CITY OF PLACENTIA
Measure U Annual
Report
Citizens' Oversight Committee
10/15/2024
The contents of this report represent the best information available as of the date of this document. In some cases the data presented are estimates of future balances, revenues, or expenditures which are subject to restatement in the future after the formal, annual audit of the City of Placentia is completed. 7 Executive Summary
Measure U, which was passed by the voters in November 2018 enacted a 1% Transaction and Use Tax which became effective on April 1, 2019. This report represents the satisfaction of a Measure U legal requirement that the City Council form a Citizens' Oversight Committee consisting of three members responsible for issuing an annual report to the City Council and the citizens of Placentia.
The Placentia City Council placed the additional obligation on the Oversight Committee to report on whether Measure U revenues collected and expended are done so in accordance with the City of Placentia Policy 460. This policy calls for a specific allocation of Measure U funds based upon the level of the City's General Fund Contingency Reserve Balance as compared to a City Council adopted General Fund Contingency Reserve Balance Goal.
Entering Fiscal Year 2023-2024 the General Fund Contingency Reserve Balance exceeded the Council adopted goal. The current Reserve Goal is 25% of the General Fund Operating Expenses.
Given the Reserve Goal was exceeded at the beginning of the fiscal year, consistent with Policy 460, the allocation of Measure U funds received in FY23-24 by category was 50% for infrastructure maintenance, vehicles, and equipment; 10% for post -employment benefits sustainability; 30% for employee recruitment and retention; and 10% toward the General Fund Contingency Reserves.
For the Fiscal Year running from July 1, 2023, through June 30, 2024, using a cash basis of accounting, a total of $8,678,388 was collected in accordance with Measure U. Similarly, using a cash basis of accounting, an unaudited estimated total of $12,176,236 was expended or encumbered. The allocated and expended amounts by category are as follows:
Category
CITY OF PLACENTIA
Measure U Fund Allocation/Expenditure of Funds
Period: 07/01/2023 - 6/30/2024
Allocation Allocation % Expended* Expended % 1
Infrastructure. Vehicles, Equipment $ 4,339,194 50% $ 7,066,447 Post -Employment Benefits $ 867,839 10% $ 1,638,434
Employee recruitment and Retention $ 2,603,516 30% $ 2,603,516 General Fund Contingency Reserve $ 867,839 10% $ 867,839 Total $ 8,678,388 $ 12,176,236
58%
13%
21%
7%
2 8
Infrastructure projects supported during the past fiscal year include continued work toward the completion of a citywide street maintenance plan; rehabilitation of streets and sidewalks; purchase of new and replacement vehicles; maintenance of city buildings and facilities; public safety technology investments; and recreational park improvements.
In closing, the conclusion of the Oversight Committee is that all Measure U revenues received through June 30, 2024, have been properly accounted for and allocated to appropriate uses. In addition, all expenditures have been properly authorized, expended, and reported in accordance with all applicable city policies and practices. 3 9
FISCAL YEAR 2023-2024 MEASURE U ACTIVITIES
Measure U Fund Revenues/Expenditures Report
The table below shows a cash accounting -based summary of Measure U monthly revenues received during FY23-24 as of June 30, 2024. Also shown in the table is the beginning balance in the fund as well as in the allocation subcategories called for in Policy 460. Finally, the unaudited total resources available in Fiscal Year 2023-2024 are shown.
Beginning Balance
lax RPvenuPs*:
7/2023 Tax Disbursement
8/2023 Tax Disbursement
9/2023 Tax Disbursement
10/2023 Tax Disbursement
11/2023 Tax Disbursement
12/2023 Tax Disbursement
01/2024 Tax Disbursement
02/2024 Tax Disbursement
03/2024 Tax Disbursement
04/2024 Tax Disbursement
05/2024 Tax Disbursement
06/2024 Tax Disbursement
FY 2022- 23 Total
Total Resources
CITY OF PLACENTIA
Measure U Fund
Year -to -Date Unaudited Actuals as of 6/30/24
Measure U Budget
4,534,708
Measure U
100%
Infrastructure Emp. Reten. OPEB GF Reserves
50% 30% 10% 10%
4,534,708
3,764,113
770,595
649,951 324,976 194,985 64,995 64,995
700,520 350,260 210,156 70,052 70,052
837,096 418,548 251,129 83,710 83,710
650,821 325,410 195,246 65,082 65,082
653,743 326,871 196,123 65,374 65,374
942,075 471,037 282,622 94,207 94,207
621,063 310,532 186,319 62,106 62,106
595,140 297,570 178,542 59,514 59,514
885,525 442,762 265,657 88,552 88,552
608,931 304,465 182,679 60,893 60,893
737,603 368,801 221,281 73,760 73,760
795,921 397,960 238,776 79,592 79,592
8,707,192 8,678,388 4,339,194 2,603,516 867,839 867,839 13,241,900 I 13,213,096 I 8,103,307 2,603,516 1,638,434 I 867,839 I The following table summarizes the revenues received and beginning balance information to a yearly total. Additionally, the table provides the corresponding cash accounting detail associated with Measure U expenditures in each Policy 460 category.
CITY OF PLACENTIA
Measure U Fund
Year -to -Date Unaudited Actuals as of 6/30/24
Measure U Budget
Beginning Balance
Tax Revenues*:
FY 2022- 23 Total2,603,516 867,839 867,839
Total Resources 1 2,603,516 1,638,434 867,839
Measure U
100%
Infrastructure Emp. Reten. OPEB GF Reserves
50% 30% 10% 10%
Year -to -Date Actuals
4,534,708 4,534,708 3,764,113
8,707,192 8,678,388 4,339,194
3,241,900 13,213,096 8,103,307
770,595
Total fo CIP Expenditures 8,167,886 7,066,447 7,066,447 867,839 Transfers -Out: -
QuarterlytransfertoGF- Employee Retention 2,612,158 2,603,516 2,603,516 Quarterly transfer to GF - Contingency Reserve - 867,839 - 867,839 OPEB 870,719 1,638,434 - 1,638,434
Total Transfers -Out 3,482,877 5,109,789 - 2,603,516 1,638,434 867,839 Total Expenditures & Transfers -Out 11,650,763 I 12,176,236 I 7,066,447 2,603,516 1,638,434 I 867,839 4 10
Summary of Measure U Supported Infrastructure Projects
Measure U supported a wide range of infrastructure projects during Fiscal Year 2023-2024 including the addressing of deferred general maintenance, equipment replacement, rehabilitation of city facilities, and recreational park improvements. A summary table of infrastructure projects supported during Fiscal Year 2023-24 by Measure U is shown below.
Project status is reported as either 1) completed, 2) under construction, 3) deferred, or 4) cancelled. Note that the expenditures reported are estimates of unaudited balances that will be finalized with the completion of the City of Placentia's annual formal audit.
CITY OF PLACENTIA
Measure U Fund
Supported Infrastructure Projects
Year -to -Date Unaudited Actuals as of 6/30/2024
CIP Expenditures: (Including Encumbrances) $nd¢et yl_ Actualq 24101- Crowther Avenue Street Resurfacing Project
24102 -Citywide Sidewalk Repair Program
243301- Old Town Sewer Rehabilitation
791301- FY 2022-23 Roadway Rehab Project
791303 - Bastanchury Rd Landscape Median
791304 - Yorba Unda Blvd Median
791201- FY 2021-22 Roadway Rehab Project
791302 - FY 2022-23 Concrete Repair Project
794201- Storm Drain Master Plan
795211 - Main Street Parking Lot Improvement
795106- Old City Hall Renovation
795208- City Hall Modernization Project
795301- Refurbish Police Chief Admin Conference
795302 - Refurbish PD Jail Booking Area
795303 - Refurbish PO Report Writing Room
795305 - City Hall/PD Interior U ghti ng
795307 - EOC Office Improvement Project
795313 - Whitten Center Flooring Improvement
24501 - Fire Stations Roof Replacement Project
24702 -Gomez Park/Playground Renovation Project
24703 -Tuffree Park Sports Fields Ughts
24704 - Koch Park Sidewalk Replacement Project
797203 - Playground Equipment Replacement
797205 - Replace Park Benches
797305 - Replace Park BBQs
797306- Replace Park Picnic Tables
797307 - Replace Park Trash cans
797311 - Gomez Park Landscape Improvement
797312 - Koch Park Playground Phase 2
797902 - Prqe del Arroyo Verde Project
24802 - PW Ught Duty Truck Replacement (2)
798302 - Fire F250 Truck
799700 - Purchased Assets
796302 - IT Infrastructure Replacement
24601 - Desktop Computer Replacement Program
24602 - City Facilities Server/Network Upgrades
24603 - IT Emergency Repairs
24903 - Maintenance Master Plan/Condition Assessment
796204 - Bitech Finance System Software
799202 - EFID Design
799203 - Hazard Mitigation Plan
Total fo CIP Expenditures
36,000.00
145,550.00
3,003,418.10
97,000.00
23,719.00
308,281.64
119,723.56
3,821.76
46.00 13,637.00
174,500.00
46,098.56
40,000.00
25,000.00
27,415.78
13,637.81
50,000.00
250,000.00
575,107.53
50,000.00
300,000.00
35,139.20
10,000.00
49,500.00
5,897.24
25,000.00
624,892.47
828,060.77
90,000.00
70,648.90
5,000.00
363,614.72
70,000.00
50,000.00
185,000.00
71,000.00
333,268.48
47,907.38
8,167,886
9,865.00
148,500.00
3,009,116.59
13,782.50
175,848.34
119,266.79
2,170.25
13,637.00
48,051.42
27,990.67
9,905.39
11,625.75
249,636.36
445,415.11
291,367.05
35,139.20
10,117.45
42,876.59
5,987.24
299.45
624,892.47
848,556.68
84,767.38
70,648.90
9,834.74
332,256.32
58,366.83
33,012.33
59,228.97
1,560.00
243,172.17
29,552.38
7,066,447
Completed
Completed
Completed
Com. feted
Completed
Completed
Completed
Completed
Completed
Com. feted
Under Construction
Under Construction
Under Construction
Under Construction
Completed
Com.leted
Deferred
Deferred
Under Construction
Under Construction
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Under Construction
Under Construction
Under Construction
Completed
Completed
5 11
Summary of Measure U Supported Employee Recruitment and Retention Activities
In accordance with Policy 460, 30% of Fiscal Year 2023-24 Measure U revenues were allocated and transferred to the General Fund for employee recruitment and retention in the unaudited amount of $2,603,516. This Measure U contribution was applied toward the General Fund's total unaudited employee salary and benefits for Fiscal Year 2023-24 which totaled $29,045,251.
Summary of Measure U Supported Post -Employment Benefits Sustainability Activities
In accordance with Policy 460, 10% of Fiscal Year 2023-2024 Measure U revenues totaling $867,839 were allocated for post -employment benefits sustainability activities. However, a total amount of $1,638,414 Measure U funds were transferred to the General Fund in FY23-
24. This Measure U transfer included not only the current year allocation, but also multiple previous years of Measure U allocations that had accrued in the Measure U fund. The transferred amount was applied to the General Fund's total unaudited post -employment benefits expenses for Fiscal Year 24-25 which was $6,811,546 and represents the direct costs as detailed below:
CITY OF PLACENTIA
General Fund Post Employment Benefit Expenditures
Period: 07/01/2023 - 6/30/2024
Category
CaIPERS Retirement
Retiree Health Benefits
Pension Bond
Total General Fund Post
Employment Benefit Expenditures
Unaudited Amount
$2,015,022
$961,181
$3,835,343
$6,811,546
Accumulation and Use of General Fund Reserves Using Measure U Funds In accordance with Policy 460, 10% of Fiscal Year 2023-24 Measure U funds were allocated and $867.839 was transferred to the General Fund for the purpose of building General Fund Contingency Reserves. The unaudited General Fund Contingency Reserves on June 30, 2024 totaled $11,413,089. This amount exceeded the goal of 25% of the adopted FY24-25 Operating Budget. Therefore, the allocation of Measure U FY 2024-2025 revenues will remain the same as was employed in FY23-24.
6 12
Measure U Annua Report
Citizens' Oversight Committee
October 15, 2024
John Lewis
Glenn Casterline
Robert McKinnell
13 Measure U Oversight of Revenues and
Expenditures
• City Council established City Procedure 460 as the oversight criteria to monitor Measure U revenues and expenditures
— Policy called for the following funds allocation/use during FY2023-2024 • 50% for infrastructure projects
• 10% retirement of unfunded pension and OPEB liabilities • 30% employee retention initiatives
• 10% general fund contingency reserves
CITY OF PLACENTIA
Measure U Fund Allocation/Expenditure of Funds
Period: 07/01/2023 - 6/30/2024
Category Allocation Allocation % Expended* Expended
Infrastructure. Vehicles, Equipment
Post -Employment Benefits
Employee recruitment and Retention
General Fund Contingency Reserve
4,339,194
867,839
2,603,516
867,839
8,678,388
50% $ 7,066,447
10% $ 1,638,434
30% $ 2,603,516
10% $ 867,839
$ 12,176,236
58%
13%
21%
7%
14 Beginning Balance
Tax Revenues*:
7/2023 Tax Disbursement
8/2023 Tax Disbursement
9/2023 Tax Disbursement
10/2023 Tax Disbursement
11/2023 Tax Disbursement
12/2023 Tax Disbursement
01/2024 Tax Disbursement
02/2024 Tax Disbursement
03/2024 Tax Disbursement
04/2024 Tax Disbursement
05/2024 Tax Disbursement
06/2024 Tax Disbursement
FY 2022- 23 Total
Total Resources
FY2023-2024 Measure U Revenues
(Cash Basis Accounting)
CITY OF PLACENTIA
Measure U Fund
Year -to -Date Unaudited Actuals as of 6/30/24
4,534,708
8,707,192
13,241,900
Measure U
100%
IInfrastructur
50%
mp. Reten.
30%
OPEB
0%
GF Reserves
10%
Year -to -Date Actuals
4,534,708 3,764,113
649,951
700,520
837,096
650,821
653,743
942,075
621,063
595,140
885,525
608,931
737,603
795,921
8,678,388
13,213,096 I
324,976 194,985
350,260 210,156
418,548 251,129
325,410 195,246
326,871 196,123
471,037 282,622
310,532 186,319
297,570 178,542
442,762 265,657
304,465 182,679
368,801 221,281
397,960 238,776
4,339,194 2,603,516
8,103,307 2,603,516
770,595
64,995
70,052
83,710
65,082
65,374
94,207
62,106
59,514
88,552
60,893
73,760
79,592
867,839
1,638,434 1
64,995
70,052
83,710
65,082
65,374
94,207
62,106
59,514
88,552
60,893
73,760
79,592
867,839
867,839 I
Historical Measure U Revenues By
Month
1,200,000.00
1,000,000.00
800,000.00
600,000.00
400,000.00
200,000.00
Measure U Revenue
Revenues by Fiscal Year
FY19-20 $ 6,285,721
FY20-21 $ 7,702,915
FY21-22 $ 8,756x568
FY22-23 $ 8r937r889
FY23-244 $ 5r678r388
July November September October November December January February March April May June ,FY23-24 —FY22-23 —0—FY21-22 —111—FY20-21 t FY19-20
FY23-24 Measure U Infrastructure Budget and
Expenditures
CITY OF PLACENTIA
Measure U Fund Infrastructure Budget and Expenditures
Period: 07/01/2023 - 6/30/2024
CIP Expenditures (including Encumbrances)
Street and Sidewalk Maintenance
Building Maintenance
Park Maintenance and Rehabilitation
Vehicle Maintenance and Replacement
Planning/Technology Upgrades
Total for Capital Improvement Programs
Budget
$ 3,737,560
$ 640,289
$ 2,503,597
$ 165,649
$ 1,120,791
$ 8,167,886
Actuals
$ 3,478,549
$ 360,847
$ 2,304,651
$ 165,251
$ 757,149
$ 7,066,447
% Budget
45.8%
7.8%
30.7%
2.0%
13.7%
100%
% Expended
49.2%
5.1%
32.6%
2.3%
10.7%
100%
17 FY23-24 Measure U Expenditures and Commitments
Street and Sidewalk Maintenance
CITY OF PLACENTIA
Measure U Fund
Street and Sidewalk Maintenance
Year -to -Date Unaudited Actuals as of 6/30/2024
CI P Expenditures: (Including Encumbrances)
24101 - Crowther Avenue Street Resurfacing Project
24102 - Citywide Si dews I k Repair P rogra m
243301 - OI d Town Sewer Reha bi I itati on
791301 - FY 2022-23 Roadway Rehab Project
791303 - Bastanchury Rd Landscape Median
791304 - Yorba Linda Blvd Median
791201 - FY 2021-22 Roadway Rehab Project
791302 - FY 2022-23 Concrete Repair Project
794201 - Storm Drain Master Plan
795211 - Main Street Parking Lot Improvement
Total Street/Sidewalk Budget/Expenditures
Budeet Actua Is
36,000.00
145,550.00
3,003,418.10
97,000.00
23,719.00
308,281.64
119,723.56
3,821.76
46.00 IF
9,865.00
148,500.00
3,009,116.59
13,782.50
175,848.34
119,266.79
2,170.25
3,737,560 3,478,549
Status
H
Completed
Completed
Completed
Completed
Deferred
Completed
Completed
Completed
Completed
Completed
FY23-24 Measure U Expenditures and Commitments
Building Maintenance
CITY OF PLACENTIA
Measure U Fund
Building Maintenance
Year -to -Date Unaudited Actuals as of 6/30/2024
CI P Expenditures: (Including Encumbrances)
795106 - Old City Hall Renovation
795208 - City Hall Modernization Project
795301 - Refurbish Police Chief Admin Conference
795302 - Refurbish PD Jail Booking Area
795303 - Refurbish PD Report Writing Room
795305 - City Ha I I/PD Interior Lighting
795307 - EOC Office Improvement Project
795313 - Whitten Center Flooring Improvement
24501 - Fire Stations Roof Replacement Project
Total Building Maintenance Budget/Expenditures
Budget 1
13,637.00
174,500.00
46,098.56
40,000.00
25,000.00
27,415.78
13,637.81
50,000.00
250,000.00
640,289
Actual s
13,637.00
48,051.42
27,990.67
9,905.39
11,625.75
249,636.36
360,847
Status
Com•leted
Deferred
Under Construction
Under Construction
Under Construction
Under Construction
Com.leted
Deferred
Completed
FY23-24 Measure U Expenditures and Commitments
Park Maintenance and Rehabilitation
CITY OF PLACENTIA
Measure U Fund
Park Maintenance and Rehabilitation
Year -to -Date Unaudited Actuals as of 6/30/2024
CI P Expenditures: (Including Encumbrancesi
24702 - Gomez Park/Playground Renovation Project
24703 - Tuffree Park Sports Fields Lights
24704 - Koch Park Sidewalk Replacement Project
797203 - Playground Equipment Replacement
797205 - Replace Park Benches
797305 - Replace Park BBQs
797306 - Replace Park Picnic Tables
797307 - Replace Park Trash cans
797311 - Gomez Park Landscape Improvement
797312 - Koch Park Playground Phase 2
797902 - Prqe del Arroyo Verde Project
Total Park Maintenance and Rehabilitation
BudEet
575,107.53
50,000.00
300,000.00
35,139.20
10,000.00
49,500.00
5,897.24
25,000.00
624,892.47
828,060.77
2,503,597
R
Actual s
445,415.11
291,367.05
35,139.20
10,117.45
42,876.59
5,987.24
299.45
624,892.47
848,556.68
2,304,651
Status
Completed
Deferred
Deferred
Com•leted
Under Construction
Under Construction
Completed
Completed
Completed
Completed
Completed
FY23-24 Measure U Expenditures and Commitments
Vehicle Maintenance/Replacement
CITY OF PLACENTIA
Measure U Fund
Vehicle Maintenance and Replacement
Year -to -Date Unaudited Actuals as of 6/30/2024
CI P Expenditures: (Including Encumbrancesi
24802 - PW Light Duty Truck Replacement (2)
798302 - Fire F250 Truck
799700 - Purchased Assets
Total Vehicle Maintenance/Replacement
Budget Actual s
90,000.00
70,648.90
5,000.00
165,649
Status
84,767.38
70,648.90
9,834.74
165,251
Completed
Completed
Completed
21 FY22-23 Measure U Expenditures and Commitments
Planning and Technology Upgrades
CITY OF PLACENTIA
Measure U Fund
Planning and Technology Upgrades
Year -to -Date Unaudited Actuals as of 6/30/2024
CI P Expenditures: (Including Encumbrances)
796302 - IT Infrastructure Replacement
24601 - Desktop Computer Replacement Program
24602 - City Facilities Server/Network Upgrades
24603 - IT Emergency Repairs
24903 - Maintenance Master Plan/Condition Assessment
796204 - Bitech Finance System Software
799202 - EFID Design
799203 - Hazard Mitigation Plan
Total Planning/Technology Upgrade
Budget
363,614.72
70,000.00
50,000.00
185,000.00
71,000.00
333,268.48
47,907.38
1,120,791
Actual s
332,256.32
58,366.83
33,012.33
59,228.97
1,560.00
243,172.17
29,552.38
757,149
Status
Under Construction
Under Construction
Under Construction
Deferred
Completed
Com •leted
Under Construction
Completed
FY23-24 Measure U Expenditures and Commitments
Employee Recruitment and Retention
• Measure U Employee Retention Expenditures
— $2,603,516 transferred to General Fund
• Provided continued support of market rate
adjustments to pay structure granted in
previous fiscal years
FY23-24 Measure U Expenditures and Commitments
Post Employment Benefits Liability
• Measure U Post Employment Benefits contribution
supported 24% of General Fund OPEB expenses
— $1,638,414 transferred to General Fund
CITY OF PLACENTIA
General Fund Post Employment Benefit Expenditures
Period: 07/01/2023 - 6/30/2024
Category Unaudited Amount
CalPERS Retirement $2,015,022
Retiree Health Benefits $961,181
Pension Bond $3,835,343
Total General Fund Post
$6,811,546
Employment Benefit Expenditures
FY23-24 Measure U Expenditures and Commitments
General Fund Contingency Reserves
• Measure U transferred $867,839 to the General Fund
Contingency Reserves
• As of June 30, 2024, Contingency Reserves exceeded
the 25% goal of the adopted FY24-25 Operating Budget
• FY24-25 Allocation Of Measure U Funds will remain
— 50% for infrastructure projects
— 10% retirement of unfunded pension and OPEB liabilities — 30% employee retention initiatives
— 10% general fund contingency reserves
Concluding Opinion of Measure U
Citizens' Oversight Committee
The conclusion of the Oversight Committee is that all Measure U revenues received through June 30, 2024 have been properly accounted for and allocated to the appropriate uses. In addition, all expenditures have been properly authorized, expended, and reported in accordance with all applicable city procedures and practices.
Near Term Measure U Oversight
Committee Activities
• Continue to develop a Capital Improvement Project Long Range Forecast
— Expand the present Capital Improvement Projects forecast to include a supporting revenue forecast
• Integrate the General Fund Forecast and Capital
Improvement Long Range Forecast
— Will provide a more robust fiscal sustainability assessment • Monitor Contingency Reserve Level
— Reserves are being used to support FY24-25 Operating Budget — Possibility that reserve level could fall below 25% goal changing FY25-26 Measure U allocation amounts
Fiscal Sustainability Assessment Process
1 General Fund Budget
General Fund Characteristics
Non -Discretionary Schedule Timing
Personnel
Utilities
Debt Service
1 General Fund Forecast
Capital Improvement
Budget
Capital Improvement Characteristics
Discretionary Schedule Timing
Infrastructure Maintenance
Infrastructure Improvement
r
Capital Improvement
Forecast
Ak
Discretionary Fiscal
Reserves
General Fund Budget Surplus
Measure U
Sustainability is confirmed when balanced forecasts address all identified service needs over the long term while maintaining desired level of fiscal reserves to meet unanticipated circumstances
28