CITY OF PLACENTIA
PLACENTIA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
PREPARED BY THE FINANCE DEPARTMENT
OF THE CITY OF PLACENTIA
6 CPAs I CONSULTANTS I WEALTH ADVISORS
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CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
CITYWIDE 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 22
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION 23
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
STATEMENT OF NET POSITION
24 25
26 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 27
STATEMENT OF CASH FLOWS 28
FIDUCIARY FUNDS FINANCIAL STATEMENTS
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
STATEMENT OF FIDUCIARY NET POSITION 30
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 31
NOTES TO BASIC FINANCIAL STATEMENTS 32
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND 90
BUDGETARY COMPARISON SCHEDULE - CITYWIDE DEVELOPMENT
IMPACT FEE SPECIAL REVENUE FUND 91
NOTES TO BUDGETARY COMPARISON SCHEDULES 92
SCHEDULES OF THE CITY'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITIES AND RELATED RATIOS 93
SCHEDULES OF CITY'S PENSION CONTRIBUTIONS 95
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED
RATIOS
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND (MAJOR
FUND)
97 98
99 SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 103
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 108
SCHEDULES OF REVENUE, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 113
STREET LIGHTING SPECIAL REVENUE FUND 114
MEASURE M SPECIAL REVENUE FUND 115
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
THOROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND 116
ASSET SEIZURE SPECIAL REVENUE FUND 117
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 118
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND 119 HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND 120 GASOLINE TAX SPECIAL REVENUE FUND 121
AFFORDABLE HOUSING IN LIEU SPECIAL REVENUE FUND 122
SB1 RMRA GAS TAX SPECIAL REVENUE FUND 123
NORTH ORANGE COUNTY (NOC) PUBLIC SAFETY GRANT SPECIAL
REVENUE FUND 124
TOD IMPACT FEE SPECIAL REVENUE FUND 125
PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE
FUND 126
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND 127
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND 128
HOUSING SUCCESSOR SPECIAL REVENUE FUND 129
CAL RECYCLE GRANT SPECIAL REVENUE FUND 130
CITY CAPITAL PROJECTS FUND 131
GAS TAX DEBT SERVICE FUND 132
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 133
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 134
COMBINING STATEMENT OF CASH FLOWS 135
FIDUCIARY FUNDS - CUSTODIAL FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES 137
CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION 138
STATISTICAL SECTION
NET POSITION BY COMPONENT 140
CHANGES IN NET POSITION 141
FUND BALANCES OF GOVERNMENTAL FUNDS 143
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 144
REVENUES BY SOURCE - GENERAL FUND 145
ASSESSED VALUE OF TAXABLE PROPERTY 146
DIRECT AND OVERLAPPING PROPERTY TAX RATES 147
PRINCIPAL PROPERTY TAX PAYERS 148
PROPERTY TAX LEVIES AND COLLECTIONS 149
RATIO OF OUTSTANDING DEBT BY TYPE 150
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT 151
LEGAL DEBT MARGIN INFORMATION 152
DEMOGRAPHIC AND ECONOMIC STATISTICS 153
TAXABLE SALES BY CATEGORY 154
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT 155
OPERATING INDICATORS BY FUNCTION 156
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM 157
Mayor
JEREMY B. YAMAGUCHI
Mayor Pro Tem
KEVIN KIRWIN
Councilmembers:
RHONDA SHADER
CHAD P. WANKE
WARD L. SMITH
May 13, 2024
The People are the City
ritral
PL ACENTIA
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, 2023. 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 loss, 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, 2023, 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, 2023, 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 (1)
(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.
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 fund balance of the General Fund was approximately $26.7 million on June 30, 2023, the unassigned fund balance was approximately $19.9 million, a $12.7 million increase from June 30, 2022. 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 2023-24.
FACTORS AFFECTING THE CITY'S ECONOMIC CONDITION
Local Economy: Placentia's economic outlook is promising. Taxes represent seventy-three percent (73%) 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 2022-23 generally slightly exceeded budget and are expected to exceed budgeted amounts for FY 2023-24 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.
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 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 Old Town Placentia area. The proposed station will help transform the Packing House District (near Melrose Street and Crowther Avenue) into an active, vibrant destination. Transit - Oriented Development (TOD) is a type of community development that includes a mixture of (iv)
housing, office, retail, and/or other amenities integrated into a walkable neighborhood and located within a half -mile of a public transportation stop. It will also support existing retail and restaurant business while growing the City's local economy.
Based on an economic development analysis conducted by Kosmont Associates, the public and private investments in the future TOD and Old Town Revitalization Plan (OTP) areas are expected at build -out to generate up to $540 million in local economic output and $800 million in Countywide economic output. Upon completion, the TOD and OTP areas are estimated to generate approximately $92 million annually in local economic output. Additionally, the proposed District areas would assist with reconstructing streets and street improvements, utilizing non -General Fund resources. In total, construction of the TOD and Old Town District is estimated to generate approximately 3,900 construction jobs and 1,100 permanent jobs.
Placentia's Old Town is a 33 -acre area located in the southern and western portions of the City, north of a section of the Burlington Northern Santa Fe (BNSF) railroad. To take advantage of the upcoming Metrolink station and parking structure developments scheduled to begin construction in 2022, the Old Town Placentia Revitalization Plan was adopted by the City Council in July 2017. The plan's primary goal is to create a vibrant, safe, and pedestrian friendly area that respects the community's historical and cultural diversity, while also creating new opportunities for development and investment into the area. This comprehensive plan incorporates well- designed private and public physical improvements and amenities.
Based on the Plan's expectation of 853,000 square feet of new improvements at build -out, the Old Town Revitalization Plan is expected to generate $217 million of private development activity, development impact fees of $8.3 million and additional annual tax revenues for the City of $900,000. In addition, 1,057 construction jobs and 823 of new on-site permanent jobs are anticipated as a result 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 Old Town Placentia area and TOD Packing House District. The purpose of this district is to create a funding mechanism that can facilitate the construction of public infrastructure improvements in this area. A portion of the property tax increment (the amount above the property taxes collected in base year 2019) that the City and the County of Orange receive would be specifically restricted to pay for the infrastructure projects listed in the Infrastructure Financing Plan (IFP) at an estimated cost of $8.2 million. These infrastructure improvements include street improvements, pedestrian connectivity, and landscaping and lighting upgrades.
The EIFD does not result in new taxes or fees to the property owners in the EIFD boundaries or the City's residents.
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 (v)
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, 2023 construction is complete and leasing of apartments and retail space is underway.
Toffoli Investments and Landsea Homes will be constructing a 139 -unit residential townhome development called "Hudson." Hudson will be located at 443 S. Van Buren Street and will consist of 22 separate three-story buildings. Six floor plans are proposed consisting of 25 one -bedroom units, 52 two-bedroom units, and 62 three-bedroom units. The unit types will measure between 762 square feet and 1,349 square feet in overall floor area and feature an attached one or two - car garage per unit. Hudson amenities will include a tot lot, barbeques, fire pits, bike racks, a dog run, and more. As of June 30, 2023 construction of some of the buildings is complete, including the model homes. Home sales are underway for the remaining buildings.
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. (vi)
Respectfully submitted,
Jennifer Lampman
Director of Finance
Damien Arrula
City Administrator
City Treasurer
City Attorney
Deputy CA
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CITY OF PLACENTIA
PRINCIPAL OFFICIALS
JUNE 30, 2023
Jeremy B. Yamaguchi
Kevin Kirwin
Rhonda Shader
Ward L. Smith
Chad P. Wanke
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
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FINANCIAL SECTION
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�T.
CliftonLarsonAllen LLP
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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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial 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, 2023, 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 10 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 96, Subscription -Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.
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(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 the City's proportionate share of the net pension liabilities 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, and the schedule of OPEB plan contributions, 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 are 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 April 30, 2024, 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. ���O-,c LLQ
CliftonLarsonAllen LLP
Irvine, California
April 30, 2024
(4)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
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, 2023. 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 $87 million on June 30, 2023. 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, 2023, was approximately $78.6 million and from business -type activities, $8.4 million. • The City's overall net position decreased by approximately $5.4 million during the fiscal year, compared to the net position on June 30, 2022. The net position from governmental activities decreased by $4.2 million while the net position from business -type activities decreased by approximately $1.1 million. Governmental activities increased significantly due to the employer contributions to pension that were made in the prior fiscal year being reflected in the current fiscal year's most recent pension measurement date. Business -type activities net position decreased by $1.1 million, primarily due to an approximately $900 thousand decrease in pension -related assets.
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. (5)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
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 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 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 Tong -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.
(6)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
• Proprietary Funds
The City maintains two different types of proprietary funds: 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.
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. (7)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
Assets:
Cash and Investments
Other Assets
Capital Assets
Total Assets
Deferred Outflows of
Resources
Liabilities
Current Liabilities
Long -Term Liabilities
Total Liabilities
Deferred Inflows of
Resources
Statement of Net Position
Governmental Activities Business -Type Activities Total 2023 2022 2023 2022 2023 2022
$ 38,182,514 $ 47,351,462 $ 1,778,578 $ 1,231,595 $ 39,961,092 $ 48,583,057 42,866,148 54,427,009 214,152 1,038,376 43,080,300 55,465,385 118,450,405 98,601,846 7,166,223 7,693,539 125,616,628 106,295,385 199,499,067 200,380,317 9,158,953 9,963,510 208,658,020 210,343,827 18,139,862 25,803,893 678,259 1,104,279 18,818,121 26,908,172 15,401,307 18,933,738 393,716 348,929 15,795,023 19,282,667 86,871,991 91,302,261 680,187 812,071 87,552,178 92,114,332 102,273,298 110,235,999 1,073,903 1,161,000 103,347,201 1111396,999 36,790,463 33,123,748 351,954 371,563 37,142,417 33,495,311 Net Position
Net Investment in Capital Assets 103,757,453 86,044,986 7,166,223 7,693,539 110,923,676 93,738,525 Restricted 18,360,789 20,175,287 - - 18,360,789 20,175,287 Unrestricted (43,543,074) (23,395,810) 1,245,132 1,841,687 (42,297,942) (21,554,123) Total Net Position $ 78,575, 168 $ 82,824,463 $ 8,411 ,355 $ 9,535,226 $ 86,986 523 $ 92.359.689 The City's net position can serve as a useful indicator of the City's financial position. As of June 30, 2023, the City's combined net position (governmental and business -type activities) totaled $87 million, a decrease of $5.4 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 $110.9 million on June 30, 2023, is the City's net investment in capital assets (land, buildings, machinery, equipment, and infrastructure net of related debt). 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 $18.4 million on June 30, 2023, reflecting a decrease of $1.8 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 $42.3 million. (8)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
Change in Net Position
The following is a summary of activities for the years ended June 30, 2023 and 2022:
Change in Net Position
Govemmental Activities
Business -Type Activities Total
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services $ 6,940,710 $ 6,468,453 $ 5,731,079 $ 4,522,691 $ 12,671,789 $ 10,991,144 Operating Contributions and
Grants 15,642,625 6,499,104 15,642,625 6,499,104
Capital Contributions and
Grants 5,024,953 1,850,038 5,024,953 1,850, 038
General Revenues:
Taxes 44,499,687 41,621,461 44,499,687 41,621,461
Investment lncome 377,738 (297,210) 18,644 1,957 396,382 (295,253) Miscellaneous 2,544,611 256,115 2,544,611 256,115
Total Revenues 75,030,324 56,397,961 5,749,723 4,524,648 80,780,047 60,922,609 Expenses:
General Government 19,220,385 9,242,047 19,220,385 9,242,047 Public Safety 39,862,578 (5,340,560) 39,862,578 (5,340,560) Public Works 11,631,983 3,159,219 11,631,983 3,159,219
Community Development 2,425,348 1,553,558 2,425,348 1,553,558 Community Services 3,755,053 1,684,915 3,755,053 1,684,915 Interest 2,372,525 2,591,011 2,372,525 2,591,011
Refuse - 4,340,551 3,420,538 4,340,551 3,420,538
Sewer Maintenance - - 2,533,043 150,242 2,533,043 150,242 Total Expenses 79,267,872 12,890,190 6,873,594 3,570,780 86,141,466 16,460,970 Change in Net Position (4,237,548) 43,507,771 (1,123,871) 953,868 (5,361,419) 44,461,639 Net Position - Beginning of Year 82,812,716 39,316,692 9,535,226 8,581,358 92,347,942 47,898,050 Net Position - End of Year $ 78,575,168 $ 82,824.463 $ 8,411,355 $ 9.535,226 $ 86,986,523 $ 92,359,689 (9)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
Governmental Activities:
Overall, governmental activities decreased the City's net position by $4.2 million. There were several factors that contributed to this change.
Revenues
Total revenue from governmental activities equaled $75.0 million for the year. While there are differences in all revenue categories, the overall increase was $18.6 million, or 33.0% compared to the prior year.
The following chart shows the percentage breakdown of revenue derived from governmental activities:
REVENUE SOURCES
GOVERNMENTAL ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2023
Miscellaneous,
3.39%
ape? a9ting
h. ontrit41t ons &
Gh3nt , 20..83%
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 $2.9 million, or 6.9%.
Property tax, transient occupancy tax, and utility users tax accounted for $2.4 million of the increase.
Additionally, the Wayfair Act allowed for sales tax to be collected from online sales for products being shipped to the city which helped mitigate any local sales tax decrease. Of the $2.4 million increase property taxes had an increase of $1.6 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 reflect an increase of $3.1 million. The large increase in Capital Contributions and Grants was due to a large reimbursement from Caltrans related to the Highway Safety Improvement Program and increased developer impact fees. (10)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
Investment income increased by approximately $675 thousand or 227% compared to last fiscal year.
The increase in Investment Income reflects an increase in the market value adjustment of investments, particularly, Time Value Investments (TVI).
Expenses
Total expenses from governmental activities equaled approximately $79.3 million, representing an increase of $66.4 million, or 514.7%, over the previous year. A large part of this increase is due to the pension UAL creating a negative pension expense in the prior year.
The following chart shows the percentage breakdown of expenses related to governmental activities:
Public Safety,
50.2S%
FUNCTIONAL EXPENSES
GOVERNMENTAL ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2023
Community
__Development, t, 3.06%
_Community Services,
4.73,
General Government,
24.31%
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
Business -Type Activities:
Operating Revenues
Operating Expenses
2023 2022
$ 5,731,079 $ 4,522,691
6,873,594 3,570,780
Operating Income (Loss) (1,142,515) 951,911
Nonoperating Income 18,644 1,957
Change in Net Position $ (1,123,871) $ 953,868
The business -type activities include the City's refuse and sewer system activities. Total operating revenues for the business -type activities were approximately $5.7 million and the operating expenses were $6.8 million, for a net operating deficit of approximately $1.1 million.
Refuse
The City of Placentia contracts with Republic Services to provide weekly residential, multi -family, and commercial waste collection services. The refuse operation in fiscal year 22-23 triggered an operating deficit of $57,402, a decrease of $368 thousand compared to the previous fiscal year. This change was caused by an increase in administration costs by approximately $419,037 primarily due to an increase in salaries and benefits as well as Other Post -Employment Benefit (OPER) expenses. Also, landfill and contractor charges increased by $500,976 due to a yearly CPI increase.
Sewer
The City operates and maintains 84 miles of gravity sanitary sewer pipelines that serve the majority of parcels within the 6.6 square mile City limits. Operations, maintenance, and repair activities include sewer line cleaning, root removal, manhole maintenance and repair, sewer line video inspection, and sewer lateral maintenance, repair, and replacement. The sewer system operation generated an operating loss of $1.1 million compared to operating income of $640 thousand 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 allocation of pension -related expense increased compared to the 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.
(12)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
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 $41.7 million, an increase of $686 thousand from the prior year.
S 20,000,000
S18,000,000
S 16,000,000
$ 14,000,000
512,000,000
S 10,000,000
$8,000,000
$6,000,000
$4,000,O00
S 2,000,000
S,
Components of Rind Balance
Fiscal Year Ended June 30, 2023
(Governmental Funds)
518,360„789
$1,458,748
cry
`�<-� 'R•?'(5
`o
$4,534,705
u
517,342,063
The total fund balance includes $1.5 million non -spendable fund balance; specifically, long-term loans receivable, inventories of supplies and prepaid expenditures, and prepaid items, which cannot be used to finance operating expenditures.
The restricted fund balance of $18.4 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 $1.8 million compared to last year primarily due to an increase in activity in Debt Service for the Placentia Public Financing Authority. (13)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
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, 2023, the city has committed $4.5 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, 2023.
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, 2023, for all governmental funds combined is $17.3 million, consisting of $19.9 million in unassigned fund balance in the General Fund and combined unassigned deficits with a total of $2.6 million in miscellaneous grants, capital projects fund, the Navigation Center Fund, the Housing and Community Development Fund, Sewer Construction, 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 and negative fund balances at the beginning of the year offsetting the positive net changes throughout the year.
General Fund:
The General Fund is the main operating fund of the City. As of June 30, 2023, total fund balance of the General Fund was $26.7 million, compared to $23.6 million on June 30, 2022, representing an increase of $3.1 million. Committed portions of the fund balance decreased from the prior year due to the removal of the capital projects which were started but not completed.
Revenue
The General Fund had revenues of $60.6 million, compared to $48.7 million in the prior year, an increase of $11.9 million, or 24.44%. 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. The large increase in intergovernmental revenues was due to the recognition of revenues from ARPA and a payment from the County of Orange for the Annexation of Hamer Island.
Expenditures
General Fund expenditures as of June 30, 2023, were $57.7 million, compared to $42.1 million last year, which represents an increase of $15.6 million or 37.05%. The major areas impacting the increase of expenditures are related to capital expenditures, debt service, and general government expenditures.
General government saw an increase arising from the purchase of new servers and switches, an increase in city administration costs to fund the Risk Management and Employee Health & Welfare Funds, and the pre -funding of a trust for OPEB.
Public Safety
Public safety expenditure increased by $0.9 million resulting mostly from the salaries and benefits for the Placentia Fire Life & Safety department. A large portion of the increase is due to contracted services for inspections and plan check.
(14)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
Public Works
Public works expenditures had a net increase of $586 thousand due to an increase in the repair and maintenance of city facilities and park facilities as well as repairs to the HVAC system and rental of chilling towers. Additional costs incurred were due to an increase in fuel costs to power generators at the City Yard while electrical wiring and trenching was underway in the adjacent lot for the construction of the butler building.
Capital Outlay
Capital Outlay increased by $9.4 million or 187.50% compared to the prior year. The city increased the number of expenditures related to the ARPA funds received in prior years. The ARPA funds have allowed the city to invest in projects that benefited the general government of the city.
Debt Service
Debt Service had an increase of approximately $420 thousand or 18.48% primarily because of GASB 87 and GASB 96 lease and subscription payments made throughout the year being reclassed as principal and interest.
Proprietary Funds
The city maintains proprietary funds for sewer maintenance and refuse operations. The combined net position of these two funds at the end of the fiscal year amounted to $8.4 million, a $1.1 million decrease from the prior year. The sewer maintenance fund had a net position of $8.2 million of which $7.2 million represents a net investment in capital assets. The sewer maintenance had an increase to it's share of net pension liabilities that accounted for $759 thousand of the $2.4 million increase in sewer maintenance expenses. The Refuse Fund had a positive net position of $212,422, a decrease of $52,527 compared to the prior year.
(15)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year adjustments were made to 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 2022-23 included estimated revenues including transfers from other funds was nearly $51.5 million but was increased by budget amendments totaling $9.9 million, for a final budget of $61.4 million. Actual revenues were $60.6 million, with the largest positive budget variance being $1.1 million in taxes due to improved valuations. These revenues continued to perform well since the COVID-19 Pandemic.
The adopted General Fund expenditure budget for this fiscal year was $48.9 million; however, the Council approved amendments and increased appropriations by $16.5 million for a final amended budget of $65.4 million. The largest necessary increases were to Capital Outlay. Capital outlay expenses improvement the City's streets, Fire station, parks, and purchase machinery/equipment. In fiscal year 22-23 the City also received $9.1 million dollars from the American Recovery Plan Act ("ARPA"). During April 2023, 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 on essential purchases and increase the fund balance in the General Fund by $1.3 million in operating surplus.
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, 2023, totaled $125.6 million, an increase of approximately $19.3 million, or
18.2%, from the prior year. Capital assets include land, buildings, infrastructure, and equipment.
Governmental activities grew by $17.1 million, net of accumulated depreciation. The growth is mostly due to a $16.9 million construction in progress (CIP) activity and the implementation of GASB 96. The $16.9 million CIP activity is mostly composed of a Targe number of projects that were started in the fiscal year but were not completed and carried into the following fiscal year.
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. (16)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
CAPITAL ASSETS
Governmental Activities
Business -Type Activities Total
2023 2022 2023 2022 2023 2022
Land $ 26,118,971 $ 25,201,872 $ - $ $ 26,118,971 $ 25,201,872 Land - Right of Way 1,008,822 258,822 - 1,008,822 258,822 Trees 3,114,540 3,114,540 - - 3,114,540 3,114,540
Construction in Progress 24,107,558 7,234,275 - - 24,107,558 7,234,275 Structures and Improvements 12,059,077 11,511,755 7,123,820 7,638,920 19,182,897 19,150,675 Right -to -Use Lease Land 380,505 532,707 - - 380,505 532,707 Right -to -Use Lease Equipment 597,417 110,090 597,417 110,090 Subscription Assets 2,181,848 - - 2.181,848
Equipment 6,961,004 7,441,787 42,403 54,619 7,003,407 7,496,406 Land Improvements 43,176 48,972 - - 43,176 48,972
Infrastructure:
Streets Network 31,203,613 31,932,649 - 31,203,613 31,932,649 Streets Appurtenances 8,498,752 8,846,752 8,498,752 8,846,752 Storm Drains 2,175,122 2,367,625 2,175,122 2,367,625
Total $ 118.450.405 $ 98,601.846 $ 7,166.223 $ 7.693.539 $ 125.616,628 $ 106,295,385 For further detailed information see Note 5, Capital Assets.
Debt Administration
As of June 30, 2023, the City's long-term debt totaled approximately $93.5 million, representing an increase of $19.3 million from the prior year. Although there was a decrease in claims payable, the estimated pension liabilities were $4.3 million based on new estimates after the Pension Bond was issued, while OPEB liabilities decreased by $6.3 million due to pension liabilities in the prior year being recognized as an asset because of the UAL payoff but it now has become a liability.
LONG-TERM LIABILITIES
Governmental Activities Business -Type Activities Total 2023 2022 2023 2022 2023 2022
Radios Loan $ 515,597 $ 664,014 $ - $ - $ 515,597 $ 664,014 Fire Lease #1 Loan 2,445,454 2,785,389 2,445,454 2,785,389 Fire Lease #2 Loan 1,281,976 1,460,450 1,281,976 1,460,450 Easement Loan 284,411 284,411 -
Vehicles Loan 124,631 124,631 -
OCTA Advance 1,144,278 1,557,622 1,144,278 1,557,622
Fire UAL Payoff Loan 714,261 1,076,463 714,261 1,076,463 2002 Loan Payable (2003 COP) 1,752,697 2,189,027 1,752,697 2,189,027 2021 Installment Sale Agreement 2,651,000 3,004,000 2,651,000 3,004,000 2020A Lease Revenue Bond 50,390,000 51,890,000 50,390,000 51,890,000 Leases Payable 987,563 650,728 987,563 650,728
Subscription Liability 1,849,671 - 1,849,671 -
Claims Payable 4,051,344 5,015,211 4,051,344 5,015,211
Compensated Absences 2,511,619 2,195,349 45,575 42,491 2,557,194 2,237,840 Other Pastemployment Benefit 17,803,729 24,138,119 511,032 772,368 18,314,761 24,910,487 Pension Liabilities (Assets) 4,337,200 (22,405,246) 126,102 (860,379) 4,463,302 (23,265,625) Total $ 92.845.431 $ 74,221,126 $ 682,709 $ (45,520) $ 93,528,140 $ 74.175,606 For further detailed information see Note 6, Long -Term Liabilities. (17)
CITY OF PLACENTIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2023
NEXT YEAR'S BUDGET, TAX RATES, AND FEE LEVELS
The Fiscal Year 2023-24 adopted General Fund operating budget was balanced, with a surplus of revenues and transfers from other funds over expenditures and transfers to other funds of $863,175 and a contribution from Measure U for General Fund Reserve of $920,000.
General Fund revenues and transfers from other funds are currently estimated at $49.8 million for FY 2023-24, which represents a $10.8 million or 21.7% decrease from actuals FY 2022-23 revenues and transfers from other funds. This decrease is primarily due to a decrease in Intergovernmental revenue, which is the one-time ARPA funding that the City has previously been awarded.
The adopted FY23-24 General Fund budget includes $48.0 million of appropriations for expenditures (excluding CIP expenditures) and transfers to other funds. This represents an increase of $1.4 million or 3.3% over FY 2022-23 amended budget expenditures and transfers to other funds.
The increase is due to the new MOU's being effective July 1, 2024, 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 2023-24 is 200 full time positions, 4 unfunded over hires, and 76 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 Tess cost, contract personnel were replaced by City employees.
The City is also making significant investments in Capital Projects. The Fiscal Year 2023-24 adopted General Fund budget includes $4.3 million supported from unassigned fund balance. Projects include Wayfinding signage, additional funding for public safety building, design of new Senior/Community Center, design of a potential dog park, an IT master plan, facility conditions assessment, communication and marketing plan, and other building improvements.
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.orp .
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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, 2023
Primary Government
Governmental Business -Type
Activities Activities Total
ASSETS
Current Assets:
Cash and Investments $ 38,182,514 $ 1,778,578 $ 39,961,092 Receivables, Net of Allowance:
Accounts 3,847,859 175,911 4,023,770
Taxes 3,648, 548 38,241 3,686,789
Grants 1,377,309 1,377,309
Interest 160,382 160,382
Loans 2,706,556 2,706,556
Leases 574,218 574,218
Prepaid Items 263,629 263,629
Inventory 47,288 47,288
Total Current Assets 50,808,303 1,992,730 52,801,033
Noncurrent Assets:
Land Held for Resale 1,036,760 1,036,760
Leases Receivable 24,181,234 24,181,234
Restricted Assets:
Cash and Investments with Fiscal Agent 4,216,844 4,216,844 Pension Stability Fund 805,521 805,521
Capital Assets - Nondepreciable 54,349,891 54,349,891
Capital Assets - Depreciable, Net 64,100,514 7,166,223 71,266,737 Total Noncurrent Assets 148,690,764 7,166,223 155,856,987 Total Assets 199,499,067 9,158,953 208,658,020
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding 255,176 255,176
Deferred Outflows of Resources Related
to Pensions 12,328,239 518,769 12,847,008
Deferred Outflows of Resources Related
to OPEB 5,556,447 159,490 5,715,937
Total Deferred Outflows of Resources 18,139,862 678,259 18,818,121 See accompanying Notes to Basic Financial Statements.
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CITY OF PLACENTIA
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2023
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
Total OPEB Liability
Aggregate Net Pension Liabilities
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
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
Pension Stability
Total Restricted
Unrestricted (Deficit)
Total Net Position
See accompanying Notes to Basic Financial Statements.
Governmental
Activities
$ 4,632,941
436,300
1,259,985
908,109
229,685
1,960,847
4,835,288
999,086
139,066
15,401, 307
59,306,251
3,052,258
2,372,553
17,803,729
4,337,200
86,871,991
102,273,298
24,466,845
167,689
12,155,929
36,790,463
103,757,453
1,693, 882
1,940,847
1,750,391
4,483,485
4,237,250
484,321
20,461
582,564
288,865
2,073,202
805,521
18,360,789
(43,543,074)
$ 78,575,168
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Primary Government
Business -Type
Activities
$ 370,909
20,285
2,522
393,716
43,053
511,032
126,102
680,187
1,073,903
3,034
348,920
351,954
7,166,223
1,245,132
$ 8,411,355
Total
$ 5,003,850
456,585
1,259,985
908,109
229,685
1,960,847
4,835,288
999,086
141,588
15,795,023
59,306,251
3,052,258
2,415,606
18,314,761
4,463,302
87,552,178
103,347,201
24,466,845
170,723
12,504,849
37,142,417
110,923,676
1,693,882
1,940,847
1,750,391
4,483,485
4,237,250
484,321
20,461
582,564
288,865
2,073,202
805,521
18,360,789
(42, 297, 942)
$ 86,986,523
CITY OF PLACENTIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
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 Govemment $ 19,220,385 $ 3,214,903 $ 231,411 $ $ (15,774,071) $ - $ (15,774,071) Public Safety 39,862,578 877,505 10,728,682 - (28,256,391) - (28,256,391) Public Works 11,631,983 810,780 2,871,710 5,024,953 (2,924,540) - (2,924,540) Community Development 2,425,348 1,700,509 1,383,950 - 659,111 - 659,111 Community Services 3,755,053 337,013 426,872 (2,991,168) - (2,991,168) Interest 2,372,525 - - - (2,372,525) - (2,372,525)
Total Governmental Activities 79,267,872 6,940,710 15,642,625 5,024,953 (51,659,584) - (51,659,584) Business -Type Activities:
Refuse 4,340,551 4,283,149 - - (57,402) (57,402)
Sewer Maintenance 2,533,043 1,447,930 - - 1,085,113) 1/085,113) Total Business -Type Activities 6,873,594 5,731,079 - 1,142,515) 1,142,515) Total Primary Government $ 86.141.466 $ 12,671,789 $ 15.642.625 $ 5,024.953 (51,659,584) (1,142,515) (52,802,099) See accompanying Notes to Basic Financial Statements.
GENERAL REVENUES
Taxes:
Property Taxes 18,809,203 - 18,809,203
Sales Taxes 17,530,357 - 17,530,357
Utility Users Tax 3,199,994 3,199,994
Franchise Taxes 2,869,628 - 2,869,628
Transient Occupancy Taxes 1,672,519 - 1,672,519
Real Property Transfer Taxes 411,674 411,674
Other Taxes 6,312 - 6,312
Investment Earnings 377,738 18,644 396,382
Miscellaneous 2,544,611 - 2,544`611
Total General Revenues 47,422,036 18,644 47,440,680
CHANGES IN NET POSITION (4,237,548) (1,123,871) (5,361,419) Net Position - Beginning of Year 82,812,716 9,535,226 92,347,942 NET POSITION - END OF YEAR $ 78,575,168 $ 8,411,355 $ 86,986,523 (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, 2023
Major Funds
Citywide
Development
Impact Fee Other
General Special Debt Governmental
Fund Revenue Fund Service Fund Funds Total
ASSETS
Cash and Investments $ 23,002,748 $ 4,595,929 $ $ 7,886,360 $ 35,485,037 Receivables:
Accounts 1,029,222 2,818,528 3,847,750
Taxes 3,648,548 - 3,648,548
Grants 1,377,309 1,377,309
Accrued Interest 160,357 - 25 160,382
Loans and Notes 1,575,424 511,933 619,199 2,706,556
Leases 24,741,675 13,777 24,755,452
Prepaid Items 200,016 4,856 - 250 205,122
Due from Other Funds 3,373,473 - 3,373,473
Inventories 47,288 47,288
Land Held for Resale 1,036,760 1,036,760
Restricted Assets:
Cash and Investments with Fiscal Agents - 4,216,844 4,216,844 Pension Stability Fund 805,521 - 805,521
Total Assets
$ 58,584,272 $ 5,112,718 $ 4,216,844 $ 13,752,208 $ 81,666,042
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 3,730,697 $ 125,879 $ $ 676,897 $ 4,533,473 Accrued Payroll and Benefits 427,045 - 9,250 436,295
Deposits Payable 1,259,985 - 1,259,985
Retentions Payable 585,362 - - 322,747 908,109
Due to Other Funds - 63,135 3,272,016 3,335,151
Unearned Revenue 1,364,599 - 596,248 1,960,847
Total Liabilities 7,367,688 125,879 63,135 4,877,158 12,433,860
DEFERRED INFLOWS OF RESOURCES
Leases 24,453,190 13,655 24,466,845
Unavailable Revenues 50,638 511,933 2,506,458 3,069,029 Total Deferred Inflows of Resources 24,503,828 511,933 2,520,113 27,535,874
FUND BALANCES
Nonspendable 1,453,892 4,856 - - 1,458,748
Restricted 805,521 4,470,050 4,153,709 8,931,509 18,360,789 Committed 4,534,708 - - - 4,534,708
Unassigned (Deficit) 19,918,635 - - (2,576,572) 17\342\063 Total Fund Balances 26,712,756 4,474,906 4,153,709 6,354,937 41,696,308 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 58,584.272 $ 5.112.718 $ 4.216.844 $ 13.752.208 $ 81.666.042 See accompanying Notes to Basic Financial Statements.
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CITY OF PLACENTIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT -WIDE STATEMENT OF NET POSITION
JUNE 30, 2023
Total Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of net position were reported differently because:
$ 41,696,308
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet.
Nondepreciable 54,349,891
Depreciable 64,100,514
118,450,405
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.
255,176
3,069,029
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. (229,685) 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:
Financed Purchases
OCTA Advance
Compensated Absences
Loans Payable
Bonds Payable
Leases Payable
Subscription Liability
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 Liabilities
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
Net OPEB Liability
OPEB Related Deferred Inflows of Resources
Internal Service Funds were used BR 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.
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(4,652,069)
(1,144,278)
(2,511,619)
(5,117,958)
(50,390,000)
(987,563)
(1,849,671)
(66,653,158)
12,328,239
(4,337,200)
(167,689)
5,556,447
(17,803,729)
(12,155, 929)
(1,433,046)
$ 78,575,168
CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Earnings (Losses)
Charges for Services
Leases and Rents
Contributions
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of Debt
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
General
Fund
$ 44,429,339 $
8,640,895
2,643, 941
457,065
67,366
1,364,054
1,572,445
Major Funds
Citywide
Development
Impact Fee
Special Debt
Revenue Fund Service Fund
- $ - $
61,501 149,405
1,530,026
1,385,763 -
60, 560, 868 1,591,527 149,405
15,748,766 -
16,357,168 62,969
4,100, 553 -
1,718,087
2,617,825 -
14,475,128 1,465,404
2,438, 273
252,565 -
57, 708, 365 1,528,373
2,852,503 63,154
1,588,047
2,610,514
(3,922,788)
275,773
3,128,276 63,154
23,584,480 4,411,752
$ 26,712,756 $ 4,474,906
See accompanying Notes to Basic Financial Statements.
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1,500,000
2,007,997
3,507,997
(3,358,592)
3,505,634
(2,456,825)
1,048,809
(2,309,783)
6,463,492
$ 4,153,709 $
Other
Governmental
Funds
7,928,539
1,319,603
99,135
1,023,134
147
1,293,984
11,664,542
21,884
2,718,892
1,905,116
447,323
4,847
6,163,602
821,344
95,693
12,178,701
(514,159)
55,000
821,604
(558,139)
318,465
Total
$ 44,429,339
16,569,434
2,643,941
1,776,668
377,407
2,387,188
1,572,592
1,530,026
2,679,747
73,966,342
15,770,650
19,139,029
6,005,669
2,165,410
2,622,672
22,104,134
4,759,617
2,356,255
74,923,436
(957,094)
1,643,047
6,937,752
(6,937,752)
1,643,047
(195,694) 685,953
6,550,631 41,010,355
6,354,937 $ 41,696,308
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, 2023
Net Change in Fund Balances - Total Governmental Funds
Governmental activities in the Statement of Activities were reported differently because:
$ 685,953
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in governmental funds.
Capital Outlay 22,852,253
Depreciation (5,356,821)
Net Effect on Disposal of Capital Assets (90,123)
17,405,309
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.
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
Financed Purchases
OCTA Advance
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 BR 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.
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(50,358)
1,454,910
(1,643,047)
3,585,364
760,909
413,344
4,759,617
(16,270)
(316,270)
3,460,762
(31,453,624)
1,475,470
$ (4,237,548)
PROPRIETARY FUND FINANCIAL STATEMENTS
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CITY OF PLACENTIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Business -Type Governmental
Major Enterprise Funds Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds
ASSETS
Current Assets:
Cash and Investments $ 659,706 $ 1,118,872 $ 1,778,578 $ 2,697,477 Receivables:
Accounts 25,894 150,017 175,911 109
Taxes 38,241 - 38,241 -
Prepaids - 58,507
Total Current Assets 723,841 1,268,889 1,992,730 2,756,093 Noncurrent Assets:
Capital Assets, Net of Accumulated Depreciation
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources Related to Pensions
Deferred Outflows of Resources Related to OPEB
Total Deferred Outflows of Resources
7,166,223 7,166,223
7,166,223 7,166,223
723,841 8,435,112
205,081
65,395
270,476
313,688
94,095
407,783
9,158,953 2,756,093
518,769
159,490
678,259
LIABILITIES
Current Liabilities:
Accounts Payable 355,281 15,628 370,909 99,468
Accrued Payroll and Benefits 6,844 13,441 20,285 5
Due to Other Funds - 38,322
Compensated Absences - Due Within One Year 892 1,630 2,522 Claims And Judgments - Due Within One Year - 999,086
Total Current Liabilities 363,017 30,699 393,716 1,136,881 Noncurrent Liabilities:
Compensated Absences - Due in More Than One Year 15,224 27,829 43,053 - Claims And Judgments - Due in More Than One Year - 3,052,258 Total OPEB Liability 209,536 301,496 511,032 -
Aggregate Net Pension Liabilities 49,852 76,250 126,102 Total Noncurrent Liabilities 274,612 405,575 680,187 3,052,258 Total Liabilities 637,629 436,274 1,073,903 4,189,139
DEFERRED INFLOW OF RESOURCES
Deferred Inflows of Resources Related to Pensions
Deferred Inflows of Resources Related to OPEB
Total Deferred Inflows of Resources
NET POSITION
Investment in Capital Assets
Unrestricted (Deficit)
Total Net Position
See accompanying Notes to Basic Financial Statements.
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1,200
143,066
144,266
1,834
205,854
207,688
3,034
348,920
351,954
7,166,223 7,166,223
212,422 1,032,710 1,245,132 (1,433,046)
212,422 $ 8,198,933 $ 8,411,355 $ (1,433,046)
CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Business -Type Activities
Sewer
Refuse Maintenance
Total
Governmental
Activities
Internal
Service
OPERATING REVENUES
Reimbursements $ 39,523 $ - $ 39,523 $ 730,620
Sales and Service Charges 4,243,626 1,447,930 5,691,556 3,275,025 Other Revenues - - 24,000
Total Operating Revenues 4,283,149 1,447,930 5,731,079 4,029,645
OPERATING EXPENSES
Administration 621,070 306,775 927,845 168,017
Reinsurance Premiums - - 225,378
Claims - - (1,610)
Medical and Dental Premiums 893,189
Liability Insurance Premiums - - 1,352,855
Maintenance 1,698,952 1,698,952
Landfill and Contractor Charges 3,719,481 - 3,719,481
Depreciation Expense - 527,316 527,316
Total Operating Expenses 4,340,551 2,533,043 6,873,594 2,637,829 OPERATING INCOME (LOSS) (57,402) (1,085,113) (1,142,515) 1,391,816
NONOPERATING INCOME (LOSS)
Investment Income 4,875 13,769 18,644
Gain on Disposal of Capital Assets - - 83,654
Total Nonoperating Income 4,875 13,769 18,644 83,654
CHANGES IN NET POSITION (52,527) (1,071,344) (1,123,871) 1,475,470 Net Position - Beginning of Year 264,949 9,270,277 9,535,226 (2,908,516) NET POSITION - END OF YEAR $ 212,422 $ 8,198,933 $ 8,411,355 $ (1,433,046) See accompanying Notes to Basic Financial Statements.
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CITY OF PLACENTIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Governmental
Business -Type Activities Activities
Sewer Internal
Refuse Maintenance Total Service
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 4,314,113 $ 1,380,811 $ 5,694,924 $ 4,033,573 Cash Paid to Suppliers for Goods and Services (3,662,686) (1,693,376) (5,356,062) (3,642,809) Cash Paid to Employees for Services (504,422) 693,899 189,477 - Cash Paid for Insurance Claims - - - 1,610
Net Cash Provided (Used) by Operating Activities 147,005 381,334 528,339 392,374
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Cash Transfers In (Out) - 38,322
Net Cash Provided (Used) by Noncapital Financing
Activities - 38,322
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds from Sale of Capital Assets - 83,654
Net Cash Provided (Used) by Capital and Related
Financing Activities - - 83,654
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
Total Cash and Cash Equivalents
See accompanying Notes to Basic Financial Statements.
4,875 13,769 18,644 -
4,875 13,769 18,644 -
151,880 395,103 546,983 514,350
507,826 723,769 1,231,595 2,183,127
$ 659,706 $ 1,118,872 $ 1,778,578 $ 2,697,477
$ 659,706 $ 1,118,872 $ 1,778,578 $ 2,697,477
$ 659,706 $ 1,118,872 $ 1,778,578 $ 2,697,477
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CITY OF PLACENTIA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Refuse
Business -Type Activities
Sewer
Maintenance
Total
Governmental
Activities
Internal
Service
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BR OPERATING ACTIVITIES
Operating Income (Loss) $ (57,402) $ (1,085,113) $ (1,142,515) $ 1,391,816 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 38,110 (67,119) (29,009) 3,928 (Increase) Decrease in Taxes Receivables (7,146) (7,146) - (Increase) Decrease in Prepaids - (58,507)
(Increase) Decrease in Deferred Outflows of
Resources Related to Pension (7,633) 446,245 438,612
(Increase) Decrease in Deferred Outflows of
Resources Related to OPEB (5,109) (7,483) (12,592)
Increase (Decrease) in Accounts Payable 56,795 5,576 62,371 19,004 Increase (Decrease) in Accrued Liabilities (7,325) (9,993) (17,318) Increase (Decrease) in Compensated Absences 3,557 (473) 3,084 Increase (Decrease) in Claims Payable - - - (963,867)
Increase (Decrease) in Net Pension Liabilities 227,294 759,187 986,481 Increase (Decrease) in Net OPEB Liabilities (107,441) (153,895) (261,336) Increase (Decrease) in Deferred Inflows of
Resources Related to Pension (20,547) (81,864) (102,411) Increase (Decrease) in Deferred Inflows of
Resources Related to OPEB 33,852 48,950 82,802
Net Cash Provided (Used) by Operating Activities $ 147,005 $ 381,334 $ 528,339 $ 392,374 See accompanying Notes to Basic Financial Statements.
(29)
FIDUCIARY FUND FINANCIAL STATEMENTS
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CITY OF PLACENTIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
ASSETS
Pooled Cash and Investments
Receivables:
Miscellaneous
Restricted Assets:
Cash and Investments with Fiscal Agents
Total Assets
LIABILITIES
Accounts Payable
Accrued Liability
Accrued Interest
Deposits Payables
Long -Term Liabilities:
Due in One Year
Due in More Than One Year
Total Liabilities
RDA
Successor Custodial
Agency Funds
$ 786,814 $ 198,734
682,794
1,469,608
1,603
2,604
146,010
1,090,668
9,588,777
10,829,662
688
199,422
756
14 191
961
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and Other
Governments (9,360,054) 198,461
Total Net Position (Deficit) $ (9,360,054) $ 198,461
See accompanying Notes to Basic Financial Statements.
(30)
CITY OF PLACENTIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023
RDA
Successor Custodial
Agency Funds
ADDITIONS
Property Taxes $ 1,993,187 $
Charges for Services - 120,186
Investment Income 13,696 1,929
Gain on Debt Forgiveness 325,839
Total Additions 2,332,722 122,115
DEDUCTIONS
Program Costs 96,031
Administrative Expenses 102,173
Interest Expense 348,490
Administrative Expenses - 756
Total Deductions 546,694 756
CHANGE IN NET POSITION 1,786,028 121,359
Net Position (Deficit) - Beginning of Year (11,146,082) 77,102 NET POSITION (DEFICIT) - END OF YEAR $ (9,360,054) $ 198,461 See accompanying Notes to Basic Financial Statements.
(31)
NOTES TO BASIC FINANCIAL STATEMENTS
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CITY OF PLACENTIA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
Page
Note 1 — Summary of Significant Accounting Policies 34
A. Financial Reporting Entity 34
B. Basis of Accounting and Measurement Focus 35
C. Implementation of New Accounting Pronouncement 38
D. Cash and Investments 38
E. Fair Value Measurement 39
F. Property Taxes Receivable 39
G. Prepaid Items 39
H. Inventories 39
I. Interfund Transactions 40
J. Capital Assets 40
K. Leases 41
L. Subscription -Based Information Technology Arrangements (SBITAs) 41 M. Unearned and Unavailable Revenue 42
N. Compensated Absences Payable 42
O. Claims Payable 42
P. Pensions 42
Q. Other Postemployment Benefits (OPEB) 43
R. Long -Term Obligations 43
S. Net Position 43
T. Fund Balances 43
U. Spending Policy 44
V. Use of Estimates 45
Note 2 — Cash and Investments 45
A. Demand Deposits 46
B. Investments Authorized by the California Government Code and the City's Investment Policy 47
C. Investments Authorized by Debt Agreements 48
D. Fair Value Measurement 48
E. Risk Disclosures 49
F. Investment in Local Agency Investment Fund (LAIF) 50 G. California Asset Management Program (CAMP) 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
(32)
CITY OF PLACENTIA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2023
Page
Note 6 — Long -Term Liabilities 58
A. Governmental Activities 58
B. Business -Type Activities 59
C. Fiduciary Activities 60
Note 7 — Deferred Compensation Plans 69
Note 8 — Pension Plans 71
A. Summary 71
B. General Information about the Pension Plans 73
C. Pension Liabilities, Pension Expenses, and Deferred
Outflows/Inflows of Resources Related to Pensions 75
D. Payable to the Pension Plan 80
Note 9 — Other Postemployment Benefit Plan 80
A. Summary 80
B. General Information about OPEB 81
C. Total OPEB Liability, OPEB Expense, and Deferred
Outflows/Inflows of Resources Related to OPEB 81
Note 10 — Risk Management and Self Insurance Program 85 A. General Liability 85
B. Worker's Compensation 85
C. Other Insurance 85
Note 11 — Classification on Fund Balances 86
Note 12 — Commitments and Contingencies 87
A. Commitments 87
B. Contingencies 87
C. Grants 87
Note 13 — Other Required Fund Disclosures 88
A. Expenditures in Excess of Appropriation 88
B. Deficit Net Positions and Fund Balances 88
Note 14 — Subsequent Event 89
(33)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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.
(34)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 a consumption of net assets that applies to future periods, therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources — represent an acquisition of net assets that applies to future periods, therefore, are not recognized as revenue until that time.
Government -Wide Financial Statements
The government -wide financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements.
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for Services
• Operating Grants and Contributions
• Capital Grants and Contributions
(35)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Government -Wide Financial Statements (Continued)
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.
Debt Service Fund
This fund is used to account for the debt service related to the governmental activities of the City.
(36)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Citywide Development Impact Fee Special Revenue Fund
This fund is used to account for the receipts and expenditures of new development impact on the City's sewer collection system in the City's Transit.
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.
(37)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) 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 May 2020, the GASB issued GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This standard defines a subscription -based information technology arrangement (SBITA); establishes that a SBITA results in a right -to -use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA.
The City adopted the requirements of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption. The implementation of this standard resulted in the City reporting SBITA assets and SBITA liabilities as disclosed in Note 5 and Note 6.
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).
(38)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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. (39)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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" (i.e., 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
Automotive Equipment 2 to 10 Years
Computer Equipment 3 Years
Other Equipment 5 Years
Infrastructure:
Roadways 35 Years
Street Appurtenances 10 to 50 Years
Wastewater 50 to 60 Years
Storm Drains 50 Years
Lease assets and SBITAs are amortized using the straight-line method over the shorter of the agreement term or the useful life of the underlying asset. (40)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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. Subscription -Based Information Technology Arrangements (SBITAs) The City recognizes a SBITA liability and a SBITA asset at the commencement of the SBITA term, unless the SBITA is a short-term contract, or it transfers ownership of the underlying asset. The SBITA liability is measured at the present value of payments expected to be made during the contract term (less any incentives). The SBITA asset is measured at the amount of the initial measurement of the SBITA liability, plus any payments made to the vendor at or before the commencement of the contract term and certain direct costs.
(41)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. 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 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 grant receivables, grant award advances, quarterly encroachment fees, and advance registration for recreation classes which were not yet earned.
N. 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.
O. 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.
P. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS's website under Forms and Publications. (42)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Other Postemployment Benefits (OPEB)
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City's plan, have been determined by an independent actuary in accordance with GASB Statement No. 75.
R. Long -Term Obligations
In the government -wide financial statements, Tong -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.
S. Net Position
In the government -wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net 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.
T. 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. (43)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Fund Balances (Continued)
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.
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.
U. 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
(44)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. 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.
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, 2023:
Cash and Investments
Cash and Investments with
Fiscal Agent
Total Cash and
Investments
Government -Wide
Statement of Net Position
Governmental Business -Type
Activities Activities
$ 38,182,514 $ 1,778,578
4,216,844
Statement of
Fiduciary
Net Position
$ 985,548
Total
$ 40,946,640
682,794 4,899,638
$ 42,399,358 $ 1,778,578 $ 1,668,342 $ 45,846,278
The City's cash and investments at June 30, 2023, in more detail:
Cash and Cash Equivalents:
Demand Deposits $ 3,323,609
Petty Cash 17,565
Total Cash and Cash Equivalents 3,341,174
Investments:
Local Agency Investment Fund 15,890
CAMP 5,092,511
Money Market Mutual Fund 57,013
Negotiable Certificates of Deposit 3,230,844
U.S. Treasury Securities 23,900,165
Federal Agency Securities 5,309,055
Investments with Fiscal Agent:
Money Market Mutual Fund
Total Investments
Total Cash and Investments
(45)
4,899,626
42,505,104
$ 45,846,278
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
A. Demand Deposits
The carrying amounts of the City's demand deposits were $3,323,609 at June 30, 2023.
Bank balances at that date were $3,820,960, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures.
Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
(46)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Maximum
Maximum Investment
Maximum Percentage of in One
Authorized Investment Type Maturity Portfolio Issuer
United States (U.S.) Treasury
Obligation 5 Years None None
Federal Agency Securities 5 Years 30% 15%
Negotiable Certificates of Deposits 5 Years 30% $250,000 Non -Negotiable Certificates of Deposit 5 Years 40% $250,000 Money Market Funds N/A 20% 10%
Passbook Savings N/A None None
Commercial Paper 270 Days 25% 10%
Banker's Acceptances 180 Days 30% 30%
Local Agency Investment Fund (LAIF) N/A None None
Orange County Investment Pool N/A None None
Joint Powers Authority Pools (JPA) N/A None None
California Asset Management Program N/A None None
Repurchase Agreements 1 year 30% None
*The table is based on state law requirements or investment policy requirements, whichever is more restrictive.
(47)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
C. Investments Authorized by Debt Agreements
Maximum
Maximum Investment
Maximum Percentage of in One
Authorized Investment Type Maturity Portfolio Issuer
United States (U.S.) Treasury
Obligation N/A None None
Federal Agency Securities N/A None None
Negotiable Certificates of Deposits N/A None None
Non -Negotiable Certificates of Deposit N/A None None
Money Market Funds N/A None None
Passbook Savings N/A None None
Commercial Paper 270 Days None None
Banker's Acceptances 180 Days None None
Local Agency Investment Fund (LAIF) N/A None None
Orange County Investment Pool N/A 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, 2023, 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, 2023:
Measurement Input
Significant Other
Observable Input
Investment Type (Level 2) Uncateqorized (3) Total
Local Agency Investment Fund $ - $ 15,890 $ 15,890
California Asset Management Program 5,092,511 5,092,511 Money Market Mutual Funds - 57,013 57,013
Negotiable Certificates of Deposit (1) 3,230,844 3,230,844 U.S. Treasury Securities (1) 23,900,165 23,900,165
Federal Agency Securities (1) 5,309,055 5,309,055
Held by Fiscal Agent:
Money Market Mutual Funds - 4,899,626 4,899,626
Total $ 32,440,064 $ 10,065,040 $ 42,505,104
(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
(48)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
D. Fair Value Measurement (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment 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 $ 15,890 $ 15,890 $ $ - $ - $ -
California Asset Management
Program 5,092.511 5,092,511 - - -
Money Market Mutual Funds 57,013 57,013 - - -
Negotiable Certificates of
Deposit 3.230,844 233,135 1,423.349 432.080 1.142,280
U.S. Treasury Securities 23,900,165 10,189,753 6,561,790 - 4,278,343 2,870,279 Federal Agency Securities 5,309,055 - 1,963,187 446,940 720,555 2,178,373 Held by Fiscal Agent:
Money Market Mutual Funds 4,899,626 4,899,626
Total $ 42,505,104 $ 20,254,793 $ 8,758,112 $ 1,870,289 $ 5,430,978 $ 6,190,932 Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code 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 $ 15,890 N/A $ - $ 15,890
California Asset Management Program 5,092,511 N/A - 5,092,511 Money Market Mutual Funds 57,013 AAA 57,013 -
Negotiable Certificates of Deposit 3,230,844 N/A - 3,230,844 U.S. Treasury Securities 23,900,165 N/A 23,900,165
Federal Agency Securities 5,309,055 N/A 5,309,055
Held by Fiscal Agent:
Money Market Mutual Funds 4,899,626 AAA 4,899,626
Total $ 42,505,104 $ 34,165,859 $ 8,339,245
(49)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2023, 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, 2023, 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. (50)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
F. Investment in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2023, the City had $15,890 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.
G. California Asset Management Program (CAMP)
The City invests in this investment trust, California Asset Management Program (CAMP), which is similar to a money market mutual fund. The fund invests primarily in certificates of deposit, commercial paper, and U.S. Government and Agency obligations. The City is a voluntary participant in the investment trust.
The CAMP Cash Reserve Portfolio (the Pool) is exempt from registration with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940 but operates in a manner consistent with SEC Rule 2a-7, "Money Market Funds," of that Act. Accordingly, the Pool meets the definition of a "2a-7 like pool" set forth in GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. While the Pool itself is exempt from SEC registration, the Pool's investment advisor and administrator, PFM Asset Management LLC, is registered with the SEC as an investment advisor under the Investment Advisers Act of 1940. PFM Asset Management LLC has filed with the California Department of Corporations, as well as various other states, as an investment advisor under state securities laws.
In addition, the Pool also meets the definition of "Municipal Fund Security" outlined by Municipal Securities Rulemaking Board (MSRB) Rule 0-12; therefore, contacts with prospective investors relating to shares of the Pool are conducted through PFM Asset Management LLC's wholly owned subsidiary, PFMAM, Inc., a broker/dealer that is registered with the SEC and MSRB and is a member of the National Association of Securities Dealers. The Pool also files an income tax return annually with the Internal Revenue Service, though the net income of the Pool is generally exempt from federal income tax.
(51)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 INTERFUND TRANSACTIONS
A. Due From/To Other Funds
At June 30, 2023, the City had the following due from/to other funds:
Due From
Other Funds
Due To Other Funds General Fund
Debt Service Fund $ 63,135
Nonmajor Special Revenue Funds:
Landscape Maintenance District 92-1 737
Housing and Community Development 633,111
Gasoline Tax 22,006
Sewer Construction 94,843
Placentia Regional Navigation Center 1,955,308
Nonmajor Capital Projects Funds:
City Projects 566,011
Internal Service Funds:
Health and Welfare 38,322
Total $ 3,373,473
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, 2023, the City had the following transfers:
Transfers Out
Nonmajor
Debt Service Governmental
Transfers In General Fund Fund Funds Total
General Fund $ - $ 2,456,825 $ 153,689 $ 2,610,514
Debt Service Fund 3,505,634 - - 3,505,634
Nonmajor Governmental
Funds 417,154 - 404,450 821,604
Total $ 3,922,788 $ 2,456,825 $ 558,139 $ 6,937,752
(52)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 the Debt Service Fund to the General Fund of $2,456,825 were to establish a pension stability fund and pre -fund a trust for the City's OPEB plan.
Transfers from nonmajor governmental funds to the General Fund of $153,689 were to fund police department expenditures.
The General Fund transferred $417,154 to nonmajor funds as operating subsidies and $3,505,634 to the Debt Service Fund to fund debt service.
The Gas Tax Special Revenue Fund transferred $404,450 to the Gas Tax Debt Service Fund to fund the 2011 Gas Tax Certificate of Participation debt service.
NOTE 4 LONG-TERM RECEIVABLES
A. Loans Receivable
At June 30, 2023, the City has the following loans receivable:
Citywide
Development
Impact Fee Other
General Special Governmental
Fund Revenue Fund Funds
Total
Certificates of Participation
Reimbursement $ 1,533,961 $ - $ $ 1,533,961
Owner's Participation Agreement - 37,916 37,916
Real Property Loan Obligation
Receivable 41,463 - 10,367 51,830
Placentia Veterans Village Loan 500,000 500,000
Placentia Veterans Village DIF
Mitigation Loan 511,933 70,916 582,849
Total $ 1,575,424 $ 511,933 $ 619,199 $ 2,706,556
(53)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 current fiscal year, the City received $ 5,833 in principal payments. The ending loan receivable balance at June 30, 2023, is $37,916.
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, 2023, is $41,463 to the City's General Fund and $10,367 to the Housing Successor Agency Fund for a total of $51,830.
(54)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
A. Loans Receivable (Continued)
Placentia Veterans Village Loan Receivable
On November 13, 2018, the City Council of the Housing Successor Agency to the former Redevelopment Agency of the City of Placentia approved a loan agreement of $500,000 between the Housing Successor Agency and Mercy Housing California to initiate construction of the Placentia Veterans Village. The loan receivable balance at June 30, 2023, is $500,000.
Placentia Veterans Village Developer Impact Fee Mitigation Loan Receivable On February 20, 2018, the City Council of the Housing Successor Agency to the former Redevelopment Agency of the City of Placentia approved a loan agreement between the Housing Successor Agency and Mercy Housing California whereby the collection of up to $582,850 of developer impact fees would be deferred. The loan shall be payable from fifty percent (50%) of the residual receipts of the housing project (to be shared pro -rata with other housing project lenders whose loans are payable from residual receipts), until the loan has been paid in full. The loan receivable balance at June 30, 2023, is $582,849.
B. Leases Receivables
The City, acting as lessor, leases land and improvements under fourteen 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 $50,000 to $250,000, received annually. During the year ended June 30, 2023, the City recognized $909,707 and $322,290 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, 2023
NOTE 5 CAPITAL ASSETS
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2023:
Balance
June 30, 2022 Balance
Restated (1) Additions Deletions Reclassifications June 30, 2023 Capital Assets Not Being
Depreciated/Amortized:
Land $ 25,201,871 $ 917,100 $ - $ - $ 26,118,971
Land -Right of Way 258,822 750,000 - 1,008,822
Infrastructure - Trees 3,114,540 - 3,114,540
Construction in Progress 7,234,274 20,207,056 (90,123) (3,243,649) 24,107,558 Total Capital Assets Not
Being Depreciated 35,809,507 21,874,156 (90,123) (3,243,649) 54,349,891 Capital Assets Being
Depreciated/Amortized:
Structures and Improvements 19,107,547 - - 1,309,063 20,416,610 Right -to -Use Lease Land 684,909 - - 684,909
Right -to -Use Lease Equipment 139,314 729,717 (10,362) 858,669 Subscription Assets 2,047,653 495,253 - - 2,542,906
Equipment 16,550,571 160,472 (275,158) 1,068,677 17,504,562 Land Improvements 172,528 - 172,528
Infrastructure:
Streets Network 58,397,800 - - 696,699 59,094,499
Street Appurtenances 24,270,258 - 169,210 24,439,468
Storm Drains 9,225,024 - - 9,225,024
Total Capital Assets
Being Depreciated/Amortized 130,595,604 1,385,442 (285,520) 3,243,649 134,939,175 Less: Accumulated
Depreciation/Amortization for:
Structures and Improvements (7,595,792) (761,741) - (8,357,533) Right -to -Use Lease Land (152,202) (152,202) - - (304,404) Right -to -Use Lease Equipment (29,224) (242,390) 10,362 - (261,252) Subscription Assets (361,058) - - (361,058)
Equipment (9,108,784) (1,709,932) 275,158 - (10,543,558) Land Improvements (123,556) (5,796) - (129,352)
Infrastructure:
Streets Network (26,465,149) (1,425,737) - (27,890,886) Street Appurtenances (15,427,251) (513,465) (15,940,716) Storm Drain (6,865,402) (184,500) - - (7,049,902)
Total Accumulated
Depreciation/Amortization (65,767,360) (5,356,821) 285,520 - (70,838,661) Total Capital Assets Being
Depreciated/Amortized, Net 64,828,244 (3,971,379) - 3,243,649 64,100,514 Total Govemmental
Activities $ 100,637,751 $ 17,902,777 $ (90,123) $ - $ 118,450,405 (1) The beginning balance was restated to add subscription assets due to the implementation of GASB Statement No.96, Subscription -Based Information Technology Arrangements. See Note 10.
(56)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2023, as follows:
General Government
Public Safety
Public Works
Community Services
Total Depreciation/Amortization Expense
$ 1,222,467
1,400, 511
2,310,994
422,849
$ 5,356,821
The following is a summary of changes in capital assets for the business -type activities for the year ended June 30, 2023:
Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
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 (20,517,049) (515,100) - (21,032,149)
Equipment (67,539) (12,216) (79,755)
Total Accumulated
Depreciation (20,584,588) (527,316) (21,111,904)
Total Capital Assets
Being Depreciated, Net 7,693,539 (527,316) 7,166,223
Total Business -Type
Activities $ 7,693,539 $ (527,316) $ $ 7,166,223
Depreciation expense was charged to the Sewer Maintenance Fund within business -type activities.
(57)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2023 is as follows:
Balance Classification
June 30, 2022 Balance Due within Due in More
As Restated (1) Additions Deletions June 30, 2023 One Year Than One Year Long -Term Debt:
Direct Borrowings and
Placements:
Loan Payable- Radio $ 664,014 $ - $ (148,417) $ 515,597 $ 153,118 $ 362,479 Loan Payable -Fire #1 2,785,389 (339,935) 2,445,454 349,140 2,096,314 Loan Payable -Fire #2 1,460,450 (178,474) 1,281,976 183,235 1,098,741 Loan Payable - Easement 342,655 (58,244) 284,411 61,739 222,672 LoanPayable- Vehicles 160,470 (35,839) 124,631 28,101 96,530 OCTA Advance 1,557,622 (413,344) 1,144,278 408,155 736,123 Fire UAL Payoff Loan 1,076,463 - (362,202) 714,261 369,329 344,932 Loan Payable -Ref 2003 COP 2,189,027 (436,330) 1,752,697 421,431 1,331,266 2021 Installment Sale
Agreement (2011 Gas
Tax Refunding) 3,004,000 (353,000) 2,651,000 358,000 2,293,000 2020A Lease Revenue
Bonds 51,890,000 (1,500,000) 50,390,000 1,860,000 48,530,000 Total Direct Borrowings
and Placements 64,626,965 503,125 (3,825,785) 61,304,305 4,192,248 57,112,057 Leases Payable 650,728 651,168 (314,333) 987,563 369,418 618,145 Subscription Liability 1,980,416 488,754 (619,499) 1,849,671 273,622 1,576,049 Total Long -Term Debt 67,258,109 1,643,047 (4,759,617) 64,141,539 4,835,288 59,306,251 Claims Payable 5,015,211
Compensated Absences 2,195,349
Total Long -Term
Liabilities
101,199 (1,065,066) 4,051,344 999,086 3,052,258
476,176 (159,906) 2,511,619 139,066 2,372,553
$ 74.468,669 $ 2,220,422 $ (5,984,589) $ 70,704,502 $ 5,973,440 $ 64,731,062 (1) The beginning balance was restated to add subscription liabilities due to the implementation of GASB Statement No.96, Subscription -Based Information Technology Arrangements. See Note 1C.
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 Principal is payable annually on January 1. Interest is payable semi-annually on January 1 and July 1, commencing January 1, 2023.
(58)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loan Payable — Refunding of 2003 Certificates of Participation (Continued) 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, 2023, is $1,752,697.
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 $ 421,431 $ 41,188 $ 462,619
2024 433,047 31,285 464,332
2025 443,986 21,108 465,094
2026 454,233 10,674 464,907
Total $ 1,752,697 $ 104,255 $ 1,856,952
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.
(59)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2020 Lease Revenue Bonds (Continued)
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.
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, 2023, is $50,390,000. The annual debt service requirements are as follows:
Year Ending June 30.
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2046
Total
Principal
$ 1,860,000 $
2,190,000
2,405,000
2,475,000
2,555,000
14,240,000
15,665,000
7,770,000
1,230,000
$ 50,390,000 $
(60)
Interest
1,975,342
1,933,772
1,878,036
1,806,944
1,727,596
7,178,631
4,075,285
1,247,406
75,357
21, 898, 369
Total
$ 3,835,342
4,123,772
4,283,036
4,281,944
4,282,596
21,418,631
19,740,285
9,017,406
1,305,357
$ 72,288,369
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
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.
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, 2023, is $2,651,000.
The annual debt service requirements are as follows:
Year Ending June 30.
2024
2025
2026
2027
2028
2029-2032
Total
Principal
$ 358,000 $
368,000
373,000
377,000
387,000
788,000
$ 2,651,000 $
(61)
Interest
42,265
36,316
30,220
24,049
17,795
16,285
166,930
Total
$ 400,265
404,316
403,220
401,049
404,795
804,285
$ 2,817,930
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
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. The annual debt service requirements are as follows:
Year Ending June 30,
2023
2024
2025
Total
Principal Interest Total
$ 153,118 $ 14,352 $ 167,470
157,967 9,503 167,470
204,512 4,826 209,338
$ 515,597 $ 28,681 $ 544,278
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 annual debt service requirements are as follows:
Year Ending June 30,
2024
2025
2026
2027
2028
2029-2031
Total
Principal
$ 349,140 $
358,596
368,307
378,281
388,525
602,605
$ 2,445,454 $
(62)
Interest
63,450
53,995
44,284
34,310
24,066
16,282
236,387
Total
$ 412,590
412,591
412,591
412,591
412,591
618,887
$ 2,681,841
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
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. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2024 $ 183,235 $ 32,766 $ 216,001
2025 188,123 27,879 216,002
2026 193,141 22,860 216,001
2027 198,293 17,708 216,001
2028 203,583 12,419 216,002
2029-2031 315,601 8,400 324,001
Total $ 1,281,976 $ 122,032 $ 1,404,008
Land Easement Loan
On July 18, 2018, the City entered into an agreement for financing a portion of the acquisition of a land easement. The asset acquired through the financing arrangement is included in the land right-of-way in the amount of $750,000. The loan is for a period of 10 years with an interest rate of 6.00%. Annual loan payments of $78,803 are payable on August 1, through August 1, 2027. The outstanding principal as of June 30, 2023, is $284,411. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2024 $ 61,739 $ 17,064 $ 78,803
2025 65,406 13,397 78,803
2026 69,367 9,436 78,803
2027 73,530 5,273 78,803
2028 14,369 862 15,231
Total $ 284,411 $ 46,032 $ 330,443
Vehicles Loan
On July 19, 2018, the City entered into an agreement for financing the acquisition of electric vehicles. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $160,470. The loan is for a period of 5 years with an interest rate of 6.93%. Annual loan payments of $36,734 are payable on March 1, through March 1, 2027. The outstanding principal as of June 30, 2023, is $124,631.
(63)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Vehicles Loan (Continued)
The annual debt service requirements are as follows:
Year Endina June 30. Principal Interest Total
2024 $ 28,101 $ 8,633 $ 36,734
2025 30,048 6,686 36,734
2026 32,129 4,605 36,734
2028 34,353 2,380 36,733
Total $ 124,631 $ 22,304 $ 146,935
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 at OCTA's discretion 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, 2023, is $1,144,278.
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. The annual debt service requirements are as follows:
Year Endino June 30, Principal Interest Total
2024 $ 369,329 $ 10,639 $ 379,968
2025 344,932 3,983 348,915
Total $ 714.261 $ 14,622 $ 728.883
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 0.218 to 2.656%. Rent payments ranging from $417 to $1,252, are paid monthly or ranging from $1,483 to $35,490, paid quarterly. The leases provide for increases in future minimum monthly rental payments subject to stated increases. (64)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Leases Payable (Continued)
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2024 $ 369,418 $ 11,601 $ 381,019
2025 328,685 7,945 336,630
2026 162,905 4,744 167,649
2027 59,828 2,775 62,603
2028 61,522 1,081 62,603
2029 5,205 12 5,217
Total $ 987,563 $ 28,158 $ 1,015,721
SBITA Liabilities
The City has entered into subscription based -information technology arrangements (SBITAs) for finance, cloud, and operating information technology systems. The SBITA arrangements expire at various dates through 2034 and provide for renewal options.
As of June 30, 2023, SBITA assets and the related accumulated amortization totaled $2,542,906 and $(361,058), respectively. See Note 5 for Capital Assets.
The future subscription payments under SBITA agreements are as follows:
Year Endino June 30. Principal Interest Total
2024 $ 273,622 $ 32,478 $ 306,100
2025 263,195 31,718 294,913
2026 249,089 23,208 272,297
2027 209,721 18,295 228,016
2028 150,229 14,331 164,560
2029-2033 694,876 31,706 726,582
2034 8,939 181 9,120
Total $ 1,849,671 $ 151,917 $ 2,001,588
There are no variable payments, no payments made related to termination penalties, and no impairment losses on SBITA assets. For the SBITA agreements added in the current year, total capitalizable software configuration costs totaled $488,754.
Claims Payable
Estimated claims payable from general liability and workers' compensation claims as determined by outside claims administrator. Outstanding balance as of June 30, 2023, is as follows:
General Liability Claims
Workers' Compensation Claims
Total Claims Payable
(65)
$ 1,167,761
2,883,583
$ 4,051.344
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 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, 2023 is as follows:
Compensated Absences
Total
C. Fiduciary Activities
Classification
Balance Balance Due Within Due in More
June 30, 2022 Additions Deletions June 30, 2023 One Year than One Year $ 42,491 $ 5,985 $ (2,901) $ 45,575 $ 2,522 $ 43,053
$ 42,491 $ 5,985 $ (2,9011 $ 45,575 $ 2,522 $ 43,053
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2023, is as follows:
Bonds Payable:
2013 Tax Allocation
Refunding Bonds
Bond Premium:
2013 Tax Allocation
Refunding Bonds
Other Liabilities:
Reimbursement Due to City
SERAF Obligation
Real Property Loan
Obligation
Total
Classification
Balance Balance Due Within Due in More
June 30, 2022 Additions Deletions June 30, 2023 One Year Than One Year $ 8,720,000 $ $ (650,000) $ 8,070,000 $ 670,000 $ 7,400,000 35,900 (3,561)
2,183,624
991,314
563,886
9 12.494.724 $
32,339 32,339
(649,663) 1,533,961
368,837 1,165,124
991,314 - 991,314
5512,055) 51,831 51,831 -
- $ (1.815.279) $ 10,679,445 9 1.090.668 $ 9.588.777
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.
(66)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (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, 2023, the outstanding principal on this bond is $8,070,000.
The annual debt service requirements are as follows:
Year Ending June 30,
2024
2025
2026
2027
2028
2029-2033
Total
Principal
$ 670,000 $
695,000
720,000
750,000
780,000
4,455,000
$ 8,070,000 $
I nterest
339,538
315,619
288,188
258,788
227,700
548,506
1,978,339
Total
$ 1,009,538
1,010,619
1,008,188
1,008,788
1,007,700
5,003,506
$ 10,048,339
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 Refunded and Improvement Project Certificates of Participation.
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 long-term liability balance as of June 30, 2023, of $1,533,961 represents the portion of the principal balance for which the Successor Agency will reimburse the City. (67)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
Certificates of Participation City Reimbursement (Continued) The annual debt service requirements are as follows:
Year Endina June 30, Principal Interest Total
2024 $ 368,837 $ 36,048 $ 404,885
2025 379,003 27,380 406,383
2026 388,577 18,474 407,051
2027 397,544 9,342 406,886
Total $ 1,533.961 $ 91.244 $ 1.625.205
Supplemental Education Revenue Auamentation Fund (SERAF) Obliaation 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, 2023, 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%. (68)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2023, is $51,831.
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.
(69)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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' base 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, 2023, was $1,965,040. Total employee contributions paid by the City amounted to $196,504.
The Plan's assets are invested with Mission Square Retirement, a mutual fund company that offers participants multiple mutual fund category selections from which they can choose.
As of June 30, 2023, the Plan had 25 participants and the market value of the Plan amounted to $594,016.
(70)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS
A. Summary
Governmental Business -Type
Activities Activities
Total
Deferred Outflows of Resources:
Pension Contribution Made After
Measurement Date:
CaIPERS Miscellaneous $ 652,940 $ 57,818 $ 710,758
CaIPERS Safety 1,095,286 1,095,286
Total Pension Contribution
Made After Measurement Date 1,748,226 57,818 1,806,044
Change in Assumptions
CaIPERS Miscellaneous 146,216 12,919 159,135
CaIPERS Safety 293,449 293,449
Total Change in Assumptions 439,665 12,919 452,584
Difference Between Projected and
Actual Investment Earnings:
CaIPERS Miscellaneous 261,370 23,093 284,463
CaIPERS Safety 459,582 - 459,582
Total Difference Between
Projected and Actual
Investment Earnings 720,952 23,093 744,045
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous 28,655 2,532 31,187
CaIPERS Safety 120,448 - 120,448
Total Difference Between
Expected and Actual
Experience 149,103 2,532 151,635
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:
CaIPERS Miscellaneous 4,780,960 422,407 5,203,367
CaIPERS Safety 4,489,333 - 4,489,333
Total Employer Contributions
in Excess of Proportionate
Share of Contribution 9,270,293 422,407 9,692,700
Total Deferred Outflows of Resources:
CaIPERS Miscellaneous 5,870,141 518,769 6,388,910
CaIPERS Safety 6,458,098 - 6,458,098
Total Deferred Outflows of
Resources $ 12,328,239 $ 518,769 $ 12,847,008
(71)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Net Pension Liabilities:
CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Liabilities
Governmental Business -Type
Activities Activities Total
$ 1,426, 874 $ 126,102 $ 1,552,976
2,910,326 - 2,910,326
$ 4,337,200 $ 126,102 $ 4,463,302
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 15,143 1,338 16,481
CaIPERS Safety 101,750 - 101,750
Total Adjustment Due to
Difference in Proportions 116,893 1,338 118,231
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous 19,192 1,696 20,888
CaIPERS Safety 31,604 - 31,604
Total Difference Between
Expected and Actual
Experience 50,796 1,696 52,492
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 34,335 3,034 37,369
CaIPERS Safety 133,354 - 133,354
Total Deferred Inflows of
Resources $ 167,689 $ 3,034 $ 170,723
(72)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Governmental Business -Type
Activities Activities Total
Pension Expenses:
CaIPERS Miscellaneous $ 12,071,837 $ 1,066,862 $ 13,138,699 CaIPERS Safety 21,443,649 - 21,443,649
Total Net Pension Income $ 33,515,486 $ 1,066,862 $ 34,582,348 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, 2022, measurement date the following employees were covered by the benefit terms:
Miscellaneous Miscellaneous Safety
Miscellaneous Tier 2 PEPRA Safety PEPRA
Active Employees 22 9 67 19 28
Transferred Employees 50 14 47 18 10
Separated Employees 30 3 44 11 9
Retired Employees and
Beneficiaries 181 4 120
Total 283 26 162 168 47
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. (73)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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% 7.750% 9.000% 13.750%
Required Employer
Contribution Rate 10.870% 9.120% 7.470% 23.750% 12.780% Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2023, the City made contributions to each Plan were as follows:
Contributions - Employer
Miscellaneous Safety Total
$ 5,203,367 $ 4,489,333 $ 9,692,700
(74)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 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, 2022, 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, 2021, rolled forward to June 30, 2022, 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, 2022, measurement date (June 30, 2023, reporting date) and 2021 measurement date (June 30, 2022, reporting date) was as follows:
Proportion - June 30, 2021
Proportion - June 30, 2022
Change - Increase (Decrease)
Miscellaneous
(0.45585)%
0.03319
0.48904 %
For the year ended June 30, 2023, the City recognized pension income of and $21,443,649, for the Miscellaneous and Safety plans, respectively. 2023, the City reported deferred outflows of resources and deferred inflows related to pensions from the following sources:
Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Safety
(0.41630)%
0.04235
0.45865 %
$13,138,699
At June 30,
of resources
Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 710,758 $
Experience 31,187
Changes of Assumptions 159,135
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 284,463
Changes in proportion and differences between
employer contributions and proportionate share
of contributions 5,203,367
Total $ 6,388,910
(75)
20,888
16,481
$ 37,369
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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 $ 1,095,286 $
Difference Between Expected and Actual
Experience 120,448 31,604
Changes of Assumptions 293,449
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 459,582
Changes in proportion and differences between
employer contributions and proportionate share
of contributions 4,489,333 101,750
Total $ 6,458,098 $ 133,354
Aggregate Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date $ 1,806,044 $
Difference Between Expected and Actual
Experience 151,635 52,492
Changes of Assumptions 452,584
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 744,045
Changes in proportion and differences between
employer contributions and proportionate share
of contributions -
Adjustments Due to Difference in Proportions 9,692,700 118,231 Total $ 12,847,008 $ 170,723
(76)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) For the Miscellaneous Plan and Safety Plan, $710,758 and $1,095,286, 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, 2024. 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
Endina June 30.
2023
2024
2025
2026
2027
Thereafter
Total
Deferred (Inflows) Outflows of Resources
Safety
Plan
$2,137,836
2,234, 528
576,742
280,352
Miscellaneous
Plan
$2,232,875
2,069,623
1,164,298
173,987
$ 5,640,783
Total
$ 4,370,711
4,304,151
1,741,040
454,339
$ 5,229,458 $ 10,870,241
Actuarial Assumptions
The total pension liabilities in the June 30, 2021, actuarial 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
(77)
valuations were determined
Entry Age Normal
6.90%
2.30%
Varies by Entry Age and Service
6.90%
Derived using CaIPERS'
Membership Data for all Funds.
Contract COLA up to 2.3% until
Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.3% thereafter.
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions (Continued)
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS experience study for the period from 2001 to 2019. Pre -retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP -2020 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 November 2021 that can be found on the CaIPERS website.
Long -Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap -Weighted 30.00 % 4.45 %
Global Equity - Non -Cap -Weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage -Backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liability Management study. (78)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
On July 12, 2021, CaIPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CaIPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CaIPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from
2.50% to 2.30% as recommended in the November 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
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
(5.90%) (6.90%) (7.90%)
Miscellaneous $ 9,948,388 $ 1,552,976 $ (5,354,364)
Safety 17,679,981 2,910,326 (9,160,531)
Total $ 27,628,369 $ 4,463,302 $ (14,514,895)
(79)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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, 2023, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2023.
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 $ 2,722,012 $ 78,132 $ 2,800,144
Changes in Assumptions 2,834,435 81,358 2,915,793
Total Deferred Outflows of
Resources $ 5,556,447 $ 159,490 $ 5,715,937
Total OPEB Liability
Total OPEB liability
$ 17,803,729 $ 511,032 $ 18,314,761
$ 17,803,729 $ 511,032 $ 18,314,761
Deferred Inflows of Resources:
Changes in Assumptions $ 5,636,064 $ 161,776 $ 5,797,840 Difference Between Expected and
Actual Experience 6,519,865 187,144 6,707,009
Total Deferred Inflows of
Resources $ 12,155,929 $ 348,920 $ 12,504,849
OPEB Expense $ 153,246 $ 4,904 $ 158,150
(80)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
B. General Information About OPEB
Plan Description
The City provides post -employment defined benefits to retired employees in the form of a contribution towards their health insurance premiums under the CaIPERS health plan, an agent multiple employer plan, that 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, 2022, the date of the latest actuarial valuation:
Active Plan Members 172
Retirees 147
Total 319
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, 2023, the City made contributions to the plan totaling $2,800,144 ($875,652 actual benefit payments, $217,667 implicit subsidy credit, and a $1,706,825 pre -funding contribution to a trust). Employees are not required to contribute to the plan. (81)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2022. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. The total OPEB liability at June 30, 2023, was $18,314,761.
Actuarial Assumptions
The total OPEB liability in the June 30, 2022, 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
3.54% (Bond Buyer 20 -Bond Index)
2.30% Annually
2.80%
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 3.73% in 2075
An annual healthcare cost trend
rate of 5.40% for 2023, decreasing
to an ultimate rate of 3.73% in 2075
The actuarial assumptions used in the June 30, 2022, valuation were based on the results of the November 2021 CaIPERS experience study covering 2000 to 2019.
Discount Rate
The discount rate used to measure the total OPEB liability was 3.54% 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. (82)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2021 (Measurement Date) $ 24,910,487 Changes Recognized for the Measurement Period:
Service Cost 491,712
Interest on the Total OPEB Liability 536,526
Changes of Benefit Terms
Difference Between Expected and Actual
Experience (2,064,492)
Changes of Assumptions (4,427,399)
Contributions from the Employer
Net Investment Income
Administrative Expenses
Benefit Payments (1,132,073)
Net Changes (6,595,726)
Balance - June 30, 2022 (Measurement Date) $ 18,314,761 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 (2.54%) or 1 -percentage point higher (4.54%) than the current discount rate:
OPEB Pension Plan
Plan's Total OPEB Liability
1% Current 1%
Decrease Discount Rate Increase
(2.54%) (3.54%) (4.54%)
$ 20,620,220 $ 18,314,761 $ 16,408,080
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
$ 16,370,005 $ 18,314,761 $ 20,673,911
(83)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 (Income). and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB income of $849,079.
At June 30, 2023, 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 $ - $ 6,707,009 Changes in Assumptions 2,915,793 5,797,840
Employer Contributions Made Subsequent to the
Measurement Date 2,800,144
Total $ 5,715,937 $ 12,504,849
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 8 years, which was determined as of July 1, 2021, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.
$2,800,144 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, 2024.
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 Ending June 30, of Resources
2023 $ (1,879,985)
2024 (1,489,985)
2025 (1,310,879)
2026 (1,042,905)
2027 (1,430,354)
Thereafter (2,434,948)
Total $ (9,589,056)
(84)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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.
(85)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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:
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 2022-2023 3,706,343 (267,259) (555,501) 2,883,583 720,896 2,162,687 General Liability:
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 2022-2023 1,308,868 (139,773) (1,334) 1,167,761 278,190 889,571 NOTE 11 CLASSIFICATION OF FUND BALANCES
At June 30, 2023, 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 $ 47,288 $ - $ - $ $ 47,288
Prepaid Items 200,016 4,856 204,872
Loans Receivable 1,206,588 - 1,206,588
Total Nonspendable 1,453,892 4,856 1,458,748
Restricted:
Public Safety - 1,693,882 1,693,882
Public Works 1,940,847 1,940,847
Community Development - 1,750,391 1,750,391
Community Services 4,470,050 13,435 4,483,485
Debt Service - 4,153,709 83,541 4,237,250
Grant Programs - -
Transportation 484,321 484,321
Park Development 20,461 20,461
Street Maintenance 582,564 582,564
Air Quality 288,865 288,865
Housing 2,073,202 2,073,202
Pension Stability 805,521 - - 805,521
Total Restricted 805,521 4,470,050 4,153,709 8,931,509 18,360,789 Committed:
Measure U - Infrastructure 3,764,113 - 3,764,113
Measure U - Employee Retention - - -
Measure U - OPEB 770,595 770,595
Total Committed 4,534,708 - 4,534,708
Unassigned 19,918,635 (2,576,572) 17,342,063
Total Fund Balances $ 26.712,756 $ 4.474,906 $ 4.153.709 $ 6,354.937 $ 41,696,308 (86)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 12 COMMITMENTS AND CONTINGENCIES
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2023. These projects are evidenced by contractual commitments with contractors or other agencies and include:
Project Commitment
TOD/Crowther Sewer Project $ 141,702
City Hall HVAC Replacement and Solar 221,608
Main Street Parking Lot Improv 14,475
Senior/Community Center 445,135
Public Safety Building 2,445,616
Additional Fire Radios 24,052
EFID Design 302,336
Caltrans Public Art Program 285,000
Infrastructure Projects 2,764,740
Miscellaneous 846,604
Total $ 7,491,268
The City has various outstanding purchase commitments. Total commitments at June 30, 2023, are as follows:
Outstanding
Purchase
Commitments
Governmental Funds:
General Fund $ 6,756,563
Other Governmental Funds 1,499,437
Total $ 8,256,000
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.
(87)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2023, as follows:
Expenditure
in Excess of
Expenditures Appropriation Appropriations
Special Revenue Funds:
Street Lighting $ 552,355 $ 171,500 $ (380,855)
Measure M 1,570,977 1,533,690 (37,287)
Gasoline Tax 861,128 270,715 (590,413)
NOC Public Safety 216,704 203,100 (13,604)
TOD Impact Fee 1,496,986 (1,496,986)
B. Deficit Net Position and Fund Balances
Funds with deficit net position/fund balance at June 30, 2023, are as follows:
Deficit Deficit
Fund Balance Net Position
Special Revenue Funds:
Miscellaneous Grants $ (70,461)
Landscape Maintenance District 92-1 (10,212)
Housing and Community Development (537,399)
Sewer Construction (100,228)
Placentia Regional Navigation Center (1,635,925)
Total $ (2,354,225)
Capital Projects Fund:
City Capital Projects $ (222,347)
Internal Service Fund:
Risk Management $ (1,546,810)
At June 30, 2023, the City's governmental activities had an unrestricted net position deficit of $(43,217,235) on the statement of net position. 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.
(88)
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 14 SUBSEQUENT EVENT
On August 2, 2023, the Placentia Public Financing Authority issued the 2023A Lease Revenue Bonds in the amount of $9,190,000, to finance the construction and equipping of an approximately 18,805 square foot public safety center and to pay the costs incurred in connection with the bond issuance. The term bonds with maturities ranging from October 1, 2033, through October 1, 2053, bear interest ranging from 4.25% to 5.0%. The bonds are subject to mandatory redemption on October 1 in each year in accordance with a set schedule. Interest on the bonds will be paid semi-annually on April 1 and October 1, of each year, commencing April 1, 2024.
(89)
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
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CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE —
GENERAL FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 42,321,024 $ 43,367,223 $ 44,429,339 $ 1,062,116 Intergovernmental 2,640,000 11,521,255 8,640,895 (2,880,360) Licenses and Permits 2,505,000 2,833,098 2,643,941 (189,157) Fines and Forfeitures 355,000 377,000 457,065 80,065
Investment Income 130,000 225,001 67,366 (157,635)
Charges for Services 1,152,400 1,193,830 1,364,054 170,224 Leases and Rents 989,000 997,000 1,572,445 575,445
Miscellaneous 805,200 745,565 1,385,763 640,198
Total Revenues 50,897,624 61,259,972 60,560,868 (699,104)
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
13,527,767 14,505,896
17,314,847 17,574,640
5,565,694 5,393,372
1,835,200 1,955,201
2,646,380 2,722,180
6,336,620 21,577,068
1,402,200 1,402,200
268,800 268,800
48,897,508 65,399,357
2,000,116 (4,139,385)
OTHER FINANCING SOURCES (USES)
Issuance of Debt -
Payment to Escrow for Refunding Debt - -
Transfers In 649,698 99,698
Transfers Out (4,162,550) (3,649,050)
Total Other Financing Sources (Uses) (3,512,852) (3,549,352) 15,748,766
16,357,168
4,100, 553
1,718,087
2,617,825
14,475,128
2,438,273
252,565
57,708,365
2,852,503
1,588,047
2,610,514
(3,922,788)
275,773
(1,242,870)
1,217,472
1,292,819
237,114
104,355
7,101,940
(1,036,073)
16,235
7,690,992
6,991,888
1,588,047
2,510,816
(273,738)
3,825,125
NET CHANGE IN FUND BALANCE $ (1,512,736) $ (7,688,737) 3,128,276 $ 10,817,013 Fund Balance - Beginning of Year 23,584,480
FUND BALANCE - END OF YEAR $ 26,712,756
See accompanying Notes to Budgetary Comparison Schedules. (90)
CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE -
CITYWIDE DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 61,501 $ 61,501
Contributions 2,573,700 2,573,700 1,530,026 (1,043,674) Total Revenues 2,573,700 2,573,700 1,591,527 (982,173)
EXPENDITURES
Current:
Public Safety 54,000 80,308 62,969 17,339
Capital Outlay 871,000 3,593,942 1,465,404 2,128,538
Total Expenditures 925,000 3,674,250 1,528,373 2,145,877 REVENUE OVER (UNDER) EXPENDITURES 1,648,700 (1,100,550) 63,154 1,163,704 NET CHANGE IN FUND BALANCE $ 1,648,700 $ (1,100,550) 63,154 $ 1,163,704 Fund Balance - Beginning of Year 4,411,752
FUND BALANCE - END OF YEAR $ 4,474,906
See accompanying Notes to Budgetary Comparison Schedules. (91)
CITY OF PLACENTIA
NOTES TO BUDGETARY COMPARISON SCHEDULES
JUNE 30, 2023
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 2023, the City did not create a budget for the following governmental special revenue funds: Park Development, Storm Drain, Traffic Offender, Air Quality Sewer Construction, PEG, Community Based Transitional Housing Grant, Orangethorpe Corridor, EIFD Fire Impact Fee, Animal Shelter Impact Fee, and Opioid Settlement.
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.
(92)
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, 2023
Measurement Period, Year Ended' 6/30/2022 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 0.03319% -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 5 (1,552,976) 5 16,419.169 S 16.419.169 S 15,209,436 5 13,952.246 S 14.094,828 5 12,135,165 5 9,154,245 S 8,617,803 Plan's Covered Payroll S 7,062,718 5 6,733.121 S 5,725,763 5 5,027,138 5 4.966.210 5 4,171,235 5 4,140,888 5 3,220,454 5 3,712,315 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll -21.99% 243.86% 286.76% 302.55% 332.34% 345.80% 293.06% 284.25% 232.14% Plan's Fiduciary Net Position $ 60,033.972 5 40,663,791 S 40,663,791 S 41,142,220 5 40.682.189 S 39,816,871 S 38.103,697 5 40,735,920 $ 42,161,022 Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 102.66% 71.24% 71.24% 73.01% 74.46% 73.86% 75.85% 81.65% 83.03% Plan's Proportionate Share of Aggregate Employer
Contributions 5 3,114,009 S 2.642,842 5 1,383.994 S 1,139,534 $ 932.993 S 785,438 5 667,441 5 383.155 S 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.
From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%. 'Historical information is presented only for measurement periods after GASB 68 implementation. (93)
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, 2023
Measurement Period, Year Ended' 6/30/2022 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 0.04235% -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 $ (2,910,326) 5 29,467,303 $ 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 $ 5,428,571 $ 5,414,606 $ 4,822,533 $ 4,385,233 $ 4,383,655 $ 4,193,517 $ 4,142,921 $ 4,074,947 $ 4,323,789 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll
Plan's Fiduciary Net Position
Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability
Plan's Proportionate Share of Aggregate Employer
Contributions
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
-53.61% 544.22% 611.03% 653.79% 654.18% 644.26% 596.76% 509.82% 440.32% $ 104,039,873 $ 69,454,497 $ 69,454,497 $ 69,385,418 $ 65,913,238 $ 62,459,293 $ 58,150,629 5 60,121,518 $ 61,484,214 102.88%
70.21% 70.21%
71.99% 71.53% 69.81% 70.17% 74.32% 76.36%
$ 6,941,085 $ 6,061,344 $ 2,517,884 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 $ 2,157,763 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 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.
From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%. 'Historical infomtation is presented only for measurement periods after GASB 68 implementation. (94)
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
Fiscal Year' 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually Determined Contribution
(Actuarially Determined) $ 710,758 $ 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 (710,758) (589,881) (17.663.643) (1,383,994) (1,139,534) (932,993) (785,438) (667,441) (383,155) Contribution Deficiency (Excess) $ - $ - $ (16.147.0221 $ $ - $ - $ $ - $ - Covered Payroll $ 8,115,390 $ 7,062,718 $ 6,733,121 $ 5,725,763 $ 5,027,138 $ 4,966,210 $ 4,171,235 $ 4,140,888 $ 3,220,454 Contributions as a Percentage of Covered Payroll 8.76% 8.35% 262.34% 31.07% 26.35% 22.22% 19.27% 16.12% 11.90% Notes to Schedule:
Valuation Date
Methods and Assumptions Used
to Determine
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Contribution Rates:
Actuarial Cost Method Entry age 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) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.30% 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) (2)
Investment Rate of Return 6.9% (3) 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) (4)
Mortality (5) (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 CaJPERS Experience Study adopted BR the CaIPERS Board.
Historical information is presented only for measurement periods after GASB 68 implementation. (95)
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
SAFETY PLAN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
Fiscal Year 2022-23
Contractually Determined Contribution
(Actuarially Determined)
Contributions in Relation to the Actuarially
Determined Contributions
2021-22 2020-21
2019-20 2018-19
2017-18 2016-17
2015-16 2014-15
$ 1,095,286 $ 1,015,425 $ 2,561,365 $ 2,519,683 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 (1,095,286)
(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 $ 5,760,486 $ 5,428,571 $ 5,414,606 $ 4,822,533 $ 4,385,233 $ 4,383,655 $ 4,193,517 $ 4,142,921 $ 4,074,947 Contributions as a Percentage of Covered Payroll 19.01% 18.71% 565.09% 52.25% 48.08% 69.22% 65.66% 62.00% 53,38% Notes to Schedule:
Valuation Date 6/30/2021 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 Entry age Amortization Method (1,00) (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 Fair Value 15 Year Smoothed
Market Method
Inflation 2.30% 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) (2)
Investment Rate of Return 6.9% (3) 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) (4)
Mortality (5) (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)
%@62"(5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted BR the CaIPERS Board.
Historical information is presented only for measurement periods after GASB 68 implementation. (96)
CITY OF PLACENTIA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
Measurement Period, Year Ending: ' 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost $ 491,712 S 532,568 $ 359,454 $ 542,976 $ 569,606 $ 675,000 Interest 536.526 691,435 919,735 1,092,405 1,032,870 899,000 Changes of Benefit Terms - - - - -
Differences Between Expected and Actual Experience (2,064.492) (4.989.665) - (2,606,242) - Changes of Assumptions (4,427;399) (1.506.167) 4,699,117 332,593 (1,089,486) (3,058,000) Benefit Payments, Including Refunds of Member
Contributions (1,132.073) (1,143,510) (1;142,314) (1,112,888) (1,107,000) (1,116,000) Net change in Total OPEB Liability (6,595,726) (6.415,339) 4,835,992 (1,751,156) (594,010) (2,600,000) Total OPEB Liability- Beginning 24.910.487 31,325,826 26,469,834 28,240,990 28,835,000 31,435,000 Total OPEB Liability - Ending (a) S 18.314.761 S 24.910.487 S 31.325.826 S 26.489.834 $ 28.240.990 $ 28.835.000 OPEB Fiduciary Net Position:
Contributions -Employer $ 1,132.073 S 1,146,160 S 1,146,160 $ 1,142,314 $ 1,112,888 S 1,116,000 Net Investment Income - - -
Benefit Payments, Including Refunds of Member
Contributions (1,132.073) (1;146,160) (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) S 18.314.761 S 24.910.487 S 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% 0.00% Covered -Employee Payroll S 17.448.843 S 13,993,405 S 12,286,189 $ 11,810,189 $ 11,466,203 $ 9,367,000 Plan Net OPEB Liability as a Percentage of Covered
Payroll 0% 178% 255% 224% 239% 308%
Notes to Schedule:
For the June 30, 2022, measurement date, the discount rate was updated based on the municipal bond rate as of the measurement date.
There are no assets accumulated in a trust that meet the criteria to pay related benefits for the OPEB plan.
Historical information is only presented for measurement periods after GASB 75 implementation. (97)
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
CITY OF PLACENTIA
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
2022-23
$ 1,093,319
(2,800,144)
$ (1,706,825) $
2021-22 2020-21
$ 1,132,073 $ 1,146,160
(1,132,073) (1,146,160)
2019-20 2018-19 2017-18
$ 1,142,314 $ 1,112,888 $ 1,107,000
(1,142,314) (1,112,888) (1,107,000)
$ 18,881,076 $ 17,448,843 $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 11,466,203
14.83% 6.49% 8.19% 9.30%
6/30/2022 6/30/2021 6/30/2020 6/30/2019
Entry Age Normal
Level Percentage of Payroll
2.30% Annually
Aggregate 2.80% Annually, Merit - CaIPERS 2000-2019 Experience Study
2.80%
3.54% (Bond Buyer 20 -Bond Index)
CaIPERS Experience Study 2000-2019
Post-retirement mortality projected fully generational with Scale MP -2021 Historical information is only presented for measurement periods after GASB 75 implementation. (98)
9.42%
6/30/2017
9.65%
6/30/2017
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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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ $ 149,405 $ 149,405
Total Revenues - 149,405 149,405
EXPENDITURES
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers In
Transfers Out
Total Other Financing Sources
1,500,000 1,500,000 1,502,500 (2,500)
2,008,250 2,008,250 2,005,497 2,753
3,508,250 3,508,250 3,507,997 253
(3,508,250) (3,508,250) (3,358,592) 149,658
37,500 37,500 3,505,634 3,468,134
- - (2,456,825) (2,456,825)
37,500 37,500 1,048,809 1,011,309
NET CHANGE IN FUND BALANCE $ (3,470,750) $ (3,470,750) (2,309,783) $ 1,160,967 Fund Balance - Beginning of Year 6,463,492
FUND BALANCE - END OF YEAR $ 4,153,709
(99)
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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 %% 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.
(100)
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.
SB1 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. (101)
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
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.
Enhanced Infrastructure Financing District (EIFD) — to account for revenue and expenditures for the EIFD established with the County of Orange. The purpose of the EIFD is to finance public capital facilities or other specified projects of community -wide significance that provide benefits to the district or the surrounding community.
Fire Impact Fee Fund — to account for revenues and expenditures associated with new development within Placentia for fire protection -related services. The purpose of the fire impact fee is to fund the cost of fire protection and emergency response facilities, apparatus, and equipment attributable to new residential and nonresidential development in the City. The fire impact fee will ensure that new development will not burden existing development with the cost of expanded facilities, apparatus, and equipment required to accommodate growth as it occurs within the City.
Animal Shelter Impact Fee Fund — to account for the revenues and expenditures associated with the cost of animal shelter facilities for new residential development in the City. The animal shelter impact fee will ensure that new development will not burden existing development with the cost of expanded animal shelter facilities required to accommodate growth as it occurs within the City.
Opioid Settlement Fund — to account for the distribution of monies received from the California Opioid Settlement Funds. Expenditures are restricted for opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services.
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. (102)
CITY OF PLACENTIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure ASSETS
Cash and Investments $ 336,928 S 20,461 S 57,102 $ 413,129 $ 530 $ 4,805 $ 1,384,732 Receivables:
Accounts 96,390 - 910 117,640
Grants 334,003 - -
Accrued Interest
Loans and Notes
Leases
Prepaid Items - - - 250
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 767,321 $ 20,461 $ 58,012 $ 530,769 $ 530 $ 4,805 $ 1,384,982
LIABILITIES
Accounts Payable $ 3,779 S - $ 58,012 $ 3,504 $ $ - $ 3,538 Accrued Liabilities - - -
Retentions Payable - -
Due to Other Funds -
Unearned Revenue 500,000 - -
Total Liabilities 503,779 - 58,012 3,504 3,538
DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues 334,003 - - -
Total Deferred Inflows of Resources 334,003 - - -
FUND BALANCES
Restricted 20.461 527,265 530 4,805 1,381,444
Unassigned (Deficit) (70,461) - - - -
Total Fund Balances (70,461) 20,461 527,265 530 4,805 1,381,444 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 767,321 S 20,461 $ 58,012 $ 530,769 $ 530 $ 4,805 $ 1,384,982 (103)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
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 $ 4,625 $ 229,435 $ 272,664 $ 28,464 $ 4,898 $ $ Receivables:
Accounts 1,126 17,077 3,807 384,767 115,311
Grants - -
Accrued Interest - -
Loans and Notes - -
Leases - - -
Prepaid Items - -
Land Held for Resale - -
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable
Accrued Liabilities
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities
$ 5,751 $ 229,435 $ 289,741 $ 32,271 $ 389,665 $ 115,311 $ $
- $ $ 876 $ 39,594 $ - $ 38,006 $ 3,447
- - 2,152 - 1,938
- 737 633,111 22,006 94,843
876 42,483 633,111 60,012 100,228
DEFERRED INFLOWS OF RESOURCES
Leases - - -
Unavailable Revenues - - 293,953
Total Deferred Inflows of Resources - - 293,953
FUND BALANCES
Restricted 5,751 229,435 288,865 - - 55,299 -
Unassigned (Deficit) - - - (10,212) (537,399) - (100,228) Total Fund Balances 5,751 229,435 288,865 (10,212) (537,399) 55,299 (100,228) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 5,751 $ 229,435 $ 289,741 $ 32,271 $ 389,665 $ 115,311 $ (104)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
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 $ 41,289 S 404 $ 281,700 $ 167,691 $ 75 $ 2,300,976 $ Receivables:
Accounts 2,944 - 202,621 - - 1,449,063
Grants
Accrued Interest - -
Loans and Notes - - 38,050
Leases -
Prepaid Items
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 44,233 S 404 S 484,321 $ 167,691 $
75 $ 2,339,026 $ 1,449,063
LIABILITIES
Accounts Payable $ 8 S - S $ 5,447 $ $ 298,602 $ 769
Accrued Liabilities - 1,992 75 - 2,313
Retentions Payable - - 62,348 -
Due to Other Funds - - - 1,955,308
Unearned Revenue - - 83,000 - -
Total Liabilities 8 - 90,439 75 360,950 1,958,390
DEFERRED INFLOWS OF RESOURCES
Leases - - -
Unavailable Revenues - - 38,050 1,126,598
Total Deferred Inflows of Resources - - 38,050 1,126,598
FUND BALANCES
Restricted 44,225 404 484,321 77,252 1,940,026
Unassigned (Deficit) - - - - (1,635,925)
Total Fund Balances 44,225 404 484,321 77,252 1,940,026 (1,635,925) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 44,233 S 404 S 484,321 $ 167,691 $ 75 $ 2,300,976 $ 1,449,063 (105)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle Update Fee Impact Fee Successor Corridor Grant
ASSETS
EIFD
Cash and Investments $ 1,121,748 $ 525,370 $ 497,975 $ 168 $ 23,759 $ 70,456 $ Receivables:
Accounts - - -
Grants - - - -
Accrued Interest - 25 - -
Loans and Notes 548,283 16,433
Leases - 13,777 - -
Prepaid Items - - -
Land Held for Resale - 1,036,760 - -
Fire
Impact Fee
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 1,121,748 $ 525,370 $ 2,096,820 $
168 $ 23,759 $
LIABILITIES
Accounts Payable $ 16,743 $ - $ - $ 168 $ 8,910 $
Accrued Liabilities - - - 780
Retentions Payable - - -
Due to Other Funds - - - -
Unearned Revenue - - - 13,248
Total Liabilities 16,743 - - 168 22,938
70,456 $ 16,433
DEFERRED INFLOWS OF RESOURCES
Leases - 13,655 - -
Unavailable Revenues - 10,367 - 16,433
Total Deferred Inflows of Resources - - 24,022 - 16,433
FUND BALANCES
Restricted 1,105,005 525,370 2,072,798 821 70,456
Unassigned (Deficit) - - - - -
Total Fund Balances 1,105,005 525,370 2,072,798 821 70,456 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,121,748 $ 525,370 $ 2,096,820 $ 168 $ 23,759 $ 70,456 $ 16,433 (106)
ASSETS
Cash and Investments
Receivables:
Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Capital Debt
Special Revenue Funds Projects Fund Service Fund
Animal Total Other
Shelter Opioid City Capital Governmental
Impact Fee Settlement Projects Gas Tax Funds
S 13.435 S $ 83,541 $ 7,886,360
426,872 2,818,528
1,043,306 1,377,309
25 16,433 - 619,199
13,777
250
1,036, 760
$ 16,433 S 440,307 $ 1,043.306 $ 83,541 $ 13,752,208
LIABILITIES
Accounts Payable $ S - S 195,494 $
Accrued Liabilities
Retentions Payable - 260,399
Due to Other Funds - 566,011
Unearned Revenue - -
Total Liabilities - 1,021,904
DEFERRED INFLOWS OF RESOURCES
Leases -
Unavailable Revenues 16,433 426,872 243,749
Total Deferred Inflows of Resources 16,433 426,872 243,749
FUND BALANCES
Restricted 13.435
Unassigned (Deficit) - (222,347)
Total Fund Balances 13,435 (222,347)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 16,433 S 440,307 S 1,043,306 $ (107)
- $ 676,897
9,250
322,747
3,272,016
596,248
4,877,158
83,541
83,541
13,655
2,506,458
2,520,113
8,931,509
(2,576,572)
6,354,937
83,541 $ 13,752,208
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure
REVENUES
Intergovernmental $ 1,097,219 $ $ - $ 1,310,768 $ $ - $ - Fines and Forfeitures - - - - 1,319,603
Investment Earnings - 268 - 7,661 - 53 5,625
Charges for Services - 135,201 - -
Lease Revenue - - - -
Miscellaneous - - - -
Total Revenues 1,097,219 268 135,201 1,318,429 - 53 1,325,228
EXPENDITURES
Current:
General Government - - - -
Public Safety 312,214 - - 81,996
Public Works - 552,355 - -
Community Development - - 3,983
Community Services 4,847 - - - - -
Capital Outlay 631,481 - - 1,106,062 - 71,920
Debt Service:
Principal Retirement - 413,344 -
Interest and Fiscal Charges - - 47,588 - -
Total Expenditures 948,542 - 552,355 1,570,977 - 153,916 REVENUES OVER (UNDER) EXPENDITURES 148,677 268 (417,154) (252,548) 53 1,171,312
OTHER FINANCING SOURCES (USES)
Issuance of Debt
Transfers In - - 417,154 - -
Transfers Out - - -
Total Other Financing Sources (Uses) - 417,154 -
NET CHANGES IN FUND BALANCES 148,677 268 - (252,548) - 53 1,171,312 Fund Balances - Beginning of Year (219,138) 20,193 - 779,813 530 4,752 210,132 FUND BALANCES - END OF YEAR $ (70,461) $ 20,461 $ $ 527,265 $ 530 $ 4,805 $ 1,381,444 (108)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction
REVENUES
Intergovernmental $ S 165.271 $ 84,423 $ $ 518,363 $ 1,316,519 S Fines and Forfeitures - -
Investment Earnings 54 3.697 3.054 - 3,857
Charges for Services - 450,873 - -
Lease Revenue - -
Miscellaneous
Total Revenues 54 168.968 87,477 450,873 518,363 1,320,376
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
390,469 861,128
997 - 404,249 -
1,650
101,164
21,083
997 390,469 405,899 861,128 122,247
REVENUES OVER (UNDER) EXPENDITURES 54 168.968 86,480 60,404 112,464 459,248 (122,247)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - -
Transfers In - - -
Transfers Out (153.689) - - (404,450)
Total Other Financing Sources (Uses) - (153,689) - (404,450) NET CHANGES IN FUND BALANCES 54 15.279 86,480 60,404 112,464 54,798 (122,247) Fund Balances - Beginning of Year 5,697 214.156 202.385 (70,616) (649,863) 501 22,019 FUND BALANCES - END OF YEAR $ 5,751 S 229,435 S 288,865 $ (10,212) $ (537,399) $ 55,299 $ (100,228) (109)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
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 $ $ - $ 1,156,315 $ - $ - $ - $ 1,663,929 Fines and Forfeitures - - - -
Investment Eamings 161 268 8,840 3,536 41,005
Charges for Services 64,371 - - - -
Lease Revenue - - -
Miscellaneous - - - -
Total Revenues 64,532 268 1,165,155 3,536 41,005 1,663,929
EXPENDITURES
Current:
General Government 17,793 - - -
Public Safety - 216,704 - 2,091,109
Public Works - - - -
Community Development 36,691 - - -
Community Services - - -
Capital Outlay 5,424 - 1,506,984 1,496,986 -
Debt Service:
Principal Retirement
Interest and Fiscal Charges - - - -
Total Expenditures 23,217 36,691 1,506,984 216,704 1,496,986 2,091,109 REVENUES OVER (UNDER) EXPENDITURES 41,315 (36,423) (341,829) (213,168) (1,455,981) (427,180)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - -
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - -
NET CHANGES IN FUND BALANCES 41,315 (36,423) (341,829) (213,168) (1,455,981) (427,180) Fund Balances - Beginning of Year 2,910 36,827 826,150 290,420 3,396,007 (1,208,745) FUND BALANCES - END OF YEAR $ 44,225 $ 404 $ 484,321 $ 77,252 $ $ 1,940,026 $ (1,635,925) (110)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle Fire Update Fee Impact Fee Successor Corridor Grant EIFD Impact Fee
REVENUES
Intergovernmental $ 33,350 5 $ - $ $ 72,869 $ 70,348 5
Fines and Forfeitures - -
Investment Earnings 12,644 6,001 - 803 108
Charges for Services 243,156 129,533 -
Lease Revenue - 147
Miscellaneous - 102,411 -
Total Revenues 289,150 135,534 102,558 73,672 70,456
EXPENDITURES
Current:
General Government 4,091 - -
Public Safety - 16,869
Public Works -
Community Development - -
Community Services - - - -
Capital Outlay 16,743 - 19,258 56,000
Debt Service:
Principal Retirement - - - - 55,000
Interest and Fiscal Charges - - -
Total Expenditures 20,834 19,258 127,869
REVENUES OVER (UNDER) EXPENDITURES 268,316 135.534 83,300 (54,197) 70,456
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - 55,000
Transfers In - - - -
Transfers Out - - -
Total Other Financing Sources (Uses) 55,000
NET CHANGES IN FUND BALANCES 268,316 135,534 83,300 803 70,456 Fund Balances - Beginning of Year 836,689 389.836 1,989.498 18 FUND BALANCES - END OF YEAR $ 1,105,005 S 525,370 5 2,072,798 $ - $ 821 $ 70,456 $
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Capital Debt
Special Revenue Funds Projects Fund Service Fund
Animal Total Other
Shelter Opioid City Capital Governmental
Impact Fee Settlement Projects Gas Tax Funds
REVENUES
Intergovernmental $ $ 13,435 $ 425,730 $ - $ 7,928,539
Fines and Forfeitures - - 1,319,603
Investment Earnings - 1,500 99,135
Charges for Services - - - 1,023,134
Lease Revenue - - - 147
Miscellaneous - 1,191,573 - 1,293,984
Total Revenues - 13,435 1,617,303 1,500 11,664,542
EXPENDITURES
Current:
General Government - - - 21,884
Public Safety - - - 2,718,892
Public Works - - 1,905,116
Community Development - 1,403 - 447,323
Community Services - - - 4,847
Capital Outlay - 1,230,011 - 6,163,602
Debt Service:
Principal Retirement - - 377,783 846,127
Interest and Fiscal Charges - - 23,322 70,910
Total Expenditures - 1,231,414 401,105 12,178,701
REVENUES OVER (UNDER) EXPENDITURES 13,435 385,889 (399,605) (514,159)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - 55,000
Transfers In - 404,450 821,604
Transfers Out - - - (558,139)
Total Other Financing Sources (Uses) - 404,450 318,465
NET CHANGES IN FUND BALANCES - 13,435 385,889 4,845 (195,694) Fund Balances - Beginning of Year (608,236) 78,696 6,550,631 FUND BALANCES - END OF YEAR $ - $ 13,435 $ (222,347) $ 83,541 $ 6,354,937
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 200,000 $ 3,204,304 $ 1,097,219 $ (2,107,085) Total Revenues 200,000 3,204,304 1,097,219 (2,107,085)
EXPENDITURES
Current:
Public Safety - 881,970 312,214 569,756
Community Services - - 4,847 (4,847)
Capital Outlay 200,000 2,126,899 631,481 1,495,418
Total Expenditures 200,000 3,008,869 948,542 2,060,327
NET CHANGE IN FUND BALANCE $ - $ 195,435 148,677 $ (4,167,412) Fund Balance - Beginning of Year (219,138)
FUND BALANCE - END OF YEAR $ (70,461)
(113)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
STREET LIGHTING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 135,286 $ 135,286 $ 135,201 $ (85) Total Revenues 135,286 135,286 135,201 (85)
EXPENDITURES
Current:
Public Works
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers In
Total Other Financing Sources
171,500 171,500 552,355 (380,855)
171,500 171,500 552,355 (380,855)
(36,214) (36,214) (417,154) (380,940)
37,500 37,500 417,154 379,654
37,500 37,500 417,154 379,654
NET CHANGE IN FUND BALANCE $ 1,286 $ 1,286 - $ (1,286)
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $
(114)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,046,562 $ 1,079,202 $ 1,310,768 $ 231,566 Investment Income 3,000 3,000 7,661 4,661
Total Revenues 1,049,562 1,082,202 1,318,429 236,227
EXPENDITURES
Current:
Community Development 32,640 3,983 28,657
Capital Outlay 500,000 1,146,450 1,106,062 40,388
Debt Service:
Principal Retirement 322,000 322,000 413,344 (91,344)
Interest and Fiscal Charges 32,600 32,600 47,588 (14,988) Total Expenditures 854,600 1,533,690 1,570,977 (37,287) NET CHANGE IN FUND BALANCE $ 194,962 $ (451,488) (252,548) $ 198,940 Fund Balance - Beginning of Year 779,813
FUND BALANCE - END OF YEAR $ 527,265
(115)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
THROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Income $ - $ $ 53 $ 53
Total Revenues - 53 53
EXPENDITURES
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
(116)
- 4,172 - 4,172
- 4,172 - 4,172
- $ (4,172) 53 $ 4,225
4,752
$ 4,805
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 5,625 $ 5,625
Total Revenues - - 1,325,228 1,325,228
EXPENDITURES
Current:
Public Safety - 240,578 81,996 158,582
Capital Outlay 78,600 162,022 71,920 90,102
Total Expenditures 78,600 402,600 153,916 248,684
NET CHANGE IN FUND BALANCE $ (78,600) $ (402,600) 1,171,312 $ 1,573,912 Fund Balance - Beginning of Year 210,132
FUND BALANCE - END OF YEAR $ 1,381,444
(117)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ $ 165,271 $ 165,271
Investment Earnings - 3,697 3,697
Total Revenues - - 168,968 168,968
OTHER FINANCING SOURCES (USES)
Transfers Out (160,000) (160,000) (153,689) 6,311
Total Other Financing Sources (Uses) (160,000) (160,000) (153,689) 6,311 NET CHANGE IN FUND BALANCE $ (160,000) $ (160,000) 15,279 $ 175,279 Fund Balance - Beginning of Year 214,156
FUND BALANCE - END OF YEAR $ 229,435
(118)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 450,858 $ 450,858 $ 450,873 $ 15 Total Revenues 450,858 450,858 450,873 15
EXPENDITURES
Current:
Public Works
Total Expenditures
418,400 418,400
418,400 418,400
390,469
390,469
27,931
27,931
NET CHANGE IN FUND BALANCE $ 32,458 $ 32,458 60,404 $ 27,946 Fund Balance - Beginning of Year (70,616)
FUND BALANCE - END OF YEAR $ (10,212)
(119)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 339,514 $ 710,150 $ 518,363 $ (191,787) Total Revenues 339,514 710,150 518,363 (191,787)
EXPENDITURES
Current:
Community Development
Capital Outlay
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
102,500 444,200
140,291 159,594
242,791 603,794
96,723 106,356
404,249
1,650
405,899
112,464
39,951
157,944
197,895
6,108
OTHER FINANCING SOURCES (USES)
Transfers Out (37,723) (37,723) - 37,723
Total Other Financing Sources (Uses) (37,723) (37,723) - 37,723 NET CHANGE IN FUND BALANCE $ 59,000 $ 68,633 112,464 $ 43,831 Fund Balance - Beginning of Year (649,863)
FUND BALANCE - END OF YEAR $ (537,399)
(120)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GASOLINE TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,497,118 $ 1,497,118 $ 1,316,519 $ (180,599) Investment Earnings 200 200 3,857 3,657
Total Revenues 1,497,318 1,497,318 1,320,376 (176,942)
EXPENDITURES
Current:
Public Works 270,715 270,715 861,128 (590,413)
Total expenditures 270,715 270,715 861,128 (590,413)
REVENUE OVER (UNDER) EXPENDITURES 1,226,603 1,226,603 459,248 (767,355)
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
(404,450) (404,450) (404,450)
(404,450) (404,450) (404,450)
$ 822,153 $ 822,153
(121)
54,798 $ (767,355)
501
$ 55,299
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 268 $ 268
Total Revenues 268 268
EXPENDITURES
Current:
Community Development
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$
(122)
36,691 36,691
- 36,691 36,691 -
- $ (36,691) (36,423) $ 268
36,827
$ 404
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,167,471 $ 1,167,471 $ 1,156,315 $ (11,156) Investment Earnings - 8,840 8,840
Total Revenues 1,167,471 1,167,471 1,165,155 (2,316)
EXPENDITURES
Capital Outlay
Total Expenditures
1,130,000 1,866,943 1,506,984 359,959
1,130,000 1,866,943 1,506,984 359,959
NET CHANGE IN FUND BALANCE $ 37,471 $ (699,472) (341,829) $ 357,643 Fund Balance - Beginning of Year 826,150
FUND BALANCE - END OF YEAR $ 484,321
(123)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 118,000 $ 138,000 $ - $ (138,000)
Investment Earnings - - 3,536 3,536
Total Revenues 118,000 138,000 3,536 (134,464)
EXPENDITURES
Current:
Public Safety 183,100 183,100 216,704 (33,604)
Community Services - 20,000 20,000
Total Expenditures 183,100 203,100 216,704 (13,604)
NET CHANGE IN FUND BALANCE $ (65,100) $ (65,100) (213,168) $ (148,068) Fund Balance - Beginning of Year 290,420
FUND BALANCE - END OF YEAR $ 77,252
(124)
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, 2023
REVENUES
Investment Earnings
Charges for Services
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
$
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
29,900
29,900
$
- $ 41,005 $ 41,005
29,900 - (29,900)
29,900 41,005 11,105
1,496,986
1,496,986
(1,496,986)
(1,496,986)
NET CHANGE IN FUND BALANCE $ 29,900 $ 29,900 (1,455,981) $ (1,485,881) Fund Balance - Beginning of Year 3,396,007
FUND BALANCE - END OF YEAR $ 1,940,026
(125)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 2,326,100 $ 2,581,100 $ 1,663,929 $ (917,171) Contributions - - - -
Total Revenues 2,326,100 2,581,100 1,663,929 (917,171)
EXPENDITURES
Current:
Public Safety 2,301,100 2,406,100 2,091,109 314,991
Capital Outlay 150,000 - 150,000
Total Expenditures 2,301,100 2,556,100 2,091,109 464,991 NET CHANGE IN FUND BALANCE $ 25,000 $ 25,000 (427,180) $ (452,180) Fund Balance - Beginning of Year (1,208,745)
FUND BALANCE - END OF YEAR $ (1,635,925)
(126)
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, 2023
REVENUES
Intergovernmental
Investment Earnings
Charges for Services
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
120,000
120,000
120,000
120,000
90,000
90,000
$ 33,350 $ 33,350
12,644 12,644
243,156 123,156
289,150 169,150
16,743 73,257
20,834 69,166
NET CHANGE IN FUND BALANCE $ 120,000 $ 30,000 268,316 $ 238,316 Fund Balance - Beginning of Year 836,689
FUND BALANCE - END OF YEAR $ 1,105,005
(127)
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 6,001 $ 6,001
Charges for Services 60,000 60,000 129,533 69,533
Total Revenues 60,000 60,000 135,534 75,534
EXPENDITURES
Capital Outlay - 71,385 71,385
Total Expenditures - 71,385 71,385
NET CHANGE IN FUND BALANCE $ 60,000 $ (11,385) 135,534 $ 146,919 Fund Balance - Beginning of Year 389,836
FUND BALANCE - END OF YEAR $ 525,370
(128)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
HOUSING SUCCESSOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Lease Revenue $ 6,000 $ 6,000 $ 147 $ (5,853)
Miscellaneous 102,411 102,411 102,411 -
Total Revenues 108,411 108,411 102,558 (5,853)
EXPENDITURES
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$ 108,411 $ 108,411
(129)
19,258 (19,258)
19,258 (19,258)
83,300 $ (25,1112
1,989,498
$ 2,072,798
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, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ $ $ 72,869 $ 72,869
Investment Earnings 803 803
Total Revenues 73,672 73,672
EXPENDITURES
Current:
Public Safety
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$
(130)
86,117
86,117
- $ (86,1171
16,869
72,869
69,248
13,248
803 $ 86,920
18 $ 821
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
CITY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2023
Revenues:
Intergovernmental
Miscellaneous
Total Revenues
Expenditures:
Current:
Community Development
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$
$
(131)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 4,220,000 $ 425,730 $ (3,794,270)
- - 1,191,573 1,191,573
4,220,000 1,617,303 (2,602,697)
1,403 (1,403)
4,220,919 1,230,011 2,990,908
4,220,919 1,231,414 2,989,505
$ (919) 385,889 $ 386,808
(608,236)
$ (222,347)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GAS TAX DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ $ - $ 1,500 $ 1,500
Total Revenues 1,500 1,500
EXPENDITURES
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds From Issuance of Debt
Payment to Escrow for Refunding Debt
404,450
51,450
455,900
404,450
51,450
455,900
(455,900) (455,900)
377,783
23,322
401,105
26,667
28,128
54,795
(399,605) 56,295
Transfers In 404,450 404,450 404,450
Transfers Out - - -
Total Other Financing Sources (Uses) 404,450 404,450 404,450 NET CHANGE IN FUND BALANCE $ (51,450) $ (51,450) 4,845 $ 56,295 Fund Balance - Beginning of Year 78,696
FUND BALANCE - END OF YEAR $ 83,541
(132)
CITY OF PLACENTIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2023
Risk Health and Equipment
Management Welfare Replacement
Total
ASSETS
Current Assets:
Cash and Investments $ 2,538,764 $ - $ 158,713 $ 2,697,477 Receivable:
Accounts 109 - 109
Prepaids - 58,507 58,507
Total Current Assets 2,538,764 58,616 158,713 2,756,093 Total Assets 2,538,764 58,616 158,713 2,756,093
LIABILITIES
Current Liabilities:
Accounts Payable 34,225 1,278 63,965 99,468
Accrued Liabilities 5 5
Due to Other Funds - 38,322 38,322
Accrued Claims and Judgments - Due Within One Year 999,086 - - 999,086 Total Current Liabilities 1,033,316 39,600 63,965 1,136,881 Noncurrent Liabilities:
Accrued Claims and Judgments - Due in More
Than One Year 3,052,258 - - 3,052,258
Total Noncurrent Liabilities 3,052,258 - 3,052,258
Total Liabilities 4,085,574 39,600 63,965 4,189,139
NET POSITION
Unrestricted (1,546,810) 19,016 94,748 (1,433,046)
Total Net Position $ (1,546,810) $ 19,016 $ 94,748 $ (1,433,046) (133)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
Governmental Activities
Risk Health and Equipment
Management Welfare Replacement Total
OPERATING REVENUES
Reimbursements $ 607,730 $ 122,890 $ $ 730,620
Sales and Service Charges 2,261,000 1,014,025 - 3,275,025 Other Revenues 24,000 24,000
Total Operating Revenues 2,868,730 1,136,915 24,000 4,029,645
OPERATING EXPENSES
Administration 89,769 14,282 63,966 168,017
Reinsurance Premiums - 225,378 - 225,378
Claims (1,610) - (1,610)
Medical and Dental Premiums 893,189 - 893,189
Liability Insurance Premiums 1,348,789 4,066 - 1,352,855 Total Operating Expenses 1,436,948 1,136,915 63,966 2,637,829 OPERATING INCOME (LOSS) 1,431,782 (39,966) 1,391,816
NONOPERATING INCOME (LOSS)
Gain on Disposal of Capital Assets - 83,654 83,654
NET INCOME (LOSS) 1,431,782 43,688 1,475,470
TRANSFERS
Transfers In
Transfers Out
Total Transfers
CHANGES IN NET POSITION 1,431,782 - 43,688 1,475,470
Net Position - Beginning of Year (2,978,592) 19,016 51,060 (2,908,516) NET POSITION - END OF YEAR $ (1,546,810) $ 19,016 $ 94,748 $ (1,433,046) (134)
CITY OF PLACENTIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users
Cash Paid to Suppliers for Goods and Services
Cash Paid for Insurance Claims
Net Cash Provided (Used) by Operating Activities
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION
Beginning of Year
End of Year
Risk Health and Equipment
Management Welfare Replacement Total
$ 2,872,767 $ 1,136,806 $ 24,000 $ 4,033,573
(2,435,919) (1,194,471) (12,419) (3,642,809)
1,610 - - 1,610
438,458 (57,665) 11,581 392,374
438,458 (19,343) 95,235 514,350
2,100,306 19,343
63,478 2,183,127
$ 2,538,764 $ $ 158,713 $ 2,697,477
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 1,431,782 $ $ (39,966) $ 1,391,816 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 (109) - 3,928 (Increase) Decrease in Prepaids - (58,507) - (58,507)
Increase (Decrease) in Accounts Payable (33,494) 951 51,547 19,004 Increase (Decrease) in Accrued Liabilities
Increase (Decrease) in Claims Payable (963,867) - - (963,867) Net Cash Provided (Used) by Operating Activities $ 438,458 $ (57,665) $ 11,581 $ 392,374 (135)
FIDUCIARY FUNDS
CUSTODIAL FUNDS
Community Facilities District Fund — to account for the Community Facilities District No. 89-1 (East Placentia). This fund 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.
TOD District CFD Fund — to account for the Community Facilities District 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.
(136)
CITY OF PLACENTIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDS
JUNE 30, 2023
Custodial Funds
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD Total
ASSETS
Cash and Investments $ 49,606 $ 149,128 $ $ 198,734
Miscellaneous Receivables - 688 - 688
Total Assets 49,606 149,816 - 199,422
LIABILITIES
Accounts Payable 756 756
Accrued Liabilities 14 14
Deposits Payable 191 - 191
Total Liabilities 191 14 756 961
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations,
and Other Governments 49,415 149,802 (756) 198,461
Total Net Position (Deficit) $ 49,415 $ 149,802 $ (756) $ 198,461 (137)
CITY OF PLACENTIA
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023
Custodial Funds
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD Total
ADDITIONS
Charges for Services $ - $ 120,186 $ $ 120,186
Investment Income 643 1,286 1,929
Total Additions 643 121,472 122,115
DEDUCTIONS
Administrative Expenses - 756 756
Total Deductions - 756 756
CHANGE IN NET POSITION 643 121,472 (756) 121,359
Net Position - Beginning of Year 48,772 28,330 - 77,102 NET POSITION - END OF YEAR $ 49,415 $ 149,802 $ (756) $ 198,461 (138)
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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. 140
Revenue Capacity — These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 146 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. (139)
150
153
156
CITY OF PLACENTIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:
Net Investment in Capital Assets $ 74,238 $ 66,333 S 66.799 S 67,960 S 67,915 6 72,176 $ 81,106 $ 86,061 $86,045 $ 103,757 Restricted 2,901 7,027 7.681 6,199 5.819 6,090 7,732 21,456 20,175 18,361 Unrestricted (9.273) (34.145) (30.490) (32.780) (52.089) (50,858) (53,352) (68.263) (23,396) (43,543) Total Governmental Activities Net Position S 67.866 $ 39.215 $ 43.990 5 41.379 S 21.645 S 27.408 $ 35.486 S 39.254 S 82.824 S 78.575 Business -Type Activities:
Net Investment in Capital Assets $ 11,760 $ 11,280 S 10.765 S 10.303 5 9,778 $ 9,275 $ 8,748 $ 8,221 $ 7,694 $ 7,166 Unrestricted (680) 1,289 845 1.066 (1,514) (2.055) (2,682) 361 1,842 1,245 Total Business -Type Activities Net Position $ 11.080 5 12.569 $ 11.610 S 11.369 S 8.264 S 7.220 $ 6.066 $ 8.582 $ 9.536 5 8.411 Primary Govemment:
Net Investment in Capital Assets $ 85,998 $ 77,613 $ 77.564 S 78,263 S 77,693 6 81,451 $ 89,854 $ 94,282 $ 93,739 $ 110,923 Restricted 2,901 7,027 7.681 6,199 5,819 6,090 7,732 21,456 20,175 18,361 Unrestricted (9,953) (32,856) (29.645) (31.714) (53,603) (52.913) (56,034) (67,902) (21,554) (42,298) Total Primary Government Net Position S 78.946 $ 51.784 S 55.600 S 52.748 S 29.909 S 34.628 $ 41.552 $ 47.836 $ 92.360 $ 86.986 Source: City of Placentia, Finance Department
(140)
CITY OF PLACENTIA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
PROGRAM REVENUE
Governmental Activities:
Charges for Services:
General Government $ 2,408 $ 2,053 $ 1,956 $ 2,136 $ 2,206 $ 2,356 $ 2,651 $ 2,754 $ 2,812 $ 3,215 Public Safety 1,282 1,469 1,340 1,092 1,078 742 771 567 928 877 Public Works 3,238 854 679 597 670 1,100 776 917 877 811 Community Development 590 277 1,211 1,074 1,251 1,011 1,670 2,014 1,598 1,700 Community Services - - 221 194 314 213 145 148 253 337
Operating Grants 700 1,407 4,744 4,637 4,575 7,709 9,588 6,103 6,499 15,643 Capital Grants and Contributions 1,634 3,216 145 465 4,528 1,117 2,994 8,027 1,850 5,025 Total Governmental Activities Program
Revenues 9,852 9,276 10,296 10,195 14,622 14,248 18,595 20,530 14,817 27,608 Business -Type Activities:
Charges for Services:
Refuse 2,865 2,874 2,890 2,958 3,039 3,148 3,252 3,688 3,732 4,283 Compressed Natural Gas 119 25 - - - - - - -
Sewer Maintenance 884 819 688 722 760 722 723 783 791 1,448 Total Business -Type Activities Program
Revenues 3,868 3,718 3,578 3,680 3,799 3,870 3,975 4,471 4,523 5,731 Total Primary Government Program
Revenues 13,720 12,994 13,874 13,875 18,421 18,118 22,570 25,001 19,340 33,339
EXPENSES
Govemmental Activities:
General Government 9,673 9,248 5,343 10,579 10,046 9,346 11,654 12,850 9,242 19,220 Public Safety 16,915 15,689 18,556 19,188 18,114 20,547 26,139 26,045 (5,341) 39,863 Public Works 5,720 6,644 7,445 7,246 4,328 2,465 4,926 9,846 3,159 11,632 Community Development 1,142 1,845 1,373 1,904 1,068 1,502 1,640 2,893 1,554 2,425 Community Services - 1,263 1,318 1,690 4,401 1,757 2,580 1,685 3,755 Redevelopment - - - - - - - - - -
Interest on Long -Term Debt 667 861 837 783 717 588 475 765 2,591 2,372 Total Governmental Activities 34,117 34,287 34,817 41,018 35,963 38,849 46,591 54,979 12,890 79,267 Business -Type Activities:
Refuse 2,950 2,795 2,555 2,571 3,034 3,164 3,127 3,287 3,421 4,341 Compressed Natural Gas - - - - - - - -
Sewer Maintenance 1,071 1\069 1,418 954 1,943 1,593 1,836 (1,365) 150 2,533 Total Business -Type Activities 4,021 3,864 3,973 3,525 4,977 4,757 4,963 1,922 3,571 6,874 Total Primary Government Expenses 38,138 38,151 38,790 44,543 40.940 43,606 51,554 56,901 16,461 86,141
NET REVENUE (EXPENSE)
Governmental Activities (24,265) (25,011) (24,521) (30,823) (21,341) (24,601) (27,996) (34,449) 1,927 (51,659) Business -Type Activities (153) (146) (395) 155 `1,178) 1887) 1,988) 2,549 952 f 1,143) Total Primary Government Net Expense (24,418) (25,157) (24,916) (30,668) (22,519) (25,488) (28,984) (31,900) 2,879 (2,802) (141)
CITY OF PLACENTIA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
GENERAL REVENUE AND OTHER
CHANGES IN NET POSITION
Govemmental Activities:
Taxes:
Property $ 11,804 $ 12,449 S 13.259 S 13,972 5 14,560 $ 15,478 $ 15,981 $ 16,752 $ 17,191 $ 18,809 Sales and Use 4,512 6,284 6.848 7,020 6,948 8,184 13,141 15,113 17,248 17,530 Utility Users 2,800 2,874 2.750 2.637 2,545 2,461 2,362 2,503 2,689 3,200 Franchise 2,228 2,338 2.332 2.244 2,270 2,340 2,358 2,466 2,651 2,870 Other 1,029 1,177 1.258 1.365 1,316 1,267 1,047 1,022 1,842 2,091 Miscellaneous 1,336 1,451 35 41 125 136 447 280 256 2,544 Investment Income 24 576 34 31 72 227 312 13 (297) 378
Other 708 - - 215 - -
Special tem (2,764) - - - - -
Contribution from successor Agency - - 19 -
Contribution from Custodial Fund - - - 30
Extraordinary Item - (1,035) - - -
Transfers 4 165 646 402 251 268 192 39 -
Total Govemment Activities 24,445 24,550 26.127 27,712 28,087 30,361 36,074 38,218 41,580 47,422 Business -Type Activities:
Investment Income 2 5 7 7 24 34 27 4 2 19
Special Item 2,764 - - - -
Other 75 75 75 - -
Transfers (4) (165) (646) (402) (251) •
(192) (192) (39) - -
Total Business -Type Activities 7 2,679 (564 395 (227), (158) 165 (35) 2 19 Total Primary Government 24,518 27,229 25,563 27,317 27.860 30,203 35.909 38,183 41,582 47,441
CHANGE IN NET POSITION
Governmental Activities 180 (461) 1.606 (3,111) 6,746 5,760 8,078 3,769 43,507 (4,237) Business -Type Activities (80) 2,533 (959) (240) (1,405) (1,045) (1,153) 2,514 954 (1,124) Total Primary Govemment $ 100 $ 2.072 S 647 S (3.351) S 5.341 $ 4.715 $ 6.925 S 6.283 S 44.461 S (5.361), Source: City of Placentia, Finance Department
(142)
CITY OF PLACENTIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund:
Nonspendable $ 3,450 $ 4,104 $ 3,881 $ 3,354 $ 4,955 $ 4,706 $ 3,734 $ 3,347 $ 2,522 $ 1,454 Restricted 439 1,030 1,030 1,024 1,019 571 555 556 2 805 Committed - 119 3,600 3,600 3,400 4,528 5,811 6,434 13,856 4,535 Assigned - 185 286 40 - - - - - -
Unassigned 1,001 2,510 72 56 (1,346) 543 3,866 9,894 7,205 19,919 Total General Fund $ 4,890 $ 7,948 $ 8,869 $ 8.074 $ 8,028 $ 10,348 $ 13,966 $ 20,231 $ 23.585 $ 26,713 All Other Governmental Funds:
Nonspendable $ 84 $ - $ - $ - $ - $ - $ - $ 10 $ 6 $ 5
Restricted 2,930 5,999 6,651 5,175 4,800 5,518 7,177 20,900 20,173 17,555 Assigned - 485 - - - - - - - -
Unrestricted (761) - (368) (531) (1,045) (1,552) (1,406) (2,754) (2,577) Total All Other Governmental Funds
Source: City of Placentia, Finance Department
$ 2.253 $ 6.484 $ 6.651 $ 4.807 $ 4.269 $ 4,473 $ 5.625 $ 19.504 $ 17.425 $ 14.983 (143)
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
REVENUES
Property Tax $ 11,804 S 12,449 $ 13.259 S 13,972 5 14,551 5 15,478 $ 15,981 $ 16,752 $ 17,191 S 18,809 Sales Tax 5,848 6,284 7.257 7.020 6.948 10,646 13,141 15,113 17,248 17,530 Other Tax 6,138 6,316 6,318 6.222 6.043 3,548 5,708 5,993 7,182 8,090 Intergovernmental 3,531 4,033 2.998 3,572 6.487 7,530 8,459 6,700 6,498 16,569 Licenses and Permits 1,618 1,690 1,733 1,572 1.702 1,922 2,454 2,828 2,440 2,644 Fines and Forfeitures 575 733 1,154 1,297 592 613 819 314 503 1,777 Investment Income 210 177 34 32 69 228 307 13 (297) 377 Charges for Services 1,912 2,228 2.216 1.743 2,197 2,003 4,056 9,334 2,267 2,387 Other 2,087 2,424 2,108 1,892 2.151 2,289 2,327 2,536 3,581 5,783 Total Revenues 33,723 36,334 37,077 37.322 40.740 44,257 53,252 59,583 56,613 73,966
EXPENDITURES
Current:
General Government 4,409 6,432 6,571 10.450 8.109 7,889 8,389 10,995 12,105 15,771 Public Safety 16,853 16,500 17,880 18.436 19.156 18,718 23,442 16,938 17,476 19,139 Public Works 5,760 4,246 4,824 5.050 5.951 6,078 5,938 5,049 5,262 6,005 Community Development 1,142 1,824 952 1.858 1.291 1,171 1,693 2,245 2,007 2,165 Community Services - - 1,191 1,292 1.526 4,405 1,793 1,547 2,305 2,623 Capital Outlay 79 2,042 1,262 2,340 2.971 1,047 11,534 6,178 - 22,104 Debt Service:
Principal 723 1,070 1.333 1,654 1.855 2,105 1,177 1,904 3,135 4,760 Payment to Refunding Bond Escrow Agent - - - - 2,440
Interest 577 813 837 783 717 587 475 765 489 2,356
Debt Issuance Costs - - - - - - - 182 -
Total Expenditures 29,543 32,927 34.850 41.863 41,576 42.000 54,441 45,621 45,401 74,923
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 4,180 3,407 2,227 (4,541) (836) 2,257 (1,189) 13,962 11,212 (957)
OTHER FINANCING SOURCES (USES)
Transfers In 6,998 4,939 7.000 8,010 4,778 1,515 1,882 2,849 4,034 6,938 Transfers Out (11,310) (4,552) (6.354) (7,607) (4,527) (1,247) (1,690) (2,811) (4,034) (6,938) Issuance of Debt 251 - 5,766 57,583 2,189 1,643
Other - (2,764) - - (51,441) (2.069)
Total Other Financing Sources (Uses) (4,312) (2,377) 897 403 251 268 5,958 6,180 120 1,643 EXTRAORDINARY ITEMS 1.500
NET CHANGE IN FUND BALANCES
Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures
Source: City of Placentia, Finance Department
$ (132) $ 1.030 $ 3.124 5 (2.638) S (585) $ 2.525 S 4.769 $ 20.142 S 11.332 $ 686
4.62% 6.49%
6.91% 6.57%
(144)
7.14% 7.04%
4.00% 7.26%
10.11% 13.48%
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 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 2023 18,738,855 17,530,357 8,160,127 2,643,941 457,065 - 67,366 1,572,445 8,640,895 1,364,054 1,385,763 60,560,868 • 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 (145)
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
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
2023 7,915,501 738 213,554 8,129,793 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
(146)
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 & 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 0.8357 0.8356
0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035
0.0653 0.0582 0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 0.0485 0.0464
0.0170 0.0170 0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 0.0288 0.0278
1.0858 1.0787 1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 1.0809 1.0777 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
(147)
Taxpayer
310 S Jefferson Street Ground Owner LP
Placentia 422
Villa Angelina Apartment Fund LTD
MG Union Place Apartments LLC
Placentia -Linda Hospital Inc.
HP Bradford Terrace LLC
Sedona-Placentia Owner LLC
NMC Placentia LLC
MG Herald Apartments LLC
Reef Imperial Rose Inc.
Total
Source: HdL Goren Cone
CITY OF PLACENTIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT AND NINE YEARS AGO
(AMOUNTS EXPRESS IN THOUSANDS)
2023
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$ 114,054 $1,141 1.40 %
61,824 618 .76
58,912 589 .72
48,394 484 .60
44,409 444 .55
44,000 440 .54
41,847 418 .51
38,584 386 .47
34,516 345 .42
32,272 323 .40
$ 518,812 $ 5,188 6.38 %
Taxpayer
OC of SD Holdings
Placentia 422
Villa Tierra Apartments LLC
Placentia -Linda Hospital Inc.
Ora Bradford Court 127 LLC
Donahue Schriber Realty Group
Reef Imperial Rose Inc.
Inland Western Placentia LLC
Hartwell Corporation
IIT Orange County DC LP
(148)
Total
2014
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$66,884 $ 669 1.28 %
53,278 533 1.02
35,004 350 .67
30,713 307 .59
26,762 268 .51
25,638 256 .49
24,380 244 .47
23,166 232 .44
20,620 206 .40
16,763 168 .32
$ 323,208 $ 3,232 6.21 %
Fiscal Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Note:
CITY OF PLACENTIA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Taxes Levied
for the
Fiscal Year
$ 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
17,044,617
Collected within the Collections
Fiscal Year of Levy in
Percent Subsequent
Amount of Levy Years
$ 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
16,794,264 98.53 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
(149)
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
Govemmental Activities Activities
Tax Allocation Certificates Leases & Total Percent of Percent of Bonds Loans of Subscriptions Loans Primary Assessed Per Personal Fiscal Year and Notes Payable Participation Payable Payable Government Valuation Capita Income 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 8,657 651 - 65,278 .863 1,275 3.22
2023 53,755 7,549 2,838 - 64,142 .789 1,222 3.04
Source: City of Placentia, Finance Department
(150)
CITY OF PLACENTIA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
JUNE 30, 2023
2020-22 Assessed Valuation
Successor Agency Incremental Valuation
Adjusted Assessed Valuation
Direct Debt:
Placentia 2022 Ref and Improv Cops
Placentia Electric Vehicles Loan Payable
Placentia Public Safety Radio Loan Payable
Placentia Fire Loan Payable #1
Placentia Fire Loan Payable #2
Placentia Melrose Easement
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:
Orange County General Fund Obligations
Orange County Board of Education COP
North Orange County Regional Occupation Program COP
Placentia-Yorba Linda Unified School Disctrict COP
Placentia -Yorba Linda Unified 2002, 2008, 2012 Bond
Metropolitan Water District
N. OC Community College 2002, 2014 Bond
Total Overlapping Debt
Total Direct and Overlapping Debt
$ 8,595,752
464,567
$ 8,131,185
Total Debt
June 30, 2023
$ 1,752,697
124,631
515,597
2,445,454
1,281,976
284,411
714,261
1,144,278
2,651,000
50,390,000
$451,165,000
10,860,000
7,790,000
84,135,000
204,786,502
19,215,000
324, 914, 503
(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
41.39 %
58.61 100.00 %
.75 %
1.07 1.82
(151)
% Applicable
(1)
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
%
City's Share
of Debt
June 30, 2023
$ 1,752,697
124,631
515,597
2,445,454
1,281,976
284,411
714,261
1,144,278
2,651,000
50,390,000
61,304,305
1.122 % $ 5,062,071
1.122 121,849
5.211 405,937
22.402 18,847,923
22.402 45,876,272
.223 42,849
5.066 16,460,169
86,817,070
$ 148,121,375
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
Fiscal
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Note:
Debt
Limit
$ 186,635,310
213,385,760
220,387,742
230, 066, 512
248, 734, 552
261,192, 507
271,595,021
283,280,448
291,210,596
312, 538, 330
Debt
Applicable
to Limit
Legal
Debt
Margin
$ 186,635,310
213, 385, 760
220, 387, 742
230,066,512
248, 734, 552
261,192,507
271,595,021
283, 280, 448
291, 210, 596
312,538,330
$ 8,334,355,475
312,538,330
$ 312,538,330
Debt as
Percentage
of Limit
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
(152)
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
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
2022 52,507 2,109,099 40,167 3.2
Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HdL, Coren Cone
(153)
CITY OF PLACENTIA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
Calendar Year
2013 2014 2015 2012 2016 2017 2018 2019 2020 2021 2022
Apparel Stores $ $ - S - S - S - S - S - S - 5 - 521,114 $21,854 General Merchandise 6,482 6,459 6,635 6,227 6,759 7,178 7,440 7,649 8,208 7,907 7,535 Food Stores 17.541 17,898 18,529 17.718 17,919 17,102 17,530 18,363 20,539 19,152 20,029 Eating and Drinking Places 62,479 66,582 79,730 61,816 84,676 85,373 83.083 87,912 77,897 101,361 105,185 Building Materials 37,884 48,092 38,156 39,460 55,996 60,664 68,803 74,767 69,616 89,608 98,051 Auto Dealers and Supplies 78,924 85,659 105,341 69,200 107,146 104,963 82,789 72,781 71,301 99,240 118,317 Service Stations 80,210 78,562 70,961 83.112 62,495 68,101 74,924 73,200 49,981 72,505 95,585 Other Retail Stores 63,164 64,434 60,419 55,311 70,775 74,578 75,597 76,411 65,702 62,668 64,773 All Other Outlets 197,944 213,510 255.719 192,626 240.166 234,501 245.115 268.067 269,831 278,458 292,479 Total
5544.628 S581.196 5635.490 S525.470 5645.932
S652.460 5655.281 S679.150 5633.075 5752.013 S823.808
Note:
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's sales tax revenue.
The category "Apparel Stores" was added in the FY21/22 ACFR Source: State of California Board of Equalization and The HdL Companies (154)
Department
CITY OF PLACENTIA
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT
LAST TEN FISCAL YEARS
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Clerk 1.00 2.00 2.00 2.00 2.00 - 2.00 2.00 2.00 2.00 Administration 6.00 8.00 7.00 7.00 11.50 9.50 10.50 25.45 26.45 29.65 Finance 7.00 6.00 7.00 7.00 8.00 8.00 8.00 9.00 9.00 9.00 Development Services - - 4.00 4.75 6.50 8.50 8.50 8.55 9.55 11.35 Police 62.00 67.00 69.50 74.50 80.00 76.00 84.00 71.00 72.00 75.00 Fire and Life Safety - - - - - - - 25.00 27.00 28.00
Public Works 19.00 18.00 19.00 20.25 20.75 20.00 22.00 22.00 26.00 28.00 Community Services 4.00 4.00 6.00 6.50 7.25 7.00 7.00 7.00 8.00 9.00 Total
Source: City of Placentia, Finance Department
99.00 105.00 114.50 122.00 136.00 129.00 142.00 170.00 180.00 192.00 (155)
Function/Program
CITY OF PLACENTIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:
Physical Arrests 1.600 1.732 1,373 1,250 1,381 1,282 1,053 1,257 1.400 1,380 Parking Citations 7,147 11,141 12.729 13.161 2,359 7,398 4,646 3,742 2,974 7,585 Traffic Citations 3,330 2.498 2.060 1.824 2,659 7,707 1.601 1,162 509 818 Community Development:
Building Permits 808 1,411 1,472 1.268 1.347 1,263 1,407 1,346 1,425 1,461 Building and Zoning Inspections 97 178 133 128 87 92 126 181 128 435 Public Works:
Feet of Sewer Main Cleaned 401,280 401.280 401,280 249.134 385.510 318,118 396,000 372,246 372,246 372,246 Streetsweeping Miles 21,684 21,684 21.684 21.684 7,955 7,955 8,772 8,772 8,772 8,772 Traffic Signals Maintained 57 57 57 57 61 61 63 63 63 63 Culture and Recreation:
Recreation Classes
Source: City of Placentia, Finance Department
710 787 747 727 645 610 577 387 421 477
(156)
Function/Program
CITY OF PLACENTIA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety:
Police Stations 1 1 1 1 1 1 1 1 1 1
Sworn Officers 46 46 46 46 51 51 46 51 46 48
Patrol Vehicles 26 26 26 26 32 32 33 16 16 17
Fire Stations 2 2 2 2 2 2 2 2 2 2
Highways and Streets:
Miles of Streets 107 107 107 107 107 132 132 132 133 133 Street Trees 9,214 9,214 9,214 9,214 9,139 7,175 7,077 6.929 6,688 6,915 Traffic Signals 229 229 229 229 230 230 230 230 230 230 Street Lights 3,656 3,656 3,656 3,656 3,660 3,660 3,656 3,656 3,656 3,915 Sewer:
Miles of Sanitary Sewers 76 76 76 76 76 76 84 84 84 84
Storm Drains 506 506 506 506 506 506 506 506 531 531
Culture and Recreation:
Parks 16 16 16 16 16 16 15 15 15 15
Area of Parks (Acres) 72.9 72.9 72.9 72.9 72.9 100.9 60.9 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 7 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
Tennis Courts - - - - - 1
Pickleball Courts - - - - - - 4
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
(157)
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