3.A ACFR AND SINGLE AUDIT FEDERAL GRANTS ENDING JUNE 30, 2024 — Placentia City Council, April 15, 2025 (part 1 of 2)

Agenda Item No: 3.a

PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: April 15, 2025
Submitted by: Jennifer Lampman
From: Finance
Subject:

Annual Comprehensive Financial Report and Single Audit of Federally Assisted Grant Programs for the Period Ending June 30, 2024
Financial Impact:

Fiscal Impact:

No fiscal impact.

Summary:

The annual audit of the City’s financial records has been completed by the City’s audit firm, Clifton Allen Larson (CLA). Part of the audit contract includes working with Staff to complete the Annual Comprehensive Financial Report (“ACFR”) and the Single Audit of Federally Assisted Grant Programs (Single Audit). The ACFR and the Single Audit were reviewed by the Financial Audit Oversight Committee (“FAOC”) on April 7, 2025. The FAOC approved the report and recommended for the City Council to receive and file without any material modifications.

Recommendation:

Recommended Action: It is recommended that the City Council take the following actions to:

1. Receive and file the Annual Comprehensive Financial Report for the period ending June 30, 2024, as recommended by the Financial Audit Oversight Committee; and

2. Receive and file the Single Audit of Federally Assisted Grant Programs for the period ending June 30, 2024, as recommended by the Financial Audit Oversight Committee.

Strategic Plan Statement:

This action is not related to any Strategic Plan goal or objective.

Discussion:

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

1 Also included in the report is the Independent Auditors’ Report. In the opinion of the auditors (CLA), the financial statements are presented fairly in all material respects. The audit of the City’s financial records was completed in accordance with generally accepted auditing standards applicable to financial audits contained in Government Audit Standards issued by the Government Accountability Office. The City received a “clean” or unmodified opinion for the audit this year with one material weakness noted. The weakness identified were misstatements that if not corrected, would cause the City’s financial statements to be materially misstated. The misstatements included moving some capital projects from “construction in progress” into a non-depreciating “capital assets” category instead of depreciating asset category and inadvertently including the employee share of CalPERS for pension related deferred inflow of resources when it should have just been the employer paid portion. All misstatements were corrected, and Finance has updated its year-end checklist to ensure these misstatements will not be repeated.

In addition to the ACFR, the auditors also prepared the Single Audit of Federally Assisted Grant Programs (Single Audit) after auditing the City’s federally funded programs such as Community Development Block Grants (CDBG) and Coronavirus State and Local Fiscal Recovery funds. The auditors gave the City a clean, unmodified opinion for the Single Audit as well with no findings.

The ACFR and the Single Audit were presented to the Financial Audit Oversight Committee at its meeting on April 7, 2025, at which time the report was approved and recommended for the City Council to receive and file.

Fiscal Impact Summary:

There is no fiscal impact to the recommended action.

Attachments
City of Placentia Results Presentation FY 2024.pptx
FY 24 City of Placentia ACFR.pdf
FY23-24 Single Audit.pdf
FY 24 Final Signed Governance Communication.pdf
FY 24 Signed Internal Control Communication.pdf
2 ©2024 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

Audit Exit Presentation
Year ended June 30, 2024
CityofPlacentia,California
1 3

©2024 CliftonLarsonAllen LLP
Agenda
•Audit Scope
•Audit Process
•Audit Opinions and Results
•Governance Communications
•ACFR Highlights
o Government-Wide
o General Fund
•Upcoming GASB Standards
4 ©2024 CliftonLarsonAllen LLP
Audit Scope
Report on the
City’s financial
statements
Required
governance
communications
letter
Report on internal
control over
financial reporting
and on compliance
and other matters
Report on
compliance for each
major federal
program, report on
internal control over
compliance, and
report on the
schedule of
expenditures of
federal awards
5 ©2024 CliftonLarsonAllen LLP
Audit Process
4 Override of internal
controls Revenue recognition
Significant estimates

RISK-BASED APPROACH
6 ©2024 CliftonLarsonAllen LLP
Financial statement
One material weakness noted –
Financial Close and Reporting
No significant deficiencies noted
Federal awards
No material weaknesses noted
No significant deficiencies noted
Financial statements
Unmodified opinions
Federal awards
Unmodified opinion on
compliance

AUDIT OPINIONS AUDIT RESULTS
5 7

©2024 CliftonLarsonAllen LLP
Governance Communications
Most Sensitive Estimates
•OPEB liability and related deferred
outflows/inflows of resources (Note 9)
•Claims payable (Note 10)
Other
•Uncorrected misstatements -Immaterial - 4
•Corrected misstatements -Material - 5;
Immaterial - 1
•Material weakness in internal control over
financial reporting – Financial close and
reporting
Overall
•Accounting policy change – GASB 100
•Audit standards change – SAS 143-145
•No unusual transactions identified
•Received management representation
letter dated February 28, 2025
Difficulties
•None encountered
•No disagreements
•No consultations with other
accountants identified
8 ©2024 CliftonLarsonAllen LLP
What changed
Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections –An
Amendment to GASB Statement No. 62
Effective for reporting periods beginning after June 15, 2023 New requirements
Enhanced accounting and financial reporting for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

Impact
More time evaluating accounting changes and error corrections More changes to the financial statement presentation and note disclosures

NEW ACCOUNTING CHANGES
Governance Communications
9 ©2024 CliftonLarsonAllen LLP
•Uncorrected misstatements:
o Interest receivable on Veterans Village promissory notes has not been recorded. As a result, interest receivable and an offsetting deferred inflow of resources – unavailable revenue are both understated by $110,727. (City Wide Developer Impact Fund and Housing Successor Special Revenue Fund) o Interest income overstatement of $116,296. (General Fund) o Understatement of revenue and overstatement of unavailable revenue for $22,381 for a receivable collected within the City’s availability period (Opioid Settlement Fund). o Understatement of beginning net position of $51,172 for a vehicle purchase that was expensed in the prior year that should have been capitalized (Equipment Replacement Fund).

Governance Communications
8 10

©2024 CliftonLarsonAllen LLP
•Corrected misstatements:
o Material:
Pension related deferred inflow of resources for government wide governmental activities was adjusted for an overstatement of approximately $1,467,000. Approximately $6,150,000 of completed capital projects were moved from construction in progress to various capital assets being depreciated categories. Cash and accounts payable were adjusted by approximately $461,000 to correct an overstatement in each account balance. The net OPEB liability for the refuse fund was adjusted for an overstatement of approximately $419,000. Other financing sources and capital outlay for the general fund were adjusted to correct an understatement in each account balance of approximately $1,299,000. o Immaterial:
Long-term debt for government wide governmental activities was adjusted for an overstatement of approximately $62,000.

Governance Communications
9 11

©2024 CliftonLarsonAllen LLP
FY 23-24 ACFR Highlights
•Government-wide Financial Statements
o Government-wide net position was $88,565,622, an increase of $1,579,099 from the prior year.
o Capital Assets Increased by $22.3 million
o Total Liabilities Increased by $6.0 million
o Net Pension Liability Increased by $3.7 million
o Net OPEB Liability Decreased by $4.3 million
o Unearned Revenues Decreased by $1.4 million
•General Fund
o Ending fund balance was $18,371,773, a decrease of $8,340,983 from the prior year
10 12

©2024 CliftonLarsonAllen LLP
ACFR Highlights -General Fund Revenues
FY 2023
Actual
FY 2024
Actual
YTD
FY 2024
Budget
FY 2024
Actual to
Budget %
Taxes $44,429,339 $45,847,060 $45,274,180 101%
Intergovernmental 8,640,895 2,717,309 4,380,950 62%
Licenses and Permits 2,643,941 2,535,885 2,851,000 89%
Fines and Forfeitures 457,065 548,960 465,000 118%
Investment Income 67,366 1,175,860 600,000 196%
Charges for Services 1,364,054 1,441,304 1,350,500 107% Leases and Rents 1,572,445 1,677,641 1,061,000 158%
Miscellaneous 1,385,763 1,125,980 805,500 140%
Total $60,560,868 $57,069,999 $56,788,130 100%
11 13

©2024 CliftonLarsonAllen LLP
ACFR Highlights -General Fund Expenditures and Other Financing Sources (Uses) FY 2023
Actual
FY 2024
Actual
YTD
FY 2024
Budget
FY 2024
Actual to
Budget %
General Government $15,748,766 $15,336,829 $15,560,790 99% Public Safety 16,357,168 18,491,792 19,044,953 97%
Public Works 4,100,553 5,350,268 4,956,521 108%
Community Development 1,718,087 1,809,970 1,824,507 99% Community Services 2,617,825 3,431,853 3,339,704 103%
Capital Outlay 14,475,128 22,021,540 29,992,467 73%
Debt Service 2,690,838 2,598,299 1,671,000 155%
Total Expenditures 57,708,365 69,040,551 76,396,142 90% Net Debt Proceeds 1,588,047 2,017,510 -
Net Transfers (1,312,274)1,612,059 (5,522,409)(29)%
Net Change in Fund Balance $3,128,276 $3,629,569 $(25,130,421) 12 14

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

Upcoming GASB Standards
13 15

©2024 CliftonLarsonAllen LLP©2025 CliftonLarsonAllen LLP Examples include
•Sick leave not paid
at termination
•Parental leave
•Military leave and jury duty
that has commenced
Text
GASB 101 Compensated
Absences
14 Effective date
December 31, 2024
Updated framework
•Revaluate leave policies
•Liability must include any
accumulated leave that is
unused or used but unpaid
•Footnote disclosures will
be enhanced
CLA can help by
evaluating the standard
related to compensated
absences and assisting with
or evaluating in financial
statement disclosures
16 ©2024 CliftonLarsonAllen LLP©2025 CliftonLarsonAllen LLP Text
GASB 102 Certain Risk
Disclosures
15 Effective date
June 30, 2025
Increased footnote disclosures surrounding risk:
•Limitations on raising revenues
•Concentrations related to tax revenue or vendors
•Debt or mandated spending — especially unfunded mandates •Impact of major employer leaving the community
•Collective bargaining agreements
CLA can help by
assisting with or
evaluating financial
statement
disclosure updates
17 ©2024 CliftonLarsonAllen LLP©2025 CliftonLarsonAllen LLP CLA can help by
assisting with or
evaluating financial
statement
disclosure updates
Text
GASB 103 Financial
Reporting Module
16 Effective date
June 30, 2026
Impacts financial statement presentation
Updated disclosure guidance for:
•MD&A consistency
•Clearer definition of unusual or infrequent items
•Presentation of proprietary fund statements
•Major component unit information
•Budgetary comparison information
18 ©2024 CliftonLarsonAllen LLP©2025 CliftonLarsonAllen LLP Text
GASB 104 – Disclosure of Certain
Capital Assets
17 Likely effective date
June 30, 2026
Will clarify how
capital assets are
disclosed in financials:
•Capital assets held for sale
and related pledged debt
•Leased assets
•Subscription assets
•Right to use PPP assets
•Other intangible assets
CLA can help by
assisting with or evaluating
financial statement
disclosure updates
19 ©2025 CliftonLarsonAllen LLP
Questions and Feedback
We appreciate the opportunity to serve you
and welcome any feedback relative to our
performance and to the engagement.
20 21

CITY OF PLACENTIA

PLACENTIA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

YEAR ENDED JUNE 30, 2024

PREPARED BY THE FINANCE DEPARTMENT

OF THE CITY OF PLACENTIA

22 This page intentionally left blank

23 CITY OF PLACENTIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
CITYWIDE ORGANIZATION CHART vii
PRINCIPAL OFFICIALS viii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 5

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 19
STATEMENT OF ACTIVITIES 21

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUND FINANCIAL STATEMENTS
BALANCE SHEET 23

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION 24

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 25

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES 26

PROPRIETARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 27

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 28
STATEMENT OF CASH FLOWS 29
24 CITY OF PLACENTIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY NET POSITION 31
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 32
NOTES TO BASIC FINANCIAL STATEMENTS 33

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 91
BUDGETARY COMPARISON SCHEDULE – CITYWIDE DEVELOPMENT
IMPACT FEE SPECIAL REVENUE FUND 92
BUDGETARY COMPARISON SCHEDULE – PLACENTIA REGIONAL
NAVIGATION CENTER SPECIAL REVENUE FUND 93
NOTES TO BUDGETARY COMPARISON SCHEDULES 94
SCHEDULES OF THE CITY’S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITIES AND RELATED RATIOS 95
SCHEDULES OF CITY’S PENSION CONTRIBUTIONS 97

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED
RATIOS 99
SCHEDULE OF CITY’S OPEB CONTRIBUTIONS 100

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – DEBT SERVICE FUND (MAJOR
FUND) 101

SUPPLEMENTARY INFORMATION

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 106

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 111
25 CITY OF PLACENTIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

SCHEDULES OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 116
STREET LIGHTING SPECIAL REVENUE FUND 117
MEASURE M SPECIAL REVENUE FUND 118
THOROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND 119
ASSET SEIZURE SPECIAL REVENUE FUND 120
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 121
AIR QUALITY SPECIAL REVENUE FUND 122
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND 123 HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND 124 GASOLINE TAX SPECIAL REVENUE FUND 125
PEG REVENUE FUND 126
SB1 RMRA GAS TAX SPECIAL REVENUE FUND 127

NORTH ORANGE COUNTY (NOC) PUBLIC SAFETY GRANT SPECIAL
REVENUE FUND 128
TOD IMPACT FEE SPECIAL REVENUE FUND 129
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND 130
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND 131
CAL RECYCLE GRANT SPECIAL REVENUE FUND 132
EFID SPECIAL REVENUE FUND 133
CITY CAPITAL PROJECTS FUND 134
GAS TAX DEBT SERVICE FUND 135

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 136

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 137
26 CITY OF PLACENTIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

COMBINING STATEMENT OF CASH FLOWS 138
FIDUCIARY FUNDS – CUSTODIAL FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES 140
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION 141

STATISTICAL SECTION
NET POSITION BY COMPONENT 145
CHANGES IN NET POSITION 146
FUND BALANCES OF GOVERNMENTAL FUNDS 148
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 149
REVENUES BY SOURCE – GENERAL FUND 150
ASSESSED VALUE OF TAXABLE PROPERTY 151
DIRECT AND OVERLAPPING PROPERTY TAX RATES 152
PRINCIPAL PROPERTY TAX PAYERS 153
PROPERTY TAX LEVIES AND COLLECTIONS 154
RATIO OF OUTSTANDING DEBT BY TYPE 155
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT 156
LEGAL DEBT MARGIN INFORMATION 157
DEMOGRAPHIC AND ECONOMIC STATISTICS 158
TAXABLE SALES BY CATEGORY 159
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT 160
OPERATING INDICATORS BY FUNCTION 161
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM 162

27 City Clerk:

ROBERT S. MCKINNELL
City Treasurer
KEVIN A. LARSON
Interim City Administrator

THOMAS HATCH
The People are the City
401 East Chapman Avenue – Placentia, California 92870
Mayor

KEVIN KIRWIN
Mayor Pro Tem
CHAD P. WANKE
Councilmembers:

JEREMY B. YAMAGUCHI
WARD L. SMITH

THOMAS HUMMER

February 28, 2025
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, 2024. 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, 2024, 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, 2024, 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 28 (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 presentation to 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.

29 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 $18.4 million on June 30, 2024, the unassigned fund balance was approximately $14.8 million, a $5.1 million decrease from June 30, 2023. A relatively large portion of the current unrestricted fund balance is committed for the City's capital projects which includes street projects and for the continued construction of the public safety building.

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 in FY 2021-22. 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 2024-25.

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, exclusive of sales tax, for FY 2023-24 generally slightly exceeded budget and are expected to meet budgeted amounts for FY 2024-25. Sales tax receipts were lower than originally budgeted due to the closure of several sales tax producing retail outlets, and the FY 2024-25 budget reflects these losses and/or any delays in leasing those spaces.

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 CalPERS unfunded actuarial liability (UAL) for the miscellaneous and safety plans. Upon issuance of the bonds, the City paid approximately $43.8 million to CalPERS for deposit to the CalPERS payment fund.

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. Due to CalPERS rates of returns in FY 2022-23 being lower than their assumed discount rate of 6.8%, the City faced an unfunded actuarial liability 30 (UAL) in FY 2023-24 of approximately $446,000 in addition to the debt service relating to the lease revenue bonds.

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 ("Tl") 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 50% 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 proposed Metrolink Station, Placentia Old Town area, and the Transit-Oriented Development District near the 57 and 91 freeways. With this unique City-County partnership, the City will be able to produce over 1,600 new units of housing, create 3,900 construction jobs, and over 1,100 permanent jobs at full build- out.

Transit-Oriented Development: The City has been given a unique opportunity with the future 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 housing, office, retail, and/or other amenities integrated into a walkable neighborhood and 31 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 at a future, unknown date, 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 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). 32 SC Placentia Development has partnered with Shea Homes to construct 54 homes. As of June 30 2024 phases 1-5 have been completed. It is anticipated that construction for the commercial portion of the project to commence in 2025.

JPI Luxury Apartments is the second development in the City's Transit-Oriented Development {TOD) Zone. 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 features 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, 2024 construction is complete and leasing of apartments is ongoing with many residents already residing in the property, and leasing of 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, 2024 construction of most of the buildings is complete, including the model homes. Home sales are underway for the remaining buildings.

Buy Local Incentive Programs
Residential Vehicle Rebate Program: Placentia residents purchasing or leasing a new vehicle from Fairway Ford or Audi North OC are eligible to receive a $500 rebate with proof of residency as part of the Buy Local Incentive Program. The Resident Vehicle Rebate Program will expire on April 30, 2025.

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

Respectfully submitted,
Jen'h ifer Lampman
Director of Finance
~l,1/14
Thomas Hatch
Interim City Administrator
33 CITYWIDE ORGANIZATION CHART
Citizens
City Treasurer City Council
City Administrator
Deputy CA
Support Svcs, Policy &
Emergency Services
Administration
Human
Resources/IT
Finance
Emergency
Services
Deputy CA
Public Services, Fire &
Infrastructure
Fire
CIP/Engineering
Development
Services
Public Works
Community
Services
Legislative Affairs &
Economic
Development
Public Relations &
Marketing
City Attorney Commissions/
Committees
City Clerk
vii 34

CITY OF PLACENTIA

PRINCIPAL OFFICIALS
JUNE 30, 2024
viii

CITY COUNCIL
Kevin Kirwin Mayor
Chad P. Wanke Mayor Pro Tempore
Thomas Hummer Councilmember
Ward L. Smith Councilmember
Jeremy B. Yamaguchi Councilmember

CITY OFFICIALS
Robert S. McKinnell City Clerk
Kevin A. Larson City Treasurer
Thomas Hatch Interim City Administrator
Christian L. Bettenhausen City Attorney
Jennifer Lampman Director of Finance
Rosanna Ramirez Director of Administrative Services
Lydie Gutfeld Director of Community Services
Joseph M. Lambert Director of Development Services
Chris Tanio Director of Public Works
Brad Butts Police Chief
Jason Dobine Fire Chief
35 This page intentionally left blank
36 FINANCIAL SECTION
37 This page intentionally left blank
38 (1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Placentia
Placentia, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Placentia (the City), as of and for the year ended June 30, 2024, 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, 2024, 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.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
39 Honorable Mayor and Members of the City Council
City of Placentia
(2)
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.
40 Honorable Mayor and Members of the City Council
City of Placentia
(3)
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. 41 Honorable Mayor and Members of the City Council
City of Placentia
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
February 28, 2025
42 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(5)
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, 2024. 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 $88.6 million on June 30, 2024. 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, 2024, was approximately $74.2 million and from business-type activities, $14.4 million. The City’s overall net position increased by approximately $1.6 million during the fiscal year, compared to the net position on June 30, 2023. The net position from governmental activities decreased by $4.4 million while the net position from business-type activities increased by approximately $6 million. Governmental activities net position decreased primarily due to an increase in debt service for new Motorola equipment and the 2023 Lease Revenue Bond used to finance the construction of the new Public Safety building. Business-type activities net position increased primarily due to a General Fund contribution to the Sewer Fund of $5.9 million related to Old Town sewer rehab and TOD/Crowther sewer projects.

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. 43 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(6)
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 long-term impact of the City’s financing decisions. To assist in this comparison, reconciliations between the governmental fund statements and the government-wide financial statements are included with the governmental fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances.
44 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(7)
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. 45 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024

(8)

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Statement of Net Position

2024 2023 2024 2023 2024 2023
Assets:

Cash and Investments 34,155,584$ $38,182,514 2,719,521$ $1,778,578 36,875,105$ 39,961,092$ Other Assets 37,938,186 42,866,148 212,976 214,152 38,151,162 43,080,300 Capital Assets 135,430,593 118,450,405 12,470,619 7,166,223 147,901,212 125,616,628 Total Assets 207,524,363 199,499,067 15,403,116 9,158,953 222,927,479 208,658,020 Deferred Outflows of
Resources 13,060,378 18,139,862 391,435 678,259 13,451,813 18,818,121 Liabilities
Current Liabilities 16,004,625 15,401,307 462,236 393,716 16,466,861 15,795,023 Long-Term Liabilities 92,362,502 86,871,991 580,755 680,187 92,943,257 87,552,178 Total Liabilities 108,367,127 102,273,298 1,042,991 1,073,903 109,410,118 103,347,201 Deferred Inflows of
Resources 38,017,644 36,790,463 385,908 351,954 38,403,552 37,142,417 Net Position
Net Investment in Capital Assets 114,776,612 103,757,453 12,470,619 7,166,223 127,247,231 110,923,676 Restricted 21,767,364 18,360,789 - - 21,767,364 18,360,789 Unrestricted (62,344,006) (43,543,074) 1,895,033 1,245,132 (60,448,973) (42,297,942) Total Net Position 74,199,970$ 78,575,168$ 14,365,652$ 8,411,355$ 88,565,622$ 86,986,523$ Governmental Activities Business-Type Activities Total

The City's net position provides a valuable indicator of its overall financial health. As of June 30, 2024, the City's combined net position—encompassing both governmental and business-type activities— stood at $88.6 million, marking an increase of $1.6 million from the previous year.

Net position is categorized into three segments: net investment in capital assets, restricted, and unrestricted. The largest portion, representing approximately $127.2 million as of June 30, 2024, reflects the City's investment in capital assets, which include land, buildings, machinery, equipment, and infrastructure. These assets are essential for providing services to the public, but they cannot be used to fund the City's operational activities.

Restricted net position totaled $21.8 million as of June 30, 2024, showing a $3.4 million increase primarily due to an increase in debt service obligations. These restricted resources are subject to external limitations on their use.

The remaining unrestricted net position, however, stood at a negative $60.4 million. The negative unrestricted net position indicates that the City has more liabilities than available resources to cover day-to-day operations. This could lead to liquidity issues as the City lacks sufficient flexible funds to manage unexpected costs without depending on restricted funds or taking on additional debt. 46 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(9)
Change in Net Position
The following is a summary of activities for the years ended June 30, 2024 and 2023:

Change in Net Position
2024 2023 2024 2023 2024 2023
Revenues:

Program Revenues:

Charges for Services 7,072,927$ $6,940,710 6,324,092$ $5,731,079 13,397,019$ 12,671,789$ Operating Contributions and
Grants 9,936,713 15,642,625 - - 9,936,713 15,642,625 Capital Contributions and
Grants 1,938,279 5,024,953 - - 1,938,279 5,024,953 General Revenues:

Taxes 45,901,213 44,499,687 - - 45,901,213 44,499,687 Investment Income 1,900,697 377,738 44,933 18,644 1,945,630 396,382 Miscellaneous 281,897 2,544,611 - - 281,897 2,544,611 Total Revenues 67,031,726 75,030,324 6,369,025 5,749,723 73,400,751 80,780,047 Expenses:

General Government 17,490,713 19,220,385 - - 17,490,713 19,220,385 Public Safety 27,470,712 39,862,578 - - 27,470,712 39,862,578 Public Works 10,729,394 11,631,983 - - 10,729,394 11,631,983 Community Development 2,563,283 2,425,348 - - 2,563,283 2,425,348 Community Services 4,253,514 3,755,053 - - 4,253,514 3,755,053 Interest 2,959,601 2,372,525 - - 2,959,601 2,372,525 Refuse - - 4,887,578 4,340,551 4,887,578 4,340,551 Sewer Maintenance - - 1,466,857 2,533,043 1,466,857 2,533,043 Total Expenses 65,467,217 79,267,872 6,354,435 6,873,594 71,821,652 86,141,466 Change in Net Position
Before Transfers 1,564,509 (4,237,548) 14,590 (1,123,871) 1,579,099 (5,361,419) Transfers (5,939,707) - 5,939,707 - - -
Change in Net Position (4,375,198) (4,237,548) 5,954,297 (1,123,871) 1,579,099 (5,361,419) Net Position - Beginning of Year 78,575,168 82,812,716 8,411,355 9,535,226 86,986,523 92,347,942 Net Position - End of Year 74,199,970$ 78,575,168$ 14,365,652$ 8,411,355$ 88,565,622$ 86,986,523$ Governmental Activities Business-Type Activities Total
47 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(10)
The following is a summary of activities for the years ending June 30, 2024, and 2023:

Governmental Activities:

Overall, governmental activities led to a decrease in the City’s net position by $4.4 million. Several factors contributed to this decline, including a reduction in operating and capital grants, as well as a significant 89% decrease in miscellaneous revenues.

Revenues:

Total revenue from governmental activities for the year amounted to $67 million. Although there were variations across different revenue categories, the overall decrease was $7.3 million, or 9.14%, compared to the previous year.

The following chart illustrates the percentage breakdown of revenue generated by governmental activities:

As shown in the chart, tax revenue constitutes the largest portion of the City’s revenue from governmental activities. This fiscal year, tax revenue saw an increase of $1.4 million, or 3.2%. Of this increase, property taxes accounted for $1.9 million, driven by growth in current year-secured property taxes, property tax VLF, pass-through property taxes, residual property taxes, and various miscellaneous property taxes.

Capital Contributions and Grants saw a decrease of $3.1 million, primarily due to a significant reduction in development impact fees and a decrease in reimbursements from CalTrans. 48 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(11)
Investment income, on the other hand, surged by approximately $1.5 million, or 403%, compared to the previous fiscal year. This increase is largely attributed to a reversal in the market value adjustment of investments in Time Value Investments (TVI). These revenue increases helped offset declines in sales taxes, intergovernmental revenues, licenses and permits, and fines and forfeitures.

Expenses
Total expenses from governmental activities amounted to approximately $65.5 million, reflecting a decrease of $13.8 million, or 17.4%, compared to the prior year. A significant portion of this decrease can be attributed to a much lower pension expense.

The following chart illustrates the percentage breakdown of expenses related to governmental activities:
49 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(12)
Business-Type Activities:
2024 2023
Operating Revenues 6,324,092$ $5,731,079
Operating Expenses 6,354,435 6,873,594
Operating Income (Loss)(30,343) (1,142,515)
Nonoperating Income 44,933 18,644
Income Before Capital Contributions 14,590 (1,123,871) Capital Contributions 5,939,707 -
Change in Net Position 5,954,297$ (1,123,871)$
The business-type activities encompass the City’s refuse and sewer system operations. Total operating revenues for these activities amounted to approximately $6.3 million, while operating expenses were $6.4 million, resulting in a net operating deficit of approximately $30,000.

Refuse
The City of Placentia contracts with Republic Services to provide weekly waste collection services for residential, multi-family, and commercial properties. In fiscal year 2023-24, the refuse operation experienced an operating deficit of $74,698, representing an increase of $17,000 compared to the previous year. While operating revenues grew by 12.4%, this was offset by a 12.6% increase in operating expenses. The rise in expenses was primarily driven by higher disposal costs, which resulted from an increase in the number of residential units serviced.

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.

In fiscal year 2023-24, the sewer system operation generated income of $44,355, a significant improvement compared to a loss of $1.1 million in the previous year. While there was minimal change in operating revenues, expenses related to a GASB 68 pension adjustment decreased between 2023 and 2024, allowing the sewer fund to recognize income in 2024. Additionally, the sewer fund received a $5.9 million contribution from the General Fund for the construction of a TOD sewer line that was paid for using ARPA funds. The ARPA funds were initially deposited in the General Fund but transferred to the Sewer Fund after completion of the project to better account for accounting of sewer line work in the appropriate fund.
50 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(13)
FINANCIAL ANALYSIS OF THE CITY’S MAJOR FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is valuable in assessing the City’s financing needs.

In particular, the assigned and unassigned fund balances serve as key indicators of the government’s net resources available for spending at the end of the fiscal year. The unassigned fund balance represents the portion of the fund balance that has not been committed for a specific purpose by an external party, the City Council, or anyone authorized to allocate resources. As of the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $33.5 million, reflecting a decrease of $8.2 million compared to the prior year.

The total fund balance includes $898,953 in non-spendable fund balance, which consists of long-term loans receivable, inventories of supplies, prepaid expenditures, and prepaid items. These resources cannot be used to finance operating expenditures.

The restricted fund balance of $20.8 million represents resources that can only be spent for specific purposes due to constraints imposed either (1) externally by creditors (such as debt covenants), grantors, or laws and regulations of other governments, or (2) by law through constitutional provisions or enabling legislation. This reflects an approximate increase of $2.4 million compared to the previous year, primarily due to an increase in cash held with a fiscal agent within the Public Financing Authority, resulting from the issuance of the 2023 Lease Revenue Bonds. 51 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024

(14)
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, 2024, the City has committed $1.04 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 them for specific purposes. As of June 30, 2024, the City had no assigned fund balance.

Unassigned fund balance represents the portion of the fund balance that does not fall into any of the other four fund balance categories and has no specific spending limitations. As of June 30, 2024, the unassigned fund balance for all governmental funds combined is $10.8 million. This includes $14.8 million in unassigned fund balance in the General Fund, offset by combined unassigned deficits totaling $4 million across several funds, including the Navigation Center Fund, Miscellaneous Grants Fund, LMD 92-1 Fund, Housing and Community Development Fund, Gasoline Tax Fund, Sewer Construction Fund, City Capital Projects Fund, and the Sewer Construction Fund.

The governmental fund deficits were primarily due to unearned revenues, expenditures incurred in advance of reimbursements that were unavailable or not received by fiscal year-end, and negative fund balances carried over from the previous year, which were offset by positive net changes throughout the current fiscal year.

General Fund:

The General Fund is the primary operating fund of the City. As of June 30, 2024, the total fund balance of the General Fund was $18.4 million, compared to $26.7 million on June 30, 2023, reflecting a decrease of $8.3 million. This change was primarily due to an increase in expenses.

Revenue

Expenditures

General Fund expenditures as of June 30, 2024, amounted to $69 million, up from $57.7 million the previous year, representing an increase of $11.3 million, or 19.64%. The increase in expenditures was primarily driven by higher capital outlays, public works costs, and public safety expenses. Capital outlay experienced the largest increase due to ongoing construction for the public safety building and continued infrastructure work. Public Works saw higher costs for salaries, department contract services, and professional services related to traffic signal maintenance. Public Safety’s increased expenses were mainly due to higher salary costs.

Public Safety
Public safety expenditures increased by $2.1 million, primarily due to higher salaries and benefits. This increase was driven by newly signed memorandums of understanding that included one-time payments to employees.
52 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(15)
Public Works
Public works expenditures saw a net increase of $1.3 million, largely due to higher salaries and benefits. Additionally, the City contracted for plan check services to meet the engineering plan check demand for private development projects in a timely manner, which contributed to increased costs. A notable rise in the repair and maintenance of city vehicles and equipment also played a significant role in the overall increase in public works expenses.

Capital Outlay
Capital outlay increased by $7.5 million, or 52.13%, compared to the prior year. This increase was primarily due to the construction of the public safety building, which saw more work completed than in the previous year.

Proprietary Funds
The City maintains proprietary funds for sewer maintenance and refuse operations. At the end of the fiscal year, the combined net position of these two funds totaled $14.4 million, reflecting an increase of $6 million. The sewer maintenance fund had a net position of $14.2 million, of which $12.5 million is invested in capital assets. A key factor in the increase in net position for the proprietary funds was the contribution of a sewer line from the General Fund to the Sewer Fund.

In fiscal year 2023-24, the Refuse Fund reported a positive net position of $147,521, a decrease of $64,901 compared to the previous year. While the Refuse Fund experienced an increase in revenue from sales and service charges, this was offset by higher landfill and contractor charges due to an increase in units serviced.

The combined internal service funds had a negative net position of $1.3 million as of June 30, 2024, compared to a negative net position of $1.4 million on June 30, 2023. The change in net position for 2024 was $132,324, a significant decrease from the $1.5 million change in net position in 2023. The lower change in net position was primarily due to an increase in claims and liability insurance premiums.

GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, adjustments were made to the estimated revenues and appropriations in the General Fund to more accurately reflect actual amounts received and expended. It is standard practice for the City to conduct a comprehensive analysis of estimated revenues and appropriations at the end of the first six months of the fiscal year. In accordance with City policy, any increases to the total General Fund appropriations for the year must be approved by the City Council.

The adopted General Fund budget for fiscal year 2023-24, including transfers from other funds, was nearly $49.8 million. This budget was later increased through amendments totaling $13.4 million, resulting in a final budget of $63.2 million. Actual revenues for the year totaled $59.7 million, with the largest negative budget variance of $4.9 million occurring in Capital Projects Revenue. This variance is primarily due to a project being funded with bond proceeds, which are recorded on a reimbursement basis. Additionally, the City experienced a negative impact from sales tax revenues, as forecasts indicated a slowdown in spending, resulting in a $1 million reduction from the adopted budget. 53 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(16)
The adopted General Fund expenditure budget for fiscal year 2023-24 was $52.3 million. However, the City Council approved amendments that increased appropriations by $19.7 million, resulting in a final amended budget of $72.0 million. The largest increases were allocated to Capital Outlay, which includes improvements to the City’s streets, fire station, parks, and the purchase of machinery and equipment. In fiscal year 2023-24, the City issued bonds and used fund balance to construct a new Public Safety building, which will house facilities for storing and processing evidence, provide a new Emergency Operations Center, and support a new Public Safety Communications Center.

During the fiscal year, the City experienced a significant increase in costs across various areas. In response, the City issued a stop spending order in April 2024, limiting purchases to essential items.

Despite these measures, the increased costs led to a negative operating budget of approximately $816,621. With the fund balance committed for the construction of the new Public Safety building, the City ended the fiscal year with an estimated reduction in fund balance of $6.5 million.

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, 2024, totaled $147.9 million, marking an increase of approximately $22.3 million, or 20.77%, from the prior year. Capital assets encompass land, buildings, infrastructure, and equipment.

Governmental activities saw an increase of $17 million, net of accumulated depreciation. This growth was primarily driven by the completion of street network projects, such as previously uncapitalized roadway rehabilitation projects, as well as the completion of improvements to the Transit Oriented Development (TOD) sewer project. Additionally, construction in progress (CIP) activity rose due to the ongoing construction of the public safety building, which has yet to be completed.

Total business-type capital assets, net of accumulated depreciation, also increased during the fiscal year, largely due to the contribution of a sewer line from the General Fund to the Sewer Fund. After accounting for depreciation, the net increase in capital assets for business-type activities was $5.3 million.

CAPITAL ASSETS
2024 2023 2024 2023 2024 2023
Land 26,118,971$ $26,118,971 -$ -$ 26,118,971$ 26,118,971$ Land - Right of Way 1,008,822 1,008,822 - - 1,008,822 1,008,822 Trees 3,196,564 3,114,540 - - 3,196,564 3,114,540
Construction in Progress 26,554,604 24,107,558 - - 26,554,604 24,107,558 Structures and Improvements 16,823,769 12,059,077 12,440,432 7,123,820 29,264,201 19,182,897 Right-to-Use Lease Land 228,303 380,505 - - 228,303 380,505 Right-to-Use Lease Equipment 758,743 597,417 - - 758,743 597,417 Subscription Assets 2,141,596 2,181,848 - - 2,141,596 2,181,848 Equipment 6,568,336 6,961,004 30,187 42,403 6,598,523 7,003,407 Land Improvements 37,380 43,176 - - 37,380 43,176
Infrastructure:

Streets Network 41,221,385 31,203,613 - - 41,221,385 31,203,613 Streets Appurtenances 8,598,144 8,498,752 - - 8,598,144 8,498,752 Storm Drains 2,173,976 2,175,122 - - 2,173,976 2,175,122 Total 135,430,593$ 118,450,405$ 12,470,619$ 7,166,223$ 147,901,212$ 125,616,628$ Governmental Activities Business-Type Activities Total
For further detailed information see Note 5, Capital Assets.

Debt Administration
54 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(17)
As of June 30, 2024, the City’s long-term debt totaled approximately $99 million, reflecting an increase of $6.2 million from the prior year. While there was a decrease in other post-employment liabilities and existing debt, the issuance of the 2023 lease revenue bond and the acquisition of Motorola equipment for the new public safety building offset these reductions.

LONG-TERM LIABILITIES
2024 2023 2024 2023 2024 2023
Radios Loan 362,479$ $515,597 -$ -$ 362,479$ 515,597$ Fire Lease #1 Loan 2,096,314 2,445,454 - - 2,096,314 2,445,454 Fire Lease #2 Loan 1,098,741 1,281,976 - - 1,098,741 1,281,976 Easement Loan 222,672 284,411 - - 222,672 284,411
Vehicles Loan 96,530 124,631 - - 96,530 124,631
OCTA Advance 714,982 1,144,278 - - 714,982 1,144,278 Fire UAL Payoff Loan 344,932 714,261 - - 344,932 714,261 Motorola Equipment 1,197,159 - - - 1,197,159 -
2002 Loan Payable (2003 COP)1,331,266 1,752,697 - - 1,331,266 1,752,697 2021 Installment Sale Agreement 2,293,000 2,651,000 - - 2,293,000 2,651,000 2020A Lease Revenue Bond 48,530,000 50,390,000 - - 48,530,000 50,390,000 2023 Lease Revenue Bond 9,190,000 - - - 9,190,000 - Unamortized Bond Premium 352,179 - - - 352,179 -
Leases Payable 998,122 987,563 - - 998,122 987,563 Subscription Liability 1,859,215 1,849,671 - - 1,859,215 1,849,671 Claims Payable 3,820,916 4,051,344 - - 3,820,916 4,051,344 Compensated Absences 2,928,780 2,511,619 31,632 45,575 2,960,412 2,557,194 Other Postemployment Benefit 13,621,646 17,803,729 377,671 511,032 13,999,317 18,314,761 Pension Liabilities 7,985,498 4,337,200 172,847 126,102 8,158,345 4,463,302 Total 99,044,431$ 92,845,431$ 582,150$ 682,709$ 99,626,581$ 93,528,140$ Governmental Activities Business-Type Activities Total
For further detailed information see Note 6, Long-Term Liabilities.

NEXT YEAR’S BUDGET, TAX RATES, AND FEE LEVELS
The fiscal year 2024-25 General Fund operating budget was adopted with a projected deficit of $495,811, driven by an estimated 4.1% reduction in revenue and a 12.2% increase in debt service costs.

General Fund revenues and transfers from other funds are currently estimated at $49.5 million for fiscal year 2024-25, which is in line with the actual revenues for fiscal year 2023-24. The adopted fiscal year 2023-24 General Fund budget includes $44.0 million in appropriations for expenditures (excluding CIP expenditures) and transfers to other funds. The City made efforts to limit any increases in expenditures to essential services or necessary contract increases.

Through this approach, the City was able to reduce expenditures by $2.5 million compared to the fiscal year 2023-24 actuals. The approved staffing for fiscal year 2024-25 includes 200 full-time positions, 4 unfunded over-hires, and 76 elected and appointed personnel. As in previous years, contracts for services across all departments were carefully reviewed during budget development. In cases where contracts offered no potential cost savings or where a higher level of service could be provided for the same or lower cost, contract personnel were replaced by City employees. 55 CITY OF PLACENTIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
(18)

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. If you have questions concerning any of the information provided in this report or need additional financial information, please contact the City’s Finance Department at the City of Placentia, 401 East Chapman Avenue, Placentia, California 92870, call (714) 993-8237 or visit our website at www.placentia.org .
56 BASIC FINANCIAL STATEMENTS
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58 GOVERNMENT-WIDE FINANCIAL STATEMENTS
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60 CITY OF PLACENTIA

STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(19)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Cash and Investments 26,259,171$ 2,719,521$ 28,978,692$ Receivables, Net of Allowance:

Accounts 3,820,864 173,517 3,994,381
Taxes 3,739,833 39,459 3,779,292
Grants 684,648 - 684,648
Interest 427,783 - 427,783
Loans 2,278,937 - 2,278,937
Leases 574,218 - 574,218
Prepaid Items 92,599 - 92,599
Inventory 21,542 - 21,542
Total Current Assets 37,899,595 2,932,497 40,832,092
Noncurrent Assets:

Land Held for Resale 1,036,760 - 1,036,760
Leases Receivable 23,617,420 - 23,617,420
Restricted Assets:

Cash and Investments with Fiscal Agent 7,896,413 - 7,896,413 Pension Stability Fund 1,643,582 - 1,643,582
Capital Assets - Nondepreciable 56,878,961 - 56,878,961 Capital Assets - Depreciable/Amortizable, Net 78,551,632 12,470,619 91,022,251 Total Noncurrent Assets 169,624,768 12,470,619 182,095,387 Total Assets 207,524,363 15,403,116 222,927,479

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding 204,818 - 204,818
Deferred Outflows of Resources Related
to Pensions 9,549,115 299,761 9,848,876
Deferred Outflows of Resources Related
to OPEB 3,306,445 91,674 3,398,119
Total Deferred Outflows of Resources 13,060,378 391,435 13,451,813 Primary Government
61 CITY OF PLACENTIA

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(20)
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts Payable 5,619,735$ 400,163$ 6,019,898$
Accrued Payroll and Benefits 453,421 60,678 514,099
Deposits Payable 1,288,179 - 1,288,179
Retentions Payable 983,982 - 983,982
Accrued Interest Payable 404,671 - 404,671
Unearned Revenues 572,708 - 572,708
Long-Term Debt Due Within One Year 5,601,384 - 5,601,384 Claims Payable Due Within One Year 941,479 - 941,479
Compensated Absences Due Within One Year 139,066 1,395 140,461 Total Current Liabilities 16,004,625 462,236 16,466,861 Noncurrent Liabilities
Long-Term Debt Due in More Than One Year 65,086,207 - 65,086,207 Claims Payable Due in More Than One Year 2,879,437 - 2,879,437 Compensated Absences Due in More Than
One Year 2,789,714 30,237 2,819,951
Net OPEB Liability 13,621,646 377,671 13,999,317
Aggregate Net Pension Liabilities 7,985,498 172,847 8,158,345 Total Noncurrent Liabilities 92,362,502 580,755 92,943,257 Total Liabilities 108,367,127 1,042,991 109,410,118

DEFERRED INFLOWS OF RESOURCES
Leases Related 23,645,721 - 23,645,721
Deferred Pension - Related Items 2,655,776 61,067 2,716,843 Deferred OPEB - Related Items 11,716,147 324,841 12,040,988 Total Deferred Inflows of Resources 38,017,644 385,908 38,403,552

NET POSITION
Net Investment in Capital Assets 114,776,612 12,470,619 127,247,231 Restricted for:

Public Safety 1,685,245 - 1,685,245
Public Works 1,536,762 - 1,536,762
Community Development 4,818,640 - 4,818,640
Community Services 425,909 - 425,909
Debt Service 8,100,913 - 8,100,913
Transportation 617,869 - 617,869
Park Development 20,903 - 20,903
Street Maintenance 517,279 - 517,279
Air Quality 312,566 - 312,566
Affordable Housing 2,087,696 - 2,087,696
Pension Stability 1,643,582 - 1,643,582
Total Restricted 21,767,364 - 21,767,364
Unrestricted (Deficit)(62,344,006) 1,895,033 (60,448,973) Total Net Position 74,199,970$ 14,365,652$ 88,565,622$ Primary Government
62 CITY OF PLACENTIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(21)
Capital Grants
Charges for Operating Grants and Governmental Business-Type Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total

PRIMARY GOVERNMENT
Governmental Activities:

General Government 17,490,713$ 3,298,251$ 853,203$ -$ (13,339,259)$ -$ (13,339,259)$ Public Safety 27,470,712 913,475 3,904,485 - (22,652,752) - (22,652,752) Public Works 10,729,394 855,554 4,365,953 1,938,279 (3,569,608) - (3,569,608) Community Development 2,563,283 1,508,909 813,072 - (241,302) - (241,302) Community Services 4,253,514 496,738 - - (3,756,776) - (3,756,776) Interest 2,959,601 - - - (2,959,601) - (2,959,601) Total Governmental Activities 65,467,217 7,072,927 9,936,713 1,938,279 (46,519,298) - (46,519,298) Business-Type Activities:

Refuse 4,887,578 4,812,880 - - - (74,698) (74,698) Sewer Maintenance 1,466,857 1,511,212 - - - 44,355 44,355 Total Business-Type Activities 6,354,435 6,324,092 - - - (30,343) (30,343) Total Primary Government 71,821,652$ 13,397,019$ 9,936,713$ 1,938,279$ (46,519,298) (30,343) (46,549,641)

GENERAL REVENUES
Taxes:

Property Taxes 20,760,635 - 20,760,635
Sales Taxes 16,869,472 - 16,869,472
Utility Users Tax 3,048,378 - 3,048,378
Franchise Taxes 3,076,341 - 3,076,341
Transient Occupancy Taxes 1,761,962 - 1,761,962
Real Property Transfer Taxes 378,327 - 378,327
Other Taxes 6,098 - 6,098
Investment Earnings 1,900,697 44,933 1,945,630
Miscellaneous 281,897 - 281,897
Total General Revenues 48,083,807 44,933 48,128,740

TRANSFERS
Transfers (5,939,707) 5,939,707 -
CHANGES IN NET POSITION (4,375,198) 5,954,297 1,579,099 Net Position - Beginning of Year 78,575,168 8,411,355 86,986,523 NET POSITION - END OF YEAR 74,199,970$ 14,365,652$ 88,565,622$ Program Revenues
Net Revenue (Expense)
and Changes in Net Positions
63 (22)
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64 FUND FINANCIAL STATEMENTS
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66 GOVERNMENTAL FUND FINANCIAL STATEMENTS
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68 CITY OF PLACENTIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(23)
Placentia
Citywide Regional
Development Navigation
Impact Fee Center Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds Total ASSETS
Cash and Investments 13,291,471$ 2,506,909$ -$ 180,241$ 7,808,317$ 23,786,938$ Receivables:

Accounts 855,457 - 1,842,872 - 1,090,416 3,788,745
Taxes 3,739,833 - -- -3,739,833
Grants - - - - 684,648 684,648
Accrued Interest 427,739 - - - 44 427,783
Loans and Notes 1,165,124 509,148 - - 604,665 2,278,937 Leases 24,184,793 - - - 6,845 24,191,638
Prepaid Items 88,009 3,281 - - - 91,290
Due from Other Funds 3,427,498 - - - - 3,427,498 Inventories 21,542 - - - - 21,542
Land Held for Resale - - - - 1,036,760 1,036,760 Restricted Assets:-
Cash and Investments with
Fiscal Agents - - - 7,896,413 - 7,896,413
Pension Stability Fund 1,643,582 - - - - 1,643,582 Total Assets 48,845,048$ 3,019,338$ 1,842,872$ 8,076,654$ 11,231,695$ 73,015,607$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable 4,485,943$ 128,325$ 141,169$ -$ 798,094$ 5,553,531$ Accrued Payroll and Benefits 394,510 - 14,661 - 27,446 436,617 Deposits Payable 1,163,011 - -- 125,168 1,288,179
Retentions Payable 755,116 2,803 - - 226,063 983,982 Due to Other Funds - - 2,472,828 63,135 891,535 3,427,498 Unearned Revenue 11,000 - - - 561,708 572,708
Total Liabilities 6,809,580 131,128 2,628,658 63,135 2,630,014 12,262,515

DEFERRED INFLOWS OF

RESOURCES
Leases 23,635,480 - - - 10,241 23,645,721
Unavailable Revenues 28,215 509,148 1,842,872 - 1,216,576 3,596,811 Total Deferred Inflows of
Resources 23,663,695 509,148 1,842,872 - 1,226,817 27,242,532

FUND BALANCES
Nonspendable 895,672 3,281 - - - 898,953
Restricted 1,643,582 2,375,781 - 8,013,519 8,727,214 20,760,096 Committed 1,036,860 - - - - 1,036,860
Unassigned (Deficit)14,795,659 - (2,628,658) - (1,352,350) 10,814,651 Total Fund Balances 18,371,773 2,379,062 (2,628,658) 8,013,519 7,374,864 33,510,560 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 48,845,048$ 3,019,338$ 1,842,872$ 8,076,654$ 11,231,695$ 73,015,607$ Major Funds
69 CITY OF PLACENTIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(24)
Total Fund Balances - Governmental Funds 33,510,560$
Amounts reported for governmental activities in the statement of net position were reported differently because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet.

Nondepreciable 56,878,961
Depreciable and Amortizable 78,454,091
135,333,052
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.204,818
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.3,596,811
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.(404,671) 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 (3,876,736)
OCTA Advance (714,982)
Compensated Absences (2,928,780)
Loans Payable (5,166,357)
Bonds Payable (58,072,179)
Leases Payable (998,122)
Subscription Liability (1,859,215)
(73,616,371)
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 9,549,115 Aggregate Net Pension Liabilities (7,985,498)
Pension Related Deferred Inflows of Resources (2,655,776) 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 3,306,445
Net OPEB Liability (13,621,646)
OPEB Related Deferred Inflows of Resources (11,716,147) Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the government-wide statement of net position.(1,300,722)
Net Position of Governmental Activities as Reported on the Statement of Net Position 74,199,970$ 70 CITY OF PLACENTIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(25)

Placentia
Citywide Regional
Development Navigation
Impact Fee Center Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds Total

REVENUES
Taxes 45,847,060$ -$ -$ -$ -$ 45,847,060$ Intergovernmental 2,717,309 - 1,287,053 - 5,699,320 9,703,682 Licenses and Permits 2,535,885 - - - - 2,535,885 Fines and Forfeitures 548,960 - - - 90,578 639,538 Investment Earnings 1,175,860 72,851 - 479,186 172,600 1,900,497 Charges for Services 1,441,304 - - - 1,004,300 2,445,604 Leases and Rents 1,677,641 - - - 4,126 1,681,767 Contributions - 355,903 - - - 355,903 Miscellaneous 1,125,980 2,785 - - 207,331 1,336,096 Total Revenues 57,069,999 431,539 1,287,053 479,186 7,178,255 66,446,032

EXPENDITURES
Current:

General Government 15,336,829 - - 2,499 153,962 15,493,290 Public Safety 18,491,792 95,820 2,126,486 - 319,783 21,033,881 Public Works 5,350,268 - - - 1,384,312 6,734,580 Community Development 1,809,970 - - - 638,415 2,448,385 Community Services 3,431,853 - - - 8,915 3,440,768 Capital Outlay 22,021,540 2,431,563 153,300 - 4,635,910 29,242,313 Debt Service:

Principal Retirement 2,366,341 - - 1,860,000 787,296 5,013,637 Interest and Fiscal Charges 231,958 - - 2,459,972 92,685 2,784,615 Total Expenditures 69,040,551 2,527,383 2,279,786 4,322,471 8,021,278 86,191,469

REVENUES OVER (UNDER)
EXPENDITURES (11,970,552) (2,095,844) (992,733) (3,843,285) (843,023) (19,745,437)

OTHER FINANCING SOURCES
(USES)
Issuance of Debt 2,017,510 - - 9,190,000 - 11,207,510 Bond Premium - - 352,179 - 352,179 Payment to Refunding Bond
Escrow Agent - - - - - Transfers In 6,108,943 - - 4,083,700 816,934 11,009,577 Transfers Out (4,496,884) - - (5,922,784) (589,909) (11,009,577) Total Other Financing
Sources (Uses)3,629,569 - - 7,703,095 227,025 11,559,689

NET CHANGE IN FUND
BALANCES (8,340,983) (2,095,844) (992,733) 3,859,810 (615,998) (8,185,748) Fund Balance - Beginning, as
Originally Reported 26,712,756 4,474,906 - 4,153,709 6,354,937 41,696,308 Change Within Financial Reporting
Entity (Nonmajor to Major Fund)- - (1,635,925) - 1,635,925 - Fund Balance - Beginning, as
Adjusted 26,712,756 4,474,906 (1,635,925) 4,153,709 7,990,862 41,696,308

FUND BALANCES - END OF
YEAR 18,371,773$ 2,379,062$ (2,628,658)$ 8,013,519$ 7,374,864$ 33,510,560$ Major Funds

71 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, 2024
See accompanying Notes to Basic Financial Statements.
(26)
Net Change in Fund Balances - Total Governmental Funds (8,185,748)$ Governmental activities in the Statement of Activities were reported differently because:

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

Capital Outlay 29,310,625
Depreciation and Amortization (6,236,943)
Net Effect on Disposal of Capital Assets (251,328)
Contribution of Asset to the Sewer Fund (5,939,707)
16,882,647
Amortization of the deferred charges on refunding is recognized as interest expense in the statement of activities.(50,358)
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the statement of activities.527,782 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. (11,559,689) 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 3,439,679
Financed Purchases 1,144,662
OCTA Advance 429,296
5,013,637
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.(174,986)
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.(417,161) 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.2,371,863 Certain pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.(8,915,509)
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.132,324 Change in Net Position of Governmental Activities as Reported in the Statement of Activities (4,375,198)$ 72 PROPRIETARY FUND FINANCIAL STATEMENTS

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74 CITY OF PLACENTIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(27)

Business-Type Governmental
Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds
ASSETS
Current Assets:

Cash and Investments 728,193$ 1,991,328$ 2,719,521$ 2,472,233$ Receivables:

Accounts 28,857 144,660 173,517 32,119 Taxes 39,459 - 39,459 - Prepaids - - - 1,309 Total Current Assets 796,509 2,135,988 2,932,497 2,505,661 Noncurrent Assets:

Capital Assets, Net of Accumulated Depreciation - 12,470,619 12,470,619 97,541 Total Noncurrent Assets - 12,470,619 12,470,619 97,541 Total Assets 796,509 14,606,607 15,403,116 2,603,202

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources Related to Pensions 122,608 177,153 299,761 - Deferred Outflows of Resources Related to OPEB 38,598 53,076 91,674 - Total Deferred Outflows of Resources 161,206 230,229 391,435 -

LIABILITIES
Current Liabilities:

Accounts Payable 381,799 18,364 400,163 66,204 Accrued Payroll and Benefits 24,620 36,058 60,678 16,804 Compensated Absences - Due Within One Year 543 852 1,395 - Claims And Judgments - Due Within One Year - - - 941,479 Total Current Liabilities 406,962 55,274 462,236 1,024,487 Noncurrent Liabilities:

Compensated Absences - Due in More Than One Year 11,774 18,463 30,237 - Claims And Judgments - Due in More Than One Year - - - 2,879,437 Total OPEB Liability 159,013 218,658 377,671 - Aggregate Net Pension Liabilities 70,698 102,149 172,847 - Total Noncurrent Liabilities 241,485 339,270 580,755 2,879,437 Total Liabilities 648,447 394,544 1,042,991 3,903,924

DEFERRED INFLOW OF RESOURCES
Deferred Inflows of Resources Related to Pensions 24,977 36,090 61,067 - Deferred Inflows of Resources Related to OPEB 136,770 188,071 324,841 - Total Deferred Inflows of Resources 161,747 224,161 385,908 -

NET POSITION
Investment in Capital Assets - 12,470,619 12,470,619 97,541 Unrestricted (Deficit) 147,521 1,747,512 1,895,033 (1,398,263) Total Net Position 147,521$ 14,218,131$ 14,365,652$ (1,300,722)$ Major Enterprise Funds

75 CITY OF PLACENTIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(28)

Governmental
Activities
Sewer Internal
Refuse Maintenance Total Service

OPERATING REVENUES
Reimbursements 40,147$ -$ 40,147$ 663,454$ Sales and Service Charges 4,772,733 1,511,212 6,283,945 3,346,549 Other Revenues - - - 95,488 Total Operating Revenues 4,812,880 1,511,212 6,324,092 4,105,491

OPERATING EXPENSES
Administration 643,896 341,784 985,680 240,666 Reinsurance Premiums - - - 187,603 Claims - - - 815,101 Medical and Dental Premiums - - - 990,260 Liability Insurance Premiums - - - 1,757,073 Maintenance - 489,762 489,762 - Landfill and Contractor Charges 4,243,682 - 4,243,682 - Depreciation Expense - 635,311 635,311 40,376 Total Operating Expenses 4,887,578 1,466,857 6,354,435 4,031,079 OPERATING INCOME (LOSS)(74,698) 44,355 (30,343) 74,412

NONOPERATING INCOME (LOSS)
Investment Earnings 9,797 35,136 44,933 - Gain on Disposal of Capital Assets - - - 57,912 Total Nonoperating Income 9,797 35,136 44,933 57,912 NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (64,901) 79,491 14,590 132,324 Capital Contributions - 5,939,707 5,939,707 - CHANGES IN NET POSITION (64,901) 6,019,198 5,954,297 132,324 Net Position - Beginning of Year 212,422 8,198,933 8,411,355 (1,433,046) NET POSITION - END OF YEAR 147,521$ 14,218,131$ 14,365,652$ (1,300,722)$ Business-Type Activities

76 CITY OF PLACENTIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(29)
Governmental
Activities
Sewer Internal
Refuse Maintenance Total Service

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 4,808,699$ 1,516,569$ 6,325,268$ 4,073,482$ Cash Paid to Suppliers for Goods and Services (4,217,164) (487,026) (4,704,190) (3,365,298) Cash Paid to Employees for Services (532,845) (192,223) (725,068) - Cash Paid for Insurance Claims - - - (815,101)
Net Cash Provided (Used) by Operating Activities 58,690 837,320 896,010 (106,917)

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Payment Made on Interfund Borrowing - - - (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 - - - 57,912
Net Cash Provided (Used) by Capital and Related
Financing Activities - - - 57,912

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 9,797 35,136 44,933 -
Net Cash Provided (Used) by Investing Activities 9,797 35,136 44,933 -

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 68,487 872,456 940,943 (87,327)
Cash and Cash Equivalents - Beginning of Year 659,706 1,118,872 1,778,578 2,697,477 CASH AND CASH EQUIVALENTS - END OF YEAR 728,193$ 1,991,328$ 2,719,521$ 2,610,150$

CASH AND CASH EQUIVALENTS
Cash and Investments 728,193$ 1,991,328$ 2,719,521$ 2,472,233$ Total Cash and Cash Equivalents 728,193$ 1,991,328$ 2,719,521$ 2,472,233$ Business-Type Activities
77 CITY OF PLACENTIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(30)

Governmental
Activities
Sewer Internal
Refuse Maintenance Total Service

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BR OPERATING ACTIVITIES
Operating Income (Loss) (74,698)$ 44,355$ (30,343)$ 74,412$ Adjustments to Reconcile Operating (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation - 635,311 635,311 40,376 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables (2,963) 5,357 2,394 (32,010) (Increase) Decrease in Taxes Receivables (1,218) - (1,218) - (Increase) Decrease in Prepaids - - - 57,198 (Increase) Decrease in Deferred Outflows of
Resources Related to Pension 82,473 136,535 219,008 - (Increase) Decrease in Deferred Outflows of
Resources Related to OPEB 26,797 41,019 67,816 - Increase (Decrease) in Accounts Payable 26,518 2,736 29,254 (33,264) Increase (Decrease) in Accrued Liabilities 17,776 22,617 40,393 16,799 Increase (Decrease) in Compensated Absences (3,799) (10,144) (13,943) - Increase (Decrease) in Claims Payable - - - (230,428) Increase (Decrease) in Net Pension Liabilities 20,846 25,899 46,745 - Increase (Decrease) in Net OPEB Liabilities (50,523) (82,838) (133,361) - Increase (Decrease) in Deferred Inflows of
Resources Related to Pension 23,777 34,256 58,033 - Increase (Decrease) in Deferred Inflows of
Resources Related to OPEB (6,296) (17,783) (24,079) - Net Cash Provided (Used) by Operating Activities 58,690$ 837,320$ 896,010$ (106,917)$ Business-Type Activities

78 FIDUCIARY FUND FINANCIAL STATEMENTS
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80 CITY OF PLACENTIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(31)

RDA
Successor Custodial
Agency Funds
ASSETS
Pooled Cash and Investments 646,146$ 414,293$
Receivables:

Miscellaneous - 1,453
Restricted Assets:

Cash and Investments with Fiscal Agents 707,003 - Total Assets 1,353,149 415,746

LIABILITIES
Accounts Payable 1,419 241
Accrued Liability 11,419 14
Accrued Interest 136,938 -
Long-Term Liabilities:

Due in One Year 1,074,003 -
Due in More Than One Year 8,511,214 -
Total Liabilities 9,734,993 255

NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and Other
Governments (8,381,844) 415,491
Total Net Position (Deficit) (8,381,844)$ 415,491$
81 CITY OF PLACENTIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(32)
RDA
Successor Custodial
Agency Funds

ADDITIONS
Property Taxes 1,415,353$ -$
Charges for Services - 219,017
Investment Earnings 17,449 6,453
Total Additions 1,432,802 225,470

DEDUCTIONS
Program Costs 31,714 -
Administrative Expenses 95,974 -
Interest Expense 326,904 -
Administrative Expenses - 8,440
Total Deductions 454,592 8,440
CHANGE IN NET POSITION 978,210 217,030
Net Position (Deficit) - Beginning of Year (9,360,054) 198,461 NET POSITION (DEFICIT) - END OF YEAR (8,381,844)$ 415,491$ 82 NOTES TO BASIC FINANCIAL STATEMENTS

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84 CITY OF PLACENTIA

INDEX TO THE NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(33)
Page
Note 1 – Summary of Significant Accounting Policies ............................................................... 35 A. Financial Reporting Entity ......................................................................................... 35 B. Basis of Accounting and Measurement Focus .......................................................... 36 C. Implementation of New Accounting Pronouncement ................................................. 39 D. Cash and Investments .............................................................................................. 39 E. Fair Value Measurement........................................................................................... 40 F. Property Taxes Receivable ....................................................................................... 40 G. Prepaid Items ........................................................................................................... 40 H. Inventories ................................................................................................................ 41 I. Capital Assets ........................................................................................................... 41 J. Leases ...................................................................................................................... 42 K. Subscription-Based Information Technology Arrangements (SBITAs) ...................... 42 L. Unearned and Unavailable Revenue ........................................................................ 43 M. Compensated Absences Payable ............................................................................. 43 N. Claims Payable ......................................................................................................... 43 O. Pensions ................................................................................................................... 43 P. Other Postemployment Benefits (OPEB) .................................................................. 44 Q. Long-Term Obligations ............................................................................................. 44 R. Net Position .............................................................................................................. 44 S. Fund Balances .......................................................................................................... 44 T. Spending Policy ........................................................................................................ 45 U. Use of Estimates ...................................................................................................... 46 Note 2 – Cash and Investments .................................................................................................... 46 A. Demand Deposits ..................................................................................................... 47 B. Investments Authorized by the California Government Code and the City’s Investment Policy ......................................................................................... 48 C. Investments Authorized by Debt Agreements ........................................................... 49 D. Fair Value Measurement........................................................................................... 49 E. Risk Disclosures ....................................................................................................... 50 F. Investment in Local Agency Investment Fund (LAIF) ................................................ 51 G. California Asset Management Program (CAMP) ....................................................... 52 Note 3 – Interfund Transactions ................................................................................................... 53 A. Due From/To Other Funds ........................................................................................ 53 B. Transfers .................................................................................................................. 53 Note 4 – Long-Term Receivables .................................................................................................. 54 A. Loans Receivable ..................................................................................................... 54 B. Leases Receivable ................................................................................................... 56 Note 5 – Capital Assets ................................................................................................................. 57 85 CITY OF PLACENTIA

INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2024

(34)
Page
Note 6 – Long-Term Liabilities ...................................................................................................... 59 A. Governmental Activities ............................................................................................ 59 B. Business-Type Activities ........................................................................................... 68 C. Fiduciary Activities .................................................................................................... 68

Note 7 – Deferred Compensation Plans ....................................................................................... 71 Note 8 – Pension Plans ................................................................................................................. 72 A. Summary .................................................................................................................. 72 B. General Information about the Pension Plans ........................................................... 74 C. Pension Liabilities, Pension Expenses, and Deferred
Outflows/Inflows of Resources Related to Pensions .............................................. 76 D. Payable to the Pension Plan ..................................................................................... 80

Note 9 – Other Postemployment Benefit Plan ............................................................................. 81 A. Summary .................................................................................................................. 81 B. General Information about OPEB ............................................................................. 81 C. Total OPEB Liability, OPEB Expense, and Deferred
Outflows/Inflows of Resources Related to OPEB ................................................... 82

Note 10 – Risk Management and Self Insurance Program .......................................................... 86 A. General Liability ........................................................................................................ 86 B. Workers’ Compensation............................................................................................ 86 C. Other Insurance ........................................................................................................ 86

Note 11 – Classification on Fund Balances ................................................................................. 87 Note 12 – Commitments and Contingencies................................................................................ 88 A. Commitments ........................................................................................................... 88 B. Contingencies ........................................................................................................... 88 C. Grants ....................................................................................................................... 88

Note 13 – Other Required Fund Disclosures ............................................................................... 89 A. Expenditures in Excess of Appropriation ................................................................... 89 B. Deficit Net Positions and Fund Balances .................................................................. 89

Note 14 – Accounting Change ...................................................................................................... 90

86 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(35)
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.
87 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(36)
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, and capital grants and contributions.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
88 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) 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.

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.

Placentia Regional Navigation Center Special Revenue Fund This fund is used 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. 89 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Debt Service Fund
This fund is used to account for the debt service related to the governmental activities of the City.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a statement of net position, a statement of revenues, expenses, and changes in net position, and a statement of cash flows for each major Proprietary Fund.

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

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

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following major Proprietary Funds:

Refuse Fund
This fund is used to account for the provision of refuse services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operation, acquisition of equipment, and related debt service.
90 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
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.

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 Pronouncement
Accounting Changes and Error Corrections – An Amendment to GASB Statement No. 62 defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. The Statement prescribes the accounting and financial reporting for each type of accounting change and for error corrections. See Note 14 for further information on how the implementation of GASB Statement No. 100 had an effect on the City’s financial statements.

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).
91 CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(40)

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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.

I. 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.

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.

Land, right-of-way, tree infrastructure, and construction in progress are not depreciated.

Other 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. 93 CITY OF PLACENTIA

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. 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.

K. 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Unearned and Unavailable Revenue
In the government-wide financial statements, unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are 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.

M. Compensated Absences Payable
City employees have vested interest in varying levels of vacation, sick leave, and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.

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

O. Pensions
For purposes of measuring the 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 CalPERS Financial Office and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’s website under Forms and Publications. 95 CITY OF PLACENTIA

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. 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.

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

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

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

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

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

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

Nonspendable Fund Balance – These amounts cannot be spent because they are not in a spendable form, such as loans receivable or inventory, or because resources legally or contractually must remain intact.

Restricted Fund Balance – These are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws, and regulations of other governments or enabling legislation.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. 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.

T. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

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

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
Committed
Assigned
Unassigned
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) U. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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, 2024:

Statement of
Governmental Business-Type Fiduciary
Activities Activities Net Position Total
Cash and Investments 26,259,171$ 2,719,521$ 1,060,439$ 30,039,131$ Cash and Investments with
Fiscal Agent 7,896,413 - 707,003 8,603,416
Pension Stability Fund 1,643,582 - -1,643,582
Total Cash and
Investments 35,799,166$ 2,719,521$ 1,767,442$ 40,286,129$ Statement of Net Position
Government-Wide
The City’s cash and investments at June 30, 2024 in more detail:

Cash and Cash Equivalents:

Demand Deposits 356,268$
Petty Cash 17,565
Total Cash and Cash Equivalents 373,833
Investments:

Local Agency Investment Fund 16,688
CAMP 1,530,493
Money Market Mutual Fund 99,060
Negotiable Certificates of Deposit 3,569,005
U.S. Treasury Securities 19,027,946
Federal Agency Securities 5,422,106
Investments with Fiscal Agent:

Money Market Mutual Fund 8,603,416
Pension Stability Fund 1,643,582
Total Investments 39,912,296
Total Cash and Investments 40,286,129$
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $356,268 at June 30, 2024.

Bank balances at that date were $1,791,755, 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.
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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.
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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, 2024, 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, 2024:

Significant Other
Observable Input
Investment Type (Level 2) Uncategorized Total
Local Agency Investment Fund -$ 16,688$ 16,688$ California Asset Management Program 1,530,493 1,530,493 Money Market Mutual Funds - 99,060 99,060 Negotiable Certificates of Deposit (1)3,569,005 - 3,569,005 U.S. Treasury Securities (1)19,027,946 - 19,027,946 Federal Agency Securities (1)5,422,106 - 5,422,106 Held by Fiscal Agent:

Money Market Mutual Funds - 8,603,416 8,603,416 Pension Stability Fund - 1,643,582 1,643,582 Total 28,019,057$ 11,893,239$ 39,912,296$
(1) Pricing based on institutional bond quotes - evaluations based on various market and industry inputs.

Measurement Input

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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 Type Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment
Fund 16,688$ 16,688$ -$ -$ -$ -$ California Asset Management
Program 1,530,493 1,530,493 - - - - Money Market Mutual Funds 99,060 99,060 - - - - Negotiable Certificates of
Deposit 3,569,005 244,144 1,453,239 455,259 1,416,363 - U.S. Treasury Securities 19,027,946 6,789,536 2,942,429 4,332,091 2,935,770 2,028,120 Federal Agency Securities 5,422,106 2,047,741 467,100 725,123 2,182,142 - Held by Fiscal Agent:

Money Market Mutual Funds 8,603,416 8,603,416 - - - - Pension Stability Fund 1,643,582 1,643,582 - - - - Total 39,912,296$ 20,974,660$ 4,862,768$ 5,512,473$ 6,534,275$ 2,028,120$ Investment Maturities (in Years)

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 16,688$ N/A -$ 16,688$ California Asset Management Program 1,530,493 N/A - 1,530,493 Money Market Mutual Funds 99,060 AAA 99,060 - Negotiable Certificates of Deposit 3,569,005 N/A - 3,569,005 U.S. Treasury Securities 19,027,946 N/A 19,027,946 - Federal Agency Securities 5,422,106 N/A 5,422,106 - Held by Fiscal Agent:

Money Market Mutual Funds 8,603,416 AAA 8,603,416 - Pension Stability Fund 1,643,582 N/A - 1,643,582 Total 39,912,296$ 33,152,528$ 6,759,768$
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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, 2024, 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, 2024, 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. 103

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
F. Investment in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2024, the City had $16,688 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.
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NOTE 3 INTERFUND TRANSACTIONS
A. Due From/To Other Funds
At June 30, 2024, the City had the following due from/to other funds:

Due From
Other Funds
Due To Other Funds General Fund Total
Placentia Regional Navigation Center 2,472,828$ 2,472,828$ Debt Service Fund 63,135 63,135
Nonmajor Special Revenue Funds:

Landscape Maintenance District 92-1 19,213 19,213
Housing and Community Development 589,355 589,355
Gasoline Tax 35,622 35,622
Sewer Construction 124,149 124,149
TOD Impact Fee 41,805 41,805
Nonmajor Capital Projects Funds:

City Projects 81,391 81,391
Internal Service Funds:

Health and Welfare - -
Total 3,427,498$ 3,427,498$
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, 2024, the City had the following transfers:

Nonmajor
Governmental Debt Service Governmental
Transfers In Activities General Fund Fund Funds Total
Governmental Funds:

General Fund -$ 5,922,784$ 186,159$ 6,108,943$
Debt Service Fund 4,083,700 - - 4,083,700
Nonmajor Governmental
Funds 413,184 - 403,750 816,934
Total Governmental
Funds 4,496,884$ 5,922,784$ 589,909$ 11,009,577$ Business-Type Activities 5,939,707$
Transfers Out
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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 $5,922,784 were for the construction of assets funded by the issuance of bonds.

Transfers from nonmajor governmental funds to the General Fund of $186,159 were to fund police department expenditures.

The General Fund transferred $413,184 to nonmajor funds as operating subsidies and $4,083,700 to the Debt Service Fund to fund debt service.

The Gas Tax Special Revenue Fund transferred $403,750 to the Gas Tax Debt Service Fund to fund the 2011 Gas Tax Certificate of Participation debt service.

Transfers from governmental activities to business-type activities of $5,939,707 was for a capital asset constructed in the governmental funds and contributed to the sewer fund during the year.

NOTE 4 LONG-TERM RECEIVABLES
A. Loans Receivable
At June 30, 2024, the City has the following loans receivable:

Citywide
Development
Impact Fee Other
General Special Governmental
Fund Revenue Fund Funds Total
Certificates of Participation
Reimbursement 1,165,124$ -$ -$ 1,165,124$ Owner's Participation Agreement - - 33,749 33,749 Placentia Veterans Village Loan - - 500,000 500,000 Placentia Veterans Village DIF
Mitigation Loan - 509,148 70,916 580,064 Total 1,165,124$ 509,148$ 604,665$ 2,278,937$

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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 $ 4,167 in principal payments. The ending loan receivable balance at June 30, 2024, is $33,749.

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, 2024, 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, 2024 is $580,064. 107

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NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
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 $271 to $3,543, are received monthly, or ranging from $50,000 to $250,000, received annually. During the year ended June 30, 2024, the City recognized $836,409 and $316,571 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.

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NOTE 5 CAPITAL ASSETS
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2024:

Balance Balance
June 30, 2023 Additions Deletions Reclassifications June 30, 2024 Capital Assets Not Being
Depreciated/Amortized:

Land 26,118,971$ -$ -$ -$ 26,118,971$
Land-Right of Way 1,008,822 - - - 1,008,822
Infrastructure - Trees 3,114,540 - - 82,024 3,196,564 Construction in Progress 24,107,558 27,289,714 (247,170) (24,595,498) 26,554,604 Total Capital Assets Not
Being Depreciated 54,349,891 27,289,714 (247,170) (24,513,474) 56,878,961 Capital Assets Being
Depreciated/Amortized:

Structures and Improvements 20,416,610 - - 5,746,757 26,163,367 Right-to-Use Lease Land 684,909 - - - 684,909
Right-to-Use Lease Equipment 858,669 447,661 (42,970) - 1,263,360 Subscription Assets 2,542,906 375,943 - - 2,918,849 Equipment 17,504,562 1,335,224 (304,728) - 18,535,058 Land Improvements 172,528 - - - 172,528
Infrastructure:

Streets Network 59,094,499 - - 12,017,439 71,111,938 Street Appurtenances 24,439,468 - - 622,475 25,061,943 Storm Drains 9,225,024 - - 187,096 9,412,120
Total Capital Assets
Being Depreciated/Amortized 134,939,175 2,158,828 (347,698) 18,573,767 155,324,072 Less: Accumulated
Depreciation/Amortization for:

Structures and Improvements (8,357,533) (982,065) - - (9,339,598) Right-to-Use Lease Land (304,404) (152,202) - - (456,606) Right-to-Use Lease Equipment (261,252) (282,177) 38,812 - (504,617) Subscription Assets (361,058) (416,195) - - (777,253) Equipment (10,543,558) (1,727,892) 304,728 - (11,966,722) Land Improvements (129,352) (5,796) - - (135,148)
Infrastructure:

Streets Network (27,890,886) (1,999,667) - - (29,890,553) Street Appurtenances (15,940,716) (523,083) - - (16,463,799) Storm Drain (7,049,902) (188,242) - - (7,238,144)
Total Accumulated
Depreciation/Amortization (70,838,661) (6,277,319) 343,540 - (76,772,440) Total Capital Assets Being
Depreciated/Amortized, Net 64,100,514 (4,118,491) (4,158) 18,573,767 78,551,632 Total Governmental
Activities 118,450,405$ 23,171,223$ (251,328)$ (5,939,707)$ 135,430,593$ 109

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NOTE 5 CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2024, as follows:

General Government 1,295,460$
Public Safety 1,574,149
Public Works 2,776,438
Community Services 590,896
Total Depreciation/Amortization Expense 6,277,319$
The following is a summary of changes in capital assets for the business-type activities for the year ended June 30, 2024:

Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Capital Assets Being
Depreciated:

Structures and
Improvements 28,155,969$ 5,939,707$ -$ 34,095,676$ Equipment 122,158 - - 122,158
Total Capital Assets
Being Depreciated 28,278,127 5,939,707 - 34,217,834
Less: Accumulated
Depreciation for:

Structures and
Improvements (21,032,149) (623,095) - (21,655,244)
Equipment (79,755) (12,216) - (91,971)
Total Accumulated
Depreciation (21,111,904) (635,311) - (21,747,215)
Total Capital Assets
Being Depreciated, Net 7,166,223 5,304,396 - 12,470,619 Total Business-Type
Activities 7,166,223$ 5,304,396$ -$ 12,470,619$ Depreciation expense was charged to the Sewer Maintenance Fund within business-type activities.
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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, 2024 is as follows:

Balance Balance Due within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Long-Term Debt:

Direct Borrowings and
Placements:

Loan Payable- Radio 515,597$ -$ (153,118)$ 362,479$ 157,967$ 204,512$ Loan Payable-Fire #1 2,445,454 - (349,140) 2,096,314 358,596 1,737,718 Loan Payable-Fire #2 1,281,976 - (183,235) 1,098,741 188,123 910,618 Loan Payable - Easement 284,411 - (61,739) 222,672 65,406 157,266 Loan Payable - Vehicles 124,631 - (28,101) 96,530 30,048 66,482 OCTA Advance 1,144,278 - (429,296) 714,982 446,780 268,202 Fire UAL Payoff Loan 714,261 - (369,329) 344,932 344,932 - Motorola Equipment - 1,197,159 - 1,197,159 96,476 1,100,683 Loan Payable-Ref 2003
COP 1,752,697 - (421,431) 1,331,266 433,047 898,219 2021 Installment Sale
Agreement (2011 Gas
Tax Refunding) 2,651,000 - (358,000) 2,293,000 368,000 1,925,000 Total Direct Borrowings
and Placements 10,914,305 1,197,159 (2,353,389) 9,758,075 2,489,375 7,268,700 2020A Lease Revenue
Bonds 50,390,000 - (1,860,000) 48,530,000 2,190,000 46,340,000 2023 Lease Revenue
Bonds - 9,190,000 - 9,190,000 140,000 9,050,000 Unamortized Bond Premium - 352,179 - 352,179 - 352,179 Leases Payable 987,563 446,408 (435,849) 998,122 434,494 563,628 Subscription Liability 1,849,671 373,943 (364,399) 1,859,215 347,515 1,511,700 Total Long-Term Debt 64,141,539 11,559,689 (5,013,637) 70,687,591 5,601,384 65,086,207 Claims Payable 4,051,344 1,243,401 (1,473,829) 3,820,916 941,479 2,879,437 Compensated Absences 2,511,619 450,838 (33,677) 2,928,780 139,066 2,789,714 Total Long-Term
Liabilities 70,704,502$ 13,253,928$ (6,521,143)$ 77,437,287$ 6,681,929$ 70,755,358$ Classification

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.

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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, 2024, is $1,331,266.

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
2025 433,047$ 31,285$ 464,332$
2026 443,986 21,108 465,094
2027 454,233 10,674 464,907
Total 1,331,266$ 63,067$ 1,394,333$
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 CalPERS for the benefit of City employees, to fund certain anticipated increases to the accrued liability to CalPERS, 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.
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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 CalPERS for deposit to the CalPERS payment fund. This amount represents the June 30, 2019, unfunded liability for the miscellaneous and safety plans shown in the 2019 CalPERS 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, 2024 is $48,530,000. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 2,190,000$ 1,933,772$ 4,123,772$
2026 2,405,000 1,878,036 4,283,036
2027 2,475,000 1,806,944 4,281,944
2028 2,555,000 1,727,596 4,282,596
2029 2,645,000 1,639,270 4,284,270
2030-2034 14,785,000 6,635,152 21,420,152 2035-2039 14,385,000 3,391,783 17,776,783 2040-2044 6,675,000 891,463 7,566,463 2045 415,000 19,011 434,011 Total 48,530,000$ 19,923,027$ 68,453,027$
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2023 Lease Revenue Bonds
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.

The bonds are reported in full in the government-wide statement of net position, within the governmental activities. The outstanding balance of the 2023 Lease Revenue Bonds as of June 30, 2024 is $9,190,000. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 140,000$ 421,800$ 561,800$
2026 145,000 414,675 559,675
2027 155,000 407,175 562,175
2028 160,000 399,300 559,300
2029 170,000 391,050 561,050
2030-2034 980,000 1,816,000 2,796,000
2035-2039 1,265,000 1,537,125 2,802,125
2040-2044 1,615,000 1,179,125 2,794,125
2045-2049 2,040,000 759,688 2,799,688
2050-2054 2,520,000 277,313 2,797,313
Total 9,190,000$ 7,603,250$ 16,793,250$
Bond premiums are amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
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. 114

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2021 Installment Sale Agreement (Continued)
The City’s obligation to pay the installment payments is a special obligation of the City limited solely to the Gas Tax revenues and all amounts on deposit in the Gas Tax Fund.

Under no circumstances is the City required to advance moneys derived from any source of income other than the Gas Tax revenues and other sources specifically identified in the agreement. The City has the option to prepay the principal components of the installment payments in whole, on any date, commencing on December 1, 2025.

The bonds are reported in full in the government-wide statement of net position, within the governmental activities. The outstanding balance of the 2021 Installment Sale Agreement as of June 30, 2024 is $2,293,000.

The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 368,000$ 36,316$ 404,316$
2026 373,000 30,220 403,220 2027 377,000 24,049 401,049 2028 387,000 17,795 404,795 2029 392,000 11,385 403,385 2030 396,000 4,900 400,900 Total 2,293,000$ 124,665$ 2,417,665$ 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%. Loan payments are payable quarterly in arrears of the period to which they relate to. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the equipment. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2024 157,967$ 9,503$ 167,470$ 2025 204,512 4,826 209,338 Total 362,479$ 14,329$ 376,808$

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Fire Loan Payable #1
On August 27, 2019, the City entered into an agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $3,400,000. The loan is for a period of 10 years with an interest rate of 2.69%. Loan payments are payable on February 1 and August 1, commencing August 1, 2020. The title to the purchased equipment is in the name of the City. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the fire trucks. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 358,596$ 53,995$ 412,591$
2026 368,307 44,284 412,591
2027 378,281 34,310 412,591
2028 388,525 24,066 412,591
2029 399,047 13,544 412,591
2030 203,558 2,738 206,296
Total 2,096,314$ 172,937$ 2,269,251$
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 agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the fire trucks. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
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 209,013 6,988 216,001
2030 106,588 1,412 108,000
Total 1,098,741$ 89,266$ 1,188,007$
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
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, 2024 is $222,672. The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
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 222,672$ 28,968$ 251,640$ 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 agreement contains a provision that in an event of default, the lender may choose to repossess the vehicles.

The outstanding principal as of June 30, 2024 is $96,530.

The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 30,048$ 6,686$ 36,734$ 2026 32,129 4,605 36,734 2028 34,353 2,380 36,733 Total 96,530$ 13,671$ 110,201$

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Motorola Equipment Loan
On September 15, 2023, the City entered into an agreement for financing the acquisition of equipment. The assets acquired through the financing agreement were included construction in progress for governmental activities in the amount of $1,197,159, as the equipment has not yet been put into use. The loan is for a period of 10 years with an interest rate of 4.71%. Annual loan payments of $152,862 are payable on September 15, through September 15, 2033. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the equipment. The outstanding principal as of June 30, 2024, is $1,197,159.

The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 96,476$ 56,386$ 152,862$
2026 101,020 51,842 152,862
2027 105,778 47,084 152,862
2028 110,760 42,102 152,862
2029 115,976 36,885 152,861
2030-2034 667,149 97,159 764,308
Total 1,197,159$ 331,458$ 1,528,617$
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, 2024, is $714,982.

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 CalPERS. 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 Ending June 30,Principal Interest Total
2025 344,932$ 3,983$ 348,915$
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
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 3.511%. Rent payments ranging from $417 to $1,289, 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.

As of June 30, 2024, lease assets and the related accumulated amortization totaled $2,918,849 and $(777,253), respectively. See Note 5 for Capital Assets.

Total future minimum lease payments under lease agreements are as follows:

Year Ending June 30,Principal Interest Total
2025 434,494$ 15,773$ 450,267$
2026 273,494 10,003 283,497
2027 173,048 5,403 178,451
2028 111,881 1,493 113,374
2029 5,205 12 5,217
Total 998,122$ 32,684$ 1,030,806$
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, 2024, subscription assets and the related accumulated amortization totaled $1,948,269 and $(961,223), respectively. See Note 5 for Capital Assets.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30,Principal Interest Total
2025 347,515$ 39,175$ 386,690$
2026 336,481 28,593 365,074
2027 219,488 21,528 241,016
2028 160,279 17,281 177,560
2029 163,173 14,387 177,560
2030-2034 607,368 28,772 636,140
2035-2036 24,911 1,089 26,000
Total 1,859,215$ 150,825$ 2,010,040$
There are no variable payments, no payments made related to termination penalties, and no impairment losses on subscription assets. For the SBITA agreements added in the current year, total capitalizable software configuration costs totaled $373,943. 119

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Claims Payable
Estimated claims payable from general liability and workers’ compensation claims as determined by outside claims administrator. Outstanding balance as of June 30, 2024 is as follows:

General Liability Claims 1,324,036$
Workers' Compensation Claims 2,496,880
Total Claims Payable 3,820,916$
B. Business-Type Activities
A summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year than One Year Compensated Absences 45,575$ 30,411$ (44,354)$ 31,632$ 1,395$ 30,237$ Total 45,575$ 30,411$ (44,354)$ 31,632$ 1,395$ 30,237$ Classification

C. Fiduciary Activities
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2024 is as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Bonds Payable:
2013 Tax Allocation
Refunding Bonds 8,070,000$ -$ (670,000)$ 7,400,000$ 695,000$ 6,705,000$ Bond Premium:
2013 Tax Allocation
Refunding Bonds 32,339 - (3,560) 28,779 - 28,779 Other Liabilities:

Reimbursement Due to City 1,533,961 - (368,837) 1,165,124 379,003 786,121 SERAF Obligation 991,314 - - 991,314 - 991,314 Real Property Loan
Obligation 51,831 - (51,831) - - - Total 10,679,445$ -$ (1,094,228)$ 9,585,217$ 1,074,003$ 8,511,214$ Classification

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
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.

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, 2024, the outstanding principal on this bond is $7,400,000.

The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 695,000$ 315,619$ 1,010,619$
2026 720,000 288,188 1,008,188
2027 750,000 258,788 1,008,788
2028 780,000 227,700 1,007,700
2028 810,000 192,375 1,002,375
2029-2033 3,645,000 356,131 4,001,131
Total 7,400,000$ 1,638,801$ 9,038,801$
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.
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(70)

NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
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, 2024, of $1,165,124 represents the portion of the principal balance for which the Successor Agency will reimburse the City.

The annual debt service requirements are as follows:

Year Ending June 30,Principal Interest Total
2025 379,003$ 27,380$ 406,383$
2026 388,577 18,474 407,051 2027 397,544 9,342 406,886 Total 1,165,124$ 55,196$ 1,220,320$

Supplemental Education Revenue Augmentation Fund (SERAF) Obligation The Successor Agency has accrued a liability in the amount of $991,314 in regard to its Supplemental Education Revenue Augmentation Fund (SERAF) obligation. This amount includes the unpaid portions from fiscal years 2009-10 and 2010-11. In 2009, the state of California issued a mandate that shifted redevelopment funds to education purposes.

This action required each local redevelopment agency to make payment to their respective County Auditor-Controller. The Placentia Redevelopment Agency did not make payment on this obligation for two fiscal years, as it did not have the means to do so. Nonpayment of SERAF obligations would usually result in suspension of redevelopment activity. Upon dissolution of redevelopment in 2012, this unpaid obligation was transferred to the Successor Agency. The Successor Agency will continue working to resolve this matter. Outstanding balance of SERAF Obligation as of June 30, 2024, 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%.

The City received the final payment on the loan in the current year. 122

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(71)

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.

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, 2024 was $2,747,277. Total employee contributions paid by the City amounted to $274,728.

As of June 30, 2024, the Plan had 33 participants.
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NOTE 8 PENSION PLANS
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred Outflows of Resources:

Pension Contribution Made After
Measurement Date:

CalPERS Miscellaneous 799,712$ 54,955$ 854,667$ CalPERS Safety 1,236,862 - 1,236,862 Total Pension Contribution
Made After Measurement Date 2,036,574 54,955 2,091,529 Change in Assumptions
CalPERS Miscellaneous 151,859 10,436 162,295 CalPERS Safety 319,249 - 319,249 Total Change in Assumptions 471,108 10,436 481,544 Difference Between Projected and
Actual Investment Earnings:

CalPERS Miscellaneous 407,247 27,985 435,232 CalPERS Safety 748,596 - 748,596 Total Difference Between
Projected and Actual
Investment Earnings 1,155,843 27,985 1,183,828 Difference Between Expected and
Actual Experience:

CalPERS Miscellaneous 128,494 8,830 137,324 CalPERS Safety 401,615 - 401,615 Total Difference Between
Expected and Actual
Experience 530,109 8,830 538,939 Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:

CalPERS Miscellaneous 2,874,835 197,555 3,072,390 CalPERS Safety 2,480,646 - 2,480,646 Total Employer Contributions
in Excess of Proportionate
Share of Contribution 5,355,481 197,555 5,553,036 Total Deferred Outflows of Resources:

CalPERS Miscellaneous 4,362,147 299,761 4,661,908 CalPERS Safety 5,186,968 - 5,186,968 Total Deferred Outflows of
Resources 9,549,115$ 299,761$ 9,848,876$ 124

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NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Governmental Business-Type
Activities Activities Total
Net Pension Liabilities:

CalPERS Miscellaneous 2,515,288$ 172,847$ 2,688,135$ CalPERS Safety 5,470,210 - 5,470,210
Total Net Pension Liabilities 7,985,498$ 172,847$ 8,158,345$ Deferred Inflows of Resources:

Change in Assumptions
CalPERS Miscellaneous -$ -$ -$
CalPERS Safety - - -
Total Change in Assumptions - - -
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:

CalPERS Miscellaneous 868,716 59,697 928,413
CalPERS Safety 1,732,746 - 1,732,746
Total Adjustment Due to
Difference in Proportions 2,601,462 59,697 2,661,159
Difference Between Expected and
Actual Experience:

CalPERS Miscellaneous 19,932 1,370 21,302
CalPERS Safety 34,382 - 34,382
Total Difference Between
Expected and Actual
Experience 54,314 1,370 55,684
Employer Contributions In Excess
of Proportionate Share of
Contribution:

CalPERS Miscellaneous - - -
CalPERS Safety - - -
Total Employer Contributions
in Excess of Proportionate
Share of Contribution - - -
Difference Between Expected and
Actual Experience:

CalPERS Miscellaneous - - -
CalPERS Safety - - -
Total Difference Between
Expected and Actual
Experience - - -
Total Deferred Inflows of Resources:

CalPERS Miscellaneous 888,648 61,067 949,715
CalPERS Safety 1,767,128 - 1,767,128
Total Deferred Inflows of
Resources 2,655,776$ 61,067$ 2,716,843$
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NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Governmental Business-Type
Activities Activities Total
Pension Expenses:

CalPERS Miscellaneous 4,331,396$ 297,647$ 4,629,043$ CalPERS Safety 6,701,649 - 6,701,649 Total Net Pension Income 11,033,045$ 297,647$ 11,330,692$ B. General Information about the Pension Plans
Plan Description
The City contributes to the California Public Employees Retirement System (CalPERS), a cost-sharing, multiple-employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS 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 CalPERS 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, 2023, measurement date the following employees were covered by the benefit terms:

Miscellaneous Miscellaneous Safety
Miscellaneous Tier 2 PEPRA Safety PEPRA
Active Employees 20 11 80 19 29 Transferred Employees 49 14 55 18 11 Separated Employees 26 2 49 10 9 Retired Employees and
Beneficiaries 185 1 5 121 1 Total 280 28 189 168 50 Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS 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. 126

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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 60 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 12.470% 10.660% 7.680% 27.110% 13.540% 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 CalPERS’ 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, 2024, the City made contributions to each Plan were as follows:

Miscellaneous Safety Total
Contributions - Employer 854,667$ 1,236,862$ 2,091,529$ 127

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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 for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The City’s proportion of the net pension liability 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 change in the proportionate share of the net pension liability for each Plan as of the June 30, 2022, the measurement date and the June 30, 2023, measurement date was as follows:

Miscellaneous Safety
Proportion - June 30, 2022 0.03319 % 0.04235 %
Proportion - June 30, 2023 0.05376 0.07318
Change - Increase (Decrease) 0.02057 % 0.03083 %

For the year ended June 30, 2024, the City recognized pension expense of $4,629,043 and $6,701,649, for the Miscellaneous and Safety plans, respectively. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date 854,667$ -$
Difference Between Expected and Actual
Experience 137,324 21,302
Changes of Assumptions 162,295 -
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 435,232 - Changes in proportion and differences between
employer contributions and proportionate share
of contributions 3,072,390 928,413
Total 4,661,908$ 949,715$
Miscellaneous Plan

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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) Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date 1,236,862$ -$
Difference Between Expected and Actual
Experience 401,615 34,382
Changes of Assumptions 319,249 -
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 748,596 - Changes in proportion and differences between
employer contributions and proportionate share
of contributions 2,480,646 1,732,746
Total 5,186,968$ 1,767,128$
Safety Plan

Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date 2,091,529$ -$
Difference Between Expected and Actual
Experience 538,939 55,684
Changes of Assumptions 481,544 -
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 1,183,828 - Changes in proportion and differences between
employer contributions and proportionate share
of contributions - -
Adjustments Due to Difference in Proportions 5,553,036 2,661,159 Total 9,848,876$ 2,716,843$
Aggregate Total

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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, $854,667 and $1,236,862, 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, 2025. 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 Miscellaneous Safety
Ending June 30,Plan Plan Total
2025 $1,857,725 $1,598,123 3,455,848$
2026 923,942 456,651 1,380,593
2027 63,372 107,310 170,682
2028 12,487 20,894 33,381
2029 - - -
Thereafter - - -
Total 2,857,526$ 2,182,978$ 5,040,504$
Deferred (Inflows) Outflows of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2022, actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.90%
Mortality Rate Table Derived using CalPERS’
Membership Data for all Funds.

Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.3% thereafter.
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(79)

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 CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS 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 CalPERS Experience Study and review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS 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, CalPERS 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. 131

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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.

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:
1%Current 1%
Decrease Discount Rate Increase
(5.90%)(6.90%)(7.90%)
Miscellaneous 11,236,091$ 2,688,135$ (4,347,567)$
Safety 20,736,371 5,470,210 (7,010,964)
Total 31,972,462$ 8,158,345$ (11,358,531)$
Plan's Net Pension (Asset) Liability
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Payable to the Pension Plan
At June 30, 2024, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2024.
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NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred Outflows of Resources:

Employer Contributions Made
Subsequent to the Measurement
Date 1,140,607$ 31,624$ 1,172,231$
Changes in Assumptions 2,165,838 60,050 2,225,888
Total Deferred Outflows of
Resources 3,306,445$ 91,674$ 3,398,119$
Net OPEB liability 13,621,646$ 377,671$ 13,999,317$
Deferred Inflows of Resources:

Changes in Assumptions 6,329,457$ 175,490$ 6,504,947$ Difference Between Expected and
Actual Experience 5,320,395 147,513 5,467,908
Net Difference Between Projected
and Actual Earnings 66,295 1,838 68,133
Total Deferred Inflows of
Resources 11,716,147$ 324,841$ 12,040,988$
OPEB Income (1,254,472)$ (34,781)$ (1,289,253)$
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 CalPERS 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 CalPERS. Survivor benefits are not provided. Copies of the CalPERS’ annual financial report can be obtained from the CalPERS 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.
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NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
B. General Information About OPEB (Continued)
All employees hired on or after November 21, 1995 are Tier II. The City pays the minimum required medical insurance contribution established by CalPERS for Tier II employees.

Membership in the plan consisted of the following at June 30, 2023, the date of the latest actuarial valuation:

Active Plan Members 172
Retirees 147
Total 319

C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB
Contributions
Benefit provisions and contribution requirements are established and may be amended through agreements and memorandums of understanding between the City, its management employees, and unions representing the City's employees. The plan does not require employee contributions.

The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2024, the City made contributions to the plan totaling $1,172,231 ($961,181 actual benefit payments and a $211,050 implicit subsidy credit).

Employees are not required to contribute to the plan.

Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability at June 30, 2024 was $16,925,813.

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NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Actuarial Assumptions
The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

Discount Rate 4.80% (Bond Buyer 20-Bond Index)
Inflation 2.30% Annually
Aggregate Payroll Increases 2.80%
Expected Long-Term Investment Rate of Return N/A
Mortality, Termination, and Disability CalPERS 2000-2019 Experience Study
Mortality Improvement Scale Modified projected fully generational with Scale MP-2021
Healthcare Trend Rate - Non-Medicare An annual healthcare cost trend rate of 6.50% for 2023, decreasing
to an ultimate rate of 3.73% in 2075
Healthcare Trend Rate - Medicare 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, 2023, valuation were based on the results of the November 2021 CalPERS experience study covering 2000 to 2019.

Discount Rate
The discount rate used to measure the total OPEB liability was 4.80% 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. 135

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(84)

NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Change in the Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance - June 30, 2022 (Measurement Date) 18,314,761$ -$ 18,314,761$ Changes Recognized for the Measurement Period:

Service Cost 296,493 - 296,493 Interest on the Total OPEB Liability 639,487 - 639,487 Changes of Benefit Terms - - - Difference Between Expected and Actual
Experience (5,302) - (5,302) Changes of Assumptions (2,319,626) - (2,319,626) Contributions from the Employer 2,800,144 (2,800,144) Net Investment Income 132,778 (132,778)
Administrative Expenses (6,426) 6,426
Benefit Payments (1,093,319) (1,093,319) -
Net Changes (2,482,267) 1,833,177 (4,315,444) Balance - June 30, 2023 (Measurement Date) 15,832,494$ 1,833,177$ 13,999,317$

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.80%) or 1-percentage point higher (5.80%) than the current discount rate:

1% Current 1%
Decrease Discount Rate Increase
(3.80%) (4.80%) (5.80%)
OPEB Pension Plan 15,795,306$ 13,999,317$ 12,494,238$ Plan's Total OPEB Liability

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net 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:

Healthcare
1% Cost Trend 1%
Decrease Rates Increase
OPEB Pension Plan 12,330,488$ 13,999,317$ 16,003,695$ Plan's Total OPEB Liability

136

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(85)

NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net 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, 2024, the City recognized OPEB income of $1,289,253. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference Between Expected and Actual Experience -$ 5,467,908$ Changes in Assumptions 2,225,888 6,504,947
Employer Contributions Made Subsequent to the
Measurement Date 1,172,231 -
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments - 68,133 Total 3,398,119$ 12,040,988$

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.

$1,172,231 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, 2025.

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
2025 (1,794,047)$
2026 (1,614,941)
2027 (1,346,967)
2028 (1,734,415)
2029 (1,910,495)
Thereafter (1,414,235)
Total (9,815,100)$
137

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(86)
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.
138

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(87)

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:
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 2023-2024 2,883,583 470,637 (857,340) 2,496,880 624,220 1,872,660 General Liability:
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 2023-2024 1,167,761 1,074,374 (918,099) 1,324,036 317,259 1,006,777

NOTE 11 CLASSIFICATION OF FUND BALANCES
At June 30, 2024, fund balances are classified in the governmental funds as follows:

Citywide
Development Placentia
Impact Fee Regional Nonmajor
General Special Navigation Debt Governmental
Fund Revenue Fund Center Service Fund Funds Total
Nonspendable:

Inventory 21,542$ -$ -$ -$ -$ 21,542$ Prepaid Items 88,009 3,281 - - - 91,290 Loans Receivable 786,121 - - - - 786,121 Total Nonspendable 895,672 3,281 - - - 898,953 Restricted:

Public Safety - - - - 1,668,812 1,668,812 Public Works - - - - 1,479,117 1,479,117 Community Development - 2,375,781 - - 1,933,711 4,309,492 Community Services - - - - 1,867 1,867 Debt Service - - - 8,013,519 87,394 8,100,913 Grant Programs - - - - - - Transportation - - - - 617,869 617,869 Park Development - - - - 20,903 20,903 Street Maintenance - - - - 517,279 517,279 Air Quality - - - - 312,566 312,566 Housing - - - - 2,087,696 2,087,696 Pension Stability 1,643,582 - - - - 1,643,582 Total Restricted 1,643,582 2,375,781 - 8,013,519 8,727,214 20,760,096 Committed:

Measure U - Infrastructure 1,036,860 - - - - 1,036,860 Total Committed 1,036,860 - - - - 1,036,860 Unassigned 14,795,659 - (2,628,658) - (1,352,350) 10,814,651 Total Fund Balances 18,371,773$ 2,379,062$ (2,628,658)$ 8,013,519$ 7,374,864$ 33,510,560$ 139

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(88)

NOTE 12 COMMITMENTS AND CONTINGENCIES
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2024. These projects are evidenced by contractual commitments with contractors or other agencies and include:

Projects Commitment
Buildings 25,527$
Improvements Other Than Buildings 566,414
Infrastructure - Streets 1,848,928
Infrastructure - Traffic 58,641
Infrastructure - Sewer 201,111
Infrastructure - Parks 501,654
Infrastructure - Major Studies 204,784
Machinery & Equipment 170,542
Vehicles 24,087
Building & Facilities 364,186
Public Safety Building 6,577,199
Total 10,543,073$

The City has various outstanding purchase commitments. Total commitments at June 30, 2024 are as follows:

Outstanding
Purchase
Commitments
Governmental Funds:

General Fund 1,401,736$
Other Governmental Funds 1,222,312
Total 2,624,048$

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.
140

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(89)

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, 2024, as follows:

Expenditure
in Excess of
Expenditures Appropriation Appropriations
Special Revenue Funds:

Street Lighting 549,040$ 171,500$ (377,540)$ Measure M 1,238,960 1,200,374 (38,586)
Landscape Maintenance District 501,359 432,867 (68,492) Housing and Community Development 443,353 390,061 (53,292) NOC Public Safety 62,313 56,700 (5,613) EFID 28,144 - (28,144) Debt Service Funds:

Major Debt Service Fund 4,322,471 4,083,700 (238,771)

B. Deficit Net Position and Fund Balances
Funds with deficit net position/fund balance at June 30, 2024, are as follows:

Deficit Deficit
Fund Balance Net Position
Special Revenue Funds:

Placentia Regional Navigation Center (Major Fund) (2,628,658) Miscellaneous Grants (468,204)
Landscape Maintenance District 92-1 (56,727)
Housing and Community Development (511,160)
Gasoline Tax (16,741)
Sewer Construction (123,349)
Total (3,804,839)$
Capital Projects Fund:

City Capital Projects (176,169)$
Internal Service Fund:

Risk Management (1,545,135)$
At June 30, 2024, the City’s governmental activities had an unrestricted net position deficit of $(63,541,165) 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.
141

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(90)
NOTE 14 ACCOUNTING CHANGE
A. Change within the Financial Reporting Entity
Change in Fund Presentation from Nonmajor to Major
In prior years, the Placentia Regional Navigation Center Special Revenue Fund has been reported as a nonmajor governmental fund. In the current year, this fund met the criteria to be reported as a major governmental fund. The effect of this change within the financial reporting entity is shown in the table below
June 30, 2023,Change Within
as Previously the Financial June 30, 2023,
Reported Reporting Entity as Adjusted
Governmental Funds:

Major Funds:

General Fund 26,712,756$ -$ 26,712,756$
Citywide Development Impact Fee
Fund 4,474,906 - 4,474,906
Placentia Regional Navigation Center
Fund - (1,635,925) (1,635,925)
Debt Service Fund 4,153,709 - 4,153,709
Nonmajor Funds 6,354,937 1,635,925 7,990,862
Total Governmental Funds 41,696,308$ -$ 41,696,308$ 142

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)

143

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144

CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE –

GENERAL FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Budgetary Comparison Schedules. (91)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 45,048,523$ 45,274,180$ 45,847,060$ 572,880$ Intergovernmental 280,000 4,380,950 2,717,309 (1,663,641) Licenses and Permits 2,985,000 2,851,000 2,535,885 (315,115) Fines and Forfeitures 452,500 465,000 548,960 83,960 Investment Income 600,000 600,000 1,175,860 575,860
Charges for Services 1,245,500 1,350,500 1,441,304 90,804 Leases and Rents 1,061,000 1,061,000 1,677,641 616,641 Miscellaneous 790,500 805,500 1,125,980 320,480
Total Revenues 52,463,023 56,788,130 57,069,999 281,869

EXPENDITURES
Current:

General Government 14,716,090 15,560,790 15,336,829 223,961 Public Safety 18,116,117 19,044,953 18,491,792 553,161 Public Works 4,785,070 4,956,521 5,350,268 (393,747) Community Development 1,571,100 1,824,507 1,809,970 14,537 Community Services 2,947,452 3,339,704 3,431,853 (92,149) Capital Outlay 8,850,780 29,992,467 22,021,540 7,970,927 Debt Service:

Principal Retirement 1,505,500 1,505,500 2,366,341 (860,841) Interest and Fiscal Charges 696,700 171,700 231,958 (60,258) Total Expenditures 53,188,809 76,396,142 69,040,551 7,355,591 REVENUE OVER (UNDER) EXPENDITURES (725,786) (19,608,012) (11,970,552) 7,637,460

OTHER FINANCING SOURCES (USES)
Issuance of Debt - - 2,017,510 2,017,510
Payment to Escrow for Refunding Debt - - - -
Transfers In 1,365,895 494,900 6,108,943 5,614,043
Transfers Out (5,652,414) (6,017,309) (4,496,884) 1,520,425 Total Other Financing Sources (Uses)(4,286,519) (5,522,409) 3,629,569 9,151,978 NET CHANGE IN FUND BALANCE (5,012,305)$ (25,130,421)$ (8,340,983) 16,789,438$ Fund Balance - Beginning of Year 26,712,756
FUND BALANCE - END OF YEAR 18,371,773$
Budgeted Amounts
145

CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE –

CITYWIDE DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Budgetary Comparison Schedules. (92)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$72,851$ 72,851$
Contributions 1,601,383 1,601,383 355,903 (1,245,480) Miscellaneous - - 2,785 2,785
Total Revenues 1,601,383 1,601,383 431,539 (1,169,844)

EXPENDITURES
Current:

Public Safety 40,000 126,000 95,820 30,180
Capital Outlay 185,000 3,376,799 2,431,563 945,236
Total Expenditures 225,000 3,502,799 2,527,383 975,416 REVENUE OVER (UNDER) EXPENDITURES 1,376,383 (1,901,416) (2,095,844) (194,428) NET CHANGE IN FUND BALANCE 1,376,383$ (1,901,416)$ (2,095,844) (194,428)$ Fund Balance - Beginning of Year 4,474,906
FUND BALANCE - END OF YEAR 2,379,062$
Budgeted Amounts
146

CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE –

PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024
See accompanying Notes to Budgetary Comparison Schedules. (93)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 2,394,700$ 2,394,700$ 1,287,053$ (1,107,647)$ Contributions - - - -
Total Revenues 2,394,700 2,394,700 1,287,053 (1,107,647)

EXPENDITURES
Current:

Public Safety 2,394,700 2,403,711 2,126,486 277,225
Capital Outlay -150,000 153,300 (3,300)
Total Expenditures 2,394,700 2,553,711 2,279,786 273,925 NET CHANGE IN FUND BALANCE -$ (159,011)$ (992,733) (833,722)$ Fund Balance - Beginning of Year (1,635,925)
FUND BALANCE - END OF YEAR (2,628,658)$
Budgeted Amounts
147

CITY OF PLACENTIA
NOTES TO BUDGETARY COMPARISON SCHEDULES –
YEAR ENDED JUNE 30, 2024
(94)
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 2024, the City did not create a budget for the following governmental special revenue funds: Park Development, Storm Drain, Traffic Offender, Sewer Construction, Affordable Housing In-Lieu, Community Based Transitional Housing Grant, Housing Successor, Orangethorpe Corridor, 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.
148

CITY OF PLACENTIA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS –

MISCELLANEOUS PLAN

LAST TEN FISCAL YEARS
(95)
Fiscal Year Ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Date 6/30/2023 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 0.05376% 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 Liability 2,688,135$ 1,552,976$ 16,419,169$ 16,419,169$ 15,209,436$ 13,952,246$ 14,094,828$ 12,135,165$ 9,154,245$ 8,617,803$ Plan's Covered Payroll 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$ 3,712,315$ Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 33.12%21.99% 243.86% 286.76% 302.55% 332.34% 345.80% 293.06% 284.25% 232.14% Plan's Fiduciary Net Position 60,515,009$ 60,033,972$ 40,663,791$ 40,663,791$ 41,142,220$ 40,682,189$ 39,816,871$ 38,103,697$ 40,735,920$ 42,161,022$ Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 95.75%97.48% 71.24% 71.24% 73.01% 74.46% 73.86%75.85%81.65%83.03% Plan's Proportionate Share of Aggregate Employer
Contributions 2,515,714$ 3,114,009$ 2,642,842$ 1,383,994$ 1,139,534$ 932,993$ 785,438$ 667,441$ 383,155$ 412,406$ Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

From fiscal year June 30, 2017 to June 30, 2018:

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, 2023 to June 30, 2024: 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%.

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, 2021 to June 30, 2022: There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021: There were no changes in assumptions. year 2019-2020.

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 From fiscal year June 30, 2018 to June 30, 2019:

In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS 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:
149

CITY OF PLACENTIA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS –

SAFETY PLAN

LAST TEN FISCAL YEARS
(96)
Fiscal Year Ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Period 6/30/2023 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 0.07318% 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 Liability 5,470,210$ 2,910,326$ 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 5,760,486$ 5,428,571$ 5,414,606$ 4,822,533$ 4,385,233$ 4,383,655$ 4,193,517$ 4,142,921$ 4,074,947$ 4,323,789$ Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 94.96%53.61% 544.22% 611.03% 653.79% 654.18% 644.26% 596.76% 509.82% 440.32% Plan's Fiduciary Net Position 111,283,833$ 104,039,873$ 69,454,497$ 69,454,497$ 69,385,418$ 65,913,238$ 62,459,293$ 58,150,629$ 60,121,518$ 61,484,214$ Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 95.31%97.28%70.21%70.21%71.99%71.53%69.81%70.17%74.32%76.36% Plan's Proportionate Share of Aggregate Employer
Contributions 4,216,661$ 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$ Notes to Schedule:
related to prior measurement periods.

December 2017. There were no changes in the discount rate.

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 From fiscal year June 30, 2018 to June 30, 2019:

In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions From fiscal year June 30, 2023 to June 30, 2024: 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%.

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:
fiscal year 2019-2020.

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 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, 2021 to June 30, 2022: There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021: There were no changes in assumptions.

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 From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions. resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions 150

CITY OF PLACENTIA
SCHEDULE OF CITY’S PENSION CONTRIBUTIONS –

MISCELLANEOUS PLAN

LAST TEN FISCAL YEARS

(97)

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually Determined Contribution
(Actuarially Determined)854,667$ 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 (854,667) (710,758) (589,881) (17,663,643) (1,383,994) (1,139,534) (932,993) (785,438) (667,441) (383,155) Contribution Deficiency (Excess) -$ -$ -$ (16,147,022)$ -$ -$ -$ -$ -$ -$ Covered Payroll 9,790,895$ 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 8.73%8.76%8.35%262.34%31.07%26.35%22.22%19.27%16.12%11.90% Notes to Schedule:

Valuation Date 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 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 Entry age Amortization Method (1) (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 Fair Value 15 Year Smoothed
Market Method
Inflation 2.30% 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) (2) Investment Rate of Return 6.9% (3) 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) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(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 CalPERS Experience Study adopted BR the CalPERS Board. (3) Net of pension plan investment expense, including inflation

151

CITY OF PLACENTIA
SCHEDULE OF CITY’S PENSION CONTRIBUTIONS –

SAFETY PLAN

LAST TEN FISCAL YEARS

(98)

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually Determined Contribution
(Actuarially Determined)1,236,862$ 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$ Contributions in Relation to the Actuarially
Determined Contributions (1,236,862) (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 6,360,119$ 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 19.45%19.01%18.71%565.09%52.25%48.08%69.22%65.66%62.00%53.38% Notes to Schedule:

Valuation Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 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 Entry age Amortization Method (1.00) (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 Fair Value 15 Year Smoothed
Market Method
Inflation 2.30% 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) (2) Investment Rate of Return 6.9% (3) 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) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted BR the CalPERS Board. (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**

152

CITY OF PLACENTIA

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS

LAST SEVEN FISCAL YEARS
(99)
Measurement Period, Year Ending: 1 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service Cost 296,493$ 491,712$ 532,568$ 359,454$ 542,976$ 569,606$ 675,000$ Interest 639,487 536,526 691,435 919,735 1,092,405 1,032,870 899,000 Changes of Benefit Terms - - - - - - -
Differences Between Expected and Actual Experience (5,302) (2,064,492) (4,989,665) - (2,606,242) - - Changes of Assumptions (2,319,626) (4,427,399) (1,506,167) 4,699,117 332,593 (1,089,486) (3,058,000) Benefit Payments, Including Refunds of Member
Contributions (1,093,319) (1,132,073) (1,143,510) (1,142,314) (1,112,888) (1,107,000) (1,116,000) Net change in Total OPEB Liability (2,482,267) (6,595,726) (6,415,339) 4,835,992 (1,751,156) (594,010) (2,600,000) Total OPEB Liability - Beginning 18,314,761 24,910,487 31,325,826 26,489,834 28,240,990 28,835,000 31,435,000 Total OPEB Liability - Ending (a)15,832,494$ 18,314,761$ 24,910,487$ 31,325,826$ 26,489,834$ 28,240,990$ 28,835,000$ OPEB Fiduciary Net Position:

Contributions - Employer 2,800,144$ 1,132,073$ 1,146,160$ 1,146,160$ 1,142,314$ 1,112,888$ 1,116,000$ Net Investment Income 132,778 - - - - - -
Benefit Payments, Including Refunds of Member
Contributions (1,093,319) (1,132,073) (1,146,160) (1,146,160) (1,142,314) (1,112,888) (1,116,000) Administrative Expense (6,426) - - - - - -
Net Change in Plan Fiduciary Net Position 1,833,177 - - - - - - Plan Fiduciary Net Position - Beginning - - - - - - - Plan Fiduciary Net Position - Ending (b)1,833,177 - - - - - - Plan Net OPEB Liability - Ending (a) - (b)13,999,317$ 18,314,761$ 24,910,487$ 31,325,826$ 26,489,834$ 28,240,990$ 28,835,000$ Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 0.00%0.00%0.00%0.00%0.00%0.00%0.00% Covered-Employee Payroll 18,881,076$ 17,448,843$ 13,993,405$ 12,286,189$ 11,810,189$ 11,466,203$ 9,367,000$ Plan Net OPEB Liability as a Percentage of Covered
Payroll 0%0%178%255%224%239%308%
Notes to Schedule:

For the June 30, 2023, 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. 1 Historical information is only presented for measurement periods after GASB 75 implementation. 153

CITY OF PLACENTIA
SCHEDULE OF CITY’S OPEB CONTRIBUTIONS

LAST SEVEN FISCAL YEARS

(100)

Fiscal Year 1 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially Determined Contribution 1,086,065$ 1,093,319$ 1,132,073$ 1,146,160$ 1,142,314$ 1,112,888$ 1,107,000$ Contributions in Relation to the Actuarially Determined Contribution (1,172,231) (2,800,144) (1,132,073) (1,146,160) (1,142,314) (1,112,888) (1,107,000) Contribution Deficiency (Excess) (86,166)$ (1,706,825)$ -$ -$ -$ -$ -$ Covered Payroll 18,881,076$ 18,881,076$ 17,448,843$ 13,993,405$ 12,286,189$ 11,810,189$ 11,466,203$ Contributions as a Percentage of Covered Payroll 6.21% 14.83% 6.49% 8.19% 9.30% 9.42% 9.65% Notes to Schedule:

Valuation Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2017 6/30/2017 Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level Percentage of Payroll
Inflation 2.30% Annually
Salary Increases Aggregate 2.80% Annually, Merit - CalPERS 2000-2019 Experience Study Payroll Growth 2.80%
Discount Rate 3.54% (Bond Buyer 20-Bond Index)
Mortality, Retirement, Disability, and Termination CalPERS Experience Study 2000-2019 Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2021 1 Historical information is only presented for measurement periods after GASB 75 implementation.

154

SUPPLEMENTARY INFORMATION

155

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156

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

DEBT SERVICE FUND (MAJOR FUND)
YEAR ENDED JUNE 30, 2024

(101)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$ 479,186$ 479,186$ Total Revenues - - 479,186 479,186

EXPENDITURES
Debt Service:

General Government - - 2,499 (2,499) Principal Retirement 1,860,000 1,860,000 1,860,000 - Interest and Fiscal Charges 1,959,000 2,223,700 2,459,972 (236,272) Total Expenditures 3,819,000 4,083,700 4,322,471 (238,771) REVENUE OVER (UNDER) EXPENDITURES (3,819,000) (4,083,700) (3,843,285) 240,415

OTHER FINANCING SOURCES
Issuance of Debt - - 9,190,000 9,190,000 Bond Premium - - 352,179 352,179 Transfers In 3,819,000 4,083,700 4,083,700 - Transfers Out - - (5,922,784) (5,922,784) Total Other Financing Sources 3,819,000 4,083,700 7,703,095 3,619,395 NET CHANGE IN FUND BALANCE -$ -$ 3,859,810 3,859,810$ Fund Balance - Beginning of Year 4,153,709
FUND BALANCE - END OF YEAR 8,013,519$
Budgeted Amounts

157

(102)
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158

NONMAJOR GOVERNMENTAL FUNDS

(103)

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 ½% 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.

159

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

(104)

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.

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. 160

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
(105)
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. 161

CITY OF PLACENTIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(106)

Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure ASSETS
Cash and Investments 86,797$ 20,903$ 22,555$ 488,821$ 530$ 4,879$ 1,334,140$ Receivables:

Accounts - - 519 115,820 - - - Grants 321,487 - - - - - - Accrued Interest - - - - - - - Loans and Notes - - - - - - - Leases - - - - - - - Prepaid Items - - - - - - - Land Held for Resale - - - - - - - Total Assets 408,284$ 20,903$ 23,074$ 604,641$ 530$ 4,879$ 1,334,140$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 43,248$ -$ 23,074$ 57,362$ -$ -$ 1,918$ Accrued Liabilities - - - - - - - Deposits Payable - - - - - - - Retentions Payable 11,753 - - 30,000 - - - Due to Other Funds - - - - - - - Unearned Revenue 500,000 - - - - - - Total Liabilities 555,001 - 23,074 87,362 - - 1,918

DEFERRED INFLOWS OF RESOURCES
Leases - - - - - - - Unavailable Revenues 321,487 - - - - - - Total Deferred Inflows of Resources 321,487 - - - - - -

FUND BALANCES
Restricted - 20,903 - 517,279 530 4,879 1,332,222 Unassigned (Deficit) (468,204) - - - - - - Total Fund Balances (468,204) 20,903 - 517,279 530 4,879 1,332,222 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 408,284$ 20,903$ 23,074$ 604,641$ 530$ 4,879$ 1,334,140$ Special Revenue Funds

162

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(107)

Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction ASSETS
Cash and Investments 4,698$ 237,022$ 326,907$ -$ -$ -$ -$ Receivables:

Accounts 1,126 - - 2,309 310,520 124,575 800 Grants - - - - - - - Accrued Interest - - - - - - - Loans and Notes - - - - - - - Leases - - - - - - - Prepaid Items - - - - - - - Land Held for Resale - - - - - - - Total Assets 5,824$ 237,022$ 326,907$ 2,309$ 310,520$ 124,575$ 800$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable -$ -$ 14,341$ 34,900$ 11,525$ 65,694$ -$ Accrued Liabilities - - - 4,923 - - - Deposits Payable - - - - - - - Retentions Payable - - - - - 40,000 - Due to Other Funds - - - 19,213 589,355 35,622 124,149 Unearned Revenue - - - - - - - Total Liabilities - - 14,341 59,036 600,880 141,316 124,149

DEFERRED INFLOWS OF RESOURCES
Leases - - - - - - - Unavailable Revenues - - - - 220,800 - - Total Deferred Inflows of Resources - - - - 220,800 - -

FUND BALANCES
Restricted 5,824 237,022 312,566 - - - - Unassigned (Deficit) - - - (56,727) (511,160) (16,741) (123,349) Total Fund Balances 5,824 237,022 312,566 (56,727) (511,160) (16,741) (123,349) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 5,824$ 237,022$ 326,907$ 2,309$ 310,520$ 124,575$ 800$ Special Revenue Funds

163

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(108)

Affordable Community Based
Housing NOC Public Transitional TOD
PEG In-Lieu SB1 Gas Tax Safety Grant Housing Grant Impact Fee ASSETS
Cash and Investments 83,394$ 404$ 688,770$ 123,046$ 75$ 1,693,722$ Receivables:

Accounts 17,839 - 109,299 - - - Grants - - - - - - Accrued Interest - - - - - - Loans and Notes - - - - - 38,050 Leases - - - - - - Prepaid Items - - - - - - Land Held for Resale - - - - - - Total Assets 101,233$ 404$ 798,069$ 123,046$ 75$ 1,731,772$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 12,416$ -$ 124,603$ 544$ -$ 234,414$ Accrued Liabilities - - - 1,322 75 - Deposits Payable - - - - - - Retentions Payable - - 55,597 - - 73,111 Due to Other Funds - - - - - 41,805 Unearned Revenue - - - 48,460 - - Total Liabilities 12,416 - 180,200 50,326 75 349,330

DEFERRED INFLOWS OF RESOURCES
Leases - - - - - - Unavailable Revenues - - - - - 38,050 Total Deferred Inflows of Resources - - - - - 38,050

FUND BALANCES
Restricted 88,817 404 617,869 72,720 - 1,344,392 Unassigned (Deficit) - - - - - - Total Fund Balances 88,817 404 617,869 72,720 - 1,344,392 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 101,233$ 404$ 798,069$ 123,046$ 75$ 1,731,772$ Special Revenue Funds

164

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(109)
General Plan Technology Housing Orangethorpe Cal Recycle Fire Update Fee Impact Fee Successor Corridor Grant EIFD Impact Fee ASSETS
Cash and Investments 1,163,718$ 649,434$ 520,135$ 168$ 149,208$ 98,706$ 21,024$ Receivables:

Accounts - - - - - - -
Grants - - - - - - -
Accrued Interest - - 44 - - - -
Loans and Notes - 533,749 - - - 16,433
Leases - - 6,845 - - - -
Prepaid Items - - - - -
Land Held for Resale - - 1,036,760 - - - -
Total Assets 1,163,718$ 649,434$ 2,097,533$ 168$ 149,208$ 98,706$ 37,457$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable -$ 71,384$ -$ -$ 455$ 989$ -$
Accrued Liabilities - - - - 780 - -
Deposits Payable - - - 168 - - -
Retentions Payable - - - - - - -
Due to Other Funds - - - - - - -
Unearned Revenue - - - - 13,248 - -
Total Liabilities - 71,384 - 168 14,483 989 -

DEFERRED INFLOWS OF RESOURCES
Leases - - 10,241 - - - -
Unavailable Revenues - - - - - - 16,433
Total Deferred Inflows of Resources - - 10,241 - - - 16,433

FUND BALANCES
Restricted 1,163,718 578,050 2,087,292 - 134,725 97,717 21,024 Unassigned (Deficit)- - - - - - -
Total Fund Balances 1,163,718 578,050 2,087,292 - 134,725 97,717 21,024 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,163,718$ 649,434$ 2,097,533$ 168$ 149,208$ 98,706$ 37,457$ Special Revenue Funds
165

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(110)

Capital Debt
Projects Fund Service Fund
Animal Total Other
Shelter Opioid City Capital Governmental
Impact Fee Settlement Projects Gas Tax Funds
ASSETS
Cash and Investments -$ 1,867$ -$ 87,394$ 7,808,317$ Receivables:

Accounts - 407,609 - - 1,090,416 Grants - - 363,161 - 684,648 Accrued Interest - - - - 44 Loans and Notes 16,433 - - - 604,665 Leases - - - - 6,845 Prepaid Items - - - - - Land Held for Resale - - - - 1,036,760 Total Assets 16,433$ 409,476$ 363,161$ 87,394$ 11,231,695$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable -$ -$ 101,227$ -$ 798,094$ Accrued Liabilities - - 20,346 - 27,446 Deposits Payable - - 125,000 - 125,168 Retentions Payable - - 15,602 - 226,063 Due to Other Funds - - 81,391 - 891,535 Unearned Revenue - - - - 561,708 Total Liabilities - - 343,566 - 2,630,014

DEFERRED INFLOWS OF RESOURCES
Leases - - - - 10,241 Unavailable Revenues 16,433 407,609 195,764 - 1,216,576 Total Deferred Inflows of Resources 16,433 407,609 195,764 - 1,226,817

FUND BALANCES
Restricted - 1,867 - 87,394 8,727,214 Unassigned (Deficit) - - (176,169) - (1,352,350) Total Fund Balances - 1,867 (176,169) 87,394 7,374,864 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 16,433$ 409,476$ 363,161$ 87,394$ 11,231,695$ Special Revenue Funds

166

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(111)

Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure

REVENUES
Intergovernmental 120,003$ -$ -$ 1,216,010$ -$ -$ -$ Fines and Forfeitures - - - - - - 90,578 Investment Earnings 11,859 442 - 12,964 - 74 28,580 Charges for Services - - 135,856 - - - - Lease Revenue - - - - - - - Miscellaneous - - - - - - - Total Revenues 131,862 442 135,856 1,228,974 - 74 119,158

EXPENDITURES
Current:

General Government - - - - - - - Public Safety 113,419 - - - - - 46,985 Public Works - - 549,040 - - - - Community Development - - - 159,244 - - - Community Services 5,162 - - - - - - Capital Outlay 411,024 - - 600,000 - - 121,395 Debt Service:

Principal Retirement - - - 429,296 - - - Interest and Fiscal Charges - - - 50,420 - - - Total Expenditures 529,605 - 549,040 1,238,960 - - 168,380 REVENUES OVER (UNDER) EXPENDITURES (397,743) 442 (413,184) (9,986) - 74 (49,222)

OTHER FINANCING SOURCES (USES)
Transfers In - - 413,184 - - - - Transfers Out - - - - - - - Total Other Financing Sources (Uses) - - 413,184 - - - - NET CHANGES IN FUND BALANCES (397,743) 442 - (9,986) - 74 (49,222) Fund Balance - Beginning, As Originally Reported (70,461) 20,461 - 527,265 530 4,805 1,381,444 Change within financial reporting entity (nonmajor to major) - - - - - - - Fund Balance - Beginning, As Adjusted (70,461) 20,461 - 527,265 530 4,805 1,381,444 FUND BALANCES - END OF YEAR (468,204)$ 20,903$ -$ 517,279$ 530$ 4,879$ 1,332,222$ Special Revenue Funds

167

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(112)

Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction

REVENUES
Intergovernmental -$ 186,159$ 52,963$ -$ 469,592$ 1,442,514$ -$ Fines and Forfeitures - - - - - - - Investment Earnings 73 7,587 6,556 - - 4,862 - Charges for Services - - - 454,844 - - - Lease Revenue - - - - - - - Miscellaneous - - - - - - - Total Revenues 73 193,746 59,519 454,844 469,592 1,447,376 -

EXPENDITURES
Current:

General Government - - - - - - - Public Safety - - - - - - - Public Works - - - 501,359 - 315,666 18,247 Community Development - - 35,818 - 443,353 - - Community Services - - - - - - - Capital Outlay - - - - - 800,000 4,874 Debt Service:

Principal Retirement - - - - - - - Interest and Fiscal Charges - - - - - - - Total Expenditures - - 35,818 501,359 443,353 1,115,666 23,121 REVENUES OVER (UNDER) EXPENDITURES 73 193,746 23,701 (46,515) 26,239 331,710 (23,121)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - - Transfers Out - (186,159) - - - (403,750) - Total Other Financing Sources (Uses) - (186,159) - - - (403,750) - NET CHANGES IN FUND BALANCES 73 7,587 23,701 (46,515) 26,239 (72,040) (23,121) Fund Balance - Beginning, As Originally Reported 5,751 229,435 288,865 (10,212) (537,399) 55,299 (100,228) Change within financial reporting entity (nonmajor to major) - - - - - - - Fund Balance - Beginning, As Adjusted 5,751 229,435 288,865 (10,212) (537,399) 55,299 (100,228) FUND BALANCES - END OF YEAR 5,824$ 237,022$ 312,566$ (56,727)$ (511,160)$ (16,741)$ (123,349)$ Special Revenue Funds

168

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(113)
Formerly Non-
major Fund
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 -$ -$ 1,354,999$ 54,540$ -$ -$ -$ Fines and Forfeitures - - - - - - -
Investment Earnings 1,400 - 15,101 3,241 - 39,349 -
Charges for Services 90,259 - -- - - -
Lease Revenue - - - - - - -
Miscellaneous - - - - - - -
Total Revenues 91,659 - 1,370,100 57,781 - 39,349 -

EXPENDITURES
Current:

General Government 36,637 - - - - - -
Public Safety - - - 58,560 - - -
Public Works - - - - - - -
Community Development - - - - - - -
Community Services - - - 3,753 - - -
Capital Outlay 10,430 - 1,236,552 - - 634,983 -
Debt Service:

Principal Retirement - - - - - - -
Interest and Fiscal Charges - - - - - - -
Total Expenditures 47,067 - 1,236,552 62,313 - 634,983 - REVENUES OVER (UNDER) EXPENDITURES 44,592 - 133,548 (4,532) - (595,634) -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Total Other Financing Sources (Uses)- - - - - - - NET CHANGES IN FUND BALANCES 44,592 - 133,548 (4,532) - (595,634) - Fund Balance - Beginning, As Originally Reported 44,225 404 484,321 77,252 - 1,940,026 (1,635,925) Change within financial reporting entity (nonmajor to major)- - - - - - 1,635,925 Fund Balance - Beginning, As Adjusted 44,225 404 484,321 77,252 - 1,940,026 - FUND BALANCES - END OF YEAR 88,817$ 404$ 617,869$ 72,720$ -$ 1,344,392$ -$ Special Revenue Funds
169

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(114)

General Plan Technology Housing Orangethorpe Cal Recycle Fire Update Fee Impact Fee Successor Corridor Grant EIFD Impact Fee

REVENUES
Intergovernmental -$ -$ -$ -$ 144,054$ 54,153$ -$ Fines and Forfeitures - - - - - - - Investment Earnings 25,045 12,521 - - 516 1,252 294 Charges for Services 201,460 101,151 - - - - 20,730 Lease Revenue - - 4,126 - - - - Miscellaneous - - 10,368 - - - - Total Revenues 226,505 113,672 14,494 - 144,570 55,405 21,024

EXPENDITURES
Current:

General Government 86,995 - - - - 28,144 - Public Safety - 60,992 - - 10,666 - - Public Works - - - - - - - Community Development - - - - - - - Community Services - - - - - - - Capital Outlay 80,797 - - - - - - Debt Service:

Principal Retirement - - - - - - - Interest and Fiscal Charges - - - - - - - Total Expenditures 167,792 60,992 - - 10,666 28,144 - REVENUES OVER (UNDER) EXPENDITURES 58,713 52,680 14,494 - 133,904 27,261 21,024

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - - Transfers Out - - - - - - - Total Other Financing Sources (Uses) - - - - - - - NET CHANGES IN FUND BALANCES 58,713 52,680 14,494 - 133,904 27,261 21,024 Fund Balance - Beginning, As Originally Reported 1,105,005 525,370 2,072,798 - 821 70,456 - Change within financial reporting entity (nonmajor to major) - - - - - - - Fund Balance - Beginning, As Adjusted 1,105,005 525,370 2,072,798 - 821 70,456 - FUND BALANCES - END OF YEAR 1,163,718$ 578,050$ 2,087,292$ -$ 134,725$ 97,717$ 21,024$ Special Revenue Funds

170

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(115)

Capital Debt
Projects Fund Service Fund
Animal Total Other
Shelter Opioid City Capital Governmental
Impact Fee Settlement Projects Gas Tax Funds

REVENUES
Intergovernmental -$ 19,263$ 585,070$ -$ 5,699,320$ Fines and Forfeitures - - - - 90,578 Investment Earnings - 516 - 368 172,600 Charges for Services - - - - 1,004,300 Lease Revenue - - - - 4,126 Miscellaneous - - 196,963 - 207,331 Total Revenues - 19,779 782,033 368 7,178,255

EXPENDITURES
Current:

General Government - 2,186 - - 153,962 Public Safety - 29,161 - - 319,783 Public Works - - - - 1,384,312 Community Development - - - - 638,415 Community Services - - - - 8,915 Capital Outlay - - 735,855 - 4,635,910 Debt Service:

Principal Retirement - - - 358,000 787,296 Interest and Fiscal Charges - - - 42,265 92,685 Total Expenditures - 31,347 735,855 400,265 8,021,278 REVENUES OVER (UNDER) EXPENDITURES - (11,568) 46,178 (399,897) (843,023)

OTHER FINANCING SOURCES (USES)
Transfers In - - - 403,750 816,934 Transfers Out - - - - (589,909) Total Other Financing Sources (Uses) - - - 403,750 227,025 NET CHANGES IN FUND BALANCES - (11,568) 46,178 3,853 (615,998) Fund Balance - Beginning, As Originally Reported - 13,435 (222,347) 83,541 6,354,937 Change within financial reporting entity (nonmajor to major) - - - - 1,635,925 Fund Balance - Beginning, As Adjusted - 13,435 (222,347) 83,541 7,990,862 FUND BALANCES - END OF YEAR -$ 1,867$ (176,169)$ 87,394$ 7,374,864$ Special Revenue Funds

171

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(116)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 500,000$ 2,655,224$ 120,003$ (2,535,221)$ Investment Earnings - - 11,859 11,859
Total Revenues 500,000 2,655,224 131,862 (2,523,362)

EXPENDITURES
Current:

Public Safety - - 113,419 (113,419)
Community Services - - 5,162 (5,162)
Capital Outlay 500,000 2,653,604 411,024 2,242,580
Total Expenditures 500,000 2,653,604 529,605 2,123,999 NET CHANGE IN FUND BALANCE -$ 1,620$ (397,743) (399,363)$ Fund Balance - Beginning of Year (70,461)
FUND BALANCE - END OF YEAR (468,204)$
Budgeted Amounts
172

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

STREET LIGHTING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(117)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for Services 135,286$ 135,286$ 135,856$ 570$ Total Revenues 135,286 135,286 135,856 570

EXPENDITURES
Current:

Public Works 171,500 171,500 549,040 (377,540) Total Expenditures 171,500 171,500 549,040 (377,540) REVENUE OVER (UNDER) EXPENDITURES (36,214) (36,214) (413,184) (376,970)

OTHER FINANCING SOURCES
Transfers In 36,214 36,214 413,184 376,970 Total Other Financing Sources 36,214 36,214 413,184 376,970 NET CHANGE IN FUND BALANCE -$ -$ - -$ Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR -$
Budgeted Amounts

173

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(118)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,275,373$ 1,275,373$ 1,216,010$ (59,363)$ Investment Earnings - - 12,964 12,964
Total Revenues 1,275,373 1,275,373 1,228,974 (46,399)

EXPENDITURES
Current:

Community Development 83,400 150,560 159,244 (8,684) Capital Outlay 600,000 636,064 600,000 36,064
Debt Service:

Principal Retirement 400,000 400,000 429,296 (29,296) Interest and Fiscal Charges 13,750 13,750 50,420 (36,670) Total Expenditures 1,097,150 1,200,374 1,238,960 (38,586) NET CHANGE IN FUND BALANCE 178,223$ 74,999$ (9,986) (84,985)$ Fund Balance - Beginning of Year 527,265
FUND BALANCE - END OF YEAR 517,279$
Budgeted Amounts
174

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

THROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(119)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$ 74$ 74$ Total Revenues - - 74 74

EXPENDITURES
Capital Outlay - 4,172 - 4,172 Total Expenditures - 4,172 - 4,172 NET CHANGE IN FUND BALANCE -$ (4,172)$ 74 4,246$ Fund Balance - Beginning of Year 4,805
FUND BALANCE - END OF YEAR 4,879$
Budgeted Amounts

175

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(120)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Fines and Forfeitures -$ -$90,578$ 90,578$
Investment Earnings -- 28,580 28,580
Total Revenues - - 119,158 119,158

EXPENDITURES
Current:

Public Safety 70,000 40,897 46,985 (6,088)
Capital Outlay 35,000 1,114,103 121,395 992,708
Total Expenditures 105,000 1,155,000 168,380 986,620 NET CHANGE IN FUND BALANCE (105,000)$ (1,155,000)$ (49,222) 1,105,778$ Fund Balance - Beginning of Year 1,381,444
FUND BALANCE - END OF YEAR 1,332,222$
Budgeted Amounts
176

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, 2024
(121)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 165,000$ 165,000$ 186,159$ 21,159$ Investment Earnings - - 7,587 7,587
Total Revenues 165,000 165,000 193,746 28,746

OTHER FINANCING SOURCES (USES)
Transfers Out (165,000) (165,000) (186,159) (21,159) Total Other Financing Sources (Uses)(165,000) (165,000) (186,159) (21,159) NET CHANGE IN FUND BALANCE -$ -$7,587 7,587$
Fund Balance - Beginning of Year 229,435
FUND BALANCE - END OF YEAR 237,022$
Budgeted Amounts
177

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

AIR QUALITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(122)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 65,900$ 65,900$ 52,963$ (12,937)$ Investment Earnings - - 6,556 6,556 Total Revenues 65,900 65,900 59,519 (6,381)

EXPENDITURES
Community Development 20,900 32,640 35,818 - Capital Outlay 115,000 285,638 - 285,638 Total Expenditures 135,900 318,278 35,818 285,638 NET CHANGE IN FUND BALANCE (70,000)$ (252,378)$ 23,701 276,079$ Fund Balance - Beginning of Year 288,865
FUND BALANCE - END OF YEAR 312,566$
Budgeted Amounts

178

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, 2024
(123)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for Services 450,858$ 450,858$ 454,844$ 3,986$ Total Revenues 450,858 450,858 454,844 3,986

EXPENDITURES
Current:

Public Works 419,200 432,867 501,359 (68,492)
Total Expenditures 419,200 432,867 501,359 (68,492)
NET CHANGE IN FUND BALANCE 31,658$ 17,991$ (46,515) (64,506)$ Fund Balance - Beginning of Year (10,212)
FUND BALANCE - END OF YEAR (56,727)$
Budgeted Amounts
179

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, 2024

(124)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 280,514$ 359,997$ 469,592$ 109,595$ Total Revenues 280,514 359,997 469,592 109,595

EXPENDITURES
Current:

Community Development 339,514 390,061 443,353 (53,292) Total Expenditures 339,514 390,061 443,353 (53,292) NET CHANGE IN FUND BALANCE (59,000)$ (30,064)$ 26,239 56,303$ Fund Balance - Beginning of Year (537,399)
FUND BALANCE - END OF YEAR (511,160)$
Budgeted Amounts

180

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

GASOLINE TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(125)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,476,847$ 1,476,847$ 1,442,514$ (34,333)$ Investment Earnings - - 4,862 4,862 Total Revenues 1,476,847 1,476,847 1,447,376 (29,471)

EXPENDITURES
Current:

Public Works 994,558 994,558 315,666 678,892 Capital Outlay 800,000 800,000 800,000 - Total expenditures 1,794,558 1,794,558 1,115,666 678,892 REVENUE OVER (UNDER) EXPENDITURES (317,711) (317,711) 331,710 649,421

OTHER FINANCING SOURCES (USES)
Transfers Out (403,750) (403,750) (403,750) - Total Other Financing (Uses) (403,750) (403,750) (403,750) - NET CHANGE IN FUND BALANCE (721,461)$ (721,461)$ (72,040) 649,421$ Fund Balance - Beginning of Year 55,299
FUND BALANCE - END OF YEAR (16,741)$
Budgeted Amounts

181

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

PEG REVENUE FUND
YEAR ENDED JUNE 30, 2024
(126)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$ 1,400$ 1,400$
Charges for Services 80,000 80,000 90,259 10,259
Total Revenues 80,000 80,000 91,659 11,659

EXPENDITURES
Current:

General Government 9,700 45,700 36,637 9,063
Capital Outlay 69,000 69,000 10,430 58,570
Total Expenditures 78,700 114,700 47,067 67,633
NET CHANGE IN FUND BALANCE 1,300$ (34,700)$ 44,592 79,292 Fund Balance - Beginning of Year 44,225
FUND BALANCE - END OF YEAR 88,817$
Budgeted Amounts
182

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, 2024

(127)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,280,805$ 1,280,805$ 1,354,999$ 74,194$ Investment Earnings - - 15,101 15,101 Total Revenues 1,280,805 1,280,805 1,370,100 89,295

EXPENDITURES
Capital Outlay 1,000,000 1,511,059 1,236,552 274,507 Total Expenditures 1,000,000 1,511,059 1,236,552 274,507 NET CHANGE IN FUND BALANCE 280,805$ (230,254)$ 133,548 363,802$ Fund Balance - Beginning of Year 484,321
FUND BALANCE - END OF YEAR 617,869$
Budgeted Amounts

183

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, 2024
(128)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 62,000$ 78,700$ 54,540$ (24,160)$ Investment Earnings - - 3,241 3,241
Total Revenues 62,000 78,700 57,781 (20,919)

EXPENDITURES
Current:

Public Safety 40,000 40,000 58,560 (18,560)
Community Services - 16,700 3,753 12,947
Total Expenditures 40,000 56,700 62,313 (5,613)
NET CHANGE IN FUND BALANCE 22,000$ 22,000$ (4,532) (26,532)$ Fund Balance - Beginning of Year 77,252
FUND BALANCE - END OF YEAR 72,720$
Budgeted Amounts
184

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, 2024

(129)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$ 39,349$ 39,349$ Charges for Services 90,000 90,000 - (90,000) Total Revenues 90,000 90,000 39,349 (50,651)

EXPENDITURES
Capital Outlay 550,000 885,506 634,983 250,523 Total Expenditures 550,000 885,506 634,983 250,523 NET CHANGE IN FUND BALANCE (460,000)$ (795,506)$ (595,634) 199,872$ Fund Balance - Beginning of Year 1,940,026
FUND BALANCE - END OF YEAR 1,344,392$
Budgeted Amounts

185

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, 2024
(130)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ -$-$ -$
Investment Earnings -- 25,045 25,045
Charges for Services 150,000 150,000 201,460 51,460
Total Revenues 150,000 150,000 226,505 76,505

EXPENDITURES
Current:

General Government -191,100 86,995 104,105
Capital Outlay -257,819 80,797 177,022
Total Expenditures - 448,919 167,792 281,127
NET CHANGE IN FUND BALANCE 150,000$ (298,919)$ 58,713 357,632$ Fund Balance - Beginning of Year 1,105,005
FUND BALANCE - END OF YEAR 1,163,718$
Budgeted Amounts
186

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, 2024

(131)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$ 12,521$ 12,521$ Charges for Services - - 101,151 101,151 Total Revenues - - 113,672 113,672

EXPENDITURES
Current:

Public Safety - 55,000 60,992 (5,992) Capital Outlay - 71,385 - 71,385 Total Expenditures - 126,385 60,992 65,393 NET CHANGE IN FUND BALANCE -$ (126,385)$ 52,680 179,065$ Fund Balance - Beginning of Year 525,370
FUND BALANCE - END OF YEAR 578,050$
Budgeted Amounts

187

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, 2024

(132)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ -$ 144,054$ 144,054$ Investment Earnings - - 516 516 Total Revenues - - 144,570 144,570

EXPENDITURES
Current:

Public Safety 13,181 13,181 10,666 2,515 Total Expenditures 13,181 13,181 10,666 2,515 NET CHANGE IN FUND BALANCE (13,181)$ (13,181)$ 133,904 147,085$ Fund Balance - Beginning of Year 821
FUND BALANCE - END OF YEAR 134,725$
Budgeted Amounts

188

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

EFID SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(133)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 5,000$ 5,000$ 54,153$ 49,153$ Investment Earnings - - 1,252 1,252 Miscellaneous - - - - Total Revenues 5,000 5,000 55,405 50,405

EXPENDITURES
Current:

General Government - - 28,144 (28,144) Total Expenditures - - 28,144 (28,144) NET CHANGE IN FUND BALANCE 5,000$ 5,000$ 27,261 22,261$ Fund Balance - Beginning of Year 70,456
FUND BALANCE - END OF YEAR 97,717$
Budgeted Amounts

189

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

CITY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024

(134)

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental -$ 4,133,286$ 585,070$ (3,548,216)$ Miscellaneous - 709,362 196,963 (512,399) Total Revenues - 4,842,648 782,033 (4,060,615) Expenditures:

Current:

Community Development 281,700 281,700 - 281,700 Capital Outlay - 4,344,404 735,855 3,608,549 Total Expenditures 281,700 4,626,104 735,855 3,890,249 NET CHANGE IN FUND BALANCE (281,700)$ 216,544$ 46,178 (170,366)$ Fund Balance - Beginning of Year (222,347)
FUND BALANCE - END OF YEAR (176,169)$
Budgeted Amounts

190

CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

GAS TAX DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2024
(135)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Earnings -$ -$368$ 368$
Total Revenues - - 368 368

EXPENDITURES
Debt Service:

Principal Retirement 358,000 358,000 358,000 -
Interest and Fiscal Charges 45,750 45,750 42,265 3,485 Total Expenditures 403,750 403,750 400,265 3,485
REVENUE OVER (UNDER) EXPENDITURES (403,750) (403,750) (399,897) 3,853

OTHER FINANCING SOURCES (USES)
Transfers In 403,750 403,750 403,750 -
Total Other Financing Sources (Uses)403,750 403,750 403,750 - NET CHANGE IN FUND BALANCE -$ -$3,853 3,853$
Fund Balance - Beginning of Year 83,541
FUND BALANCE - END OF YEAR 87,394$
Budgeted Amounts
191

CITY OF PLACENTIA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2024

(136)

Risk Health and Equipment
Management Welfare Replacement Total
ASSETS
Current Assets:

Cash and Investments 2,356,201$ 39,065$ 76,967$ 2,472,233$ Receivable:

Accounts 595 - 31,524 32,119 Prepaids - 1,309 - 1,309 Total Current Assets 2,356,796 40,374 108,491 2,505,661 Total Assets 2,356,796 40,374 206,032 2,603,202

LIABILITIES
Current Liabilities:

Accounts Payable 64,502 1,702 - 66,204 Accrued Liabilities 16,513 291 - 16,804 Due to Other Funds - - - - Accrued Claims and Judgments - Due Within One Year 941,479 - - 941,479 Total Current Liabilities 1,022,494 1,993 - 1,024,487 Noncurrent Liabilities:

Accrued Claims and Judgments - Due in More
Than One Year 2,879,437 - - 2,879,437 Total Noncurrent Liabilities 2,879,437 - - 2,879,437 Total Liabilities 3,901,931 1,993 - 3,903,924

NET POSITION
Unrestricted (1,545,135) 38,381 108,491 (1,398,263) Total Net Position (1,545,135)$ 38,381$ 206,032$ (1,300,722)$ 192

CITY OF PLACENTIA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024

(137)

Risk Health and Equipment
Management Welfare Replacement Total

OPERATING REVENUES
Reimbursements 540,994$ 122,460$ -$ 663,454$ Sales and Service Charges 2,258,306 1,088,243 - 3,346,549 Other Revenues - - 95,488 95,488 Total Operating Revenues 2,799,300 1,210,703 95,488 4,105,491

OPERATING EXPENSES
Administration 230,386 8,540 1,740 240,666 Reinsurance Premiums - 187,603 - 187,603 Claims 815,101 - - 815,101 Medical and Dental Premiums - 990,260 - 990,260 Liability Insurance Premiums 1,752,138 4,935 - 1,757,073 Depreciation Expense - - 40,376 40,376 Total Operating Expenses 2,797,625 1,191,338 42,116 4,031,079 OPERATING INCOME (LOSS)1,675 19,365 53,372 74,412

NONOPERATING INCOME (LOSS)
Gain on Disposal of Capital Assets - - 57,912 57,912 CHANGES IN NET POSITION 1,675 19,365 111,284 132,324 Net Position - Beginning of Year (1,546,810) 19,016 94,748 (1,433,046) NET POSITION - END OF YEAR (1,545,135)$ 38,381$ 206,032$ (1,300,722)$ Governmental Activities

193

CITY OF PLACENTIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(138)
Risk Health and Equipment
Management Welfare Replacement Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 2,798,705$ 1,210,812$ 63,965$ 4,073,482$ Cash Paid to Suppliers for Goods and Services (2,166,167) (1,133,425) (65,706) (3,365,298) Cash Paid for Insurance Claims (815,101) - - (815,101) Net Cash Provided (Used) by Operating Activities (182,563) 77,387 (1,741) (106,917)

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Payment Made on Interfund Borrowing -(38,322)- (38,322) Net Cash Used by Noncapital
Financing Activities - (38,322)- (38,322)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Acquisition of Capital Assets - - - -
Proceeds From Sale of Capital Assets - - 57,912 57,912 Net Cash Provided by Capital And Related
Financing Activities - - 57,912 57,912

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (182,563) 39,065 56,171 (87,327)

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO STATEMENT OF NET POSITION
Beginning of Year 2,538,764 -158,713 2,697,477
End of Year 2,356,201$ 39,065$ 214,884$ 2,610,150$

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income 1,675$ 19,365$ 53,372$ 74,412$
Adjustments to Reconcile Operating Income
to Net Cash Provided (Used) by Operating Activities:

Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables (595) 109 (31,524) (32,010) (Increase) Decrease in Prepaids -57,198 - 57,198
Increase (Decrease) in Accounts Payable 30,277 424 (63,965) (33,264) Increase (Decrease) in Accrued Liabilities 16,508 291 - 16,799 Increase (Decrease) in Claims Payable (230,428) - - (230,428) Net Cash Provided (Used) by Operating Activities (182,563)$ 77,387$ (1,741)$ (106,917)$ 194

FIDUCIARY FUNDS

CUSTODIAL FUNDS

(139)

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.

195

CITY OF PLACENTIA

COMBINING STATEMENT OF ASSETS AND LIABILITIES

FIDUCIARY FUNDS
JUNE 30, 2024

(140)

Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD Total
ASSETS
Cash and Investments 50,711$ 311,379$ 52,203$ 414,293$ Accounts Receivable - - - - Taxes Receivable - - - - Miscellaneous Receivables - 1,453 - 1,453 Total Assets 50,711 312,832 52,203 415,746

LIABILITIES
Accounts Payable - - 241 241 Accrued Liabilities - 14 - 14 Total Liabilities - 14 241 255

NET POSITION (DEFICIT)
Restricted for Individuals, Organizations,
and Other Governments 50,711 312,818 51,962 415,491 Total Net Position (Deficit) 50,711$ 312,818$ 51,962$ 415,491$ Custodial Funds

196

CITY OF PLACENTIA

STATEMENT OF CHANGE IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024

(141)

Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD Total

ADDITIONS
Charges for Services -$ 157,859$ 61,158$ 219,017$ Investment Earnings 1,296 5,157 - 6,453 Total Additions 1,296 163,016 61,158 225,470

DEDUCTIONS
Administrative Expenses - - 8,440 8,440 Total Deductions - - 8,440 8,440 CHANGE IN NET POSITION 1,296 163,016 52,718 217,030 Net Position - Beginning of Year 49,415 149,802 (756) 198,461 NET POSITION - END OF YEAR 50,711$ 312,818$ 51,962$ 415,491$ Custodial Funds

197

(142)
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198

STATISTICAL SECTION
199

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200

CITY OF PLACENTIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS

(144)

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. 145

Revenue Capacity – These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 151

Debt Capacity – These schedules present information to help the reader assess the affordability of the City’s current level of outstanding debt and the City’s ability to issue additional debt in the future. 155

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. 158

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. 161

201

CITY OF PLACENTIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
(145)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities:

Net Investment in Capital Assets 66,333$ 66,799$ 67,960$ 67,915$ 72,176$ 81,106$ 86,061$ $86,045 103,757$ 114,777$ Restricted 7,027 7,681 6,199 5,819 6,090 7,732 21,456 20,175 18,361 21,767 Unrestricted (34,145) (30,490) (32,780) (52,089) (50,858) (53,352) (68,263) (23,396) (43,543) (62,344) Total Governmental Activities Net Position 39,215$ 43,990$ 41,379$ 21,645$ 27,408$ 35,486$ 39,254$ 82,824$ 78,575$ 74,200$ Business-Type Activities:

Net Investment in Capital Assets 11,280$ 10,765$ 10,303$ 9,778$ 9,275$ 8,748$ 8,221$ 7,694$ 7,166$ 12,471$ Unrestricted 1,289 845 1,066 (1,514) (2,055) (2,682) 361 1,842 1,245 1,895 Total Business-Type Activities Net Position 12,569$ 11,610$ 11,369$ 8,264$ 7,220$ 6,066$ 8,582$ 9,536$ 8,411$ 14,366$ Primary Government:

Net Investment in Capital Assets 77,613$ 77,564$ 78,263$ 77,693$ 81,451$ 89,854$ 94,282$ 93,739$ 110,923$ 127,248$ Restricted 7,027 7,681 6,199 5,819 6,090 7,732 21,456 20,175 18,361 21,767 Unrestricted (32,856) (29,645) (31,714) (53,603) (52,913) (56,034) (67,902) (21,554) (42,298) (60,449) Total Primary Government Net Position 51,784$ 55,600$ 52,748$ 29,909$ 34,628$ 41,552$ 47,836$ 92,360$ 86,986$ 88,566$ Source: City of Placentia, Finance Department
Fiscal Year
202

CITY OF PLACENTIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
(146)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

PROGRAM REVENUE
Governmental Activities:

Charges for Services:

General Government 2,053$ 1,956$ 2,136$ 2,206$ 2,356$ 2,651$ 2,754$ 2,812$ 3,215$ 3,298$ Public Safety 1,469 1,340 1,092 1,078 742 771 567 928 877 913 Public Works 854 679 597 670 1,100 776 917 877 811 856 Community Development 277 1,211 1,074 1,251 1,011 1,670 2,014 1,598 1,700 1,509 Community Services - 221 194 314 213 145 148 253 337 497 Operating Grants 1,407 4,744 4,637 4,575 7,709 9,588 6,103 6,499 15,643 9,937 Capital Grants and Contributions 3,216 145 465 4,528 1,117 2,994 8,027 1,850 5,025 1,938 Total Governmental Activities Program
Revenues 9,276 10,296 10,195 14,622 14,248 18,595 20,530 14,817 27,608 18,948 Business-Type Activities:

Charges for Services:

Refuse 2,874 2,890 2,958 3,039 3,148 3,252 3,688 3,732 4,283 4,813 Compressed Natural Gas 25 - - - - - - - - -
Sewer Maintenance 819 688 722 760 722 723 783 791 1,448 1,511 Total Business-Type Activities Program
Revenues 3,718 3,578 3,680 3,799 3,870 3,975 4,471 4,523 5,731 6,324 Total Primary Government Program
Revenues 12,994 13,874 13,875 18,421 18,118 22,570 25,001 19,340 33,339 25,272

EXPENSES
Governmental Activities:

General Government 9,248 5,343 10,579 10,046 9,346 11,654 12,850 9,242 19,220 17,490 Public Safety 15,689 18,556 19,188 18,114 20,547 26,139 26,045 (5,341) 39,863 27,471 Public Works 6,644 7,445 7,246 4,328 2,465 4,926 9,846 3,159 11,632 10,729 Community Development 1,845 1,373 1,904 1,068 1,502 1,640 2,893 1,554 2,425 2,563 Community Services - 1,263 1,318 1,690 4,401 1,757 2,580 1,685 3,755 4,254 Interest on Long-Term Debt 861 837 783 717 588 475 765 2,591 2,372 2,960 Total Governmental Activities 34,287 34,817 41,018 35,963 38,849 46,591 54,979 12,890 79,267 65,467 Business-Type Activities:

Refuse 2,795 2,555 2,571 3,034 3,164 3,127 3,287 3,421 4,341 4,888 Compressed Natural Gas - - - - - - - - - -
Sewer Maintenance 1,069 1,418 954 1,943 1,593 1,836 (1,365) 150 2,533 1,467 Total Business-Type Activities 3,864 3,973 3,525 4,977 4,757 4,963 1,922 3,571 6,874 6,355 Total Primary Government Expenses 38,151 38,790 44,543 40,940 43,606 51,554 56,901 16,461 86,141 71,822

NET REVENUE (EXPENSE)
Governmental Activities (25,011) (24,521) (30,823) (21,341) (24,601) (27,996) (34,449) 1,927 (51,659) (46,519) Business-Type Activities (146) (395) 155 (1,178) (887) (988) 2,549 952 (1,143) (31) Total Primary Government Net Expense (25,157) (24,916) (30,668) (22,519) (25,488) (28,984) (31,900) 2,879 (52,802) (46,550) Fiscal Year
203

CITY OF PLACENTIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
(147)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

GENERAL REVENUE AND OTHER

CHANGES IN NET POSITION
Governmental Activities:

Taxes:

Property 12,449$ 13,259$ 13,972$ 14,560$ 15,478$ 15,981$ 16,752$ 17,191$ 18,809$ 20,761$ Sales and Use 6,284 6,848 7,020 6,948 8,184 13,141 15,113 17,248 17,530 16,870 Utility Users 2,874 2,750 2,637 2,545 2,461 2,362 2,503 2,689 3,200 3,048 Franchise 2,338 2,332 2,244 2,270 2,340 2,358 2,466 2,651 2,870 3,076 Other 1,177 1,258 1,365 1,316 1,267 1,047 1,022 1,842 2,091 2,146 Miscellaneous 1,451 35 41 125 136 447 280 256 2,544 282 Investment Income 576 34 31 72 227 312 13 (297) 378 1,901 Other - - - - - 215 - - - -
Special Item (2,764) - - - - - - - - -
Contribution from successor Agency - - - - - 19 - - - - Contribution from Custodial Fund - - - - - -30 - - - Extraordinary Item - (1,035) - - - -- - - -
Transfers 165 646 402 251 268 192 39 - - (5,940) Total Government Activities 24,550 26,127 27,712 28,087 30,361 36,074 38,218 41,580 47,422 42,144 Business-Type Activities:

Investment Income 5 7 7 24 34 27 4 2 19 46
Special Item 2,764 - - - - - - - - -
Other 75 75 - - - - - - - -
Transfers (165) (646) (402) (251) (192) (192) (39) - - 5,940 Total Business-Type Activities 2,679 (564) (395) (227) (158) (165) (35) 2 19 5,986 Total Primary Government 27,229 25,563 27,317 27,860 30,203 35,909 38,183 41,582 47,441 48,130

CHANGE IN NET POSITION
Governmental Activities (461) 1,606 (3,111) 6,746 5,760 8,078 3,769 43,507 (4,237) (4,375) Business-Type Activities 2,533 (959) (240) (1,405) (1,045) (1,153) 2,514 954 (1,124) 5,955 Total Primary Government 2,072$ 647$ (3,351)$ 5,341$ 4,715$ 6,925$ 6,283$ 44,461$ (5,361)$ 1,580$ Source: City of Placentia, Finance Department
Fiscal Year
204

CITY OF PLACENTIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
(148)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund:

Nonspendable 4,104$ 3,881$ 3,354$ 4,955$ 4,706$ 3,734$ 3,347$ 2,522$ 1,454$ 896$ Restricted 1,030 1,030 1,024 1,019 571 555 556 2 805 1,644 Committed 119 3,600 3,600 3,400 4,528 5,811 6,434 13,856 4,535 1,037 Assigned 185 286 40 - - - - - - -
Unassigned 2,510 72 56 (1,346) 543 3,866 9,894 7,205 19,919 14,796 Total General Fund 7,948$ 8,869$ 8,074$ 8,028$ 10,348$ 13,966$ 20,231$ 23,585$ 26,713$ 18,373$ All Other Governmental Funds:

Nonspendable -$ -$ -$ -$ -$ -$ 10$ 6$ 5$ 3$
Restricted 5,999 6,651 5,175 4,800 5,518 7,177 20,900 20,173 17,555 19,117 Assigned 485 - - - - - - - - -
Unrestricted - - (368) (531) (1,045) (1,552) (1,406) (2,754) (2,577) (3,981) Total All Other Governmental Funds 6,484$ 6,651$ 4,807$ 4,269$ 4,473$ 5,625$ 19,504$ 17,425$ 14,983$ 15,139$ Source: City of Placentia, Finance Department
Fiscal Year
205

CITY OF PLACENTIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)

(149)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

REVENUES
Property Tax 12,449$ 13,259$ 13,972$ 14,551$ 15,478$ 15,981$ 16,752$ 17,191$ 18,809$ 20,761$ Sales Tax 6,284 7,257 7,020 6,948 10,646 13,141 15,113 17,248 17,530 16,870 Other Tax 6,316 6,318 6,222 6,043 3,548 5,708 5,993 7,182 8,090 8,216 Intergovernmental 4,033 2,998 3,572 6,487 7,530 8,459 6,700 6,498 16,569 9,704 Licenses and Permits 1,690 1,733 1,572 1,702 1,922 2,454 2,828 2,440 2,644 2,536 Fines and Forfeitures 733 1,154 1,297 592 613 819 314 503 1,777 639 Investment Income 177 34 32 69 228 307 13 (297) 377 1,900 Charges for Services 2,228 2,216 1,743 2,197 2,003 4,056 9,334 2,267 2,387 2,446 Other 2,424 2,108 1,892 2,151 2,289 2,327 2,536 3,581 5,783 3,374 Total Revenues 36,334 37,077 37,322 40,740 44,257 53,252 59,583 56,613 73,966 66,446

EXPENDITURES
Current:

General Government 6,432 6,571 10,450 8,109 7,889 8,389 10,995 12,105 15,771 15,493 Public Safety 16,500 17,880 18,436 19,156 18,718 23,442 16,938 17,476 19,139 21,034 Public Works 4,246 4,824 5,050 5,951 6,078 5,938 5,049 5,262 6,005 6,734 Community Development 1,824 952 1,858 1,291 1,171 1,693 2,245 2,007 2,165 2,448 Community Services - 1,191 1,292 1,526 4,405 1,793 1,547 2,305 2,623 3,441 Capital Outlay 2,042 1,262 2,340 2,971 1,047 11,534 6,178 - 22,104 29,242 Debt Service:

Principal 1,070 1,333 1,654 1,855 2,105 1,177 1,904 3,135 4,760 5,014 Payment to Refunding Bond Escrow Agent - - - - - - - 2,440 - - Interest 813 837 783 717 587 475 765 489 2,356 2,785 Debt Issuance Costs - - - - - - - 182 - - Total Expenditures 32,927 34,850 41,863 41,576 42,000 54,441 45,621 45,401 74,923 86,191

EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 3,407 2,227 (4,541) (836) 2,257 (1,189) 13,962 11,212 (957) (19,745)

OTHER FINANCING SOURCES (USES)
Transfers In 4,939 7,000 8,010 4,778 1,515 1,882 2,849 4,034 6,938 11,010 Transfers Out (4,552) (6,354) (7,607) (4,527) (1,247) (1,690) (2,811) (4,034) (6,938) (11,010) Issuance of Debt - 251 - - - 5,766 57,583 2,189 1,643 11,207 Other (2,764) - - - - - (51,441) (2,069) - 352 Total Other Financing Sources (Uses)(2,377) 897 403 251 268 5,958 6,180 120 1,643 11,559 EXTRAORDINARY ITEMS - - 1,500 - - - - - - - NET CHANGE IN FUND BALANCES 1,030$ 3,124$ (2,638)$ (585)$ 2,525$ 4,769$ 20,142$ 11,332$ 686$ (8,186)$ Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures 6.49%6.91%6.57%7.14%7.04%4.00%7.26%10.11%13.48%13.71% Source: City of Placentia, Finance Department
Fiscal Year

206

CITY OF PLACENTIA
REVENUES BY SOURCE – GENERAL FUND

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(150)

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 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 2024 20,706,482 16,869,472 8,271,106 2,535,885 548,960 - 1,175,860 1,677,641 2,717,309 1,441,304 1,125,980 57,069,999 * 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

207

CITY OF PLACENTIA

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS)

(151)

Taxable
Public Assessed Direct
Fiscal Year Secured Utility Unsecured Value Rate
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 2024 8,744,760 738 234,484 8,979,982 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
City

208

CITY OF PLACENTIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS

(152)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Placentia City 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 Placentia City Street Lighting Reorg.0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 Direct City Rate 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 Overlapping Rates:

OC Water District - Water Reserve 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 OC Vector Control 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 OC Transportation Authority 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 Orange County Water District 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 OC Harbor Beaches & Parks 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 OC Department of Education 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 Orange County Flood Control 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 OC Sanitation District #2 Operating 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 Placentia Library District 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 Orange County General Fund 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 North OC Comm. College General Fund 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 Education Revenue Augmentation Fund 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 Placentia Yorba Linda Unified Gen. Fund 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 Total Overlapping Rate 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8357 0.8356 0.8357 Metropolitan Water District 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Placentia Yorba Linda Unified 0.0582 0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 0.0485 0.0464 0.0424 N. Orange County Community College 0.0170 0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 0.0288 0.0278 0.0172 Total Rate 1.0787 1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 1.0809 1.0777 1.0632

Note:

In 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within.

Source: HdL Coren Cone
Fiscal Year

209

CITY OF PLACENTIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT AND NINE YEARS AGO
(AMOUNTS EXPRESS IN THOUSANDS)

(153)

Percent of Percent of
Total City Total City
Taxable Estimated Taxable Taxable Estimated Taxable
Assessed Total Assessed Assessed Total Assessed
Taxpayer Value Tax Value Taxpayer Value Tax Value
310 S Jefferson Street Ground Owner LP $179,064 1,791$ 1.99 % OC of SD Holdings $72,762 728$ 1.32 % MG Herald Apartments LLC 134,665 1,347 1.50 Placentia 422 53,520 535 .97 Jefferson Centerpoint LLC 68,579 686 .76 Villa Tierra Apartments LLC 35,157 352 .64 Placentia 422 63,061 631 .70 Sommerville Conzelman Com 33,144 331 .60 Villa Angelina Apartment Fund LTD 60,090 601 .67 Placentia-Linda Hospital Inc. 31,747 317 .58 GRI Village Center LLC 59,400 594 .66 Ora Bradford Court 127 LLC 26,883 269 .49 Gelt Cherry Street Fee Owner LLC 49,362 494 .55 Donahue Schriber Realty Group 25,755 258 .47 HP Bradford Terrace LLC 44,880 449 .50 Reef Imperial Rose Inc. 24,483 245 .44 NMC Placentia LLC 41,399 414 .46 Inland Western Placentia LLC 23,271 233 .42 Sedona-Placentia Owner LLC 41,251 413 .46 Hartwell Corporation 20,675 207 .37 Total 741,751$ 7,418$ 8.26 % Total 347,397$ 3,474$ 6.30 % Source: HdL Coren Cone
2023 2014

210

CITY OF PLACENTIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(154)
Collections
Taxes Levied in
for the Percent Subsequent Percent
Fiscal Year Fiscal Year Amount of Levy Years Amount of Levy 2015 13,012,736$ 12,973,298$ 99.70%N/A N/A N/A
2016 12,742,715 13,529,800 106.18 N/A N/A N/A
2017 12,831,914 12,865,221 100.26 N/A N/A N/A
2018 13,471,679 13,421,607 99.63 N/A N/A N/A
2019 14,144,498 14,244,954 100.71 N/A N/A N/A
2020 14,623,234 14,675,128 100.35 N/A N/A N/A
2021 15,211,067 15,384,500 101.14 N/A N/A N/A
2022 15,734,335 15,777,022 100.27 N/A N/A N/A
2023 17,044,617 16,794,264 98.53 N/A N/A N/A
2024 18,351,232 18,092,765 98.59 N/A N/A N/A
Note:

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
Collected within the
Fiscal Year of Levy Total Collections to Date
211

CITY OF PLACENTIA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS, EXCEPT PER CAPITA)

(155)

Business-Type
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 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 2024 60,710 5,566 - 4,411 - 70,687 .787 1,353 3.05 Source: City of Placentia, Finance Department
Governmental Activities

212

CITY OF PLACENTIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
JUNE 30, 2024

(156)

2023-24 Assessed Valuation (in thousands): 9,628,618$
Successor Agency Incremental Valuation (in thousands): 645,643 Adjusted Assessed Valuation (in thousands): 8,982,975$
City's Share
Total Debt % Applicable of Debt
Direct Debt: June 30, 2024 (1) June 30, 2024
Placentia 2022 Ref and Improv Cops 1,331,266$ 100.00 % 1,331,266$ Placentia Electric Vehicles Loan Payable 96,530 100.00 96,530 Placentia Public Safety Radio Loan Payable 362,479 100.00 362,479 Placentia Fire Loan Payable #1 2,096,314 100.00 2,096,314 Placentia Fire Loan Payable #2 1,098,741 100.00 1,098,741 Placentia Melrose Easement 222,672 100.00 222,672 Placentia Fire UAL Loan Payoff 344,932 100.00 344,932 Placentia OCTA Advance 714,982 100.00 714,982 Placentia Motorola Equipment Loan Payable 1,197,159 100.00 1,197,159 Placentia 2021 Installment Sale Agreement 2,293,000 100.00 2,293,000 Placentia PFA 2020A Lease Revenue Bonds 48,530,000 100.00 48,530,000 Placentia PFA 2023A Lease Revenue Bonds 9,190,000 100.00 9,190,000 Total Direct Debt 67,478,075
Overlapping Tax and Assessment Debt:

Orange County General Fund Obligations 440,385,000$ 1.167 % 5,139,293$ Orange County Board of Education COP 10,030,000 1.167 117,050 North Orange County Regional Occupation Program COP 7,350,000 5.395 396,533 Placentia-Yorba Linda Unified School District COP 79,900,000 23.272 18,594,328 Placentia -Yorba Linda Unified 2002, 2008, 2012 Bond 197,150,879 23.272 45,880,953 Metropolitan Water District 18,210,000 .232 42,247 N. OC Community College 2002, 2014 Bond 291,560,678 5.246 15,295,273 Total Overlapping Debt 85,465,676
Total Direct and Overlapping Debt 152,943,751$
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.

Ratios of Direct vs. Overlapping Debt:

Direct Debt 44.12 %
Overlapping Debt 55.88
Total Debt 100.00 %
Ratios of Debt to Assessed Valuation:

Direct Debt .75 %
Overlapping Debt .95
Total Debt 1.70 %
Source: HdL, Coren Cone

213

CITY OF PLACENTIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS

(157)

Legal Debt Margin Calculation for the Current Year:

Assessed Value 9,194,134,236$
Debt Limit (3.75% of Assessed Value) 344,780,034
Debt Applicable to Limit -
Legal Debt Margin - Current Year 344,780,034$
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentage
Year Limit to Limit Margin of Limit
2015 213,385,760$ -$ 213,385,760$ - % 2016 220,387,742 - 220,387,742 - 2017 230,066,512 - 230,066,512 - 2018 248,734,552 - 248,734,552 - 2019 261,192,507 - 261,192,507 - 2020 271,595,021 - 271,595,021 - 2021 283,280,448 - 283,280,448 - 2022 291,210,596 - 291,210,596 - 2023 312,538,330 - 312,538,330 - 2024 344,780,034 - 344,780,034 - Note:

Source: City of Placentia, Finance Department
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.

214

CITY OF PLACENTIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(PERSONAL INCOME IN THOUSANDS, EXCEPT PER CAPITA)

(158)

Per Capita
Calendar City Personal Personal Unemployment
Year Population Income Income Rate
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 2023 52,226 2,319,890 44,420 3.6 Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HdL, Coren Cone
215

CITY OF PLACENTIA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
(159)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores -$ -$ -$ -$ -$ -$ -$ $21,114 $21,854 $23,060 General Merchandise 6,459 6,635 6,759 7,178 7,440 7,649 8,208 7,907 7,535 4,620 Food Stores 17,898 18,529 17,919 17,102 17,530 18,363 20,539 19,152 20,029 20,552 Eating and Drinking Places 66,582 79,730 84,676 85,373 83,083 87,912 77,897 101,361 105,185 106,523 Building Materials 48,092 38,156 55,996 60,664 68,803 74,767 69,616 89,608 98,051 101,532 Auto Dealers and Supplies 85,659 105,341 107,146 104,963 82,789 72,781 71,301 99,240 118,317 116,350 Service Stations 78,562 70,961 62,495 68,101 74,924 73,200 49,981 72,505 95,585 86,634 Other Retail Stores 64,434 60,419 70,775 74,578 75,597 76,411 65,702 62,668 64,773 44,736 All Other Outlets 213,510 255,719 240,166 234,501 245,115 268,067 269,831 278,458 292,479 272,051 Total 581,196$ 635,490$ 645,932$ 652,460$ 655,281$ 679,150$ 633,075$ 752,013$ 823,808$ 776,058$ 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 Calendar Year
216

CITY OF PLACENTIA

BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT

LAST TEN FISCAL YEARS

(160)

Department 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 City Clerk 2.00 2.00 2.00 2.00 - 2.00 2.00 2.00 2.00 - City Administrator - - - - - - - - - 5.00 Administrative Services (formerly Administration)8.00 7.00 7.00 11.50 9.50 10.50 25.45 26.45 29.65 32.00 Finance 6.00 7.00 7.00 8.00 8.00 8.00 9.00 9.00 9.00 9.00 Development Services - 4.00 4.75 6.50 8.50 8.50 8.55 9.55 11.35 12.00 Police 67.00 69.50 74.50 80.00 76.00 84.00 71.00 72.00 75.00 76.00 Fire and Life Safety - - - - - - 25.00 27.00 28.00 30.00 Public Works 18.00 19.00 20.25 20.75 20.00 22.00 22.00 26.00 28.00 30.00 Community Services 4.00 6.00 6.50 7.25 7.00 7.00 7.00 8.00 9.00 10.00 Total 99.00 105.00 114.50 122.00 136.00 142.00 170.00 180.00 192.00 204.00 Note:

In FY23/24 the category "City Administrator" was added and "Administration" was renamed "Administrative Services" As of FY23/24, "City Clerk" staff will be included in "Administrative Services" Source: City of Placentia, Finance Department
Fiscal Year

217

CITY OF PLACENTIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS

(161)

Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police:

Physical Arrests 1,732 1,373 1,250 1,381 1,282 1,053 1,257 1,400 1,380 1,360 Parking Citations 11,141 12,729 13,161 2,359 7,398 4,646 3,742 2,974 7,585 9,755 Traffic Citations 2,498 2,060 1,824 2,659 7,707 1,601 1,162 509 818 1,944 Community Development:

Building Permits 1,411 1,472 1,268 1,347 1,263 1,407 1,346 1,425 1,461 1,509 Building and Zoning Inspections 178 133 128 87 92 126 181 128 435 127 Public Works:

Feet of Sewer Main Cleaned 401,280 401,280 249,134 385,510 318,118 396,000 372,246 372,246 372,246 295,421 Streetsweeping Miles 21,684 21,684 21,684 7,955 7,955 8,772 8,772 8,772 8,772 8,772 Traffic Signals Maintained 57 57 57 61 61 63 63 63 63 63 Culture and Recreation:

Recreation Classes 787 747 727 645 610 577 387 421 477 637 Source: City of Placentia, Finance Department
Fiscal Year

218

CITY OF PLACENTIA

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

(162)

Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety:

Police Stations 1 1 1 1 1 1 1 1 1 1 Sworn Officers 46 46 46 51 51 46 51 46 48 51 Patrol Vehicles 26 26 26 32 32 33 16 16 17 17 Fire Stations 2 2 2 2 2 2 2 2 2 2 Highways and Streets:

Miles of Streets 107 107 107 107 132 132 132 133 133 133 Street Trees 9,214 9,214 9,214 9,139 7,175 7,077 6,929 6,688 6,915 6,863 Traffic Signals 229 229 229 230 230 230 230 230 230 230 Street Lights 3,656 3,656 3,656 3,660 3,660 3,656 3,656 3,656 3,915 3,656 Sewer:

Miles of Sanitary Sewers 76 76 76 76 76 84 84 84 84 84 Storm Drains 506 506 506 506 506 506 506 531 531 531 Culture and Recreation:

Parks 16 16 16 16 16 15 15 15 15 15 Area of Parks (Acres)72.9 72.9 72.9 72.9 100.9 60.9 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 7 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 1 Pickleball Courts - - - - - - - - 4 4 Handball Courts - - - - - - - - - 6 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.

In FY23/24 the handball courts were added to the list. They are not new to the city, but new to the list.

Source: City of Placentia, Finance Department
Fiscal Year

219

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221

CITY OF PLACENTIA, CALIFORNIA

SINGLE AUDIT OF FEDERALLY ASSISTED

GRANT PROGRAMS

YEAR ENDED JUNE 30, 2024

222

CITY OF PLACENTIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND REPORT ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS 1
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 7
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 8

223

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(1)

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND REPORT ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Members of the City Council
City of Placentia
Placentia, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Placentia (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 28, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified.

We identified a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2024-001, that we consider to be a material weakness. 224

Members of the City Council
City of Placentia
(2)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Placentia’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine California
February 28, 2025
225

(3)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,

AND REPORT ON THE SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Members of the City Council
City of Placentia
Placentia, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Placentia’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
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226

Members of the City Council
City of Placentia

(4)
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
227

Members of the City Council
City of Placentia
(5)
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We have issued our report thereon, dated February 28, 2025, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Irvine, California
March 19, 2025

228

CITY OF PLACENTIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Schedule of Expenditures of Federal Awards. (6)

Federal
Assistance Pass-Through Passed-
Federal Grantor/Pass-Through Grantor/ Listing Entity Identifying Federal Through to Program/Cluster Title/Project Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Passed-through the County of Orange:

Community Development Block Grants/ Entitlement Grants Cluster:

Community Development Block Grant 14.218 22-23-0018-HCD 35,919$ -$ Community Development Block Grant 14.218 012-23011328 357,435 - COVID-19 - Community Development Block Grant 14.218 012-23010698-CV 50,000 - Total Community Development Block Grants/ Entitlement Grants Cluster and U.S. Department of Housing and Urban Development 443,354 - U.S. Department of Justice
Direct Assistance:

Bulletproof Vest Partnership Program 16.607 N/A 7,199 - Equitable Sharing Program 16.922 N/A 7,666 - Passed-through The Children's Initiative:

Project Safe Neighborhoods 16.609 2019-GP-BX-0134 93,309 - Passed-through The Orange County Sherriff's Department:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-21-GG-
01188-JAGX 4,890 -
Total U.S. Department of Justice 113,064 -
U.S. Department of Transportation
Passed-Through the California Department of Transportation:

Highway Planning and Construction 20.205 HSIPL-2569(028)39,264 - Passed-Through the Orange County Transportation Authority:

Highway Planning and Construction 20.205 ORA190913 27,029 - Total U.S. Department of Transportation 66,293 - U.S. Department of Treasury
Direct Assistance:

Equitable Sharing 21.016 N/A 110,870
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 1,371,749 - Total U.S. Department of Treasury 1,482,619 -
Total Expenditures of Federal Awards 2,105,330$ -$ 229

CITY OF PLACENTIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2024

(7)

NOTE 1 BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Placentia (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

NOTE 3 INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

230

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024

(8)

Section I – Summary of Auditors’ Results

Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:
 Material weakness(es) identified? x yes no  Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no

Federal Awards

1. Internal control over major federal programs:

 Material weakness(es) identified? yes x no

 Significant deficiency(ies) identified? yes x none reported

2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? yes x no

Identification of Major Federal Programs

Assistance Listing Number(s) Name of Federal Program or Cluster

21.027 Coronavirus State and Local Fiscal
Recovery Funds

Dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000

Auditee qualified as low-risk auditee? yes x no

231

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2024

(9)

Section II – Financial Statement Findings

2024 – 001: Financial Close and Reporting

Type of Finding: Material Weakness in Internal Control Over Financial Reporting

Condition: Audit procedures resulted in the discovery of misstatements, that if not corrected, would cause the City’s financial statements to be materially misstated.

Criteria or specific requirement: The City’s system of internal controls over financial close and reporting should be designed and functioning to prevent material misstatements to the City’s financial statements.

Effect: The following adjustments were recorded to correct the City’s financial statements.  Pension related deferred inflow of resources for government wide governmental activities was adjusted for an overstatement of approximately $1,467,000.  Long-term debt for government wide governmental activities was adjusted for an overstatement of approximately $62,000.
 Approximately $6,150,000 of completed capital projects were moved from construction in progress to various capital assets being depreciated categories.  Cash and accounts payable were adjusted by approximately $461,000 to correct an overstatement in each account balance.
 The Net OPEB liability for the refuse fund was adjusted for an overstatement of approximately $419,000.
 Other financing sources and capital outlay for the general fund were adjusted to correct an understatement in each account balance of approximately $1,299,000.

Cause: The issues mentioned above were caused either by user error or the occurrence of a new scenario that had not been encountered previously. For the pension-related deferred inflows, an incorrect line item in the CalPERS reporting for the total instead of the employer portion was mistakenly included in the pension calculation. Additionally, as part of an agreement for constructing three billboards, the company responsible for the billboards made the full payment for the easement associated with one of the structures. As a result, the debt owed to the company was not included in the debt schedule, as the City had been reducing its payments to account for this. Initially, the TOD/Crowther project was not captured, as it was paid by the general fund through ARPA. However, it was later reclassified as a Sewer fund asset. The cash and accounts payable were overstated due to timing differences in the bank, which were carried forward into July. When the net OPEB liability was being calculated, a negative sign was accidentally omitted in the prior year’s ending balance. Finally, since the City did not have physical possession of an asset while it was being prepared for service, the financing source for the asset was not recorded initially.

Recommendation: We recommend that City management review the processes and procedures over its financial close and reporting to ensure that proper levels of review and reconciliation of all material account balances are completed.
232

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2024

(10)

Section II – Financial Statement Findings (Continued)

Views of responsible officials and planned corrective actions:

The city will continue to develop a more comprehensive year-end checklist, incorporating the items mentioned above to prevent them from recurring. In addition, the city will ensure that only the employer's portion is included when calculating pension activity. The remaining easement debt has been added to the debt schedule and will remain listed until fully repaid. The city will also ensure that any future sewer projects are properly transferred from the general fund to the sewer fund if the general fund has contributed to the asset. As part of the year-end close, the city will make sure that any timing differences at the end of June are resolved. Before finalizing the workpapers, the amounts entered will be verified against the prior year's workpapers, and the backup will be included to ensure consistency.

Lastly, the City will review the start date of all debt service agreements, and if the start date is prior to June 30, it will require capital outlay and other financing sources to be properly accounted for.

Section III – Findings and Questioned Costs – Major Federal Programs

None identified.

233

234

Members of the City Council
City of Placentia
Placentia, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Placentia as of and for the year ended June 30, 2024, and have issued our report thereon dated February 28, 2025. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our engagement agreement dated May 1, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Placentia are described in Note 1 to the financial statements.

As described in Note 1C, the City changed accounting policies related to the accounting and financial reporting for each type of accounting change and for error corrections by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 100, Accounting Changes and Error Corrections – An Amendment to GASB Statement No. 62, in 2024.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
The actuarially determined contributions, OPEB expense, net OPEB liability and corresponding deferred outflows of resources and deferred inflows of resources for the City’s public defined benefit plans with CalPERS are based on actuarial valuations provided by a third-party actuary. We evaluated the methods, assumptions, and data used to develop the actuarially determined contributions, OPEB expense, net OPEB liability and corresponding deferred outflows of resources and deferred inflows of resources and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
235

Members of the City Council
City of Placentia

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Placentia City CouncilApril 15, 2025

Placentia City Council
April 15, 2025