
Public Safety
Public Works
Community Services
Total Depreciation/Amortization Expense
(56)
498,426
1,515,939
2,417,056
404,688
4,836,109
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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, 2022:
Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Capital Assets Being
Depreciated:
Structures and
Improvements $ 28,155,969 $ - $ - $ 28,155,969
Equipment 122,158 122,158
Total Capital Assets
Being Depreciated 28,278,127 - 28,278,127
Less: Accumulated
Depreciation for:
Structures and
Improvements (20,001,949) (515,100) (20,517,049)
Equipment (55,323) (12,216) - (67,539)
Total Accumulated
Depreciation (20,057,272) (527,316) - (20,584,588)
Total Capital Assets
Being Depreciated, Net 8,220,855 (527,316) 7,693,539
Total Business -Type
Activities $ 8,220,855 $ (527,316) $ - $ 7,693,539
Depreciation expense was charged to the Sewer Maintenance Fund within business -type activities.
(57)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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, 2022, is as follows:
Balance Classification
June 30, 2021 Balance Due within Due in More
(As Restated) Additions Deletions June 30, 2022 One Year Than One Year Long -Term Debt:
Certificates of Participation:
2003 Refunding and
Improvement Project
Certificates of
Participation $ 2,845,000 $ - $ (2,845,000) $ $ $
Direct Borrowings and
Placements:
Loan Payable- Radio 837,351 - (173,337) 664,014 148,417 515,597 Loan Payable -Fire #1 3,116,360 (330,971) 2,785,389 339,935 2,445,454 Loan Payable -Fire #2 1,634,287 (173,837) 1,460,450 178,474 1,281,976 OCTA Advance 1,960,677 (403,055) 1,557,622 415,741 1,141,881 Fire UAL Payoff Loan 1,431,676 (355,213) 1,076,463 362,202 714,261 Loan Payable -Ref 2003 COP 2,189,027 2,189,027 436,330 1,752,697 2021 Installment Sale
Agreement (2011 Gas
Tax Refunding) 3,355,000 (351,000) 3,004,000 353,000 2,651,000 2020A Lease Revenue
Bonds 52,950,000 (1,060,000) 51,890,000 1,500,000 50,390,000 Total Direct Borrowings
and Placements 65,285,351 2,189,027 (2,847,413) 64,626,965 3,734,099 60,892,866 Leases Payable 823,958 (173,230) 650,728 192,165 458,563 Total Long -Term Debt 68,954,309 2,189,027 (5,865,643) 65,277,693 3,926,264 61,351,429 Claims Payable
Compensated Absences
Total Long -Term
Liabilities
3,870,503 2,541,152 (1,396,444) 5,015,211 1,253,803 3,761,408 2,102,395 118,317 (25,363) 2,195,349 144,044 2,051,305
$ 74,927,207 $ 4,848,496 $ (7,287,450) $ 72,488,253 $ 5,324,111 $ 67,164,142 2003 Refunding and Improvements Project Certificates of Participation 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 were refinanced during the year.
Loan Payable — Refunding of 2003 Certificates of Participation On June 1, 2022, the City entered into a loan payable agreement in the amount of $2,189,027 with the Municipal Finance Corporation to (a) refinance certain obligations relating to the 2003 Refunding and Improvements Project Certificates of Participation The reacquisition price was greater than the net carrying amount of the old debt by $353,395, which resulted in the recognition of deferred outflow of resources. The difference between the reacquisition price and the net carrying amount of the old debt is amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter. A cash flow savings of $115,156 was achieved as a result of the refunding. (58)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loan Payable — Refunding of 2003 Certificates of Participation (Continued) Principal is payable annually on January 1. Interest is payable semi-annually on January 1 and July 1, commencing January 1, 2023.
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 a portion of the lease payment paid by the city to the Bond trustee. The portion reimbursed 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 loan payable 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% 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 total obligation is reported on the statement of fiduciary net position within the RDA Successor Agency Private -Purpose Trust Fund. A note receivable is reported in the General Fund, relating to the total obligation that the city is expected to have reimbursement by the former Placentia Redevelopment Agency (See Note 4 for additional details). The outstanding balance of the 2022 Certificates of Participation as of June 30, 2022, is $2,189,027.
The final payment on this refinancing will be January 1, 2027 and may be prepaid in whole or in part on any payment date beginning on July 1, 2025.
The annual debt service requirements are as follows:
Year Ending June 30. Principal Interest Total
2023 $ 436,330 $ 28,865 $ 465,195
2024 421,431 41,188 462,619
2025 433,047 31,285 464,332
2026 443,986 21,108 465,094
2027 454,233 10,674 464,907
Total $ 2,189,027 $ 133,120 $ 2,322,147
(59)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
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 CaIPERS for the benefit of City employees, to fund certain anticipated increases to the accrued liability to CaIPERS, 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 semi-annually 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 CaIPERS payment fund. This amount represents the June 30, 2019, unfunded liability for the miscellaneous and safety plans shown in the 2019 CaIPERS reports, rolled forward to November 12, 2020, and taking into account payments made during the fiscal years 2020 and 2021.
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. (60)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2020 Lease Revenue Bonds (Continued)
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, 2022, is $51,890,000. The annual debt service requirements are as follows:
Year Endina June 30.
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2046
Total
Principal
$ 1,500,000 $
1,860,000
2,190,000
2,405,000
2,475,000
13,730,000
16,640,000
8,845,000
2,245,000
$ 51,890,000 $
Interest
2,004,248
1,975,342
1,933,772
1,878,036
1,806,944
7,688,234
4,785,245
1,652,596
178,201
23,902,618
Total
$ 3,504,248
3,835,342
4,123,772
4,283,036
4,281,944
21,418,234
21,425,245
10,497,596
2,423,201
$ 75,792.618
2021 Installment Sale Agreement
On March 1, 2021, the City entered into an installment sale agreement with Trust 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. (61)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2021 Installment Sale Agreement (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, 2022, is $3,004,000. The annual debt service requirements are as follows:
Year Ending June 30.,
2023
2024
2025
2026
2027
2028-2032
Total
Principal
$ 353,000 $
358,000
368,000
373,000
377,000
1,175, 000
$ 3,004,000 $
Interest
48,106
42,265
36,316
30,220
24,049
34,080
215,036
Total
$ 401,106
400,265
404,316
403,220
401,049
1,209,080
$ 3,219,036
Loans Payable
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 financing agreement were included in the machinery and equipment for governmental activities in the amount of $1,319,360. The loan is for a period of 10 years with an interest rate of 3.13% for a total of $187,871. Loan payments are payable quarterly in arrears of the period to which they relate to.
Year Ending June 30,
2023
2024
2025
2026
2027
Total
Principal
$ 148,417
153,118
157,967
204,512
$ 664,014
(62)
Interest
$ 19,053
14,352
9,503
4,826
$ 47,734
Total
$ 167,470
167,470
167,470
209,338
$ 711,748
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Capital Lease (Continued)
Fire Loan Payable #1
On August 27, 2019, the City entered into an agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $3,400,000. The loan is for a period of 10 years with an interest rate of 2.69%. Loan 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 loan proceeds are provided on a reimbursement basis after equipment has been purchased. Through June 30, 2022, the City had has drawn down $3,400,000, all of the available funds. Therefore, future debt service requirements are as follows:
Year Endina June 30.
2023
2024
2025
2026
2027
2028-2031
Total
Principal
$ 339,935 $
349,140
358,596
368,307
378,281
991,130
$ 2,785,389 $
Interest
72,656
63,450
53,995
44,284
34,310
40,348
309,043
Total
$ 412,591
412,590
412,591
412,591
412,591
1,031,478
$ 3,094,432
Fire Loan Payable #2
On November 25, 2019, the City entered into an agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $1,795,000. The loan is for a period of 10 years with an interest rate of 2.65%. Loan 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, 2022, the City had drawn down $1,795,000, all of the available funds. Therefore, future debt service requirements are as follows:
Year Endina June 30.
2023
2024
2025
2026
2027
2028-2031
Total
Principal
$ 178,474 $
183,235
188,123
193,141
198,293
519,184
$ 1,460,450 $
(63)
Interest
37,527
32,766
27,879
22,860
17,708
20,817
159,557
Total
$ 216,001
216,001
216,002
216,001
216,001
540,001
$ 1,620,007
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
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.
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, 2022, is $1,557,622.
Fire UAL Payoff Loan
On May 5, 2020 the City approved a payment plan to Cal PERS to pay off the $1,878,760 unfunded accrued liability (UAL) on the termination of the City's Safety -Fire category of the City's contract with CaIPERS. The payment plan is for a period of 5 years with an interest rate of 1.95%. Payments of $31,664 are payable monthly through May 2025.
Leases Payable
The City leases land and improvements for various terms under five long-term, noncancelable lease agreements. The leases expire at various dates through May 11, 2026. The net present values of the leases payable were determined using a discount rates ranging from 0.315 to 2.093%. Rent payments ranging from $723 to $1,151, are paid monthly or ranging from $1,483 to $39,128, paid quarterly. The leases provide for increases in future minimum monthly rental payments subject to stated increases.
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2023 $ 192,165 $ 2,800 $ 194,965
2024 191,669 1,910 193,579
2025 174,650 1,037 175,687
2026 92,244 228 92,472
Total $ 650,728 $ 5,975 $ 656,703
Claims Payable
Estimated claims payable from general liability and workers' compensation claims as determined by outside claims administrator. Outstanding balance as of June 30, 2022, is as follows:
General Liability Claims
Workers' Compensation Claims
Total Claims Payable
(64)
$ 435,330
3,435,173
$ 3,870,503
NOTE 6
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
LONG-TERM LIABILITIES (CONTINUED)
B. Business -Type Activities
A summary of changes in long-term liabilities for business -type activities for the year ended June 30, 2022, is as follows:
Compensated Absences
Total
C. Fiduciary Activities
Classification
Balance Balance Due Within Due in More
(As Restated) Additions Deletions June 30, 2022 One Year than One Year $ 44,357 $ - $ (1,866) $ 42,491 $ 2.788 $ 39,703
$ 44,357 $ - $ (1,866) $ 42,491 S 2,788 $ 39,703
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2022, is as follows:
Bonds Payable:
2013 Tax Allocation
Refunding Bonds
Bond Premium:
2013 Tax Allocation
Refunding Bonds
Classification
Balance Balance Due Within Due in More
June 30, 2021 Additions Deletions June 30, 2022 One Year Than One Year $ 9,355,000 $ - $ (635,000) $ 8,720,000 $ 650,000 $ 8,070,000 39,460 - (3,560) 35,900 - 35,900
Other Liabilities:
2003 Refunding and
Improvement Project
Certificates of Participation 2,489,944 (306,320) 2,183,624 323,824 1,859,800 SERAF Obligation 991,314 - 991,314 - 991,314
Real Property Loan
Obligation 1,215,676 - /651 790) 563,886 - 563 886
Total $ 14.091.394 $ - $ (.596.6701 $ 12.494.724 $ 973.824 $ 11.520.900 2013 Tax Allocation Refunding 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.
(65)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
2013 Tax Allocation Refunding Bonds (Continued)
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, 2022, the outstanding principal on this bond is $8,720,000.
The annual debt service requirements are as follows:
Year Endina June 30,
2023
2024
2025
2026
2027
2028-2032
2033
Total
Principal
$ 650,000 $
670,000
695,000
720,000
750,000
4,260,000
975,000
$ 8,720,000 $
Interest
360,175
339,538
315,619
288,188
258,788
753,050
23,156
2,338,514
Total
$ 1,010,175
1,009,538
1,010,619
1,008,188
1,008,788
5,013,050
998,156
$ 11,058,514
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.
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, which were refinanced during the year with the 2022 Certificates of Participation.
(66)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
Certificates of Participation City Reimbursement (Continued) The portion reimbursed 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 Tong -term liability balance as of June 30, 2022, of $2,183,624 represents the portion of the outstanding principal balance of the 2022 COP for which the Successor Agency will reimburse the City.
The annual debt service requirements are as follows:
Year Ending June 30.
2023
2024
2025
2026
2027
2028
Total
Principal
$ 323,824 $
336,952
354,456
371,960
389,464
406,968
$ 2,183,624 $
Interest
103,772
88,341
72,335
55,499
37,831
19,331
377,109
Total
$ 427,596
425,293
426,791
427,459
427,295
426,299
$ 2,560,733
Supplemental Education Revenue Augmentation Fund (SERAF) Obligation The Successor Agency has accrued a liability in the amount of $991,314 in regard 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. Nonpayment 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, 2022, 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 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%. (67)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
Real Property Loan Obligation Continued)
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, 2022, is $563,886.
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 transferred 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.
(68)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7 DEFERRED COMPENSATION PLANS (CONTINUED)
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, 2022, was $2,659,736. Total employee contributions paid by the City amounted to $187,311 or 7.04% 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, 2022, the Plan had 25 participants and the market value of the Plan amounted to $378,607. (69)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS
A. Summary
Deferred Outflows of Resources:
Pension Contribution Made After
Measurement Date:
CaIPERS Miscellaneous
CaIPERS Safety
Total Pension Contribution
Made After Measurement Date
Change in Assumptions
CaIPERS Miscellaneous
CaIPERS Safety
Total Change in Assumptions
Difference Between Projected and
Actual Investment Earnings:
Governmental Business -Type
Activities Activities
Total
$ 531,247 $ 58,634 $ 589,881
1,015,425 1,015,425
1,546,672 58,634
1,605,306
CaIPERS Miscellaneous 6,804,920 751,065 7,555,985
CaIPERS Safety 8,695,703 8,695,703
Total Difference Between
Projected and Actual
Investment Earnings 15,500,623 751,065 16,251,688
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Expected and Actual
Experience
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:
CaIPERS Miscellaneous 1,338,052 147,682 1,485,734
CaIPERS Safety 2,522,133 2,522,133
Total Employer Contributions
in Excess of Proportionate
Share of Contribution 3,860,185 147,682 4,007,867
Total Deferred Outflows of Resources:
CaIPERS Miscellaneous 8,674,219 957,381 9,631,600
CaIPERS Safety 12,233,261 12,233,261
Total Deferred Outflows of
Resources $ 20,907,480 $ 957,381 $ 21,864,861
(70)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Net Pension Assets:
CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Assets
Governmental Business -Type
Activities Activities Total
$ 7,795,341 $ 860,379 $ 8,655,720
14,609,905 - 14,609,905
$ 22.405.246 $ 860,379 $ 23.265.625
Deferred Inflows of Resources:
Change in Assumptions
CaIPERS Miscellaneous $ $ $
CaIPERS Safety
Total Change in Assumptions
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:
CaIPERS Miscellaneous 81,203 8,963 90,166
CaIPERS Safety 584,295 - 584,295
Total Adjustment Due to
Difference in Proportions 665,498 8,963 674,461
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous 874,164 96,482 970,646
CaIPERS Safety 2,496,090 - 2,496,090
Total Difference Between
Expected and Actual
Experience 3,370,254 96,482 3,466,736
Employer Contributions In Excess
of Proportionate Share of
Contribution:
CaIPERS Miscellaneous
CaIPERS Safety
Total Employer Contributions
in Excess of Proportionate
Share of Contribution
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Expected and Actual
Experience
Total Deferred Inflows of Resources:
CaIPERS Miscellaneous 955,367 105,445 1,060,812
CaIPERS Safety 3,080,385 3,080,385
Total Deferred Inflows of
Resources $ 4,035,752 $ 105,445 $ 4,141,197
(71)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Pension (Income) Expenses:
CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Income
Governmental Business -Type
Activities Activities Total
$ (13,034,592) $ (1,438,639) $ (14,473,231)
(20,039,140) (20,039,140)
$ (33,073,732) $ (1,438,639) $ (34,512,371)
B General Information about the Pension Plans
Plan Description
The City contributes to the California Public Employees Retirement System (CaIPERS), 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. CaIPERS 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 CaIPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.
Employees Covered by Benefit Terms
At the June 30, 2020, measurement date the following employees were covered by the benefit terms:
Miscellaneous Miscellaneous Safety
Miscellaneous Tier 2 PEPRA Safety PEPRA
Active Employees 23 9 61 22 29
Transferred Employees 52 13 36 19 10
Separated Employees 31 2 32 10 6
Retired Employees and
Beneficiaries 180 2 119 -
Total 286 24 131 170 45
Benefit Provided
CaIPERS provide retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CaIPERS members become eligible for service retirement upon attainment of age 55 with at least five years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least five 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. (72)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
B General Information about the Pension Plans (Continued) Benefit Provided (Continued)
Following are the benefit provisions for each plan:
Miscellaneous Miscellaneous Safety
Miscellaneous Tier 2 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 5 Years 5 Years 5 Years 5 Years Service Service Service Service 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
Percentage 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 10.880% 9.130% 7.590% 23.710% 13.130% Contributions
For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:
Contributions - Employer
Miscellaneous Safety Total
$ 1,485,734 $ 2,522,133 $ 4,007,867
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Proportionate Share of Net Pension Liability and Pension (Income) Expense The following table shows the plan's proportionate share of the risk pool collective net pension liability over the measurement period:
Plan Plan Net Pension
Total Pension Fiduciary (Asset) /
(Asset) Liability Net Position Liability
Miscellaneous:
Balance at June 30, 2020
(Valuation date) $ 57,082,960 $ 40,663,791 $ 16,419,169 Balance at June 30, 2021
(Measurement Date) 58,538,186 67,193,906 (8,655,720)
Net Changes During 2021-2022 $ 1,455,226 $ 26,530,115 $ (25,074,889) Safety:
Balance at June 30, 2019
(Valuation date) $ 98,921,800 $ 69,454,497 $ 29,467,303 Balance at June 30, 2020
(Measurement Date) 98,844,465 113,454,370 (14,609,905)
Net Changes During 2021-2022 $ (77,335) $ 43,999,873 $ (44,077,208) (73)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) 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, 2021
Proportion - June 30, 2022
Change - Increase (Decrease)
Miscellaneous Safety
0.38926 % 0.44230 %
(0.45585) (0.41630)
(0.84511)% (0.85860)%
For the year ended June 30, 2022, the City recognized pension income of $14,473,231 and $20,039,140, for the Miscellaneous and Safety plans, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Changes in proportion and differences between
employer contributions and proportionate share
of contributions
Total
(74)
Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 589,881 $
7,555,985
1,485,734
$ 9,631,600
970,646
90,166
$ 1,060,812
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) Safety Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date $ 1,015,425 $
Difference Between Expected and Actual
Experience 2,496,090
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 8,695,703
Changes in proportion and differences between
employer contributions and proportionate share
of contributions 2,522,133 584,295
Total $ 12,233,261 $ 3,080,385
Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Employer Contributions In Excess (Under)
Proportionate Share of Contributions
Adjustments Due to Difference in Proportions
Total
(75)
Aggregate Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 1,605,306 $
16,251,688
4,007,867
$ 21,864,861
3,466,736
674,461
$ 4,141,197
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) For the Miscellaneous Plan and Safety Plan, $589,881and $1,015,425, 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, 2023. 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
Ending June 30.
2023
2024
2025
2026
2027
Thereafter
Total
Deferred (Inflows) Outflows of Resources
Miscellaneous Safety
Plan Plan
$1,838,447 $1,329,925
2,000,870 2,021,644
2,053,506 2,392,946
2,088,084 2,392,936
$ 7,980,907
Actuarial Assumptions
The total pension liabilities in the June 30, 2019,
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
(76)
$ 8,137,451
Total
$ 3,168,372
4,022,514
4,446,452
4,481,020
$ 16,118,358
actuarial valuations were determined
Entry Age Normal
7.15%
2.50%
Varies by Entry Age and Service
7.15%
Derived using CaIPERS'
Membership Data for all Funds.
Contract COLA up to 2.5% until
Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.5% thereafter.
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Actuarial Assumptions (Continued)
The mortality table used was developed based on CaIPERS-specific data. 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.
Discount Rate
In determining the long-term expected rate of return, CaIPERS 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 1%.
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 Real Return Real Return
StrategicYears 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 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 (0.92)
1 An expected inflation of 2.0% was used for this period. 2 An expected inflation of 2.92% was used for this period. (77)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Discount Rate (Continued)
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, CaIPERS 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 CaIPERS website under the GASB 68 Section.
According to Paragraph 30 of Statement 68, the Tong -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.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes 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 (Asset) Liability
1% Current 1%
Decrease Discount Rate Increase
(6.15%) (7.15%) (8.15%)
Miscellaneous $ (926,869) $ (8,655,720) $ (15,045,048)
Safety (1,304,587) (14,609,905) (25,538,580)
Total $ (2,231,456) $ (23,265,6251 $ (40,583,628)
(78)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports.
D. Payable to the Pension Plan
At June 30, 2022, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2022.
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 $ 1,096,972 $ 35,101 $ 1,132,073
Changes in Assumptions 3,493,907 111,797 3,605,704
Total Deferred Outflows of
Resources $ 4,590,879 $ 146,898 $ 4,737,777
Total OPEB Liability
Total OPEB liability
$ 24,138,119 $ 772,368 $ 24,910,487
$ 24,138,119 $ 772,368 $ 24,910,487
Deferred Inflows of Resources:
Changes in Assumptions $ 2,612,976 $ 83,610 $ 2,696,586 Difference Between Expected and
Actual Experience 5,703,757 182,508 5,886,265
Total Deferred Inflows of
Resources $ 8,316,733 $ 266,118 $ 8,582,851
OPEB Expense $ 153,246 $ 4,904 $ 158,150
(79)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 CaIPERS health plan which provides health insurance benefits to eligible retirees in accordance with various labor agreements. The minimum required retiree contributions are established by CaIPERS. Survivor benefits are not provided. Copies of the CaIPERS' annual financial report can be obtained from the CaIPERS Executive Office, 400 P Street, Sacramento, California 95814.
Eligibility
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 CaIPERS for Tier 11 employees.
Membership in the plan consisted of the following at June 30, 2020, the date of the latest actuarial valuation:
Active Plan Members 168
Retirees 148
Total 316
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, 2022, the City's average contribution rate was 8.16% of covered payroll.
Employees are not required to contribute to the plan.
(80)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Total OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
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, 2022, was $24,910,487.
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 Assumptions:
Discount Rate
Inflation
Aggregate Payroll Increases
Expected Long -Term Investment Rate of Return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non -Medicare
Healthcare Trend Rate - Medicare
2.16% (Bond Buyer 20 -Bond Index)
2.50% Annually
2.75%
N/A
CaIPERS 2000-2019 Experience
Study
Modified projected fully generational
with Scale MP -2021
An annual healthcare cost trend
rate of 6.50% for 2023, decreasing
to an ultimate rate of 3.75% in 2076
An annual healthcare cost trend
rate of 5.65% for 2023, decreasing
to an ultimate rate of 3.75% in 2076
The actuarial assumptions used in the June 30, 2020, valuation were based on the results of the December 2017 CaIPERS 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 three 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. (81)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Total OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Change in the Total OPEB Liability
Total OPEB
Liability
Balance - June 30, 2020 (Measurement Date) $ 31,325,826 Changes Recognized for the Measurement Period:
Service Cost 532,568
Interest on the Total OPEB Liability 691,435
Changes of Benefit Terms
Difference Between Expected and Actual
Experience (4,989,665)
Changes of Assumptions (1,506,167)
Contributions from the Employer
Net Investment Income
Administrative Expenses
Benefit Payments (1,143,510)
Net Changes (6,415,339)
Balance - June 30, 2021 (Measurement Date) $ 24,910,487 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%) or 1 -percentage point higher (3.21%) than the current discount rate:
OPEB Pension Plan
Plan's Total OPEB Liability
1% Current 1%
Decrease Discount Rate Increase
(1.16%) (2.16%) (3.16%)
$ 28,681,622 $ 24,910,487 $ 21,874,628
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:
OPEB Pension Plan
Plan's Total OPEB Liability
Healthcare
1% Cost Trend 1%
Decrease Rates Increase
$ 21,821,211 $ 24,910,487 $ 28,746,238
(82)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Total OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense. and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $158,150. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference Between Expected and Actual Experience $ - $ 5,886,265 Changes in Assumptions 3,605,704 2,696,586
Employer Contributions Made Subsequent to the
Measurement Date 1,132,073
Total $ 4,737,777 $ 8,582,851
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.
$1,132,073 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, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Deferred
Outflows
(Inflows)
Fiscal Year Endina June 30. of Resources
2023 $ (1,068,498)
2024 (1,068,498)
2025 (678,498)
2026 (499,392)
2027 (231,418)
Thereafter (1,430,843)
Total $ (4,977,147)
(83)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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. Workers' 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.
(84)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Liability Estimates Payments Liability One Year One Year Workers' Compensation:
2019-2020 $ 2,207,945 $ 153,342 $ (385,700) $ 1,975,587 $ 493,897 $ 1,481,690 2020-2021 1,975,587 2,157,487 (697,901) 3,435,173 858,793 2,576,380 2021-2022 3,435,173 1,034,044 (762,874) 3,706,343 926,586 2,779,757 General Liability:
2019-2020 $ 23,901 $ 264,501 $ (28,745) $ 259,657 $ 64,914 $ 194,743 2020-2021 259,657 230,514 (54,841) 435,330 108,833 326,497 2021-2022 435,330 272,173 601,365 1,308,868 327,217 981,651 NOTE 11 CLASSIFICATION OF FUND BALANCES
At June 30, 2022, fund balances are classified in the governmental funds as follows:
Citywide 2020A PFA
Development Lease
Impact Fee Revenue Nonmajor
General Special Bonds Debt Governmental
Fund Revenue Fund Service Fund Funds Total
Nonspendable:
Inventory $ 173,020 $ - $ $ - $ 173,020
Prepaid Items 95,891 6,300 - 102,191
Loans Receivable 2,252‘856 - - - 2`252\856
Total Nonspendable 2,521,7'87 6,300 - 2,528,1167
Restricted:
Public Safety - 720,405 720,405
Public Works 3,418,044 3,418,044
Community Development - 1,231,807 1,231,807
Community Services - 4,405,452 - - 4,405,452
Debt Service 2,024 - 6,463,492 78,696 6,544,212
Grant Programs - -
Transportation 826,150 826,150
Park Development 20,193 20,193
Street Maintenance - 780,314 780,314
Air Quality - 202,385 202,385
Housing - - - 2026,325 2\026\325
Total Restricted 2,024 4,405,452 6,463,492 9,804,319 20,175,287 Committed:
Measure U - Infrastructure 4,035,815 - 4,035,815
Measure U - OPEB 770,595 770,595
Metrolink Station 9,049 313 9\049 313
Total Committed 13,85723 13,855,723
Unassigned 7,204,966 - (2,753,688) 4,451,278
Total Fund Balances $ 23.584.480 $ 4.411.752 $ 6.463.492 $ 6.550.631 $ 41.010.355 (85)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12 COMMITMENTS AND CONTINGENCIES
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2022. These projects are evidenced by contractual commitments with contractors or other agencies and include:
Project Commitment
TOD/Crowther Sewer Project $ 3,217,616
Replace Hydraulic Vehicle Lift 65,321
Pergola replacement for Civic 14,948
FY 2020-21 Arterial Roadway R 478,433
FY 2021-22 Slurry Seal Project 149,398
FY 2021-22 Concrete Repair Pro 8,868
Storm Drain Master Plan 188,747
Old City Hall Renovation 369,868
Total $ 4,493,199
The City has various outstanding purchase commitments. Total commitments at June 30, 2022, are as follows:
Outstanding
Purchase
Commitments
Governmental Funds:
General Fund $ 5,641,289
Other Governmental Funds 3,443,442
Total $ 9,084,731
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.
(86)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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, 2022, as follows:
Expenditure
in Excess of
Expenditures Appropriation Appropriations
Special Revenue Funds:
Street Lighting $ 510,730 $ 170,900 $ (339,830)
Landscape Maintenance
District 92-1 427,416 407,412 (20,004)
Gasoline Tax 809,650 300,800 (508,850)
TOD Impact Fee 378,453 220,000 (158,453)
Debt Service Funds:
Major Debt Service Fund 3,149,882
B. Deficit Net Position and Fund Balances
3,086,600 (63,282)
Funds with deficit net position/fund balance at June 30, 2022, are as follows:
Deficit Deficit
Fund Balance Net Position
Capital Projects Fund:
City Capital Projects $ (608,236)
Internal Service Fund:
Risk Management $ (2,978,592)
Special Revenue Funds:
Miscellaneous Grants $ (219,138)
Landscape Maintenance District 92-1 (70,616)
Housing and Community Development (649,863)
Placentia Regional Navigation Center (1,208,745)
Total $ (649,863)
At June 30, 2022, 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. (87)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 14 PRIOR PERIOD ADJUSTMENTS
Beginning net position (deficit) was restated as follows:
Governmental Business -Type
Activities Activities Total
Net Position at July 1, 2021, as Previously Reported $ 39,254,203 $ 8,581,358 $ 47,835,561 Restatement Due to Compensated Absences 1,494,165 - (28,181,307) Restatement Due Fire UAL (1,431,676) - (1,431,676)
Net Position at July 1, 2021, as Restated $ 39.316.692 $ 8.581,358 $ 18,222,578 Fiduciary
Funds
RDA
Successor
Agency
Net Deficit at July 1, 2021, as Previously Reported $ (13,454,422) Restatement to Correct for Revenue Recorded
as Unearned in the Prior Year in Error 640,432
Net Deficit at July 1, 2021, as Restated $ (12,813.990) (88)
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
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CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE -
GENERAL FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Income
Charges for Services
Leases and Rents
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Payment to Refunding Bond Escrow Agent
Interest and Fiscal Charges
Debt Issuance Costs
Total Expenditures
REVENUE 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 CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Budgeted
Original
$ 37,372,300
265,000
1,874,900
444,200
50,000
1,155,700
1,293,400
947,300
43,402,800
11,744,600
16,081,300
4,142,600
1,276,000
2,357,100
4,911,700
2,094,500
307,600
42,915,400
487,400
2,855,500
(3.135,600
(280,100
$ 207.300
See accompanying Notes to Budgetary Comparison Schedules. (89)
Amounts
Final
$ 40,218,145
274,000
2,029,900
444,200
67,000
1,175, 700
1,293,400
983,988
46,486,333
12,021,455
15,910,968
4,352,813
1,677,522
2,504,689
16,036,738
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 41,621,461 $ 1,403,316
952,389 678,389
2,440,102 410,202
503,302 59,102
(323,152) (390,152)
1,263,215 87,515
1,422, 831 129,431
785`684 (198,304)
48,665,832 2,179,499
12,055,475 (34,020)
15,441,982 468,986
3,514,281 838,532
1,482,732 194,790
2,289,940 214,749
5,034,753 11,001, 985
2,094,500 1,320,810 773,690
- 488,521 (488,521)
307,600 343,759 (36,159)
- 117,995
54,906,285 42,090248 12,934,032
(8,419,952) 6,575,584 15,113,531
9,105,992
Q,139,600)
b6692
$ (2.453.560)
2,189,027 2,189,027
(2,069,027) (2,069,027)
102,947 (9,003,045)
(3,444,522) (304,922)
(3,221,575) (9,187,967)
3,354,009 $ 5.807.569
20,230,471
$ 23,584,480
CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE —
CITYWIDE DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Charges for Services
Investment Earnings
Total Revenues
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ $ -
9,138 9,138
9,138 9,138
EXPENDITURES
Current:
Public Safety 10,283 (10,283)
Capital Outlay 1,102,500 3,813,904 1/109,219 2 704,685
Total Expenditures 1,102,500 3,813,904 1,119,502 294,402 REVENUE OVER (UNDER) EXPENDITURES (1,102,500) (3,813,904) (1,110,364) 2,703,540 NET CHANGE IN FUND BALANCE $ (1,102.500) $ (3.813.904) (1,110,364) $ 2.703.540 Fund Balance - Beginning of Year 4,791,624
FUND BALANCE - END OF YEAR $ 3,681,260
See accompanying Notes to Budgetary Comparison Schedules. (90)
CITY OF PLACENTIA
NOTES TO BUDGETARY COMPARISON SCHEDULES
JUNE 30, 2022
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 2022, the City did not create a budget for the following governmental special revenue funds: Park Development, Traffic Offender, Sewer Construction, Community Based Transitional Housing Grant, and Orangethorpe Corridor.
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.
(91)
CITY OF PLACENTIA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
Measurement Period, Year Ended 1 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's Proportion of the Net Pension Liability -0.45585% 0.38926% 0.14843% 0.14479% 0.14212% 0.14024% 0.13337% 0.13850% Plan's Proportionate Share of the Net Pension (Asset) Liability $ (8,655,720) $ 16,419,169 $ 15,209,436 $ 13,952,246 $ 14,094,828 $ 12,135,165 $ 9,154,245 $ 8,617,803 Plan's Covered Payroll $ 4,587,533 $ 4,453,916 $ 4,324,190 $ 4,198,243 $ 4,075,964 $ 4,140,888 $ 3,220,454 $ 3,712,315 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll -188.68% 368.65% 351.73% 332.34% 345.80% 293.06% 284.25% 232.14% Plan's Fiduciary Net Position $ 67,193,906 $ 40,663,791 $ 41,142,220 $ 40,682,189 $ 39,816,871 $ 38,103,697 $ 40,735,920 $ 42,161,022 Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 114.79% 71.24% 73.01% 74.46% 73.86% 75.85% 81.65% 83.03% Plan's Proportionate Share of Aggregate Employer
Contributions $ 2,642,842 $ 1,383,994 $ 1,139,534 $ 932,993 $ 785,438 $ 667,441 $ 383,155 $ 412,406 Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of retum should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
'Historical information is presented only for measurement periods after GASB 68 implementation. (92)
CITY OF PLACENTIA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -
SAFETY PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
Measurement Period, Year Ended 1 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's Proportion of the Net Pension Liability -0.41630% 0.44230% 0.26351% 0.27222% 0.27242% 0.28572% 0.30267% 0.30596% Plan's Proportionate Share of the Net Pension (Asset) Liability $ (14,609,905) $ 29,467,303 $ 27,002,144 $ 26,231,540 $ 27,017,047 $ 24,723,412 $ 20,774,757 $ 19,038,500 Plan's Covered Payroll $ 4,381,633 $ 4,254,013 $ 4,130,110 $ 4,009,816 $ 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 0.00% 692.69% 653.79% 654.18% 693.99% 596.76% 509.82% 440.32% Plan's Fiduciary Net Position $ 113,454,370 $ 69,454,497 $ 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
114.78% 70.21%
71.99% 71.53%
69.81% 70.17%
74.32% 76.36%
Plan's Proportionate Share of Aggregate Employer
Contributions $ 6,061,344 $ 2,517,884 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 $ 2,157,763 Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without redu for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assu related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptic December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
Historical information is presented only for measurement periods after GASB 68 implementation. (93)
Fiscal Year'
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually Determined Contribution
(Actuarially Determined) $ 589,881 $ 1,516,621 $ 1,383,994 $ 1,139,534 $ 932,993 $ 785,438 $ 667,441 $ 383,155 Contributions in Relation to the Actuarially
Determined Contributions (589,881) (17,663,643) (1,383,994) (1,139,534) (932,993) (785,438) (667,441) (383,155) Contribution Deficiency (Excess) $ $ (16,147.022) $ - $ - $ - S - $ - $ Covered Payroll $ 4,725,159 $ 4,587,533 $ 4,453,916 $ 4,324,190 $ 4,198,243 $ 4,075,964 $ 4,140,888 $ 3,220,454 Contributions as a Percentage of Covered Payroll 0.00% 385.04% 31.07% 26.35% 22.22% 19.27% 16.12% 11.90% Notes to Schedule:
Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used
to Determine
Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2)
Investment Rate of Retum 7.150% (3) 7.150% (3) 7.150% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62— (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board.
Historical information is presented only for measurement periods after GASB 68 implementation. (94)
Fiscal Year
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
SAFETY PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-151 Contractually Determined Contribution
(Actuarially Determined) $ 1,015,425 $ 2,561,365 $ 2,519,683 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 Contributions in Relation to the Actuarially
Determined Contributions (1,015,425) (30,597,527) (2,519,683) (2,108,590) (3,034,432) (2,753,462) (2,568,441) (2,175,167) Contribution Deficiency (Excess) $ $ (28,036,162) $ $ - $ $ $ - $ Covered Payroll $ 4,513,082 $ 4,587,533 $ 4,254,014 $ 4,130,110 $ 4,009,816 $ 3,893,025 $ 4,142,921 $ 4,074,947 Contributions as a Percentage of Covered Payroll 22.50% 666.97% 59.23% 51.05% 75.68% 70.73% 62.00% 53.38% Notes to Schedule:
Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used
to Determine
Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1.00) (1.00) (1) (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2)
Investment Rate of Return 7.150% (3) 7.150% (3) 7.150% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62" (5) Mortality assumptions are based on mortality rales resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board. 1 Historical information is presented only for measurement periods after GASB 68 implementation. (95)
CITY OF PLACENTIA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
Measurement Period, Year Ending: 1 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost $ 532,568 $ 359,454 $ 542,976 $ 569,606 $ 675,000 Interest 691,435 919,735 1,092,405 1,032,870 899,000
Changes of Benefit Terms - - -
Differences Between Expected and Actual Experience (4,989,665) (2,606,242) Changes of Assumptions (1,506,167) 4,699,117 332,593 (1,089,486) (3,058,000) Benefit Payments, Including Refunds of Member
Contributions 1,143,510) (1,142,314) (1,112,888) (1,107,000) (1,116,000) Net change in Total OPEB Liability (6,415,339) 4,835,992 (1,751,156) (594,010) (2,600,000) Total OPEB Liability - Beginning 31,325,826 26,489,834 28,240,990 28,835,000 31,435,000 Total OPEB Liability - Ending (a) $ 24,910,487 $ 31.325,826 $ 26.489.834 $ 28,240,990 $ 28,835,000 OPEB Fiduciary Net Position:
Contributions - Employer $ 1,132,073 $ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,116,000 Net Investment Income - - - -
Benefit Payments, Including Refunds of Member
Contributions (1,132,073) (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) $ 24,910,487 $ 31.325.826 $ 26,489,834 $ 28,240,990 $ 28.835.000 Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 0.00% 0.00% 0.00% 0.00% 0.00%
Covered Payroll $ 17,448,843 $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 9,367,000 Plan Net OPEB Liability as a Percentage of Covered
Payroll 0% 224% 216% 239% 308%
Notes to Schedule:
For the June 30, 2021, measurement date, the discount rate was updated based on the municipal bond rate as of the measurement date. 1 Historical information is only presented for measurement periods after GASB 75 implementation. (96)
CITY OF PLACENTIA
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2022
Fiscal Year 1
Actuarially Determined Contribution
Contributions in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Notes to Schedule:
Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method
Amortization Method/Period
Inflation
Salary Increases
Payroll Growth
Discount Rate
Mortality, Retirement, Disability, and Termination
Mortality Improvement
2021-22
$ 1,132,073
(1,132,073)
$ 17,448,843
0.00%
2020-21
$ 1,146,160
(1,146,160)
$ 13,993,405
8.19%
2019-20 2017-18
$ 1,142,314 $ 1,107,000
(1,142,314) (1,107,000)
$ 12,286,189 $ 11,810,189 $ 11,466,203
9.30% 9.42% 9.65%
2018-19
$ 1,112,888
(1,112,888)
6/30/2021 6/30/2020 6/30/2019 6/30/2017
Entry Age Normal
Level Percentage of Payroll
2.50% Annually
Aggregate 2.75% Annually, Merit - CaIPERS 2000-2019 Experience Study
2.75%
2.21 % (Bond Buyer 20 -Bond Index)
CaIPERS Experience Study 2000-2019
Post-retirement mortality projected fully generational with Scale MP -2021 1 Historical information is only presented for measurement periods after GASB 75 implementation. (97)
6/30/2017
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(98)
SUPPLEMENTARY INFORMATION
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CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
DEBT SERVICE FUND (MAJOR FUND)
YEAR ENDED JUNE 30, 2022
REVENUES
Investment Earnings
Total Revenues
EXPENDITURES
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Debt Issuance Costs
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Issuance of Debt
Transfers In
Transfers Out
Total Other Financing Sources
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Budgeted Amounts
Original Final
Actual
Amounts
- $ 1,582
1,582
360,000 307,500 1,060,000
2,026,600 2,026,600 2,026,072
700,000 752,500 63,810
3,086,600 3,086,600 3,149,882
(3,086,600) (3,086,600) (3,148,300)
700,000 752,500 -
53,000 (53,000) 3,069,763
(78,594)
753,000 699,500 2,891,169
$ (2.333.600) $ (2.387.100) (157,131)
6,620,623
$ 6.463.492
(99)
Variance with
Final Budget
Positive
(Negative)
$ 1 X582
1,582
(752,500)
528
688,690
(63,282)
(61,700)
(752,500)
3,122,763
178,594)
2, 9'669
$ 2.229.969
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(100)
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')/0 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.
(101)
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
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.
SBJ 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. (102)
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
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 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.
Orangethorpe Corridor Fund —to account for financing and construction of all rail projects within the boundaries of the City.
Cal Recycle Grant Fund — to account for the receipts and expenditures related to the funding received from CalRecycle grants related to recycling and material diversion programs.
American Rescue Plan Act Fund — to account for the receipts and expenditures related to the American Rescue Plan Act which was provided to fund additional relief for individuals and business affected by the coronavirus pandemic.
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. (103)
CITY OF PLACENTIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure ASSETS
Cash and Investments $ - $ 20,193 $ 49,716 $ 675,684 $ 530 $ 4,752 $ 230,492 Receivables:
Accounts - 1,128 106,819 - -
Grants - - - - -
Loans and Notes -
Land Held for Resale - - - -
Total Assets $ - $ 20.193 $ 50,844 $ 782,503 $ 530 $ 4.752 $ 230.492
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 54,787 $ $ 50,844 $ 2,690 $
Accrued Liabilities (552) - -
Retentions Payable - -
Due to Other Funds 164,903 -
Unearned Revenue - - -
Total Liabilities 219,138 50,844 2,690
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources
$ 20,360
20,360
FUND BALANCES
Restricted - 20,193 - 779,813 530 4,752 210,132
Unassigned (Deficit) 219,138) - - -
Total Fund Balances 219,138) 20,193 - 779,813 530 4,752 210,132 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ - $ 20,193 $ 50,844 $ 782,503 $ 530 $ 4,752 $ 230,492 (104)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction ASSETS
Cash and Investments $ 4,571 $ 214,156 $ 202,385 $ - $ $ 501 $ 22,019 Receivables:
Accounts 1,126 16,831 5,877 502,150 97,145 -
Grants - - - -
Loans and Notes - - - - -
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 5.697 $ 214.156 $ 219,216 $ 5.877 $ 502,150 $ 97,646 $ 22.019
LIABILITIES
Accounts Payable $ - $ - $ $ 32,704 $ $ 9,900 $
Accrued Liabilities - - 4,299
Retentions Payable - - - 10,602
Due to Other Funds - 39,490 713,863 87,245
Unearned Revenue - - - -
Total Liabilities - - 76,493 724,465 97,145
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - 16,831 - 427,548
Total Deferred Inflows of Resources - 16,831 - 427,548
FUND BALANCES
Restricted 5,697 214,156 202,385 - - 501 22,019
Unassigned (Deficit) - - - 70,616) 649,863) -
Total Fund Balances 5,697 214,156 202,385 (70,616) 649,863) 501 22,019 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 5,697 $ 214,156 $ 202,385 $ 5,877 $ 74,602 $ 97,646 $ 22,019 (105)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Affordable Community Based Placentia
Housing NOC Public Transitional TOD Regional
PEG In -Lieu SB1 Gas Tax Safety Grant Housing Grant Impact Fee Navigation Center ASSETS
Cash and Investments $ $ 36,827 $ 962,002 $ 382,680 $ 195 $ 3,501,647 $ Receivables:
Accounts 21,089 180,306 1,038,930
Grants
Loans and Notes
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
21,089 $ 36.827 $ 1.142.308 $ 382.680 $ 195 $ 3.501.647 $ 1.038.930
LIABILITIES
Accounts Payable $ 179 $ - $ 289,842 $ - $ - $ 96,595 $ Accrued Liabilities (205) - 9,260 77
Retentions Payable 26,316 9,045
Due to Other Funds 18,205 - - 118 - 1,208,745
Unearned Revenue - - 83,000 -
Total Liabilities 18,179 316,158 92,260 195 105,640 1,208,745
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - 1,038,930
Total Deferred Inflows of Resources - 1,038,930
FUND BALANCES
Restricted 36,827 826,150 290,420 3,396,007 -
Unassigned (Deficit) 2,910 - - - 1/208`745)
Total Fund Balances 2,910 36,827 826,150 290,420 3,396,007 1,208,745) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 21,089 $ 36,827 $ 1,142,308 $ 382,680 $ 195 $ 3,501,647 $ (106)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle American Update Fee Impact Fee Successor Corridor Grant Rescue Plan ASSETS
Cash and Investments $ 840,598 $ 393,236 $ 407,189 $ 168 $ 86,135 $ Receivables:
Accounts - - 1,800
Grants
Loans and Notes 656,527
Land Held for Resale - 1,036,760
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 840.598 $ 393.236 $ 2.102.276 $ 168 $ 86.135 $
LIABILITIES
Accounts Payable $ 3,909 $ 3,400 $ $ 168 $ $
Accrued Liabilities - - - -
Retentions Payable - - -
Due to Other Funds - - -
Unearned Revenue - - - 86,117
Total Liabilities 3,909 3,400 168 86,117
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources
- 112,778
- - 112,778
FUND BALANCES
Restricted 836,689 389,836 1,989,498 18
Unassigned (Deficit) - - - -
Total Fund Balances 836,689 389,836 1,989,498 - 18
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 840,598 $ 393,236 $ 2,102,276 $ 168 $ 86,135 $ (107)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Capital Debt
Projects Fund Service Fund
Total Other
City Capital Govemmental
Protects Gas Tax Funds
ASSETS
Cash and Investments $ $ 78,696 $ 8,114,372
Receivables:
Accounts - 1,973,201
Grants 37,429 - 37,429
Loans and Notes 656,527
Land Held for Resale - 1,036,760
Total Assets $ 37,429 $ 78.696 $ 11.818,289
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 249,287 $ $ 814,665
Accrued Liabilities 12,879
Retentions Payable 34,614 - 80,577
Due to Other Funds 324,335 - 2,556,904
Unearned Revenue - - 169,117
Total Liabilities 608,236 - 3,634,142
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 37,429 - 1,633 516
Total Deferred Inflows of Resources 37,429 - 1,633,S16
FUND BALANCES
Restricted - 78,696 9,304,319
Unassigned (Deficit) (608,236) 2`753,688)
Total Fund Balances (608,236) 78,696 6,550,631
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 37,429 $ 78,696 $ 11,818,289
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure
REVENUES
Intergovernmental $ 267,557 $ - $ $ 1,027,353 $ - $ - $ - Investment Earnings - 41 1,262 11 12 590
Charges for Services - - 135,984 - - -
Lease Revenue - - - - -
Miscellaneous - - -
Total Revenues 267,557 41 135,984 1,028,615 11 12 590
EXPENDITURES
Current:
General Government - - - -
Public Safety 5,203 - 72,869
Public Works - 510,730 - - -
Community Development - - - -
Community Services 14,692 - - -
Capital Outlay 411,299 - 492,041 24,000 828 80,805
Debt Service:
Principal Retirement - 403,055 - -
Interest and Fiscal Charges - 13,648 - -
Total Expenditures 431,194 510,730 908,744 24,000 828 153,674 REVENUES OVER (UNDER) EXPENDITURES (163,637) 41 (374,746) 119,871 (23,989) (816) (153,084)
OTHER FINANCING SOURCES (USES)
Transfers In - 374,747 - -
Transfers Out - - -
Total Other Financing Sources (Uses) - 374,747 - -
NET CHANGES IN FUND BALANCES (163,637) 41 1 119,871 (23,989) (816) (153,084) Fund Balances - Beginning of Year (55,501) 20,152 (1) 659,942 24,519 5,568 363,216 FUND BALANCES - END OF YEAR $ (219,138) $ 20,193 $ - $ 779,813 $ 530 $ 4,752 $ 210,132 (109)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues
$
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction - $ 161,285 $ 49,003 $ $ 155,258 $ 1,217,319 $ -
14 419 325 - - 501 42
- - 449,956 - -
14 161,704 49,328 449,956 155,258 1,217,820 42
EXPENDITURES
Current:
General Govemment - - - - -
Public Safety - -
Public Works - - 427,416 - 809,650 -
Community Development - 506,302
Community Services
Capital Outlay - - 212,035 -
Debt Service:
Principal Retirement - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures - 427,416 718,337 809,650 -
REVENUES OVER (UNDER) EXPENDITURES 14 161,704 49,328 22,540 (563,079) 408,170 42
OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - (100,000) - - (408,122) -
Total Other Financing Sources (Uses) - (100,000) (408,122) - NET CHANGES IN FUND BALANCES 14 61,704 49,328 22,540 (563,079) 48 42 Fund Balances - Beginning of Year 5,683 152,452 153,057 (93,156) (86,784) 453 21,977 FUND BALANCES - END OF YEAR $ 5,697 $ 214,156 $ 202,385 $ (70,616) $ (649,8631 $ 501 $ 22,019 (110)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Affordable Community Based Placentia
Housing NOC Public Transitional TOD Regional
PEG In -Lieu SB1 Gas Tax Safety Grant Housing Grant Impact Fee Navigation Center
REVENUES
Intergovernmental $ - $ - $ 1,034,090 $ 118,181 $ - $ - $ 1,515,567 Investment Earnings - 135 1,928 577 - 7,039 -
Charges for Services 82,557 - - - 85,456 -
Lease Revenue - - -
Miscellaneous - - - - -
Total Revenues 82,557 135 1,036,018 118,758 - 92,495 1,515,567
EXPENDITURES
Current:
General Government 49,916 - - - -
Public Safety - - 135,421 3 1,810,464
Public Works - - - - -
Community Development - 18,500 - - -
Community Services - - - - -
Capital Outlay - - 1,355,681 2,475 - 378,453 123,943
Debt Service:
Principal Retirement - -
Interest and Fiscal Charges - - - - -
Total Expenditures 49,916 18,500 1,355,681 137,896 3 378,453 1,934,407 REVENUES OVER (UNDER) EXPENDITURES 32,641 (18,365) (319,663) (19,138) (3) (285,958) (418,840)
OTHER FINANCING SOURCES (USES)
Transfers In - - 3 -
Transfers Out - -
Total Other Financing Sources (Uses) - - - 3 -
NET CHANGES IN FUND BALANCES 32,641 (18,365) (319,663) (19,138) - (285,958) (418,840) Fund Balances - Beginning of Year (29,731) 55,192 1,145,813 309,558 - 3,681,965 (789,905) FUND BALANCES - END OF YEAR $ 2,910 $ 36,827 $ 826,150 $ 290,420 $ - $ 3,396,007 $ (1,208,745)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General Govemment
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle American Update Fee Impact Fee Successor Corridor Grant Rescue Plan 1,445
163,222
164,667
Public Safety -
Public Works -
Community Development
Community Services
Capital Outlay 37,100 32,340
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES 127,567 55,230 137,958 - 18
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out - (2,938)
Total Other Financing Sources (Uses) - - (2,938)
NET CHANGES IN FUND BALANCES 127,567 55,230 137,958 - 18 (2,938) Fund Balances - Beginning of Year 709,122 334,606 1,851,540 2,938 FUND BALANCES - END OF YEAR $ 836,689 $ 389,836 $ 1,989,498 $ - $ 18 $ $ - $ - $ $ - $
731 - 18
86,839
- 7,600 - -
- 130 358
87,570 137,58 - 18
37,100 32,340
(112)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Capital Debt
Projects Fund Service Fund
City Capital
Projects
Gas Tax
Total Other
Governmental
Funds
REVENUES
Intergovernmental $ - $ - $ 5,545,613
Investment Earnings - 136 15,226
Charges for Services - 1,004,014
Lease Revenue - 7,600
Miscellaneous 503,183 633,541
Total Revenues 503,183 136 7,205,994
EXPENDITURES
Current:
General Government - 49,916
Public Safety - 2,023,960
Public Works - 1,747,796
Community Development - 524,802
Community Services - 14,692
Capital Outlay 760,978 3,911,978
Debt Service:
Principal Retirement - 351,000 754,055
Interest and Fiscal Charges - 57,156 70,804
Total Expenditures 760,978 408,156 9,098,003
REVENUES OVER (UNDER) EXPENDITURES (257,795) (408,020) (1,892,009)
OTHER FINANCING SOURCES (USES)
Transfers In - 486,716 861,466
Transfers Out - - (511,060)
Total Other Financing Sources (Uses) - 486,716 50,406
NET CHANGES IN FUND BALANCES (257,795) 78,696 (1,541,603) Fund Balances - Beginning of Year (350,441) 8,092,234
FUND BALANCES - END OF YEAR $ (608,236) $ 78,696 $ 6,550,631
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 477,100 $ 1 866,480 $ 267 557 $ 1 598,923) Total Revenues 477,100 166,480 26757 (1,598,923)
EXPENDITURES
Current:
Public Safety 254,500 1,500 5,203 (3,703)
Community Services 23,341 14,692 8,649
Capital Outlay 216,500 1848,637 411,299 1,437,338
Total Expenditures 471,000 1,873,478 431,194 1,442,284
NET CHANGE IN FUND BALANCE $ 6,100 $ (6.998) (163,637) $ (3.041.207) Fund Balance - Beginning of Year (55,501)
FUND BALANCE - END OF YEAR $ (219.138)
(114)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
STREET LIGHTING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 135,000 $ 135,000 $ 135 984 $ 984 Total Revenues 13500 135,000 135,M4 984
EXPENDITURES
Current:
Public Works 170,900 170,900 510,730 (339,830)
Total Expenditures 170,900 170,900 510,730 (339,830)
REVENUE OVER (UNDER) EXPENDITURES
(35,900) (35,900) (374,746) (338,846)
OTHER FINANCING SOURCES
Transfers In 53 000 (53,000) 374,747 427,747
Total Other Financing Sources 5,000 (53,000)374,747 427,747 NET CHANGE IN FUND BALANCE $ 17.100 $ (88.900) 1 $ 88.901 Fund Balance - Beginning of Year (1)
FUND BALANCE - END OF YEAR $ -
(115)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 807,000 $ 807,000 $ 1,027,353 $ 220,353 Investment Income 8`000 8,000 1 262 (6,738)
Total Revenues 815,000 81500 1,028,15 2 3,15
EXPENDITURES
Current:
Community Development 55,800 55,800 55,800
Capital Outlay 676,200 1,140,019 492,041 647,978
Debt Service:
Principal Retirement 246,000 246,000 403,055 (157,055)
Interest and Fiscal Charges 32,600 32,600 13,648 18,952 Total Expenditures 1,010,600 1,474,419 90844 565,675
NET CHANGE IN FUND BALANCE $ (195,6001 $ (659,4191 119,871 $ 779,290 Fund Balance - Beginning of Year 659,942
FUND BALANCE - END OF YEAR $ 779.813
(116)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
STORM DRAIN CONSTRUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ $ $ 11 $ 11
Total Revenues 11 11
EXPENDITURES
Capital Outlay - 24,400 24,000 400
Total Expenditures - 24,400 24,000 400
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
(117)
$ (24.400) (23,989) $ 411
24,519
$ 530
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
THROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Investment Income
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
(118)
$ $ 12 $ 12
12 12
5 000
5)00
828 4,172
828 4,172
$ (5,000) (816) $ 4.184
5,568
$ 4,752
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ $ - $ 590 $ 590
Total Revenues - 590 590
EXPENDITURES
Current:
Public Safety 150,000 155,432 72,869 82,563
Capital Outlay 180 000 176,005 80,805 95,200
Total Expenditures 33000 331,437 153,674 177,763
NET CHANGE IN FUND BALANCE $ (330.000) $ (331.437) (153,084) $ 178.353 Fund Balance - Beginning of Year 363,216
FUND BALANCE - END OF YEAR $ 210.132
(119)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
(100,000)
(100,000)
$ $ 161,285 $ 161,285
419 419
161,704 161,704
(100 000)
(10000)
$ (100.000) $ (100.000)
(120)
(100,000)
(10(000)
61,704 $ 161,704
152,452
$ 214.156
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
AIR QUALITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 66,000 $ 66,000 $ 49,003 $ (16,997) Investment Earnings 3 000 3 000 325 (2 675)
Total Revenues 6900 6900 49,328 (1972)
EXPENDITURES
Capital Outlay 53 000 53,000 - 53 000
Total Expenditures 5300 53,000 - 53,000
NET CHANGE IN FUND BALANCE $ 16.000 $ 16.000 49,328 $ 33.328 Fund Balance - Beginning of Year 153,057
FUND BALANCE - END OF YEAR $ 202.385
(121)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 417,300 $ 417,300 $ 449,956 $ 32 656 Total Revenues 417300 417,300 449,956 3256
EXPENDITURES
Current:
Public Works 417,300 407,412 427,416 (20,004)
Total Expenditures 417300 407,412 421,416 (20,004)
NET CHANGE IN FUND BALANCE $ $ 9,888 22,540 $ 12,652
Fund Balance - Beginning of Year (93,156)
FUND BALANCE - END OF YEAR $ (70,616)
(122)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 352,000 $ 1,034,284 $ 155,258 $ (879,026) Miscellaneous 86,734 (86,734)
Total Revenues 352,000 1,121,018 155,258 (965,760)
EXPENDITURES
Current:
Community Development
Capital Outlay
Total Expenditures
171,100 577,948 506,302 71,646
141,700 417,186 212,035 205,151
312,800 995,134 718,337 276,797
REVENUE OVER (UNDER) EXPENDITURES 39,200 125,884 (563,079) (688,963)
OTHER FINANCING SOURCES (USES)
Transfers Out (39,100) (390 00) - 39,100
Total Other Financing Sources (Uses) (39,100) (39,00) - 39,100 NET CHANGE IN FUND BALANCE $ 100 $ 86,784 (563,079) $ (649.863) Fund Balance - Beginning of Year (86,784)
FUND BALANCE - END OF YEAR $ (649.863)
(123)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GASOLINE TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 1,340,800 $ 1,340,800 $ 1,217,319 $ (123,481)
2 000 2,000 501 (1,499)
1,34200 1,342,800 1,217,820 (124,980)
300,800 300,800 809,650 (508,850)
300,800 300,800 809,650 (508,850)
1,042,000 1,042,000 408,170 (633,830)
1 009 500) (1,009,500) (408,122) 601,378
(1,009,S00) (109,500) (408,122) 601,378
$ 32,500 $ 32.500
(124)
48 $ (32.452)
453
$ 501
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
PEG SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Income $ 2,000 $ 2,000 $ - $ (2,000)
Charges for Services 80 000 80 000 82,557 2 557
Total Revenues 8200 8200 82,557 657
EXPENDITURES
Current:
General Government 120,300 120,300 49,916 70,384
Total Expenditures 120,300 120,300 49,916 70,384
REVENUE OVER (UNDER) EXPENDITURES (38,300) (38,300) 32,641 70,941
OTHER FINANCING SOURCES (USES)
Transfers In 83,100 83,100 (83,100)
Total Other Financing Sources (Uses) 83,100 8100 (83,100) NET CHANGE IN FUND BALANCE $ 44.800 $ 44,800 32,641 (12,159) Fund Balance - Beginning of Year (29,731)
FUND BALANCE - END OF YEAR $ 2.910
(125)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
AFFORDABLE HOUSING IN -LIEU SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Miscellaneous
Total Revenues
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
135
135
135
135
EXPENDITURES
Current:
Community Development 53,500 53 500 18,500 35,000
Total Expenditures 53,500 5300 18,500 35,000
NET CHANGE IN FUND BALANCE $ (53,500) $ (53.500) (18,365) $ 35,135 Fund Balance - Beginning of Year 55,192
FUND BALANCE - END OF YEAR $ 36.827
(126)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
SB1 RMRA GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,022,800 $ 1,022,800 $ 1,034,090 $ 11,290 Investment Earnings - 1 928 1 928
Total Revenues 1,022,800 1,022,800 1,03618 13,218
EXPENDITURES
Capital Outlay 772,900 1,783,414 1,355,681 427,733
Total Expenditures 772,900 1,783,414 1,355,681 427,733
NET CHANGE IN FUND BALANCE $ 249.900 $ (760,614) (319,663) $ 440.951 Fund Balance - Beginning of Year 1,145,813
FUND BALANCE - END OF YEAR $ 826.150
(127)
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 YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Total Revenues
EXPENDITURES
Current:
Public Safety
Community Services
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
(128)
$ 118,000 $ 118,181 $ 181
577 577
118,000 118,758 758
396,326 135,421 260,905
52,476 2,475 50,001
448,802 137,896 310,906
$ (330.802) (19,138) $ 311.664
309,558
$ 290.420
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
TOD IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Investment Earnings
Charges for Services
Total Revenues
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ 7,039 $ 7,039
85,456 85,456
92,495 92,495
EXPENDITURES
Capital Outlay 220 000 220 000 378,453 (158,453)
Total Expenditures 22000 22000 378,453 158,453)
NET CHANGE IN FUND BALANCE $ (220.000) $ (220.000) (285,958) $ (65.958) Fund Balance - Beginning of Year 3,681,965
FUND BALANCE - END OF YEAR $ 3.396.007
(129)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,662,500 $ 2,927,774 $ 1,515,567 $ (1,412,207) Contributions - -
Total Revenues 1,662,500 2,927,774 1,515,567 (1,412,207)
EXPENDITURES
Current:
Public Safety 1,662,500 2,131,100 1,810,464 320,636
Community Services - - Capital Outlay 127,114 123,943 3,171 Debt Service:
Interest and Fiscal Charges - -
Total Expenditures 1,662,500 2,258,214 1,934,407 323,807 NET CHANGE IN FUND BALANCE $ $ 669,560 (418,840) $ (1,088.400) Fund Balance - Beginning of Year (789,905)
FUND BALANCE - END OF YEAR $ (1,208.745)
(130)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 1,445 $ 1,445
Charges for Services 120,000 120,000 163,222 43 222
Total Revenues 12000 120,000 16667 4467
EXPENDITURES
Capital Outlay
Total Expenditures
150,000 37100 112,900
150,000 3100 112,900
REVENUE OVER (UNDER) EXPENDITURES 120,000 (30,000) 127,567 157,567
OTHER FINANCING SOURCES (USES)
Transfers Out (75`000) (75,000) - 75\000
Total Other Financing Sources (Uses) (75,000) (7500) - 75,000 NET CHANGE IN FUND BALANCE $ 45.000 $ (105.000) 127,567 $ 232.567 Fund Balance - Beginning of Year 709,122
FUND BALANCE - END OF YEAR $ 836.689
(131)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 731 $ 731
Charges for Services 60`000 60,000 86,839 26,839
Total Revenues 60,000 60,000 87,570 27,570
EXPENDITURES
Current:
Public Safety 60,000 60,000 - 60,000
Capital Outlay 158,000 158 000 32 340 125,660
Total Expenditures 218,000 21800 32340 185,660
NET CHANGE IN FUND BALANCE (158,000) (158,000) 55,230 $ 213.230 Fund Balance - Beginning of Year 334,606
FUND BALANCE - END OF YEAR $ 389.836
(132)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
HOUSING SUCCESSOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Lease Revenue $ 6,000 $ 6,000 $ 7,600 $ 1,600
Miscellaneous 95,800 95800 130 358 34,558
Total Revenues 101,800 101,800 13758 36,158
NET CHANGE IN FUND BALANCE $ 101.800 $ 101.800 137,958 $ 36,158 Fund Balance - Beginning of Year 1,851,540
FUND BALANCE - END OF YEAR $ 1.989.498
(133)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
CAL RECYCLE GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ 81,160 $ - $ (81,160)
Investment Earnings - 18 18
Total Revenues 81,160 18 (81,142)
EXPENDITURES
Current:
Public Safety 81,160 - 81,160
Total Expenditures 81,160 - 81,160
NET CHANGE IN FUND BALANCE $ $ 18 $ 18
Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ 18
(134)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment Earnings
Total Revenues
EXPENDITURES
Current:
Public Safety
Total Expenditures
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 81,160 $ - $ (81,160)
18 18
81,160 18 (81,142)
81,160 - 81,160
81,160 81,160
NET CHANGE IN FUND BALANCE $ $ 18 $ 18
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $ 18
(135)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
CITY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
Revenues:
Intergovernmental
Miscellaneous
Total Revenues
Expenditures:
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
(136)
$ 3,842,057 $ - $ (3,842,057)
503,183 503183
3,842,057 503,183 (3,33874)
4,369,508 760,978 3,608`530
4,369,508 760,978 3,608,530
$ (527,451) (257,795) $ 269,656
(350,441)
$ (608,236)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GAS TAX DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Investment Earnings
Total Revenues
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ $ 136 $ 136
136 136
EXPENDITURES
Debt Service:
Principal Retirement 409,500 409,500 351,000 58,500
Interest and Fiscal Charges 58,500 58,500 57,156 1 344
Total Expenditures 468,000 468,000 408,156 5944
REVENUE OVER (UNDER) EXPENDITURES
(468,000) (468,000) (408,020) 59,980
OTHER FINANCING SOURCES (USES)
Proceeds From Issuance of Debt
Payment to Escrow for Refunding Debt - -
Transfers In 409,500 (409,500) 486,716 896,216
Transfers Out - - - -
Total Other Financing Sources (Uses) 409,500 (409,500) 486,716 896,216 NET CHANGE IN FUND BALANCE $ (58,500) $ (877.500) 78,696 $ 956.196 Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ 78.696
(137)
CITY OF PLACENTIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
Risk Health and Equipment
Management Welfare Replacement Total
ASSETS
Current Assets:
Cash and Investments $ 2,100,306 $ 19,343 $ 63,478 $ 2,183,127 Receivable:
Accounts 4,037 - - 4,037
Total Current Assets 2,104,343 19,343 63,478 2,187,164
Total Assets 2,104,343 19,343 63,478 2,187,164
LIABILITIES
Current Liabilities:
Accounts Payable 67,719 327 12,418 80,464
Accrued Liabilities 5 - - 5
Accrued Claims and Judgments - Due Within One Year 1,253,803 - - 1,253,803 Total Current Liabilities 1,321,527 327 12,418 1,334,272 Noncurrent Liabilities:
Accrued Claims and Judgments - Due in More
Than One Year 3,761,408 3,761,408
Total Noncurrent Liabilities 3,761,408 - 3,761,408
Total Liabilities 5,082,935 327 12,418 5,095,680
NET POSITION
Unrestricted (2,978,592) 19,016 51,060 (2,908,516)
Total Net Position $ (2,978,592) $ 19,016 $ 51,060 $ (2,908,516) (138)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Governmental Activities
Risk Health and Equipment
Management Welfare Replacement Total
OPERATING REVENUES
Reimbursements $ 269,945 $ 116,294 $ - $ 386,239
Sales and Service Charges 1,829,892 981,779 - 2,811,671 Other Revenues - - 24,601 24,601
Total Operating Revenues 2,099,837 1,098,073 2601 3,222,511
OPERATING EXPENSES
Administration 108,074 16,347 12,418 136,839
Reinsurance Premiums - 122,162 - 122,162
Claims 1,945,174 - - 1,945,174
Medical and Dental Premiums 954,142 954,142
Liability Insurance Premiums 1,191,297 5 423 - 1,196 720 Total Operating Expenses 3,244,545 1,09874 12,418 4,355037 CHANGES IN NET POSITION (1,144,708) (1) 12,183 (1,132,526) Net Position - Beginning of Year (1,833,884) 19,017 38,877 (1,775,990) NET POSITION - END OF YEAR $ (2,978.592) $ 19.016 $ 51.060 $ (2.908.516) (139)
CITY OF PLACENTIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Risk Health and Equipment
Management Welfare Replacement
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 2,095,800 $ 1,098,126 $ 24,601 $ 3,218,527 Cash Paid to Suppliers for Goods and Services (139,695) (1,111,109) - (1,250,804) Cash Paid for Insurance Claims (1,945,174) - - (1,945,174) Net Cash Provided (Used) by Operating Activities 10,931 (12,983) 24,601 22,549
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION
Beginning of Year
10,931 (12,983)
2,089,375 32,326
24,601 22,549
38,877 2,160,578
End of Year $ 2.100.306 $ 19.343 $ 63,478 $ 2.183.127
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ (1,144,708) $ (1) $ 12,183 $ (1,132,526) Adjustments to Reconcile Operating Income
to Net Cash Provided (Used) by Operating Activities:
Depreciation
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables (4,037) 53 (3,984) Increase (Decrease) in Accounts Payable 14,968 (13,035) 12,418 14,351 Increase (Decrease) in Accrued Liabilities - -
Increase (Decrease) in Claims Payable 1,144,708 1,144,708 Net Cash Provided (Used) by Operating Activities $ 10.931 $ (12.983) $ 24,601 $ 22,549 (140)
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. (141)
CITY OF PLACENTIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDS
JUNE 30, 2022
ASSETS
Cash and Investments
Miscellaneous Receivables
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Retention Payable
Deposits Payable
Total Liabilities
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and
Other Governments
Total Net Position (Deficit)
Custodial Funds
Community
Facilities
District
$ 48,963
48,963
Public Safety
CFD 2014-01
$ 70,633
427
71,060
- 7,866
14 191
191
48,772
$ 48,772
(142)
34,850
42,730
28,330
$ 28,330
Total
$ 119,596
427
120,023
7,866
14 35,041
42,921
77,102
$ 77,102
CITY OF PLACENTIA
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2022
Custodial Funds
Community
Facilities Public Safety
District CFD 2014-01 Total
ADDITIONS
Charges for Services $ $ 39,904 $ 39,904
Investment Income 94 94 188
Total Additions 94 39,998 40,092
DEDUCTIONS
Administrative Expenses 7,866 7,866
Total Deductions 7,866 7,866
CHANGE IN NET POSITION 94 32,132 32,226
Net Position - Beginning of Year 48,678 (3,802) 44,876
NET POSITION - END OF YEAR $ 48,772 $ 28,330 $ 77,102
(143)
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(144)
STATISTICAL SECTION
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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: Page
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. 146
Revenue Capacity— These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 151 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. (145)
156
159
161
CITY OF PLACENTIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental Activities:
Net Investment in Capital Assets $ 78,273 $ 74,238 $ 66,333 $ 66,799 $ 67,960 $ 67,915 $ 72,176 $ 81,106 $ 86,061 $ 86,188 Restricted 3,630 2,901 7,027 7,681 6,199 5,819 6,090 7,732 21,456 20,175 Unrestricted (14,229) (9,273) (34,145) (30,490) (32,780) (52,089) (50,858) (53,352) (68,263) (23,439) Total Governmental Activities Net Position $ 67.674 $ 67.866 $ 39,215 $ 43,990 $ 41.379 $ 21,645 $ 27,408 $ 35,486 $ 39.254 $ 82,924 Business -Type Activities:
Net Investment in Capital Assets $ 12,275 $ 11,760 $ 11,280 $ 10,765 $ 10,303 $ 9,778 $ 9,275 $ 8,748 $ 8,221 $ 7,694 Unrestricted (1,115) (680) 1,289 845 1,066 (1,514) (2,055) (2,682) 361 1,842 Total Business -Type Activities Net Position $ 11.160 $ 11,080 $ 12,569 $ 11.610 $ 11,369 $ 8,264 $ 7,220 $ 6.066 $ 8,582 $ 9,536 Primary Govemment:
Net Investment in Capital Assets $ 90,548 $ 85,998 $ 77,613 $ 77,564 $ 78,263 $ 77,693 $ 81,451 $ 89,854 $ 94,282 $ 93,882 Restricted 3,630 2,901 7,027 7,681 6,199 5,819 6,090 7,732 21,456 20,175 Unrestricted (15,344) (9,953) (32,856) (29,645) (31,714) (53,603) (52,913) (56,034) (67,902) (21,597) Total Primary Govemment Net Position 5 78.834 $ 78.946 $ 51,784 $ 55.600 $ 52.748 $ 29,909 $ 34.628 $ 41,552 $ 47.836 $ 92.460 Source: City of Placentia, Finance Department
(146)
CITY OF PLACENTIA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PROGRAM REVENUE
Governmental Activities:
Charges for Services:
General Govemment $ 2,268 $ 2,408 $ 2,053 $ 1,956 $ 2,136 $ 2,206 $ 2,356 $ 2,651 $ 2,754 $ 2,812 Public Safety 1,570 1,282 1,469 1,340 1,092 1,078 742 771 567 928 Public Works 1,539 3,238 854 679 597 670 1,100 776 917 877 Community Development 317 590 277 1,211 1,074 1,251 1,011 1,670 2,014 1,598 Community Services - 221 194 314 213 145 148 253
Operating Grants 1,656 700 1,407 4,744 4,637 4,575 7,709 9,588 6,103 6,499 Capital Grants and Contributions 1,256 1,634 3,216 145 465 4,528 1,117 2,994 8,027 1,850 Total Governmental Activities Program
Revenues 8,606 9,852 9,276 10,296 10,195 14,622 14,248 18,595 20,530 14,817 Business -Type Activities:
Charges for Services:
Refuse 2,749 2,865 2,874 2,890 2,958 3,039 3,148 3,252 3,688 3,732 Compressed Natural Gas 335 119 25 - - - - -
Sewer Maintenance 876 884 819 688 722 760 722 723 783 791 Total Business -Type Activities Program
Revenues 3,960 3,868 3,718 3,578 3,680 3,799 3,870 3,975 4,471 4,523 Total Primary Government Program
Revenues
12,566 13,720 12,994 13,874 13,875 18,421 18,118 22,570 25,001 19,340
EXPENSES
Governmental Activities:
General Govemment 10,516 9,673 9,248 5,343 10,579 10,046 9,346 11,654 12,850 9,242 Public Safety 16,965 16,915 15,689 18,556 19,188 18,114 20,547 26,139 26,045 (5,341) Public Works 6,506 5,720 6,644 7,445 7,246 4,328 2,465 4,926 9,846 3,159 Community Development 1,011 1,142 1,845 1,373 1,904 1,068 1,502 1,640 2,893 1,554 Community Services - 1,263 1,318 1,690 4,401 1,757 2,580 1,685 Redevelopment - - - - - - - -
Interest on Long -Terni Debt 603 667 861 837 783 717 588 475 765 2,591 Total Governmental Activities 35,601 34,117 34,287 34,817 41,018 35,963 38,849 46,591 54,979 12,890 Business -Type Activities:
Refuse 2,933 2,950 2,795 2,555 2,571 3,034 3,164 3,127 3,287 3,421 Compressed Natural Gas 137 - - - - - - -
Sewer Maintenance 1,143 1,071 1,069 1,418 954 1,943 1,593 1,836 (1,365) 150 Total Business -Type Activities 4,213 4,021 3,864 3,973 3,525 4,977 4,757 4,963 1,922 3,571 Total Primary Government Expenses 39,814 38,138 38,151 38,790 44,543 40,940 43,606 51,554 56,901 16,461
NET REVENUE (EXPENSE)
Governmental Activities (26,995) (24,265) (25,011) (24,521) (30,823) (21,341) (24,601) (27,996) (34,449) 1,927 Business -Type Activities (253) 5153) (146) (395 155 1,178) (887)(988) 2,549 952 Total Primary Government Net Expense (27,248) (24,418) (25,157) (24,916; (30,668) (2,519) (25,488) (28,984) (31,900) 2,879 (147)
CITY OF PLACENTIA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GENERAL REVENUE AND OTHER
CHANGES IN NET POSITION
Governmental Activities:
Taxes:
Property $ 11,389 $ 11,804 $ 12,449 $ 13,259 S 13,972 $ 14,560 $ 15,478 $ 15,981 $ 16,752 $ 17,191 Sales and Use 4,160 4,512 6,284 6,848 7,020 6,948 8,184 13,141 15,113 17,248 Utility Users 2,863 2,800 2,874 2,750 2,637 2,545 2,461 2,362 2,503 2,689 Franchise 2,186 2,228 2,338 2,332 2,244 2,270 2,340 2,358 2,466 2,651 Other 998 1,029 1,177 1,258 1,365 1,316 1,267 1,047 1,022 1,842 Miscellaneous 1,359 1,336 1,451 35 41 125 136 447 280 256 Investment Income 197 24 576 34 31 72 227 312 13 (297)
Other 2,918 708 - - - 215 -
Special Item (2,764) - - - - - -
Contribution from successor Agency - - - - 19 -
Contribution from Custodial Fund - - - - 30
Extraordinary Item - - - (1,035) - - - -
Transfers 248 4 165 646 402 251 268 192 39
Total Government Activities 26,318 24,445 24,550 26,127 27,712 28,087 30,361 36,074 38,218 41,580 Business -Type Activities:
Investment Income 5 2 5 7 7 24 34 27 4 2
Special Item 2,764 - - - -
Other 75 75 75 75 -- - -
-
Transfers (478) i (4)(165)646 402 251 192) 192) 39)
398) 7
Total Business -Type Activities 3 2,679 �564� (395 227 158) 165) 35) 2 Total Primary Government 25,920 24,518 27,229 25,563 27,317 27,860 30,203 35,909 38,183 41,582
CHANGE IN NET POSITION
Govemmental Activities
Business -Type Activities
Total Primary Government
Source: City of Placentia, Finance Department
(677) 180 (461) 1,606 (3,111) 6,746 5,760 8,078 3,769 43,507 (651) (80) 2,533 (959) (240) (1,405) (1,045) (1,153) 2,514 954 $ (1.328) $ 100 $ 2.072 5 647 $ (3.351) $ 5.341 $ 4,715 $ 6.925 $ 6.283 $ 44.461 (148)
CITY OF PLACENTIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund:
Nonspendable $ 4,368 $ 3,450 $ 4,104 $ 3,881 $ 3,354 $ 4,955 $ 4,706 $ 3,734 $ 3,347 $ 2,522 Restricted 439 1,030 1,030 1,024 1,019 571 555 556 2
Committed - - 119 3,600 3,600 3,400 4,528 5,811 6,434 13,856 Assigned - - 185 286 40 - - - - -
Unassigned 1,385 1,001 2,510 72 56 (1,346) 543 3,866 9,894 7,205 Total General Fund $ 5,753 $ 4,890 $ 7,948 $ 8,869 $ 8,074 $ 8,028 $ 10,348 $ 13,966 $ 20,231 $ 23,585 All Other Governmental Funds:
Nonspendable $ 88 $ 84 $ - $ - $ - $ - $ - $ - $ 10 $ 6 Restricted 3,630 2,930 5,999 6,651 5,175 4,800 5,518 7,177 20,900 20,173 Assigned - - 485 - - - - - -
Unrestricted (2,196) (761) - - (368) (531) (1,045) (1,552) (1,406) (2,754) Total All Other Governmental Funds $ 1.522 $ 2,253 $ 6,484 $ 6,651 $ 4,807 $ 4,269 $ 4,473 $ 5,625 $ 19,504 $ 17.425 Source: City of Placentia, Finance Department
(149)
CITY OF PLACENTIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
REVENUES
Property Tax $ 11,389 $ 11,804 $ 12,449 $ 13,259 $ 13,972 $ 14,551 $ 15,478 $ 15,981 $ 16,752 $ 17,191 Sales Tax 5,519 5,848 6,284 7,257 7,020 6,948 10,646 13,141 15,113 17,248 Other Tax 6,047 6,138 6,316 6,318 6,222 6,043 3,548 5,708 5,993 7,182 Intergovemmental 3,143 3,531 4,033 2,998 3,572 6,487 7,530 8,459 6,700 6,498 Licenses and Permits 1,211 1,618 1,690 1,733 1,572 1,702 1,922 2,454 2,828 2,440 Fines and Forfeitures 842 575 733 1,154 1,297 592 613 819 314 503 Investment Income 161 210 177 34 32 69 228 307 13 (297) Charges for Services 1,800 1,912 2,228 2,216 1,743 2,197 2,003 4,056 9,334 2,267 Other Tax 4,598 2,087 2,424 2,108 1,892 2,151 2,289 2,327 2,536 3,581 Total Revenues 34,710 33,723 36,334 37,077 37,322 40,740 44,257 53,252 59,583 56,613
EXPENDITURES
Current:
General Government 4,275 4,409 6,432 6,571 10,450 8,109 7,889 8,389 10,995 12,105 Public Safety 16,845 16,853 16,500 17,880 18,436 19,156 18,718 23,442 16,938 17,476 Public Works 10,826 5,760 4,246 4,824 5,050 5,951 6,078 5,938 5,049 5,262 Community Development 1,011 1,142 1,824 952 1,858 1,291 1,171 1,693 2,245 2,007 Community Services 1,191 1,292 1,526 4,405 1,793 1,547 2,305 Redevelopment - - - - - - -
Capital Outlay 347 79 2,042 1,262 2,340 2,971 1,047 11,534 6,178 Debt Service:
Principal 355 723 1,070 1,333 1,654 1,855 2,105 1,177 1,904 3,135 Payment to Refunding Bond Escrow Agent - - - - - - - 2,440 Interest 594 577 813 837 783 717 587 475 765 489
Debt Issuance Costs - - - - - - - - - 182
Total Expenditures 34,253 29,543 32,927 34,850 41,863 41,576 42,000 54,441 45,621 45,401
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES
457 4,180 3,407 2,227 (4,541) (836) 2,257 (1,189) 13,962 11,212
OTHER FINANCING SOURCES (USES)
Transfers In 12,072 6,998 4,939 7,000 8,010 4,778 1,515 1,882 2,849 4,034 Transfers Out (17,827) (11,310) (4,552) (6,354) (7,607) (4,527) (1,247) (1,690) (2,811) (4,034) Issuance of Debt - 251 - - 5,766 57,583 2,189
Other - - (2,764) - - - (51,441) (2,069)
Total Other Financing Sources (Uses) (5,755) (4,312) (2,377) 897 403 251 268 5,958 6,180 120 EXTRAORDINARY ITEMS 1,500 - -
NET CHANGE IN FUND BALANCES S (5.298) $ (132) $ 1.030 $ 3,124 S (2.638) $ (585) $ 2,525 $ 4.769 $ 20.142 $ 11,332 Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures 2.88% 4.62% 6.49% 6.91% 6.57% 7.14% 7.04% 4.00% 7.26% 14.24% Source: City of Placentia, Finance Department
(150)
CITY OF PLACENTIA
REVENUES BY SOURCE - GENERAL FUND
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Sales Licenses Fines, Use of Inter- Charges
Property and Other and Forfeitures, Money and Investment Leases Governmental for Current Other Fiscal Year Taxes Use Taxes Taxes Permits and Penalties Property Earnings* and Rents* Revenue Services Revenues Totals 2013 $ 11,388,950 $ 5,518,907 $ 3,183,996 $ 1,210,722 $ 468,229 $ 160,212 $ - $ - $ 127,867 $ 1,256,723 $ 4,597,034 $ 27,912,640 2014 11,804,238 5,847,742 3,338,556 1,618,068 459,123 206,104 58,058 1,189,249 1,571,109 26,092,247 2015 12,448,958 6,207,771 3,394,915 1,690,191 484,676 170,892 - - 224,246 1,383,803 1,778,619 27,784,071 2016 13,259,241 7,257,004 3,550,183 1,733,049 542,253 - 24,157 670,631 466,271 1,091,250 1,053,220 29,647,259 2017 13,971,691 7,019,906 3,578,424 1,571,584 587,005 3,645 1,199,161 297,831 863,387 629,737 29,722,371 2018 14,551,076 6,948,279 6,042,998 1,701,878 562,390 31,161 1,255,240 252,963 1,284,507 708,662 33,339,154 2019 15,477,587 10,646,101 3,547,567 1,922,689 438,581 - 164,724 1,230,532 353,354 1,070,821 944,874 35,796,830 2020 15,980,879 13,140,914 5,708,333 2,453,827 418,752 - 170,567 1,211,622 701,864 885,206 885,076 41,557,040 2021 16,752,112 15,112,657 5,993,621 2,827,761 290,534 - (28,258) 1,079,979 9,743 879,298 490,006 43,407,453 2022 17,191,426 17,247,980 7,182,055 2,440,102 503,302 - (323,152) 1,422,831 952,389 1,263,215 785,684 48,665,832 ' 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 (151)
CITY OF PLACENTIA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
City
Taxable
Public Assessed Direct
Fiscal Year Secured Utility Unsecured Value Rate
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
2022 7,373,165 544 187,422 7,561,131 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
(152)
Placentia City
Placentia City Street Lighting Reorg.
Direct City Rate
Overlapping Rates:
OC Water District- Water Reserve
OC Vector Control
OC Transportation Authority
Orange County Water District
OC Harbor Beaches 8 Parks
OC Department of Education
Orange County Flood Control
OC Sanitation District #2 Operating
Placentia Library District
Orange County General Fund
North OC Comm. College General Fund
Education Revenue Augmentation Fund
Placentia Yorba Linda Unified Gen. Fund
Total Overlapping Rate
Metropolitan Water District
Placentia Yorba Linda Unified
N. Orange County Community College
Total Rate
Note:
CITY OF PLACENTIA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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
0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011
0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026
0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080
0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144
0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171
0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186
0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309
0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376
0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579
0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655
0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876
0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943
0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8357
0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035
0.0620 0.0653 0.0582 0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 0.0485
0.0190 0.0170 0.0170 0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 0.0288
1.0845 1.0858 1.0787 1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 1.0809 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
(153)
Taxpayer
Fairfield Placentia Place LLC
Placentia 422
Villa Angelina Apartment Fund LTD
MG Union Place Apartments LLC
Placentia -Linda Hospital Inc.
Sedona-Placentia Owner LLC
NMC Placentia LLC
Reef Imperial Rose Inc.
Donahue Schriber Realty Group
Arlon Graphics LLC
Total
Source: HdL Coren Cone
CITY OF PLACENTIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT AND NINE YEARS AGO
(AMOUNTS EXPRESS IN THOUSANDS)
2022
Taxable Estimated
Assessed Total
Value Tax
$ 112,754 $1,128
60,612 606
57,955 580
47,445 474
40,374 404
39,650 397
37,553 376
31,639 316
29,428 294
28,897 289
Percent of
Total City
Taxable
Assessed
Value
Taxpayer
1.49 % OC of SD Holdings
.80 Placentia 422
.77 Villa Tierra Apartments LLC
.63 Placentia -Linda Hospital Inc.
.53 Donahue Schriber Realty Group
.52 Reef Imperial Rose Inc.
.50 Inland Western Placentia LLC
.42 Hartwell Corporation
.39 Western Oak Tree Court Partners LP
.38 Bradford Terrace Placentia Apartments
$ 486,307 $ 4.864 6.43 %
(154)
Total
2013
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$65,578 $ 656 1.29 %
52,234 522 1.03
34,328 343 .68
30,437 304 .60
25,136 251 .49
23,902 239 .47
22,712 227 .45
21,039 210 .41
16,866 169 .33
16,435 164 .32
$ 308.667 $ 3,087 6.08 %
Fiscal Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Note:
CITY OF PLACENTIA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Taxes Levied
for the
Fiscal Year
$ 12,064,669
12,294,236
13,012,736
12,742,715
12,831,914
13,471,679
14,144,498
14,623,234
15,211,067
15,734,335
Collected within the Collections
Fiscal Year of Levy in
Percent Subsequent
Amount of Levy Years
$ 11,889,799 98.55 % N/A
12,266,287 99.77 N/A
12,973,298 99.70 N/A
13,529,800 106.18 N/A
12,865,221 100.26 N/A
13,421,607 99.63 N/A
14,244,954 100.71 N/A
14,675,128 100.35 N/A
15,384,500 101.14 N/A
15,777,022 100.27 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
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
(155)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
CITY OF PLACENTIA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS, EXCEPT PER CAPITA)
Business -Type
Governmental Activities Activities
Tax Allocation Certificates Total Percent of Percent of Bonds Loans of Leases Loans Primary Assessed Per Personal Fiscal Year and Notes Payable Participation Payable Payable Govemment Valuation Capita Income 2013 $ 4,062 $ 189 $ 10,471 $ $ 14,722 .290 % $ 284 .97 % 2014 3,870 75 9,572 13,517 .260 259 .89
2015 3,579 41 9,147 12,767 .231 245 .83
2016 3,063 218 8,697 11,978 .204 229 .76
2017 2,242 162 8,237 10,641 .173 204 .66
2018 1,226 1,325 7,737 10,288 .160 195 .60
2019 1,144 7,680 8,824 .130 169 .49
2020 6,154 7,095 13,249 .188 257 .70
2021 58,266 5,587 2,845 - 66,698 .907 1,303 3.40
2022 55,970 8,656 651 65,277 .863 1,275 3.22
Source: City of Placentia, Finance Department
(156)
CITY OF PLACENTIA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
JUNE 30, 2022
2020-22 Assessed Valuation
Successor Agency Incremental Valuation
Adjusted Assessed Valuation
Direct Debt:
Placentia 2022 Ref and Improv Cops
Placentia Public Safety Radio Loan Payable
Placentia Fire Loan Payable #1
Placentia Fire Loan Payable #2
Placentia Fire UAL Loan Payoff
Placentia OCTA Advance
Placentia 2021 Installment Sale Agreement
Placentia PFA 2020A Lease Revenue Bonds
Total Direct Debt
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
$7,561,131
394,528
$7.166.603
Total Debt % Applicable
June 30, 2022 (1)
$ 2,189,027 100.00 %
664,014 100.00
2,785,389 100.00
1,460,450 100.00
1,076,463 100.00
1,557,622 100.00
3,004,000 100.00
51,890, 000 100.00
$228,563,164 22.109 %
4,050,721 1.110
203,447,070 5.137
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
Ratios of Direct vs. Overlapping Debt:
Direct Debt
Overlapping Debt
Total Debt
Ratios of Debt to Assessed Valuation:
Direct Debt
Overlapping Debt
Total Debt
Source: HdL, Coren Cone
51.43 %
48.57 100.00 %
.90 %
.85
1.75 %
(157)
City's Share
of Debt
June 30/ 2022
$ 2,189,027
664,014
2,785,389
1,460,450
1,076,463
1,557,622
3,004,000
51, 890,000
64, 626, 965
$50,533,030
44,963
10,451,076
61,029,069
$ 125.656,034
CITY OF PLACENTIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Legal Debt Margin Calculation for the Current Year:
Assessed Value
Debt Limit (3.75% of Assessed Value)
Debt Applicable to Limit
Legal Debt Margin - Current Year
Note:
$7,765,615,887
291,210,596
$ 291,210,596
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentage
Year Limit to Limit Margin of Limit
2013 $ 181,800,203 $ $ 181,800,203 -
2014 186,635,310 186,635,310
2015 213,385,760 - 213,385,760
2016 220,387,742 - 220,387,742
2017 230,066,512 - 230,066,512
2018 248,734,552 248,734,552
2019 261,192,507 261,192,507
2020 271,595,021 - 271,595,021
2021 283,280,448 - 283,280,448
2022 291,210,596 291,210,596
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
(158)
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
2012 51,776 $ 1,525,217 $ 29,458 5.0 %
2013 52,094 1,511,507 29,015 4.4
2014 52,084 1,540,384 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
2021 51,204 2,024,718 39,542 5.8
Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HdL, Coren Cone
(159)
CITY OF PLACENTIA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
Calendar Year
2012 2013 2014 2015 2012 2016 2017 2018 2019 2020 2021
Apparel Stores $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $21,114 General Merchandise 6,227 6,482 6,459 6,635 6,227 6,759 7,178 7,440 7,649 8,208 7,907 Food Stores 17,718 17,541 17,898 18,529 17,718 17,919 17,102 17,530 18,363 20,539 19,152 Eating and Drinking Places 61,816 62,479 66,582 79,730 61,816 84,676 85,373 83,083 87,912 77,897 101,361 Building Materials 39,460 37,884 48,092 38,156 39,460 55,996 60,664 68,803 74,767 69,616 89,608 Auto Dealers and Supplies 69,200 78,924 85,659 105,341 69,200 107,146 104,963 82,789 72,781 71,301 99,240 Service Stations 83,112 80,210 78,562 70,961 83,112 62,495 68,101 74,924 73,200 49,981 72,505 Other Retail Stores 55,311 63,164 64,434 60,419 55,311 70,775 74,578 75,597 76,411 65,702 62,668 All Other Outlets 192,626 197,944 213,510 255,719 192,626 240,166 234,501 245,115 268,067 269,831 278,458 Total $ 525.470 $ 544.628 $ 581,196 $ 635.490 $ 525,470 $ 645,932 $ 652,460 $ 655.281 $ 679,150 S 633,075 $ 730,899 Note:
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide altemative information regarding the sources of the City's sales tax revenue.
The category "Apparel Stores" was added in the FY21/22 ACFR Source: State of Califomia Board of Equalization and The HdL Companies (160)
Department
CITY OF PLACENTIA
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT
LAST TEN FISCAL YEARS
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Clerk 2.00 1.00 2.00 2.00 2.00 2.00 - 2.00 2.00 2.00 Administration 7.00 6.00 8.00 7.00 7.00 11.50 9.50 10.50 25.45 26.45 Finance 7.00 7.00 6.00 7.00 7.00 8.00 8.00 8.00 9.00 9.00 Development Services 3.00 - 4.00 4.75 6.50 8.50 8.50 8.55 9.55 Police 68.00 62.00 67.00 69.50 74.50 80.00 76.00 84.00 71,00 72.00 Fire and Life Safety - - - - - - - 25.00 27.00
Public Works 22.00 19.00 18.00 19.00 20.25 20.75 20.00 22.00 22.00 26.00 Community Services 4.00 4.00 4.00 6.00 6.50 7.25 7.00 7.00 7.00 8.00 Total
Source: City of Placentia, Finance Department
113.00 99.00 105.00 114.50 122.00 136.00 129.00 142.00 170.00 180.00 (161)
Function/Program
Police:
Physical Arrests
Parking Citations
Traffic Citations
CITY OF PLACENTIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1,289 1,600 1,732 1,373 1,250 1,381 1,282 1,053 1,257 1,400 6,970 7,147 11,141 12,729 13,161 2,359 7,398 4,646 3,742 2,974 3,366 3,330 2,498 2,060 1,824 2,659 7,707 1,601 1,162 509 Community Development:
Building Permits 776 808 1,411 1,472 1,268 1,347 1,263 1,407 1,346 1,425 Building and Zoning Inspections 145 97 178 133 128 87 92 126 181 128 Public Works:
Feet of Sewer Main Cleaned 401,280 401,280 401,280 401,280 249,134 385,510 318,118 396,000 372,246 372,246 Streetsweeping Miles 21,684 21,684 21,684 21,684 21,684 7,955 7,955 8,772 8,772 8,772 Traffic Signals Maintained 57 57 57 57 57 61 61 63 63 63 Culture and Recreation:
Recreation Classes
Source: City of Placentia, Finance Department
704 710 787 747 727
(162)
645 610 577 387 421
Function/Program
CITY OF PLACENTIA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety:
Police Stations 1 1 1 1 1 1 1 1 1 1
Sworn Officers 47 46 46 46 46 51 51 46 51 46
Patrol Vehicles 26 26 26 26 26 32 32 33 16 16
Fire Stations 2 2 2 2 2 2 2 2 2 2
Highways and Streets:
Miles of Streets 107 107 107 107 107 107 132 132 132 133 Street Trees 9,214 9,214 9,214 9,214 9,214 9,139 7,175 7,077 6,929 6,688 Traffic Signals 229 229 229 229 229 230 230 230 230 230 Street Lights 3,656 3,656 3,656 3,656 3,656 3,660 3,660 3,656 3,656 3,656 Sewer:
Miles of Sanitary Sewers 76 76 76 76 76 76 76 84 84 84
Storm Drains 506 506 506 506 506 506 506 506 506 531
Culture and Recreation:
Parks 16 16 16 16 16 16 16 15 15 15
Area of Parks (Acres) 72.9 72.9 72.9 72.9 72.9 72.9 100.9 60.9 60.9 60.9 Community Buildings 7 7 7 7 7 7 7 7 7 7
Community Centers 3 3 3 3 3 3 3 3 3 3
Senior Centers 1 1 1 1 1 1 1 1 1 1
Baseball Diamonds 7 7 7 7 7 7 7 7 7 7
Basketball Courts 8 8 8 8 8 8 8 7 7 7
Soccer Fields 1 1 1 1 1 1 1 1 1 1
Pools 2 2 2 2 2 2 2 2 2 2
Gymnasiums 1 1 1 1 1 1 1 1 1 1
Note:
In FY20/21, the Fleet Manager provided the number of patrol vehicles as 16. The police department could not recreate the previously reported number of 33. When taking into account all police department vehicles, the number was 45. Therefore, only the actual patrol vehicles were reported starting in FY20/21.
Source: City of Placentia, Finance Department
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Prepared by the Finance Department
of the City of Placentia
lityt We'll get you there.
CPAs 1 CONSULTANTS 1 WEALTH ADVISORS
City of Placentia
Presentation to the City Council
For the Fiscal Year Ended June, 30, 2022
June 6, 2023
©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CIA Global. See CLAgIobaI.com/disclaimer Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.
Scope of Work
Audit of the basic financial statements contained within the City's Annual Comprehensive Financial Report (ACFR)
Single Audit pursuant to the Uniform Guidance
Agreed upon procedures on GANN Appropriation Limit
Agreed upon procedures on check sequence
Agreed upon procedures on wire transfers
©2023 CliftonLarsonAllen LLP
Reports to be Issued
Independent auditor's report on basic financial statements Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards
Communication to those in charge of governance
Agreed upon procedures report on GANN Appropriation Limit Agreed upon procedures on check sequence
Agreed upon procedures on wire transfers
6 ©2023 CliftonLarsonAllen LIP
3 Independent Auditors Report
Opinions - Unmodified
Basis for Opinions
Change in Accounting Principle
Responsibilities of Management for the Financial Statements Auditors' Responsibilities for the Audit of the Financial Statements Required Supplementary Information
Supplementary Information
Other Information
Other Reporting Required by Government Auditing Standards =C
©2023 CliftonLarsonAllen LLP
Communication to Those in Charge of Governance
Accounting Policies
Implementation of GASB 87, Leases
Accounting Estimates
CaIPERS defined benefit plans
Other Post -Employment Benefit (OPEB) plan
Financial Statement Disclosures Most Sensitive to Financial Statements Note 8 regarding the CaIPERS defined benefit plans.
Note 9 regarding the OPEB plan
Difficulties in Performing the Audit
None
Uncorrected Misstatements
California Highway Users Tax revenue on a cash basis rather than accrual basis
6. ©2023 CliftonLarsonAllen LLP
5 Communication to Those in Charge of Governance
(Continued)
Corrected Misstatements
Firefighter unfunded pension accrued liability
Liability for compensated absences
Redevelopment Property Tax Trust Fund (RPTTF) recorded as unearned Bond payable for governmental fund not recorded on modified accrual basis Disagreements with Management
None
Management Representations
Received as of May 4, 2023
Management Consultations with Other Independent Accountants None known
©2023 CliftonLarsonAllen LLP
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