3.B 9-1-1 ADVANCED LIFE SUPPORT EMERGENCY MEDICAL SERVICES — Placentia City Council, April 15, 2025 (part 1 of 2)

Agenda Item No: 3.b

PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: April 15, 2025
Submitted by: Rosanna Ramirez
From: City Administrator
Subject:
9-1-1 Advanced Life Support Emergency Medical Services
Financial Impact:

Fiscal Impact:

Expense $740,000 Fiscal Year 2025-26; if second year option exercised, up to a possible 10% increase based on negotiations of parties
Summary:

On June 4, 2019, the City Council voted to establish the Placentia Fire and Life Safety Department (the “Department”) for fire services and separately awarded a contract to Lynch EMS for the provision of 9-11/Advanced Life Support (ALS) services (ALS Services).

On July 1, 2020, the Department and Lynch EMS began to provide ALS Services to the residents of Placentia. The Professional Services Agreement with Lynch EMS was for a contract term of five (5) years, with an option to extend the agreement for an additional five (5) years based upon Service Provider ’s performance and the mutual consent of both parties.

Prior to the end of the initial term, the parties met multiple times in good faith to discuss a possible extension but were unable to reach agreement. Due to the impending expiration of the Lynch ALS Services agreement on June 30, 2025, the City has an urgent need to ensure that ALS Services will continue uninterrupted after the expiration. Emergency Ambulance Service, Inc. (Emergency) has offered to help provide ALS Services on an urgency basis, at a reasonable cost, for a one (1) year term, with an option to extend for one (1) additional year.

Entering into a shorter-term urgency agreement with Emergency, will allow the City the additional time and flexibility it needs to conduct a thorough evaluation of its ALS Service model and make longer term plans for the City.

Recommendation:

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

1. Approve a Professional Services Agreement with Emergency Ambulance Service, Inc. for the provision of 9-1-1 Advanced Life Support Emergency Medical Services for a term of one (1) year, with an option for one (1) additional year, for a total compensation of $740,000 during the first year; and

2. Authorize the Interim City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
1 Strategic Plan Statement:

There is no specific strategic planning goal or objective associated with this agenda item.

Discussion:

Since July 1, 2020, Lynch has provided Placentia with quality 9-1-1/ALS Emergency Medical Services (ALS Services). Like many other municipalities, Placentia has been increasingly challenged to achieve long-term fiscal sustainability, and to address a growing backlog of needed infrastructure repairs. The City entered into good faith discussions with Lynch, but were unable to reach an agreement for an extension. The Lynch proposal was determined to be substantially more expensive (approximately $1,035,000), and would have minimized the City’s flexibility by requiring a longer contract term.

The City has to continue providing basic and critical public safety services to the community.

The fact that Lynch’s ALS Service contract is due to expire on June 30, 2025, has created an urgent need to find an alternate provider. Given the current timeline, there is insufficient opportunity to conduct a full RFP process, with the necessary implementation time, prior to the June 30, 2025 date.

Emergency Ambulance Service, Inc. (Emergency) has offered to help provide ALS Services to the City, on an urgency basis, for a term of one (1) year, and granting an option for one (1) additional year in the City’s discretion. Under the proposed contract, Emergency would be paid a total of $740,000 during the first year. If City exercises the second year option, compensation could be increased based on good faith negotiations of the parties, but with a maximum increase of 10% for the second year. If approved, the proposed contract would provide the City with the time it needs to objectively evaluate the manner in which ALS Services are currently being provided, to develop a long-term plan for the City, and to conduct an RFP.

Per the proposed agreement, Emergency would dedicate two (2) ALS units (4 paramedics) inside Placentia 24/7 for 9-1-1 response, in order to guarantee the community will continue to receive the same service during medical emergencies. Emergency has been the 9-1-1 Basic Life Support ambulance transport provider in Placentia since 1994. Their headquarters are located in Brea, which allow for immediate supplemental support of 9-1-1 operations.

Combined with their partnership with Premier Ambulance, Emergency has great depth and surge capacity protection due to its available resources.

Fiscal Impact Summary:

Per the proposed agreement, the annual payment to Emergency for these services will be $740,000 for the first year. This amount may be adjusted in future years in accordance with costs incurred, and subject to the negotiations of the parties, with a maximum increase of 10% for the second year.

Attachments
PSA_Emergency_Ambulance.pdf
PSA Emergency Exhibit A.pdf
PSA Emergency Exhibit B.pdf
PSA Emergency Exhibit D.pdf
2 PROFESSIONAL SERVICES AGREEMENT

CITY OF PLACENTIA

PROFESSIONAL SERVICES AGREEMENT
WITH
EMERGENCY AMBULANCE SERVICE, INC.

THIS AGREEMENT (“Agreement”) is made and entered into this 15th day of April, 2025 (“Effective Date”), by and between the CITY OF PLACENTIA, a California charter city (“City”), and Emergency Ambulance Service Inc, a California corporation (“Service Provider”).

W I T N E S S E T H:

A. WHEREAS, an efficient and effective Emergency Medical Services (EMS) System is critically important to the safety, health and welfare of the public; and

B. WHEREAS, City is the designated responsible Agency for the planning, implementation and evaluation of the City EMS System, and City has determined that all requests for 911 emergency medical services shall be met by ALS (Paramedic) equipped and staffed response vehicles; and

C. WHEREAS, pursuant to Health and Safety Code, Division 2.5, Section 1797.201 (Section 201), City has the authority to provide 9-1-1/Advanced Life Support Emergency Medical Services (9-1-1/ALS Services) within its jurisdiction, and has continuously provided those services in the same manner and scope without interruption since at least July 1, 1975; and

D. WHEREAS, pursuant to its rights under Section 201, and as a charter city, City reserves the right to contract for 9-1-1/ALS Services with any qualified public or private service provider; and

E. WHEREAS, the Service Provider shall be equipped and qualified to provide mutual and automatic aid to surrounding communities; and

F. WHEREAS, on June 4, 2019, City entered into an agreement (Original Agreement) with Lynch EMS Inc. (Original Provider), as an independent service provider, for the purpose of providing 9-1-1/ALS Services in the City. A copy of the Original Agreement is attached as Exhibit D and is incorporated by this reference, and specifically incorporates all exhibits thereto. All of the services, duties and obligations, required to be performed by the Original Provider under the Original Agreement are hereinafter collectively referred to as either the “Services” or the “9-1-1/ ALS Services”; and

G. WHEREAS, the Existing Contract for 9-1-1/ALS Services is due to expire on June 30, 2025, which expiration has created an urgent need to either negotiate an extension to the Original Agreement or find an alternate provider; and

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G. WHEREAS, City made good faith efforts to meet with the Original Provider to negotiate an extension, but the parties were unable to reach an agreement. The offered extension would be substantially more expensive for the City and would minimize flexibility by requiring a longer contract term; and

H. WHEREAS, the urgent nature of the situation was exacerbated by the recent departure of the prior City Administrator and other factors, which have in turn clarified the need to re-examine the City’s long term plan for 9-1-1/ALS Services; and

I. WHEREAS, there is insufficient time to conduct a full RFP process prior to the expiration of the current contract; and

J. WHEREAS, City is currently engaged in its annual budgeting process, and is trying to determine how to address a long term structural deficit in a fiscally sustainable manner; and

K. WHEREAS, given the City’s current financial limitations, together with the need to provide ongoing quality 9-1-1/ALS Services, the City Council needs additional time and flexibility in order to properly evaluate how 9-1-1/ALS Services should be provided in the City, and then to conduct an RFP; and

L. WHEREAS, Service Provider has offered to help provide 9-1-1/ALS Services on an urgency basis, at a reasonable cost, and with a flexible contract term that provides the City with the additional time and flexibility it needs to conduct a thorough evaluation; and

M. WHEREAS, Service Provider asserts that it has the appropriate experience, equipment, manpower and expertise to provide 9-1-1/ALS Services, and is willing to provide these Services at the same level and scope, and subject to the same terms and conditions, as are currently being provided under the Original Agreement between the City and the Original Provider; and

N. WHEREAS, City and Service Provider now desire to enter into this Agreement whereby Service Provider shall provide to City all of the same Services as set forth in the Original Agreement attached as Exhibit “D”, incorporating all exhibits thereto, except as may be specifically stated herein to the contrary; and

L. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY SERVICE PROVIDER

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1.1. Scope of Services. Service Provider shall provide all of the professional Services described in the Original Agreement, attached as Exhibit “D”, and incorporating all exhibits to that Original Agreement. The Original Agreement specifically includes, but is not limited to, the Original Agreement itself (Exhibit “D”), the City’s Original Request for Proposals for 9-1-1 Advanced Life Support Emergency Medical Services, RFP No. 2018- 01 issued on December 20, 2018 (Exhibit “B”), including among things the contract scope of work, and the Original Service Provider’s Proposal (Exhibit “A”).

Unless specifically stated herein to the contrary, all terms in this Agreement shall have the same definition and meaning as in the Original Agreement.

1.2. Professional Practices. All professional services to be provided by Service Provider pursuant to this Agreement shall be provided by personnel experienced and licensed in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional EMS Providers in similar fields and circumstances in accordance with sound professional practices, legal requirements and regulatory licensure requirements. Service Provider also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Service Provider’s performance of this Agreement.

Service Provider shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Service Provider shall at all times observe and comply with all such laws and regulations. Officers and employees shall not be liable at law or in equity occasioned by failure of the Service Provider to comply with this section.

1.3. Performance to Satisfaction of City. Service Provider agrees to perform all the work to the complete satisfaction of the City as prescribed in the scope of work in the City’s RFP for these services, Service Provider’s Proposal, and within hereinafter specified. The specific performance standards and penalties for not achieving those standards are also outlined in the RFP scope of work. Evaluations of the work will be done by the City Administrator or his or her designee.

1.4. Warranty. Service Provider warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agr eement.

Service Provider shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovere d against City for, or on account of any liability under any of the above -mentioned laws, which may be incurred by reason of Service Provider’s performance under this Agreement.

1.5. EMS Deployment Reporting. The City understands the dynamic nature of EMS deployment strategies and posting of EMS resources to ensure fast and effective 5249

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responses to emergencies to meet required performance standards. Service Provider shall provide the City with a monthly report showing where EMS resources are posted and adjusted in response to changes in call volume and locations.

1.6 Annual Paramedic Licensure Confirmation. Service Provider shall provide evidence of current licensures and County accreditation for each paramedic employed by Service Provider providing 9-1-1/ALS EMS in the City of Placentia on an annual basis.

1.7 Mutual and Automatic Aid. Service Provider shall in accordance with the California Emergency Services Act, as well as Orange County Emergency Medical Services Agency Policy #900.00 – Multi-Casualty Incident Response Plan, enter into agreements with surrounding agencies and the City for responding to requests for mutual and/or automatic aid to neighboring communities.

1.8. Non-discrimination. In performing this Agreement, Service Provider shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code, including the exceptions enumerated therein. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Service Provider agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non- discrimination clause.

Service Provider shall, in all solicitations and advertisements for employees placed by, or on behalf of Service Provider, state that all qualified applicants will receive consideration for employment without regard to age, race, color, religion, sex, marital status, national origin, or mental or physical disability. Service Provider shall cause the paragraphs contained in this Section to be inserted in all subcontracts for any work covered by the Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

1.9. Exclusive Agreement. Service Provider acknowledges that the City is awarding this agreement on an exclusive basis and shall be the only Service Provider contracted by the City to provide these services.

1.10. Delegation and Assignment. The duties set forth herein shall not be delegated, assigned, or subcontracted to any person or entity without the prior written consent of City. All insurance requirements contained in this Agreement are independently applicable to any and all subcontractors that Service Provider may engage with City consent during the term of this Agreement.

1.11. Confidentiality. Employees of Service Provider in the course of their duties may have access to financial, accounting, statistical, and personal health data of private 6250

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individuals. Service Provider covenants that all data, documents, discussion, or other information developed or received by Service Provider or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Service Provider without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement.

Service Provider's covenant under this Section shall survive the termination of this Agreement.

2.0. COMPENSATION AND BILLING

2.1. Compensation. Service Provider’s total compensation shall not exceed Seven Hundred and Forty Thousand Dollars ($740,000.00) in Year 1 of the agreement.

For any extension, the annual compensation beginning in Year 2 and subsequent years thereafter may be increased by the Consumer Price Index for all Urban Consumers for the Los Angeles-Long Beach-Anaheim area published by the United States Department of Labor, Bureau of Statistics (Index) which is published for the month immediately preceding the adjustment date (Adjustment Index), by a maximum of 3%, whichever is lower. The Adjustment Index shall be compared to the Index which was published for the date immediately preceding the beginning of the first twelve (12) month period (Beginning Index). The 12-month period shall be July 1 to June 30 each year this agreement is in effect. Notwithstanding the foregoing, Service Provider may request in writing a renegotiation of the annual compensation rate during any contract year after the first year, with at least 6 months notice prior to the end of the current term. Upon such request, the City agrees to negotiate in good faith, and the Service Provider may present relevant expense or budget information as necessary to support a reasonable adjustment to the compensation; provided, however, that the total increase from one year to the next shall not exceed 10%.

Service Provider shall not receive any payments from the City for the performance of any services under this Agreement unless specifically stated in this Agreement. All ALS reimbursement payments or revenue associated with this Agreement shall come exclusively from Service Provider’s billing and collection of payment from patients and third-party payors for the performance of any services or provision of equipment or materials related to this Agreement.

Service Provider shall be required to enter into an agreement with the Orange County Exclusive Operating Area A 9-1-1 ambulance transport service provider for billing services for the provision of collecting ALS reimbursement payments for service, unless otherwise indicated by City. City shall not permit any other parties to bill patients or third-party payors, for ALS emergency ambulance services provided by Service Provider with the exception of billing that may be done by ambulance providers authorized by the Orange County Health Care Agency to provide mutual aid during a multi-casualty incident (MCI) or disaster. Service Provider shall comply with all applicable laws governing billing and collection, including but not limited to laws and regulations applicable to patients covered by Medicare, Medicaid, and other public or private reimbursement programs.

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2.2. Additional Services. Service Provider shall not receive compensation for any services provided outside the scope of services specified in this Agreement, or which are inconsistent with or in violation of the provisions of this Agreement, unless the City, prior to Service Provider performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

Should the City request in writing additional services that increase the hereinabove described "SCOPE OF SERVICES", an additional fee negotiated between both parties shall be paid to the Service Provider for such additional services.

2.3. Method of Billing. Service Provider shall submit an invoice to the City for approval monthly. Said invoice shall be based on 12 equal monthly payments of the total annual compensation amount allowed under this agreement. City shall pay Service Provider’s invoice within thirty (30) days from the date City receives said invoice. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” on a separate invoice line-item.

2.4. Records and Audits. Records of Service Provider’s services and all revenues collected relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for auditing purposes. City shall call for an independent bi-annual audit of all revenues collected under this agreement, and new revenue sources collected as a result of this agreement, throughout the duration of the agreement including any term extensions. City shall have the right to analyze Service Provider’s revenues and operational expenses at mutually convenient times.

3.0. TIME OF PERFORMANCE

3.1. Commencement of Work. The professional services to be performed pursuant to this Agreement shall commence on July 1, 2025, so that there is no gap in the provision of Services. Said services shall be performed in strict compliance with the contract scope of work approved by City as set forth in Exhibit “A.”

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date with service delivery to begin July 1, 2025, and continue for a period of 12 months, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. One 12 month term extension is available, and may be exercised by the City in its sole and absolute discretion. City shall submit written notice of its decision to extend the Agreement no later than April 1, 2026.

4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least sixty (60) days prior written notice to Service Provider. The termination date shall be 8252

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deemed effective upon receipt of the notice of termination. In the event of such termination, Service Provider shall immediately stop rendering services as of the termination date under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement.

If the Service Provider defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Service Provider fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

The City shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement, immediately upon service of written notice of termination on the Service Provider, if the latter should:

a. Be adjudged a bankrupt;

b. Become insolvent or have a receiver of its assets or property appointed because of insolvency;

c. Make a general assignment for the benefit of creditors;

d. Default in the performance of any obligation or payment of any indebtedness under this Agreement;

e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or

f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs.

4.3. Compensation. In the event of termination, City shall pay Service Provider for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination within thirty-five (35) days after service of the notice of termination. City shall not be liable for any claim of lost profits.

4.4. Documents. In the event of termination of this Agreement, all documents prepared by Service Provider in its performance of this Agreement shall be provided to the City.

5.0. INSURANCE
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5.1. Minimum Scope and Limits of Insurance. Service Provider shall obtain, maintain, and keep in full force and effect during the life of this Agreement all the following minimum scope of insurance coverages with an insurance company admitted to doing business in California, rated “A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by City:

(a) Broad-form commercial general liability, in a form at least as broad as ISO form #CG 00 01 04 13, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Five Million Dollars ($5,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. If Service Provider maintains higher limits than the specified minimum limits, City requires and shall be entitled to coverage for the high limits maintained by the Service Provider. The policy shall not have a deductible or self-retention provision in excess of an amount that has been pre-approved by the City.

(b) Business automobile liability for owned vehicles, hired, and non- owned vehicles, with a policy limit of not less than Five Million Dollars ($5,000,000.00), combined single limits, each incident for bodily injury and property damage. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be two times the required occurrence limit. If Service Provider maintains higher limits that the specified minimum limits, City requires and shall be entitled to coverage for the high limits maintained by the Service Provider. The policy shall not have a deductible or self-retention provision in excess of an amount that has been pre-approved by the City.

(c) Workers' compensation insurance as required by the State of California and Employers Liability Insurance with a minimum limit of $1,000,000 per accident for any employee or employees of Service Provider. Service Provider agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers and officials, agents, employees, and volunteers for losses arising from work performed by Service Provider for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.

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Before execution of this Agreement by the City, the Service Provider shall file with the City’s Contract Manager the following signed certification:

I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers' Compensation or to undertake self- insurance before commencing any of the work.

The Service Provider shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City’s Contract Manager before execution of this Agreement by the City. The City, its officers and officials and employees shall not be responsible for any claims in law or equity occasioned by failure of the Service Provider to comply with this section.

(d) Medical Professional Liability with limit no less than $2,000,000 per occurrence and $6,000,000 aggregate. If coverage is written on a claims made basis, the Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

Insurance must be maintained, and evidence of insurance must be provided for at least three (3) years after completion of the contract of work. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of three (3) years after completion of contract work. A copy of the claims reporting requirements must be submitted to the City for review.

Neither the CITY nor any of its elected or appointed officials, officers, agents, employees, or volunteers makes any representation that the types of insurance and the limits specified to be carried by Service Provider under this Agreement are adequate to protect Service Provider. If Service Provider believes that any such insurance coverage is insufficient, Service Provider shall provide, at its own expense, such additional insurance as Service Provider deems adequate.

5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions as worded below:

(a) Additional insureds: "The City of Placentia and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising 11255

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out of activities performed by or on behalf of the Service Provider pursuant to its contract with the City; products and completed operations of the Service Provider; premises owned, occupied or used by the Service Provider; automobiles owned, leased, hired, or borrowed by the Service Provider."

(b) Notice: "Service Provider shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; (3) or the deductible or self-insured retention is increased. In the event of any cancellation or reduction in coverage or limits of any insurance, Service Provider shall forthwith obtain and submit proof of substitute insurance.

Should Service Provider fail to immediately procure other insurance, as specified, to substitute for any canceled or altered policy, the City may procure such insurance at Service Provider’s sole cost and expense.”

(c) Other insurance: "The Service Provider’s insurance coverage shall be primary insurance as respects the City of Placentia, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Placentia shall be excess and not contributing with the insurance provided by this policy."

(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Placentia, its officers, officials, agents, employees, and volunteers.

(e) The Service Provider’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

5.3. Deductible or Self-Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such City- approved deductible or self-insured retention.

5.4. Certificates of Insurance. Service Provider shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The certificates of insurance and endorsements shall be attached hereto as Exhibit “C”, and are incorporated herein by this reference.

5.5. Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which 12256

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Service Provider may be held responsible for payments of damages to persons or property.

6.0. GENERAL PROVISIONS

6.1. Entire Agreement. This Agreement and its Exhibits constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.

6.2. Representatives. The City Administrator or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.

Service Provider shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Service Provider called for by this Agreement, except as otherwise expressly provided in this Agreement.

6.3. Contract Managers. City shall designate a Contract Manager to work directly with Service Provider in the performance of this Agreement. It shall be the Service Provider’s responsibility to assure that the Contract Manager is kept informed of the progress of the performance of the services and the Service Provider shall refer any decision, which must be made by City, to the Contract Manager. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Manager.

Service Provider shall designate a Management Contact who shall represent it and be its agent in all consultations with City during the term of this Agreement and who shall not be changed by Service Provider without the express written approval by the City. Service Provider or its Management Contact shall attend and assist in all coordination meetings called by City.

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement, or the work hereunder may be provided by personal delivery, facsimile or if mailed, shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service.

Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.

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IF TO SERVICE PROVIDER: IF TO CITY:

Emergency Ambulance Service Inc.,
____________________
____________________
City of Placentia
401 E. Chapman
Placentia, CA 92870
Tel: (___)_________ Tel: (714) 993-8171
Fax: (___) ________ Fax: (714) 528-4640
Attn: _______________ Attn: Rosanna Ramirez

6.5. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.

6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California. Service Provider agrees to submit to the personal jurisdiction of such court in the event of such action.

6.7. Assignment. Service Provider shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Service Provider's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Service Provider of Service Provider's obligation to perform all other obligations to be performed by Service Provider hereunder for the term of this Agreement.

6.8. Indemnification and Hold Harmless. Service Provider shall defend, indemnify and hold City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner which actually or allegedly arise out of or are incident to any alleged acts, omissions, negligence or willful misconduct of Service Provider, its officials, officers, employees, agents, and subcontractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses except where caused by the active negligence, sole negligence, or willful misconduct of City its officials, officers, employees, volunteers and agents. Service Provider shall defend, at Service Provider’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, officials, officers, employees, volunteers and agents. Service 14258

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Provider shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, officers, employees, volunteers and agents, in any such suit, action or other legal proceeding. Service Provider shall reimburse City and its officials, officers, employees, volunteers and/or agents, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Service Provider’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by City, its officials, officers, employees, volunteers and agents.

6.9. Independent Contractor. Service Provider is and shall be acting at all times as an independent contractor and not as an employee of City. Service Provider shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Service Provider or any of Service Provider’s employees, except as set forth in this Agreement. Service Provider shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Service Provider shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Service Provider and its officers, agent s, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Service Provider shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement.

Service Provider further agrees to indemnify and hold City harmless from any failure of Service Provider to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Service Provider under this Agreement any amount due to City from Service Provider as a result of Service Provider’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

6.10. PERS Eligibility Indemnification. In the event that Service Provider or any employee, agent, or subcontractor of Service Provider providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Service Provider shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Service Provider or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Service Provider and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 15259

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6.11. Cooperation. In the event any claim or action is brought against City relating to Service Provider’s performance or services rendered under this Agreement, Service Provider shall render any reasonable assistance and cooperation which City might require.

6.12. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, preliminary notes, working documents, files and tapes furnished or prepared by Service Provider or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Service Provider agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City but shall be made available to the City within ten (10) days of request or within ten (10) days of termination. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Service Provider. Service Provider shall deliver to City any findings, reports, documents, information, data, preliminary notes and working documents, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City.

6.13. Public Records Act Disclosure. Service Provider has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Service Provider, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Service Provider informs City of such trade secret, and records relating to provision of medical aid and assistance to any individual under such individual’s State and Federal rights of privacy and the provisions of the Health Insurance Portability and Accountability Act of 1996. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret or personal health records. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret or personal health records including, without limitation, those records so marked if disclosure is deemed to be requir ed by law or by order of the Court.

6.14. Conflict of Interest. Service Provider and its officers, employees, associates and City-approved subcontractors, if any, will comply with all conflict of interest statutes of the State of California applicable to Service Provider's services under this agreement, including, but not limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Service Provider and its officers, employees, associates and City-approved subcontractors shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Service Provider is not currently 16260

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performing work that would require Service Provider or one of its officers, employees, associates or City-approved subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

6.15. Responsibility for Errors. Service Provider shall be responsible for its work and results under this Agreement. Service Provider, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Service Provider occurs, then Service Provider shall, at no cost to City, provide all actions to the sole satisfaction of City and to participate in any meeting required with regard to the correction.

6.16. Prohibited Employment. Service Provider will not employ any regular employee of City while this Agreement is in effect.

6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, the conflict shall be resolved by giving precedence in the following order, if applicable:

a. This Agreement;
b. Exhibit D: Original Agreement between City and Original Provider; c. Exhibit A: Original Provider’s Proposal (Lynch EMS Inc.); d. Exhibit B: City’s Request for Proposals.

6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Service Provider and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.

6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

6.21. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no 17261

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presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

6.22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. For amendments affecting administrative business operations not related to overall service levels, compensation or performance standards, those may be approved administratively by the City Administrator. For amendments affecting compensation, performance standards or service levels, those must be approved by the City Council.

6.23. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

6.24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

6.25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

6.26. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.

6.27. Recitals Incorporated. All of the recitals to this Agreement are incorporated into the Agreement by this reference.

6.28 Modifications to Exhibit B (RFP). The following changes or clarifications shall be made to requirements set forth in Exhibit B (City’s Original Request for Proposals):

1. Page 7 of 86, the contract term shall be as stated in this Agreement.
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2. Page 17, 3rd paragraph. City will not be providing fuel or vehicle registration to Service Provider.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF PLACENTIA,
A charter city

___________________________________ Date: _______________________ Thomas R. Hatch, Interim City Administrator

ATTEST:

________________________________
Robert S. McKinnell
City Clerk and ex-officio Clerk
of the City of Placentia

SERVICE PROVIDER

_____________________________ Date: __________________________ Signature
Emergency Ambulance Service Inc.

__________________________________
Name and Title

__________________________________
Social Security or Taxpayer ID Number

APPROVED AS TO FORM:

__________________________________ Date: ________________________ Christian L. Bettenhausen, City Attorney

95-3175162
Paul Scarborough
4/10/2025
President & CEO
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APPROVED AS TO INSURANCE:

____________________________________ Date: ________________________ Rosanna Ramirez, Risk Management

APPROVED AS TO CONTENT:

____________________________________ Date: ________________________ Rosanna Ramirez, Contract Manager

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EXHIBIT A

ORIGINAL PROVIDER’S PROPOSAL AND SCOPE OF WORK
(Original Lynch EMS, Inc. Proposal)
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EXHIBIT B

ORIGINAL REQUEST FOR PROPOSAL FOR 9-1-1/ADVANCED LIFE SUPPORT

EMERGENCY MEDICAL SERVICES

22266

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EXHIBIT C

CERTIFICATES OF INSURANCE AND ENDORSEMENTS

23267

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EXHIBIT D

ORIGINAL AGREEMENT BETWEEN THE CITY AND ORIGINAL PROVIDER

24268

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6 PROFESSIONAL SERVICES AGREEMENT

CITY OF PLACENTIA

PROFESSIONAL SERVICES AGREEMENT
WITH
EMERGENCY AMBULANCE SERVICE, INC.

W I T N E S S E T H:

A. WHEREAS, an efficient and effective Emergency Medical Services (EMS) System is critically important to the safety, health and welfare of the public; and

D. WHEREAS, pursuant to its rights under Section 201, and as a charter city, City reserves the right to contract for 9-1-1/ALS Services with any qualified public or private service provider; and

E. WHEREAS, the Service Provider shall be equipped and qualified to provide mutual and automatic aid to surrounding communities; and

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I. WHEREAS, there is insufficient time to conduct a full RFP process prior to the expiration of the current contract; and

J. WHEREAS, City is currently engaged in its annual budgeting process, and is trying to determine how to address a long term structural deficit in a fiscally sustainable manner; and

L. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY SERVICE PROVIDER

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Unless specifically stated herein to the contrary, all terms in this Agreement shall have the same definition and meaning as in the Original Agreement.

1.5. EMS Deployment Reporting. The City understands the dynamic nature of EMS deployment strategies and posting of EMS resources to ensure fast and effective 5249

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1.11. Confidentiality. Employees of Service Provider in the course of their duties may have access to financial, accounting, statistical, and personal health data of private 6250

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Service Provider's covenant under this Section shall survive the termination of this Agreement.

2.0. COMPENSATION AND BILLING

2.1. Compensation. Service Provider’s total compensation shall not exceed Seven Hundred and Forty Thousand Dollars ($740,000.00) in Year 1 of the agreement.

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3.0. TIME OF PERFORMANCE

4.0. TERM AND TERMINATION

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a. Be adjudged a bankrupt;

b. Become insolvent or have a receiver of its assets or property appointed because of insolvency;

c. Make a general assignment for the benefit of creditors;

d. Default in the performance of any obligation or payment of any indebtedness under this Agreement;

e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or

f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs.

4.4. Documents. In the event of termination of this Agreement, all documents prepared by Service Provider in its performance of this Agreement shall be provided to the City.

5.0. INSURANCE
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10254

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Before execution of this Agreement by the City, the Service Provider shall file with the City’s Contract Manager the following signed certification:

5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions as worded below:

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(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Placentia, its officers, officials, agents, employees, and volunteers.

(e) The Service Provider’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

5.5. Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which 12256

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Service Provider may be held responsible for payments of damages to persons or property.

6.0. GENERAL PROVISIONS

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IF TO SERVICE PROVIDER: IF TO CITY:

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6.16. Prohibited Employment. Service Provider will not employ any regular employee of City while this Agreement is in effect.

a. This Agreement;
b. Exhibit D: Original Agreement between City and Original Provider; c. Exhibit A: Original Provider’s Proposal (Lynch EMS Inc.); d. Exhibit B: City’s Request for Proposals.

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presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

6.27. Recitals Incorporated. All of the recitals to this Agreement are incorporated into the Agreement by this reference.

6.28 Modifications to Exhibit B (RFP). The following changes or clarifications shall be made to requirements set forth in Exhibit B (City’s Original Request for Proposals):

1. Page 7 of 86, the contract term shall be as stated in this Agreement.
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2. Page 17, 3rd paragraph. City will not be providing fuel or vehicle registration to Service Provider.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF PLACENTIA,
A charter city

___________________________________ Date: _______________________ Thomas R. Hatch, Interim City Administrator

ATTEST:

________________________________
Robert S. McKinnell
City Clerk and ex-officio Clerk
of the City of Placentia

SERVICE PROVIDER

_____________________________ Date: __________________________ Signature
Emergency Ambulance Service Inc.

__________________________________
Name and Title

__________________________________
Social Security or Taxpayer ID Number

APPROVED AS TO FORM:

__________________________________ Date: ________________________ Christian L. Bettenhausen, City Attorney

95-3175162
Paul Scarborough
4/10/2025
President & CEO
19263

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- Page 18 of 22 -

APPROVED AS TO INSURANCE:

____________________________________ Date: ________________________ Rosanna Ramirez, Risk Management

APPROVED AS TO CONTENT:

____________________________________ Date: ________________________ Rosanna Ramirez, Contract Manager

20264

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- Page 19 of 22 -

EXHIBIT A

ORIGINAL PROVIDER’S PROPOSAL AND SCOPE OF WORK
(Original Lynch EMS, Inc. Proposal)
21265

PSA/Emergency Ambulance Services Inc.

- Page 20 of 22 -

EXHIBIT B

ORIGINAL REQUEST FOR PROPOSAL FOR 9-1-1/ADVANCED LIFE SUPPORT

EMERGENCY MEDICAL SERVICES

22266

PSA/Emergency Ambulance Services Inc.

- Page 21 of 22 -

EXHIBIT C

CERTIFICATES OF INSURANCE AND ENDORSEMENTS

23267

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- Page 22 of 22 -

EXHIBIT D

ORIGINAL AGREEMENT BETWEEN THE CITY AND ORIGINAL PROVIDER

24268

Honorable Mayor and Members of the City Council
City of Placentia
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
(2)
269

Honorable Mayor and Members of the City Council
City of Placentia
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedules - General and Major Special Revenue Funds, the schedules of the City's proportionate share of the net pension liabilities and related ratios and the schedules of plan contributions for the City's pension plans, the schedule of changes in the net other post -employment benefit (OPEB) liability and related ratios, and the schedule of OPEB plan contributions, identified as Required Supplementary Information (RSI) in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (3)
270

Honorable Mayor and Members of the City Council
City of Placentia
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated 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
(4)
271

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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. (5)
272

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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.
(6)
273

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
• Proprietary Funds
The City maintains two different types of proprietary funds: enterprise and internal service funds.

Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for refuse and sewer services.

Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The internal service funds primarily benefit the governmental activities and, therefore, the internal service fund information has been included with the governmental activities in the government -wide financial statements.

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

Fiduciary funds are not included in the government -wide financial statements because their assets are not available to support the City's activities.

Notes to the Financial Statements
The notes to the financial statements provide additional information that is important to obtain a full understanding of the data in the government -wide and fund financial statements. The notes are located immediately following the basic financial statements.

Other Information
In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements. The combining statements for other governmental funds, the individual fund schedules, the internal service fund statements, and agency -type fiduciary fund schedules are presented immediately following the required supplementary information. (7)
274

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024

GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
Statement of Net Position
Assets:

Cash and Investments
Other Assets
Capital Assets
Total Assets
Deferred Outflows of
Resources
Liabilities
Current Liabilities
Long -Term Liabilities
Total Liabilities
Governmental Activities
Business -Type Activities Total
2024 2023 2024 2023
2024 2023
$ 34,155,584 $38,182,514 $ 2,719,521 $1,778,578 $ 36,875,105 $ 39,961,092 37,938,186 42,866,148 212,976 214,152 38,151,162 43,080,300 135,430,593 118,450,405 12,470,619 7,166,223 147,901,212 125,616,628 207,524,363 199,499,067 15,403,116 9,158,953 222,927,479 208,658,020 13,060,378 18,139,862 391,435 678,259 13,451,813 18,818,121 16,004,625 15,401,307 462,236 393,716 16,466,861 15,795,023 92,362,502 86,871,991 580,755 680,187 92,943,257 87,552,178 108, 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 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. (8)
275

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
Change in Net Position
The following is a summary of activities for the years ended June 30, 2024 and 2023:

Change in Net Position
Revenues:

Program Revenues:

Charges for Services
Operating Contributions and
Grants
Capital Contributions and
Grants
General Revenues:

Taxes
Investment Income
Miscellaneous
Total Revenues
Expenses:

General Government
Public Safety
Public Works
Community Development
Community Services
Interest
Refuse
Sewer Maintenance
Total Expenses
Change in Net Position
Before Transfers
Transfers
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
Governmental Activities
2024 2023
Business -Type Activities Total
2024 2023
2024 2023
$ 7,072,927 $6,940,710 $ 6,324,092 $5,731,079 $ 13,397,019 $ 12,671,789 9,936,713 15,642,625 - - 9,936,713 15,642,625
1,938,279 5,024,953 - - 1,938,279 5,024,953
45,901,213 44,499,687
1,900,697 377,738
281,897 2,544,611
67,031,726 75,030,324
44,933 18,644
6,369,025 5,749,723
45,901,213 44,499,687
1,945,630 396,382
281,897 2,544,611
73,400, 751 80, 780, 047
17,490,713 19,220,385 17,490,713 19,220,385
27,470,712 39,862,578 - - 27,470,712 39,862,578
10, 729,394 11,631,983 10,729, 394 11,631, 983
2,563,283 2,425,348 - - 2,563,283 2,425,348
4,253,514 3,755,053 4,253,514 3,755,053
2,959,601 2,372,525 - - 2,959,601 2,372,525
4,887,578 4,340,551 4,887,578 4,340,551
1,466,857 2,533,043 1,466,857 2,533,043
65,467,217 79,267,872 6,354,435 6,873,594 71,821,652 86,141,466 1,564,509 (4,237,548) 14,590 (1,123,871) 1,579,099 (5,361,419) (5,939,707) 5,939,707
(4,375,198) (4,237,548) 5,954,297 (1,123,871) 1,579,099 (5,361,419) 78,575,168 82,812,716 8,411,355 9,535,226 86,986,523 92,347,942 $ 74,199,970 $ 78,575,168 $ 14,365,652 $ 8,411,355 $ 88,565,622 $ 86,986,523 (9)
276

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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:

REVENUE SOURCES

GOVERNMENTAL ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2024
Investment Income, _

2.84%
Taxes, 68.48%
Miscellaneous,

0.42%
_Charges For Services,

10.55%
Operating
Contributions &
Grants, 14.82%
Capital Contribution
& Grants, 2.89%
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. (10)
277

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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:

FUNCTIONAL EXPENSES

GOVERNMENTAL ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2024
Public Works, 16.39%
Public Safety,

41.96%
Community
Development, 3.92%
Community Services,

6.50%
Interest Expense,

4.52%
General Government,

26.72%
278

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
Business -Type Activities:
2024 2023
Operating Revenues
Operating Expenses
Operating Income (Loss)
Nonoperating Income
Income Before Capital Contributions
Capital Contributions
Change in Net Position
$ 6,324,092 $5,731,079
6,354,435 6,873,594
(30,343) (1,142,515)
44,933 18,644
14,590 (1,123,871)
5,939,707
$ 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.
(12)
279

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024

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.

Components of Fund Balance
Fiscal Year Ended June 30, 2024
(Governmental Funds)
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
$20,760,096
$898,953
Nonspendable
Re stricte a
$10,814,651
$1,03b,2sbU
i
Committe _ Unassignec
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. (13)
280

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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
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.

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.
(14)
281

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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. (15)
282

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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
Land
Land - Right of Way
Trees
Construction in Progress
Structures and Improvements
Right -to -Use Lease Land
Right -to -Use Lease Equipment
Subscription Assets
Equipment
Land Improvements
Infrastructure:

Streets Network
Streets Appurtenances
Storm Drains
Governmental Activities
2024 2023
Business -Type Activities Total
2024 2023
$ 26,118,971 $26,118,971 $
1,008,822 1,008,822
3,196,564 3,114,540
26,554,604 24,107,558
16, 823, 769 12, 059, 077
228,303 380,505
758,743 597,417
2,141,596 2,181,848
6,568,336 6,961,004
37,380 43,176
41,221,385 31,203,613
8,598,144 8,498,752
2,173,976 2,175,122
2024 2023
$ $ 26,118,971 $ 26,118,971
1,008, 822 1,008, 822
3,196,564 3,114,540
26,554,604 24,107,558
12,440,432 7,123,820 29,264,201 19,182,897
228,303 380,505
758,743 597,417
2,141,596 2,181,848
30,187 42,403 6,598,523 7,003,407
37,380 43,176
41,221,385 31,203,613
8,598,144 8,498,752
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 For further detailed information see Note 5, Capital Assets.

Debt Administration
(16)
283

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024
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
Radios Loan
Fire Lease #1 Loan
Fire Lease #2 Loan
Easement Loan
Vehicles Loan
OCTA Advance
Fire UAL Payoff Loan
Motorola Equipment
2002 Loan Payable (2003 COP)
2021 Installment Sale Agreement
2020A Lease Revenue Bond
2023 Lease Revenue Bond
Unamortized Bond Premium
Leases Payable
Subscription Liability
Claims Payable
Compensated Absences
Other Postemployment Benefit
Pension Liabilities
Total
Governmental Activities
2024 2023
Business -Type Activities Total
2024 2023
2024 2023
$ 362,479 $515,597 $ - $ - $ 362,479 $ 515,597
2,096,314 2,445,454 2,096,314 2,445,454
1,098,741 1,281,976 1,098,741 1,281,976
222,672 284,411 - - 222,672 284,411
96,530 124,631 96,530 124,631
714,982 1,144,278 - - 714,982 1,144,278
344,932 714,261 344,932 714,261
1,197,159 - - - 1,197,159 1,331,266 1,752,697 1,331,266 1,752, 697 2,293,000 2,651,000 - - 2,293,000 2,651,000
48,530,000 50,390,000 - - 48,530,000 50,390,000
9,190,000 9,190, 000
352,179 - - - 352,179 -
998,122 987,563 998,122 987,563
1,859,215 1,849,671 - - 1,859,215 1,849,671
3,820,916 4,051,344 3,820,916 4,051,344
2,928,780 2,511,619 31,632 45,575 2,960,412 2,557,194
13,621,646 17,803,729 377,671 511,032 13,999,317 18,314,761 7,985,498 4,337,200 172,847 126,102 8,158,345 4,463,302 $ 99.044.431 $ 92.845.431 $ 582,150 $ 682.709 $ 99.626,581 $ 93.528,140 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. (17)
284

CITY OF PLACENTIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED JUNE 30, 2024

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.orc
(18)
285

BASIC FINANCIAL STATEMENTS
286

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287

GOVERNMENT -WIDE FINANCIAL STATEMENTS
288

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289

CITY OF PLACENTIA

STATEMENT OF NET POSITION
JUNE 30, 2024
Primary Government
ASSETS
Current Assets:

Cash and Investments
Receivables, Net of Allowance:

Accounts
Taxes
Grants
Interest
Loans
Leases
Prepaid Items
Inventory
Total Current Assets
Noncurrent Assets:

Land Held for Resale
Leases Receivable
Restricted Assets:

Cash and Investments with Fiscal Agent
Pension Stability Fund
Capital Assets - Nondepreciable
Capital Assets - Depreciable/Amortizable, Net
Total Noncurrent Assets
Governmental Business -Type
Activities Activities
$ 26,259,171
3,820,864
3,739,833
684,648
427,783
2,278,937
574,218
92,599
21,542
37,899,595
1,036,760
23,617,420
7,896,413
1,643,582
56,878,961
78,551,632
169,624,768
Total Assets 207,524,363

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding
Deferred Outflows of Resources Related
to Pensions
Deferred Outflows of Resources Related
to OPEB
Total Deferred Outflows of Resources
See accompanying Notes to Basic Financial Statements.
$ 2,719,521
173,517
39,459
Total
$ 28,978,692
3,994,381
3,779,292
684,648
427,783
2,278,937
574,218
92,599
21,542
2,932,497 40,832,092
12,470,619
12,470,619 182,095,387
1,036,760
23,617,420
7,896,413
1,643,582
56,878,961
91,022,251
15,403,116 222,927,479
204,818 - 204,818
9,549,115 299,761 9,848,876
3,306,445 91,674 3,398,119
13,060,378
391,435 13,451,813
(19)
290

CITY OF PLACENTIA

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2024
Primary Government

LIABILITIES
Current Liabilities:

Accounts Payable
Accrued Payroll and Benefits
Deposits Payable
Retentions Payable
Accrued Interest Payable
Unearned Revenues
Long -Term Debt Due Within One Year
Claims Payable Due Within One Year
Compensated Absences Due Within One Year
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt Due in More Than One Year
Claims Payable Due in More Than One Year
Compensated Absences Due in More Than
One Year
Net OPEB Liability
Aggregate Net Pension Liabilities
Total Noncurrent Liabilities
Governmental Business -Type
Activities Activities
Total
$ 5,619,735 $ 400,163 $ 6,019,898
453,421 60,678 514,099
1,288,179 - 1,288,179
983,982 - 983,982
404,671 - 404,671
572,708 - 572,708
5,601,384 - 5,601,384
941,479 - 941,479
139,066 1,395 140,461
16,004,625
65,086,207
2,879,437
2,789,714
13,621,646
7,985,498
92,362,502
Total Liabilities 108,367,127

DEFERRED INFLOWS OF RESOURCES
Leases Related
Deferred Pension - Related Items
Deferred OPEB - Related Items
Total Deferred Inflows of Resources

NET POSITION
Net Investment in Capital Assets
Restricted for:

Public Safety
Public Works
Community Development
Community Services
Debt Service
Transportation
Park Development
Street Maintenance
Air Quality
Affordable Housing
Pension Stability
Total Restricted
Unrestricted (Deficit)
23,645,721
2,655,776
11,716,147
38,017,644
114,776,612
1,685,245
1,536,762
4,818,640
425,909
8,100,913
617,869
20,903
517,279
312,566
2,087,696
1,643,582
21,767,364
(62,344,006)
462,236 16,466,861
30,237
377,671
172,847
65,086,207
2,879,437
2,819,951
13,999,317
8,158,345
580,755 92,943,257
1,042,991 109,410,118
- 23,645,721
61,067 2,716,843
324,841 12,040,988
385,908 38,403,552
12,470,619 127,247,231
1,895,033
1,685,245
1,536,762
4,818,640
425,909
8,100,913
617,869
20,903
517,279
312,566
2,087,696
1,643,582
21,767,364
(60,448,973)
Total Net Position $ 74,199,970 $ 14,365,652 $ 88,565,622 See accompanying Notes to Basic Financial Statements.
(20)
291

CITY OF PLACENTIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
Net Revenue (Expense)
Program Revenues and Changes in Net Positions
Capital Grants
Charges for Operating Grants and Governmental Business -Type Functions/Programs Expenses Services and Contributions Contributions Activities Activities

PRIMARY GOVERNMENT
Governmental Activities:

General Government
Public Safety
Public Works
Community Development
Community Services
Interest
Total Governmental Activities
Business -Type Activities:

Refuse
Sewer Maintenance
Total Business -Type Activities
Total Primary Government
$ 17,490,713 $ 3,298,251 $ 853,203 $ $ (13,339,259) $
27,470,712 913,475 3,904,485 - (22,652,752)
10,729,394 855,554 4,365,953 1,938,279 (3,569,608)
2,563,283 1,508,909 813,072 - (241,302)
4,253,514 496,738 - (3,756,776)
2,959,601 - (2,959,601)
65,467,217 7,072,927 9,936,713 1,938,279 (46,519,298)
4,887,578 4,812,880
1,466,857 1,511,212
6,354,435 6,324,092
Total
- $ (13,339,259)
(22,652,752)
(3,569,608)
(241,302)
(3,756,776)
(2,959,601)
(74,698)
44,355
(30,343) (30,343)
(46,519,298)
(74,698)
44,355
$ 71,821,652 $ 13,397,019 $ 9,936,713 $ 1,938,279 (46,519,298) (30,343) (46,549,641) See accompanying Notes to Basic Financial Statements.

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

CHANGES IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
(21)
(5,939,707) 5,939,707
(4,375,198) 5,954,297 1,579,099
78,575,168 8,411,355 86,986,523
$ 74,199,970 $ 14,365,652 $ 88,565,622
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293

FUND FINANCIAL STATEMENTS
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295

GOVERNMENTAL FUND FINANCIAL STATEMENTS
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297

CITY OF PLACENTIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024
Major Funds
Placentia
Citywide Regional
Development Navigation
Impact Fee Center Other
General Special Special Debt Govemmental
Fund Revenue Fund Revenue Fund Service Fund Funds Total ASSETS
Cash and Investments
Receivables:

Accounts
Taxes
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Due from Other Funds
Inventories
Land Held for Resale
Restricted Assets:

Cash and Investments with
Fiscal Agents
Pension Stability Fund
$ 13,291,471 $ 2,506,909 $ - $ 180,241 $ 7,808,317 $ 23,786,938 855,457 1,842,872
3,739,833
427,739
1,165,124
24,184,793
88,009
3,427,498
21,542
509,148
3,281
1,090,416 3,788,745
3,739,833
684,648 684,648
44 427,783
604,665 2,278,937
6,845 24,191,638
91,290
3,427,498
21,542
1,036,760 1,036,760
7,896,413 7,896,413
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
Accrued Payroll and Benefits
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of
Resources

FUND BALANCES
Nonspendable
Restricted
Committed
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances
$ 4,485,943 $ 128,325 $ 141,169 $
394,510 - 14,661
1,163,011 - -
755,116 2,803 -
2,472,828
11,000 - -
6,809,580 131,128 2,628,658
23,635,480 - -
28,215 509,148 1,842,872
23,663,695 509,148 1,842,872
63,135
63,135
$ 798,094 $ 5,553,531
27,446 436,617
125,168 1,288,179
226,063 983,982
891,535 3,427,498
561,708 572,708
2,630,014 12,262,515
10,241 23,645,721
1,216,576 3,596,811
1,226,817 27,242,532
895,672 3,281 898,953
1,643,582 2,375,781 - 8,013,519 8,727,214 20,760,096
1,036,860 - - 1,036,860
14,795,659 - (2,628,658) (1,352,350) 10,814,651
18,371,773 2,379,062 (2,628,658) 8,013,519 7,374,864 33,510,560 $ 48,845,048 $ 3,019,338 $ 1,842,872 $ 8,076,654 $ 11,231,695 $ 73,015,607 See accompanying Notes to Basic Financial Statements.
(23)
298

CITY OF PLACENTIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

GOVERNMENT -WIDE STATEMENT OF NET POSITION
JUNE 30, 2024
Total Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of net position were reported differently because:

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

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

Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the government -wide financial statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.

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.

Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the statement of net position:

Financed Purchases
OCTA Advance
Compensated Absences
Loans Payable
Bonds Payable
Leases Payable
Subscription Liability
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension Related Deferred Outflows of Resources
Aggregate Net Pension Liabilities
Pension Related Deferred Inflows of Resources
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

OPEB Related Deferred Outflows of Resources
Net OPEB Liability
OPEB Related Deferred Inflows of Resources
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the government -wide statement of net position.

Net Position of Governmental Activities as Reported on the Statement of Net Position See accompanying Notes to Basic Financial Statements.
$ 33,510,560
56,878,961
78,454,091
135,333,052
204,818
3,596,811
(404,671)
(3,876,736)
(714,982)
(2,928,780)
(5,166,357)
(58,072,179)
(998,122)
(1,859,215)
(73,616,371)
9,549,115
(7,985,498)
(2,655,776)
3,306,445
(13,621,646)
(11,716,147)
(1,300,722)
$ 74,199,970
(24)
299

CITY OF PLACENTIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Earnings
Charges for Services
Leases and Rents
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES
(USES)
Issuance of Debt
Bond Premium
Payment to Refunding Bond
Escrow Agent
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND

BALANCES
Fund Balance - Beginning, as
Originally Reported
Change Within Financial Reporting
Entity (Nonmajor to Major Fund)
Fund Balance - Beginning, as
Adjusted
Major Funds
Placentia
Citywide Regional
Development Navigation
Impact Fee Center Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds
Total
$ 45,847,060 $ $ - $ $ - $ 45,847,060
2,717,309 1,287,053 5,699,320 9,703,682
2,535,885 - - - 2,535,885
548,960 - - 90,578 639,538
1,175,860 72,851 479,186 172,600 1,900,497
1,441,304 - 1,004,300 2,445,604
1,677,641 - 4,126 1,681, 767
355,903 - - 355,903
1,125,980 2,785 207,331 1,336,096
57,069,999 431,539 1,287,053 479,186 7,178,255 66,446,032 15,336,829 - - 2,499 153,962 15,493,290
18,491,792 95,820 2,126,486 319,783 21,033,881
5,350,268 - - 1,384,312 6,734,580
1,809,970 638,415 2,448,385
3,431,853 - - 8,915 3,440,768
22,021,540 2,431,563 153,300 4,635,910 29,242,313
2,366,341 - 1,860,000 787,296 5,013,637
231,958 2,459,972 92,685 2,784,615
69,040,551 2,527,383 2,279,786 4,322,471 8,021,278 86,191,469 (11,970,552)
2,017,510
6,108,943
4,496,884)
(2,095,844) (992,733) (3,843,285) (843,023) (19,745,437) 9,190,000 11,207,510
352,179 352,179
4,083,700 816,934
(5,922,784) (589,909)
3,629,569 7,703,095
11,009,577
11,009,577)
227,025 11,559,689
(8,340,983) (2,095,844) (992,733) 3,859,810 (615,998) (8,185,748) 26,712,756 4,474,906
4,153,709
6,354,937 41,696,308
(1,635,925) 1,635,925
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 See accompanying Notes to Basic Financial Statements.
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300

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
Net Change in Fund Balances - Total Governmental Funds
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
Depreciation and Amortization
Net Effect on Disposal of Capital Assets
Contribution of Asset to the Sewer Fund
Amortization of the deferred charges on refunding is recognized as interest expense in the statement of activities.

Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the statement of activities.

Proceeds from the issuance of long-term debt is not a revenue in the statement of activities, but is reported as a liability on the government -wide statement of net position.

Principal repayment on long-term debt is not an expense in the statement of activities, but is considered an expenditure in governmental funds.

Long -Term Debt
Financed Purchases
OCTA Advance
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.

Compensated absences were reported in the government -wide statement of activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.

Certain OPEB expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Certain pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.

Change in Net Position of Governmental Activities as Reported in the Statement of Activities See accompanying Notes to Basic Financial Statements.
$ (8,185,748)
29,310,625
(6,236,943)
(251,328)
(5,939,707)
16,882,647
(50,358)
527,782
(11,559,689)
3,439,679
1,144,662
429,296
5,013,637
(174,986)
(417,161)
2,371,863
(8,915,509)
132,324
$ (4,375,198)
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301

PROPRIETARY FUND FINANCIAL STATEMENTS
302

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303

CITY OF PLACENTIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024
ASSETS
Current Assets:

Cash and Investments
Receivables:

Accounts
Taxes
Prepaids
Total Current Assets
Noncurrent Assets:

Capital Assets, Net of Accumulated Depreciation
Total Noncurrent Assets
Total Assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources Related to Pensions
Deferred Outflows of Resources Related to OPEB
Total Deferred Outflows of Resources

LIABILITIES
Current Liabilities:

Accounts Payable
Accrued Payroll and Benefits
Compensated Absences - Due Within One Year
Claims And Judgments - Due Within One Year
Total Current Liabilities
Noncurrent Liabilities:

Compensated Absences - Due in More Than One Year
Claims And Judgments - Due in More Than One Year
Total OPEB Liability
Aggregate Net Pension Liabilities
Total Noncurrent Liabilities
Total Liabilities

DEFERRED INFLOW OF RESOURCES
Deferred Inflows of Resources Related to Pensions
Deferred Inflows of Resources Related to OPEB
Total Deferred Inflows of Resources

NET POSITION
Investment in Capital Assets
Unrestricted (Deficit)
Major Enterprise Funds
Refuse
Sewer
Maintenance
Business -Type Governmental
Activities Activities
Total
Internal
Service Funds
$ 728,193 $ 1,991,328 $ 2,719,521 $ 2,472,233
28,857 144,660 173,517 32,119
39,459 - 39,459 -
- - 1,309
796,509 2,135,988 2,932,497 2,505,661
12,470,619 12,470,619 97,541
12,470,619 12,470,619 97,541
796,509 14, 606, 607 15,403,116
122,608 177,153 299,761
38,598 53,076 91,674
161,206 230,229 391,435
2,603,202
381,799 18,364 400,163 66,204
24,620 36,058 60,678 16,804
543 852 1,395 -
- - - 941,479
406,962 55,274 462,236 1,024,487
11,774 18,463 30,237
159,013 218,658 377,671
70,698 102,149 172,847
241,485 339,270 580,755
648,447 394,544 1,042,991
24,977 36,090 61,067
136,770 188,071 324,841
161,747 224,161 385,908
2,879,437
2,879,437
3,903,924
12,470,619 12,470,619 97,541
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) See accompanying Notes to Basic Financial Statements.
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304

CITY OF PLACENTIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

OPERATING REVENUES
Reimbursements
Sales and Service Charges
Other Revenues
Total Operating Revenues

OPERATING EXPENSES
Administration
Reinsurance Premiums
Claims
Medical and Dental Premiums
Liability Insurance Premiums
Maintenance
Landfill and Contractor Charges
Depreciation Expense
Total Operating Expenses

OPERATING INCOME (LOSS)

NONOPERATING INCOME (LOSS)
Investment Earnings
Gain on Disposal of Capital Assets
Total Nonoperating Income
Business -Type Activities
Sewer
Refuse Maintenance
Total
Governmental
Activities
Internal
Service
$ 40,147 $ - $ 40,147 $ 663,454
4,772,733 1,511,212 6,283,945 3,346,549
95,488
4,812,880 1,511,212
643,896
4,243,682
6,324,092 4,105,491
341,784 985,680
489,762
635,311
4,887,578 1,466,857
489,762
4,243,682
635,311
240,666
187,603
815,101
990,260
1,757,073
40,376
6,354,435 4,031,079
(74,698) 44,355 (30,343) 74,412
9,797
35,136 44,933
- 57,912
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) See accompanying Notes to Basic Financial Statements.
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305

CITY OF PLACENTIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users
Cash Paid to Suppliers for Goods and Services
Cash Paid to Employees for Services
Cash Paid for Insurance Claims
Net Cash Provided (Used) by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Payment Made on Interfund Borrowing
Net Cash Provided (Used) by Noncapital Financing
Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Proceeds from Sale of Capital Assets
Net Cash Provided (Used) by Capital and Related
Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
Net Cash Provided (Used) by Investing Activities
Business -Type Activities
Sewer
Refuse Maintenance
$ 4,808,699
(4,217,164)
(532,845)
58,690
9,797
9,797

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 68,487
Cash and Cash Equivalents - Beginning of Year

CASH AND CASH EQUIVALENTS - END OF YEAR

CASH AND CASH EQUIVALENTS
Cash and Investments
Total Cash and Cash Equivalents
See accompanying Notes to Basic Financial Statements.
$ 1,516,569
(487,026)
(192,223)
837,320
35,136
35,136
872,456
659,706 1,118,872
Total
Governmental
Activities
Internal
Service
$ 6,325,268 $ 4,073,482
(4,704,190) (3,365,298)
(725,068)
896,010
44,933
44,933
940,943
1,778,578
(815,101)
(106,917)
(38,322)
(38,322)
57,912
57,912
(87,327)
2,697,477
$ 728,193 $ 1,991,328 $ 2,719,521 $ 2,610,150
$ 728,193 $ 1,991,328 $ 2,719,521 $ 2,472,233
$ 728,193 $ 1,991,328 $ 2,719,521 $ 2,472,233
(29)
306

CITY OF PLACENTIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BR OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables
(Increase) Decrease in Taxes Receivables
(Increase) Decrease in Prepaids
(Increase) Decrease in Deferred Outflows of
Resources Related to Pension
(Increase) Decrease in Deferred Outflows of
Resources Related to OPEB
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Liabilities
Increase (Decrease) in Compensated Absences
Increase (Decrease) in Claims Payable
Increase (Decrease) in Net Pension Liabilities
Increase (Decrease) in Net OPEB Liabilities
Increase (Decrease) in Deferred Inflows of
Resources Related to Pension
Increase (Decrease) in Deferred Inflows of
Resources Related to OPEB
Net Cash Provided (Used) by Operating Activities
See accompanying Notes to Basic Financial Statements.

Business -Type Activities
Sewer
Refuse Maintenance
Total
Governmental
Activities
Internal
Service
$ (74,698) $ 44,355 $ (30,343) $ 74,412
635,311 635,311 40,376
(2,963) 5,357 2,394 (32,010)
(1,218) (1,218) -
- 57,198
82,473 136,535 219,008
26,797 41,019 67,816
26,518 2,736 29,254
17,776 22,617 40,393
(3,799) (10,144) (13,943)
20,846 25,899 46,745
(50,523) (82,838) (133,361)
23,777 34,256 58,033
(6,296) (17,783) (24,079)
(33,264)
16,799
(230,428)
$ 58,690 $ 837,320 $ 896,010 $ (106,917)
(30)
307

FIDUCIARY FUND FINANCIAL STATEMENTS
308

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309

CITY OF PLACENTIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024
RDA
Successor Custodial
Agency Funds
ASSETS
Pooled Cash and Investments
Receivables:

Miscellaneous
Restricted Assets:

Cash and Investments with Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Accrued Liability
Accrued Interest
Long -Term Liabilities:

Due in One Year
Due in More Than One Year
Total Liabilities

NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and Other
Governments
$ 646,146 $ 414,293
707,003
1,453
1,353,149 415,746
1,419
11,419
136,938
1,074,003
8,511,214
9,734,993 255
241
14 (8,381,844) 415,491
Total Net Position (Deficit) $ (8,381,844) $ 415,491
See accompanying Notes to Basic Financial Statements.
(31)
310

CITY OF PLACENTIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024
RDA
Successor Custodial
Agency Funds

ADDITIONS
Property Taxes
Charges for Services
Investment Earnings
Total Additions

DEDUCTIONS
Program Costs
Administrative Expenses
Interest Expense
Administrative Expenses
Total Deductions

CHANGE IN NET POSITION
Net Position (Deficit) - Beginning of Year

NET POSITION (DEFICIT) - END OF YEAR
See accompanying Notes to Basic Financial Statements.
$ 1,415,353 $
17,449
219,017
6,453
1,432,802 225,470
31,714
95,974
326,904
- 8,440
454,592 8,440
978,210 217,030
(9,360,054) 198,461
$ '8,381,844) $ 415,491
(32)
311

NOTES TO BASIC FINANCIAL STATEMENTS
312

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313

CITY OF PLACENTIA

INDEX TO THE NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
(33)
314

CITY OF PLACENTIA

INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2024
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
(34)
315

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Placentia, California, (the City) have been prepared in conformity with accounting principles generally accepted in the United States (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City's significant policies:

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

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

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

The Placentia Public Financing Authority — The Placentia Public Financing Authority (the Authority) was formed in 1996 to issue Tax Revenue Bonds. The proceeds of the debt were used to refund the existing Mello -Roos Community Facilities District 89-1 bonds, originally issued in September 1996. The Authority is governed by a five -member board that is the City Council of the City. Separate financial statements are not prepared.
(35)
316

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(36)
317

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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. (37)
318

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(38)
319

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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).
(39)
320

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(40)
321

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Civic Center Structures and Improvements
Automotive Equipment
Computer Equipment
Other Equipment
Infrastructure:

Roadways
Street Appurtenances
Wastewater
Storm Drains
5 to 50 Years
50 Years
2 to 10 Years
3 Years
5 Years
35 Years
10 to 50 Years
50 to 60 Years
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. (41)
322

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(42)
323

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 CaIPERS Financial Office and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS's website under Forms and Publications. (43)
324

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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. (44)
325

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
(45)
326

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

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

Cash and Cash Equivalents:

Demand Deposits
Petty Cash
Total Cash and Cash Equivalents
Investments:

Local Agency Investment Fund
CAMP
Money Market Mutual Fund
Negotiable Certificates of Deposit
U.S. Treasury Securities
Federal Agency Securities
Investments with Fiscal Agent:

Money Market Mutual Fund
Pension Stability Fund
Total Investments
Total Cash and Investments
$ 356,268
17,565
373,833
16,688
1,530,493
99,060
3,569,005
19,027,946
5,422,106
8,603,416
1,643,582
39,912,296
$ 40,286,129
(46)
327

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(47)
328

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Authorized Investment Type
Maximum
Maximum Investment
Maximum Percentage of in One
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.
(48)
329

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
C. Investments Authorized by Debt Agreements
Authorized Investment Type
Maximum
Maximum Investment
Maximum Percentage of in One
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:

Measurement Input
Significant Other
Observable Input
Investment Type (Level 2) Uncatecorized 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.
(49)
330

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
D. Fair Value Measurement (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer -term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Investment Maturities (in Years)
Investment Type
Local Agency Investment
Fund
California Asset Management
Program
Money Market Mutual Funds
Negotiable Certificates of
Deposit
U.S. Treasury Securities
Federal Agency Securities
Held by Fiscal Agent:

Money Market Mutual Funds
Pension Stability Fund
Total
Fair Value Less than 1 1 to 2 2 to 3 3 to 4
$ 16,688 $
16,688 $
1,530,493 1,530,493
99,060 99,060
3,569,005
19,027,946
5,422,106
244,144
6,789,536
2,047,741
1,453, 239
2,942,429
467,100
455,259
4,332,091
725,123
4 to 5
$ $
1,416, 363
2,935,770
2,182,142
2,028,120
8,603,416 8,603,416
1,643,582 1,643,582
$ 39,912,296 $ 20,974,660 $ 4,862,768 $ 5,512,473 $ 6,534,275 $ 2,028,120 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.

Investment Type
Local Agency Investment Fund
California Asset Management Program
Money Market Mutual Funds
Negotiable Certificates of Deposit
U.S. Treasury Securities
Federal Agency Securities
Held by Fiscal Agent:

Money Market Mutual Funds
Pension Stability Fund
Total
Minimum
Legal
Total Rating
AAA
$ 16,688 N/A $
1,530,493 N/A
99,060 AAA
3,569,005 N/A
19,027,946 N/A
5,422,106 N/A
8,603,416 AAA
1,643,582 N/A
$ 39,912,296
99,060
19,027,946
5,422,106
Not
Rated
$ 16,688
1,530,493
3,569,005
8,603,416 1,643,582
$ 33,152,528 $ 6,759,768
(50)
331

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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. (51)
332

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(52)
333

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Placentia Regional Navigation Center
Debt Service Fund
Nonmajor Special Revenue Funds:

Landscape Maintenance District 92-1
Housing and Community Development
Gasoline Tax
Sewer Construction
TOD Impact Fee
Nonmajor Capital Projects Funds:

City Projects
Internal Service Funds:

Health and Welfare
Total
General Fund Total
$ 2,472,828
63,135
19,213
589,355
35,622
124,149
41,805
81,391
$ 2,472,828
63,135
19,213
589,355
35,622
124,149
41,805
81,391
$ 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:

Transfers Out
Transfers In
Governmental Funds:

General Fund
Debt Service Fund
Nonmajor Governmental
Funds
Total Governmental
Funds
Nonmajor
Governmental Debt Service Governmental
Activities General Fund Fund Funds Total
Business -Type Activities $ 5,939,707
$ $ 5,922,784 $ 186,159 $ 6,108,943
4,083,700 - - 4,083,700
413,184 403,750 816,934
$ 4,496,884 $ 5,922,784 $ 589,909 $ 11,009,577
(53)
334

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

Certificates of Participation
Reimbursement
Owner's Participation Agreement
Placentia Veterans Village Loan
Placentia Veterans Village DIF
Mitigation Loan
Total
Citywide
Development
Impact Fee Other
General Special Governmental
Fund Revenue Fund Funds
$ 1,165,124 $
Total
- $ $ 1,165,124
- 33,749 33,749
- 500,000 500,000
509,148 70,916 580,064
$ 1,165,124 $ 509,148 $ 604,665 $ 2,278,937
(54)
335

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 Ac reement
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. (55)
336

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(56)
337

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Right -to -Use Lease Land
Right -to -Use Lease Equipment
Subscription Assets
Equipment
Land Improvements
Infrastructure:

Streets Network
Street Appurtenances
Storm Drain
Total Accumulated
Depreciation/Amortization
(8,357,533) (982,065)
(304,404) (152,202) -
(261,252) (282,177) 38,812
(361,058) (416,195) -
(10,543,558) (1,727,892) 304,728
(129,352) (5,796) -
(27,890,886) (1,999,667)
(15,940,716) (523,083)
(7,049,902) 188,242)
(9,339,598)
(456,606)
(504,617)
(777,253)
(11,966,722)
(135,148)
(29,890,553)
(16,463,799)
(7,238,144)
(70,838,661) (6,277,319) 343,540 (76,772,440)
Total Capital Assets Being
Depreciated/Amortized, Net 64,100,514
Total Govemmental
Activities
(4,118,491) (4,158)
18,573,767 78,551,632
$ 118,450,405 $ 23,171,223 $ (251,328) $ (5,939,707) $ 135,430,593 (57)
338

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Public Safety
Public Works
Community Services
Total Depreciation/Amortization Expense
$ 1,295,460
1,574,149
2,776,438
590,896
$ 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:

Capital Assets Being
Depreciated:

Structures and
Improvements
Equipment
Total Capital Assets
Being Depreciated
Less: Accumulated
Depreciation for:

Structures and
Improvements
Equipment
Total Accumulated
Depreciation
Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
$ 28,155,969 $ 5,939,707 $ - $ 34,095,676
122,158 -
28,278,127
(21,032,149)
(79,755)
(21,111,904)
Total Capital Assets
Being Depreciated, Net 7,166,223
Total Business -Type
Activities
122,158
5,939,707 34,217,834
(623,095)
(12,216)
(21,655,244)
(91,971)
(635,311) - (21,747,215)
5,304,396 12,470,619
$ 7,166,223 $ 5,304,396 $ - $ 12,470,619
Depreciation expense was charged to the Sewer Maintenance Fund within business -type activities.
(58)
339

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

Long -Term Debt:

Direct Borrowings and
Placements:

Loan Payable- Radio
Loan Payable -Fire #1
Loan Payable -Fire #2
Loan Payable - Easement
Loan Payable - Vehicles
OCTA Advance
Fire UAL Payoff Loan
Motorola Equipment
Loan Payable -Ref 2003
COP
2021 Installment Sale
Agreement (2011 Gas
Tax Refunding)
Total Direct Borrowings
and Placements
2020A Lease Revenue
Bonds
2023 Lease Revenue
Bonds
Unamortized Bond Premium
Leases Payable
Subscription Liability
Total Long -Term Debt
Claims Payable
Compensated Absences
Total Long -Term
Liabilities
Classification
Balance Balance Due within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year $ 515,597 $
2,445,454
1,281,976
284,411
124,631
1,144,278
714,261
1,197,159
$ (153,118) $ 362,479 $ 157,967 $ 204,512
(349,140) 2,096,314 358,596 1,737,718
(183,235) 1,098,741 188,123 910,618
(61,739) 222,672 65,406 157,266
(28,101) 96,530 30,048 66,482
(429,296) 714,982 446,780 268,202
(369,329) 344,932 344,932 -
- 1,197,159 96,476 1,100,683
1,752,697 - (421,431) 1,331,266 433,047 898,219
2,651,000 - (358,000) 2,293,000 368,000 1,925,000
10, 914, 305 1,197,159
(2,353,389) 9,758,075 2,489,375 7,268,700
50,390,000 - (1,860,000) 48,530,000 2,190,000 46,340,000 9,190,000 - 9,190,000 140,000 9,050,000
352,179 352,179 - 352,179
987,563 446,408 (435,849) 998,122 434,494 563,628
1,849,671 373,943 (364,399) 1,859,215 347,515 1,511,700 64,141,539 11,559,689
(5,013,637) 70,687,591 5,601,384 65,086,207
4,051,344 1,243,401 (1,473,829) 3,820,916 941,479 2,879,437 2,511,619 450,838 (33,677) 2,928,780 139,066 2,789,714
$ 70,704,502 $ 13,253,928 $ (6,521,143) $ 77,437,287 $ 6,681,929 $ 70,755,358 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.
(59)
340

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 Endinc
June 30,
2025
2026
2027
Total
Principal
Interest Total
$ 433,047 $ 31,285 $ 464,332
443,986 21,108 465,094
454,233 10,674 464,907
$ 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 CaIPERS 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.
(60)
341

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2020 Lease Revenue Bonds (Continued'
The bonds are secured under an indenture as of November 1, 2020, by the authority and US Bank as trustee. The bonds are payable from the revenues pledged under the indenture. Under the indenture, the revenues are defined as base rental payment made by the City to the Authority as the rental for real property and improvements thereon.

The City is required under the lease agreement to pay to the Authority specified amounts for use and possession of the leased property which amounts are calculated to be sufficient in both time and amount to pay, when due, the principal of and interest on the Bonds. Except for the Authority's right, title, and interest in and to the base rental payments and otherwise to the lease agreement which have been assigned to the trustee, no funds or properties of the Authority or the City are pledged to or otherwise liable for the bonds or any other obligations of the Authority.

The bonds are being issued to fund 100% of the City's unfunded liability for the miscellaneous plan and safety plan. Upon the issuance of the bonds, the city paid $43,777,218 to CaIPERS for deposit to the CaIPERS payment fund. This amount represents the June 30, 2019, unfunded liability for the miscellaneous and safety plans shown in the 2019 CaIPERS reports, rolled forward to November 12, 2020, and taking into account payments made during the fiscal years 2020 and 2021.

The bonds maturing on or after June 1, 2031, are subject to optional redemption prior to maturity on or after June 1, 2030, at the option of the City, in whole, or in part, on any date, at a redemption price equal to the principal amount of the bonds to be redeemed, plus accrued but unpaid interest to the redemption date, without premium. The bonds maturing on June 1, 2035, and June 1, 2045, are subject to mandatory redemption on June 1, in each year until maturity, from mandatory sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, provided however, that in lieu of redemption thereof, such term bonds may be purchased by the Authority and tendered to the trustee.

The bonds are reported in full in the government -wide statement of net position, within the governmental activities. The outstanding balance of the 2020A Lease Revenue Bonds as of June 30, 2024 is $48,530,000. The annual debt service requirements are as follows:

Year Ending June 30,
2025
2026
2027
2028
2029
2030-2034
2035-2039
2040-2044
2045
Total
Principal Interest Total
$ 2,190,000 $ 1,933,772 $ 4,123,772
2,405,000 1,878,036 4,283,036
2,475,000 1,806,944 4,281,944
2,555,000 1,727,596 4,282,596
2,645,000 1,639,270 4,284,270
14,785,000 6,635,152 21,420,152
14,385,000 3,391,783 17,776,783
6,675,000 891,463 7,566,463
415,000 19,011 434,011
$ 48,530,000 $ 19,923,027 $ 68,453,027
(61)
342

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
2028
2029
2030-2034
2035-2039
2040-2044
2045-2049
2050-2054
Total
Principal Interest Total
$ 140,000 $ 421,800 $ 561,800
145,000 414,675 559,675
155,000 407,175 562,175
160,000 399,300 559,300
170,000 391,050 561,050
980,000 1,816,000 2,796,000
1,265,000 1,537,125 2,802,125
1,615,000 1,179,125 2,794,125
2,040,000 759,688 2,799,688
2,520,000 277,313 2,797,313
$ 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. (62)
343

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 Endinc June 30,
2025
2026
2027
2028
2029
2030
Total
Principal Interest Total
$ 368,000 $ 36,316 $ 404,316
373,000 30,220 403,220
377,000 24,049 401,049
387,000 17,795 404,795
392,000 11,385 403,385
396,000 4,900 400,900
$ 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,
2024
2025
Total
Principal
$ 157,967
204,512
$ 362,479
Interest Total
$ 9,503 $ 167,470
4,826 209,338
$ 14,329 $ 376,808
(63)
344

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
2028
2029
2030
Total
Principal Interest Total
$ 358,596 $ 53,995 $ 412,591
368,307 44,284 412,591
378,281 34,310 412,591
388,525 24,066 412,591
399,047 13,544 412,591
203,558 2,738 206,296
$ 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,
2025
2026
2027
2028
2029
2030
Total
Principal Interest Total
$ 188,123 $ 27,879 $ 216,002
193,141 22,860 216,001
198,293 17,708 216,001
203,583 12,419 216,002
209,013 6,988 216,001
106,588 1,412 108,000
$ 1,098,741 $ 89,266 $ 1,188,007
(64)
345

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
2028
Total
Principal Interest Total
$ 65,406 $ 13,397 $ 78,803
69,367 9,436 78,803
73,530 5,273 78,803
14,369 862 15,231
$ 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,
2025
2026
2028
Total
Principal
Interest Total
$ 30,048 $ 6,686 $ 36,734
32,129 4,605 36,734
34,353 2,380 36,733
$ 96,530 $ 13,671 $ 110,201
(65)
346

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
2028
2029
2030-2034
Total
Principal Interest Total
$ 96,476 $ 56,386 $ 152,862
101,020 51,842 152,862
105,778 47,084 152,862
110,760 42,102 152,862
115,976 36,885 152,861
667,149 97,159 764,308
$ 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 CaIPERS. The payment plan is for a period of 5 years with an interest rate of 1.95%. Payments of $31,664 are payable monthly through May 2025. The annual debt service requirements are as follows:

Year Ending June 30,
2025
Principal Interest Total
$ 344,932 $ 3,983 $ 348,915
(66)
347

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
2028
2029
Total
Principal
Interest Total
$ 434,494 $ 15,773 $ 450,267
273,494 10,003 283,497
173,048 5,403 178,451
111,881 1,493 113,374
5,205 12 5,217
$ 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,
2025
2026
2027
2028
2029
2030-2034
2035-2036
Total
Principal Interest Total
$ 347,515 $ 39,175 $ 386,690
336,481 28,593 365,074
219,488 21,528 241,016
160,279 17,281 177,560
163,173 14,387 177,560
607,368 28,772 636,140
24,911 1,089 26,000
$ 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. (67)
348

CITY OF PLACENTIA

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

Compensated Absences
Total
C. Fiduciary Activities
Classification
Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year than One Year $ 45,575 $ 30,411 $ (44,354) $ 31,632 $ 1,395
$ 45,575 $ 30,411 $ (44,354) $ 31,632 $ 1,395
30,237
30,237
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2024 is as follows:

Bonds Payable:
2013 Tax Allocation
Refunding Bonds
Bond Premium:
2013 Tax Allocation
Refunding Bonds
Other Liabilities:

Reimbursement Due to City
SERAF Obligation
Real Property Loan
Obligation
Total
Classification
Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year $ 8,070,000 $ $ (670,000) $ 7,400,000 $ 695,000 $ 6,705,000 32,339 (3,560) 28,779 28,779
1,533,961 - (368,837) 1,165,124 379,003 786,121
991,314 991,314 - 991,314
51,831
(51,831)
$ 10.679.445 $ - $ (1,094,228 $ 9.585,217 $ 1,074,003 $ 8.511,214 (68)
349

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 Endinc June 30,
2025
2026
2027
2028
2028
2029-2033
Total
Principal Interest Total
$ 695,000 $ 315,619 $ 1,010,619
720,000 288,188 1,008,188
750,000 258,788 1,008,788
780,000 227,700 1,007,700
810,000 192,375 1,002,375
3,645,000 356,131 4,001,131
$ 7,400,000 $ 1,638,801 $ 9,038,801
Debt Related Pledce 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.
(69)
350

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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,
2025
2026
2027
Total
Principal Interest Total
$ 379,003 $ 27,380 $ 406,383
388,577 18,474 407,051
397,544 9,342 406,886
$ 1,165,124 $ 55,196 $ 1,220,320
Su pplemental 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. (70)
351

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 theft 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.
(71)
352

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS
A. Summary
Deferred Outflows of Resources:

Pension Contribution Made After
Measurement Date:

CaIPERS Miscellaneous
CaIPERS Safety
Total Pension Contribution
Made After Measurement Date
Change in Assumptions
CaIPERS Miscellaneous
CaIPERS Safety
Total Change in Assumptions
Difference Between Projected and
Actual Investment Earnings:

CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Projected and Actual
Investment Earnings
Difference Between Expected and
Actual Experience:

CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Expected and Actual
Experience
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:

CaIPERS Miscellaneous
CaIPERS Safety
Total Employer Contributions
in Excess of Proportionate
Share of Contribution
Total Deferred Outflows of Resources:

CaIPERS Miscellaneous
CaIPERS Safety
Total Deferred Outflows of
Resources
Governmental Business -Type
Activities Activities
Total
$ 799,712 $ 54,955 $ 854,667
1,236,862 - 1,236,862
2,036,574
151,859
319,249
471,108
407,247
748,596
1,155,843
128,494
401,615 - 401,615
54,955 2,091,529
10,436
162,295
319,249
10,436 481,544
27,985 435,232
748,596
27,985 1,183,828
8,830 137,324
530,109
2,874,835
2,480,646
5,355,481
4,362,147
5,186, 968
8,830 538,939
197,555
3,072,390
2,480,646
197,555 5,553,036
299,761
4,661,908
5,186, 968
$ 9,549,115 $ 299,761 $ 9,848,876
(72)
353

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Net Pension Liabilities:

CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Liabilities
Deferred Inflows of Resources:

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

CaIPERS Miscellaneous
CaIPERS Safety
Total Adjustment Due to
Difference in Proportions
Difference Between Expected and
Actual Experience:

CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Expected and Actual
Experience
Employer Contributions In Excess
of Proportionate Share of
Contribution:

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

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

CaIPERS Miscellaneous
CaIPERS Safety
Total Deferred Inflows of
Resources
Governmental Business -Type
Activities Activities
Total
$ 2,515,288 $ 172,847 $ 2,688,135
5,470,210 - 5,470,210
$ 7,985,498 $ 172,847 $ 8,158,345
868,716
1,732,746
2,601,462
19,932
$ - $
59,697
928,413
1,732,746
59,697 2,661,159
1,370 21,302
34,382 - 34,382
54,314
888,648
1,767,128
1,370 55,684
61,067
949,715
1,767,128
$ 2,655,776 $ 61,067 $ 2,716,843
(73)
354

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Pension Expenses:

CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Income
Governmental Business -Type
Activities Activities
Total
$ 4,331,396 $ 297,647 $ 4,629,043
6,701,649 - 6,701,649
$ 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 (CaIPERS), a cost -sharing, multiple -employer defined benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for participating public entities within the state of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of the CaIPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.

Employees Covered by Benefit Terms
At the June 30, 2023, measurement date the following employees were covered by the benefit terms:

Active Employees
Transferred Employees
Separated Employees
Retired Employees and
Beneficiaries
Total
Miscellaneous Miscellaneous Safety
Miscellaneous Tier 2 PEPRA Safety PEPRA
20 11 80 19 29
49 14 55 18 11
26 2 49 10 9
185 1 5 121 1
280 28 189 168 50
Benefit Provided
CaIPERS provide retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CaIPERS members become eligible for service retirement upon attainment of age 55 with at least five years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least five years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. (74)
355

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS (CONTINUED)
B. General Information about the Pension Plans (Continued) Benefit Provided (Continued'
Following are the benefit provisions for each plan:

Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a
Percentage of Eligible
Compensation
Required Employee
Contribution Rate
Required Employer
Contribution Rate
Miscellaneous

2.0% @ 55
5 Years
Service
Monthly for Life
55 2.0%

7.000%

12.470%
Miscellaneous
Tier 2

2.0% @ 60
5 Years
Service
Monthly for Life
60 2.0%

7.000%

10.660%
Miscellaneous
PEPRA

2.0% @ 62
5 Years
Service
Monthly for Life
62 2.0%

7.750%

7.680%
Safety

3.0% @ 50
5 Years
Service
Monthly for Life
50 3.0%

9.000%

27.110%
Safety
PEPRA

2.7% @ 57
5 Years
Service
Monthly for Life
50-57

2.7%

13.750%

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 CaIPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2024, the City made contributions to each Plan were as follows:

Contributions - Employer
Miscellaneous Safety Total
$ 854,667 $ 1,236,862 $ 2,091,529
(75)
356

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

Proportion - June 30, 2022
Proportion - June 30, 2023
Change - Increase (Decrease)
Miscellaneous

0.03319 %

0.05376

0.02057 %
Safety

0.04235

0.07318

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:

Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Changes in proportion and differences between
employer contributions and proportionate share
of contributions
Total
Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 854,667 $
137,324 21,302
162,295
435,232
3,072,390 928,413
$ 4,661,908 $ 949,715
(76)
357

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued, Safety Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Changes in proportion and differences between
employer contributions and proportionate share
of contributions
Total
Contribution Made After the Measurement
Date
Difference Between Expected and Actual
Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Changes in proportion and differences between
employer contributions and proportionate share
of contributions
Adjustments Due to Difference in Proportions
Total
$ 1,236,862 $
401,615
319,249
748,596
34,382
2,480,646 1,732,746
$ 5,186,968 $ 1,767,128
Aggregate Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 2,091,529 $
538,939
481,544
1,183,828
55,684
5,553,036 2,661,159
$ 9,848,876 $ 2,716,843
(77)
358

CITY OF PLACENTIA

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

Actuarial Cost Method
Actuarial Assumptions:

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

6.90%

2.30%
Varies by Entry Age and Service

6.90%
Derived using CaIPERS'
Membership Data for all Funds.

Contract COLA up to 2.3% until
Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.3% thereafter.
(78)
359

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions 'Continued,
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS experience study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include generational mortality improvement using 80% of Scale MP -2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.

Long -Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Asset Class a)
Global Equity - Cap -Weighted
Global Equity - Non -Cap -Weighted
Private Equity
Treasury
Mortgage -Backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
Private Debt
Real Assets
Leverage
Total
Assumed
Asset Real Return
Allocation a) (b)

30.00 % 4.45 %

12.00 3.84

13.00 7.28

5.00 0.27

5.00 0.50

10.00 1.56

5.00 2.27

5.00 2.48

5.00 3.57

15.00 3.21
(5.00) (0.59)
100.00 %
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liability Management study. (79)
360

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

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

D. Payable to the Pension Plan
At June 30, 2024, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2024.
(80)
361

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN
A. Summary
Deferred Outflows of Resources:

Employer Contributions Made
Subsequent to the Measurement
Date
Changes in Assumptions
Total Deferred Outflows of
Resources
Net OPEB liability
Deferred Inflows of Resources:

Changes in Assumptions
Difference Between Expected and
Actual Experience
Net Difference Between Projected
and Actual Earnings
Total Deferred Inflows of
Resources
OPEB Income
B. General Information About OPEB
Governmental Business -Type
Activities Activities
Total
$ 1,140,607 $ 31,624 $ 1,172,231
2,165,838 60,050 2,225,888
$ 3,306,445 $ 91,674 $ 3,398,119
$ 13,621,646 $ 377,671 $ 13,999,317
$ 6,329,457 $ 175,490 $ 6,504,947
5,320,395 147,513 5,467,908
66,295 1,838 68,133
$ 11,716,147 $ 324,841 $ 12,040,988
$ (1,254,472) $ (34,781) $ (1,289,253)
Plan Description
The City provides post -employment defined benefits to retired employees in the form of a contribution towards their health insurance premiums under the CaIPERS health plan, an agent multiple employer plan, that provides health insurance benefits to eligible retirees in accordance with various labor agreements. The minimum required retiree contributions are established by CaIPERS. Survivor benefits are not provided. Copies of the CaIPERS' annual financial report can be obtained from the CaIPERS Executive Office, 400 P Street, Sacramento, California 95814.

Eligibility
All employees hired prior to November 21, 1995, are in Tier I and become eligible for these benefits as long as they are 50 years of age or older and have worked for the City a minimum of five years and elect a service retirement from the City. The health benefits for Tier I retirees include medical, dental, optical, and life. These benefits are considered to be vested for Tier I employees. The City pays the same contribution for these benefits to Tier I employees as is paid to active employees. Vision benefits are also provided to Tier I employees who retired after September 30, 1990. The life insurance is available to Tier I retirees until they reach age of 70.
(81)
362

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
B. General Information About OPEB (Continued)
All employees hired on or after November 21, 1995 are Tier I I . The City pays the minimum required medical insurance contribution established by CaIPERS 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
Retirees
Total
172
147
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. (82)
363

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Inflation
Aggregate Payroll Increases
Expected Long -Term Investment Rate of Return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non -Medicare
Healthcare Trend Rate - Medicare

4.80% (Bond Buyer 20 -Bond Index)

2.30% Annually

2.80%
N/A
CaIPERS 2000-2019 Experience
Study
Modified projected fully generational
with Scale MP -2021
An annual healthcare cost trend
rate of 6.50% for 2023, decreasing
to an ultimate rate of 3.73% in 2075
An annual healthcare cost trend
rate of 5.40% for 2023, decreasing
to an ultimate rate of 3.73% in 2075
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of the November 2021 CaIPERS experience study covering 2000 to 2019.

Discount Rate
The discount rate used to measure the total OPEB liability was 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. (83)
364

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Balance - June 30, 2022 (Measurement Date)
Changes Recognized for the Measurement Period:

Service Cost
Interest on the Total OPEB Liability
Changes of Benefit Terms
Difference Between Expected and Actual
Experience
Changes of Assumptions
Contributions from the Employer
Net Investment Income
Administrative Expenses
Benefit Payments
Net Changes
Balance - June 30, 2023 (Measurement Date)
Total OPEB
Liability
$ 18,314,761
296,493
639,487
(5,302)
(2,319,626)
(1,093,319)
Plan Fiduciary
Net Position
$
2,800,144
132,778
(6,426)
(1,093,319)
Net OPEB
Liability
$ 18,314,761
296,493
639,487
(5,302)
(2,319,626)
(2,800,144)
(132,778)
6,426
(2,482,267) 1,833,177 (4,315,444)
$ 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:

OPEB Pension Plan
Plan's Total OPEB Liability
1%
Decrease
(3.80%)
$ 15,795,306
Current 1°/0
Discount Rate Increase
(4.80%) (5.80%)
$ 13,999,317 $ 12,494,238
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:

Plan's Total OPEB Liability
Healthcare
1% Cost Trend 1%
Decrease Rates Increase
OPEB Pension Plan $ 12,330,488 $ 13,999,317 $ 16,003,695 (84)
365

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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
Changes in Assumptions
Employer Contributions Made Subsequent to the
Measurement Date
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Total
2,225,888
1,172,231
$ 5,467,908
6,504,947
68,133
$ 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:

Fiscal Year Endinc June 30,
2025
2026
2027
2028
2029
Thereafter
Total
Deferred
Outflows
(Inflows)
of Resources
$ (1,794,047)
(1,614,941)
(1,346,967)
(1,734,415)
(1,910,495)
(1,414,235)
$ '9,815,100)
(85)
366

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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.
(86)
367

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 10 RISK MANAGEMENT AND SELF-INSURANCE PROGRAM (CONTINUED) C. Other Insurance (Continued)
A reconciliation of changes in aggregates for claims filed in the current and prior fiscal years are as follows:

Workers' Compensation:
2021-2022
2022-2023
2023-2024
General Liability:
2021-2022
2022-2023
2023-2024
Beginning
of Year
Liability
Current Year
Claims and
Changes in
Estimates
Claim
Payments
End
of Year
Liability
$ 3,435,173 $ 1,034,044 $ (762,874) $ 3,706,343
3,706,343 (267,259) (555,501) 2,883,583
2,883,583 470,637 (857,340) 2,496,880
Amounts
Due within
One Year
$ 926,586
720,896
624,220
$ 435,330 $ 272,173 $ 601,365 $ 1,308,868 $ 327,217
1,308,868 (139,773) (1,334) 1,167,761 278,190
1,167,761 1,074,374 (918,099) 1,324,036 317,259
NOTE 11 CLASSIFICATION OF FUND BALANCES
Amounts
Due in
more than
One Year
$ 2,779,757
2,162,687
1,872,660
$ 981,651
889,571
1,006,777
At June 30, 2024, fund balances are classified in the governmental funds as follows:

Nonspendable:

Inventory
Prepaid Items
Loans Receivable
Total Nonspendable
Restricted:

Public Safety
Public Works
Community Development
Community Services
Debt Service
Grant Programs
Transportation
Park Development
Street Maintenance
Air Quality
Housing
Pension Stability
Total Restricted
Committed:

Measure U - Infrastructure
Total Committed
Unassigned
General
Fund
$ 21,542
88,009
786,121
895,672
1,643, 582
1,643, 582
1,036,860
1,036, 860
14,795,659
Citywide
Development
Impact Fee
Special
Revenue Fund
Placentia
Regional
Navigation
Center
$ - $
3,281
3,281
2,375,781
2,375,781
(2,628,658)
Debt
Service Fund
8,013,519
8,013,519
Non major
Governmental
Funds
1,668,812
1,479,117
1,933,711
1,867
87,394
617,869
20,903
517,279
312,566
2,087,696
Total
$ 21,542
91,290
786,121
898,953
1,668,812
1,479,117
4,309,492
1,867
8,100, 913
617,869
20,903
517,279
312,566
2,087,696
1,643,582
8,727,214 20,760,096
1,036,860
1,036,860
(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
(87)
368

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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:

Pro.ects Commitment
Buildings
Improvements Other Than Buildings
Infrastructure - Streets
Infrastructure - Traffic
Infrastructure - Sewer
Infrastructure - Parks
Infrastructure - Major Studies
Machinery & Equipment
Vehicles
Building & Facilities
Public Safety Building
Total
$ 25,527
566,414
1,848,928
58,641
201,111
501,654
204,784
170,542
24,087
364,186
6,577,199
$ 10,543,073
The City has various outstanding purchase commitments. Total commitments at June 30, 2024 are as follows:

Governmental Funds:

General Fund
Other Governmental Funds
Total
B. Contingencies
Outstanding
Purchase
Commitments
$ 1,401,736
1,222,312
$ 2,624,048
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.
(88)
369

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 A3propriation Appropriations
Special Revenue Funds:

Street Lighting
Measure M
Landscape Maintenance District
Housing and Community Development
NOC Public Safety
EFID
Debt Service Funds:

Major Debt Service Fund
$ 549,040 $ 171,500 $ (377,540)
1,238,960 1,200,374 (38,586)
501,359 432,867 (68,492)
443,353 390,061 (53,292)
62,313 56,700 (5,613)
28,144 (28,144)
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)
Miscellaneous Grants
Landscape Maintenance District 92-1
Housing and Community Development
Gasoline Tax
Sewer Construction
Total
(2,628,658)
(468,204)
(56,727)
(511,160)
(16,741)
(123,349)
$ (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.
(89)
370

CITY OF PLACENTIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 14 ACCOUNTING CHANGE
A. Change within the Financial Reporting Entity
Change in Fund Presentation from Nonmajor to Ma.or
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 Ad'usted
Governmental Funds:

Major Funds:

General Fund
Citywide Development Impact Fee
Fund
Placentia Regional Navigation Center
Fund
Debt Service Fund
Nonmajor Funds
Total Governmental Funds
$ 26,712,756 $ - $ 26,712,756
4,474,906 4,474,906
4,153,709
6,354,937
(1,635,925)
1,635,925
$ 41,696,308 $
(1,635,925)
4,153,709
7,990,862
$ 41,696,308
(90)
371

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
372

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373

CITY OF PLACENTIA

BUDGETARY COMPARISON SCHEDULE -

GENERAL FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Income
Charges for Services
Leases and Rents
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUE OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Issuance of Debt
Payment to Escrow for Refunding Debt
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 45,048,523 $ 45,274,180 $ 45,847,060 $ 572,880
280,000 4,380,950 2,717,309 (1,663,641)
2,985,000 2,851,000 2,535,885 (315,115)
452,500 465,000 548,960 83,960
600,000 600,000 1,175,860 575,860
1,245,500 1,350,500 1,441,304 90,804
1,061,000 1,061,000 1,677,641 616,641
790,500 805,500 1,125,980 320,480
52,463,023 56,788,130 57,069,999 281,869
14,716,090 15,560,790 15,336,829 223,961
18,116,117 19,044,953 18,491,792 553,161
4,785,070 4,956,521 5,350,268 (393,747)
1,571,100 1,824,507 1,809,970 14,537
2,947,452 3,339,704 3,431,853 (92,149)
8,850,780 29,992,467 22,021,540 7,970,927
1,505,500 1,505,500 2,366,341 (860,841)
696,700 171,700 231,958 (60,258)
53,188,809 76,396,142 69,040,551 7,355,591
(725,786) (19,608,012) (11,970,552) 7,637,460
- - 2,017,510 2,017,510
1,365,895 494,900 6,108,943 5,614,043
(5,652,414) (6,017,309) (4,496,884) 1,520,425
(4,286,519) (5,522,409) 3,629,569 9,151,978
$ (5,012,305) $ (25,130,421) (8,340,983) $ 16,789,438
See accompanying Notes to Budgetary Comparison Schedules. (91)
26, 712, 756
$ 18,371,773
374

CITY OF PLACENTIA

BUDGETARY COMPARISON SCHEDULE -

CITYWIDE DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

REVENUES
Investment Earnings
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

Public Safety
Capital Outlay
Total Expenditures

REVENUE OVER (UNDER) EXPENDITURES

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
Budgeted Amounts
Original Final
Actual
Amounts
$ - $ - $
1,601,383 1,601,383
1,601,383 1,601,383
40,000
185,000
225,000
72,851
355,903
2,785
431,539
126,000 95,820
3,376,799 2,431,563
3,502,799 2,527,383
Variance with
Final Budget
Positive
(Negative)
$ 72,851
(1,245,480)
2,785
(1,169,844)
30,180
945,236
975,416
1,376,383 (1,901,416) (2,095,844) (194,428)
$ 1,376,383 $ (1,901,416) (2,095,844) $ (194,428)
See accompanying Notes to Budgetary Comparison Schedules. (92)
4,474,906
$ 2,379,062
375

CITY OF PLACENTIA

BUDGETARY COMPARISON SCHEDULE -

PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental
Contributions
Total Revenues

EXPENDITURES
Current:

Public Safety
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 2,394,700 $ 2,394,700 $ 1,287,053 $ (1,107,647)
2,394,700 2,394,700
2,394,700 2,403,711
1,287,053 (1,107,647)
2,126,486 277,225
150,000 153,300 (3,300)
2,394,700 2,553,711
See accompanying Notes to Budgetary Comparison Schedules. (93)
2,279,786 273,925
$ (159,011) (992,733) $ (833,722)
(1,635,925)
$ (2,628,658)
376

CITY OF PLACENTIA

NOTES TO BUDGETARY COMPARISON SCHEDULES -
YEAR ENDED JUNE 30, 2024
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.
(94)
377

CITY OF PLACENTIA

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -

MISCELLANEOUS PLAN

LAST TEN FISCAL YEARS
Fiscal Year Ended
Measurement Date
Plan's Proportion of the Net Pension Liability
Plan's Proportionate Share of the Net Pension Liability Plan's Covered Payroll
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 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

0.05376% 0.03319% -0.45585% 0.38926% 0.14843% 0.14479% 0.14212% 0.14024% 0.13337% 0.13850% $ 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 $ 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.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.

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

In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.

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

In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.

From fiscal year June 30, 2019 to June 30, 2020:

In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.

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

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

From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%.

From fiscal year June 30, 2023 to June 30, 2024: There were no changes in assumptions. (95)
378

CITY OF PLACENTIA

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -

SAFETY PLAN

LAST TEN FISCAL YEARS
Fiscal Year Ended
Measurement Period
Plan's Proportion of the Net Pension Liability
Plan's Proportionate Share of the Net Pension Liability Plan's Covered Payroll
Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll
Plan's Fiduciary Net Position
Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability
Plan's Proportionate Share of Aggregate Employer
Contributions
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.
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 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

0.07318% 0.04235% -0.41630% 0.44230% 0.26351% 0.27222% 0.27242% 0.28572% 0.30267% 0.30596% $ 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 $ 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

94.96% 53.61% 544.22% 611B3% 653.79% 654.18% 644.26% 596.76% 509.82% 440.32% $ 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

95.31% 97.28% 70.21% 70.21% 71.99% 71.53% 69.81% 70.17% 74.32% 76.36% $ 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 Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of retum should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.

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

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

From fiscal year June 30, 2019 to June 30, 2020:

In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.

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

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

From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%.

From fiscal year June 30, 2023 to June 30, 2024: There were no changes in assumptions. (96)
379

CITY OF PLACENTIA

SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -

MISCELLANEOUS PLAN

LAST TEN FISCAL YEARS
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 $ 1516,621 $ 1,383,994 $ 1,139,534 $ 932,993 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) Contribution Deficiency (Excess) $ $ $ $ (16,147,022) $ $ $ $ 785,438 $ 667,441 $ 383,155
(785,438) (667,441) (383,155)
$ $
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
Methods and Assumptions Used
to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
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 Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method

2.30% 2.30% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

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) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
(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
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62** (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted BR the CaIPERS Board. (97)
380

CITY OF PLACENTIA

SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -

SAFETY PLAN

LAST TEN FISCAL YEARS
Fiscal Year
Contractually Determined Contribution
(Actuarially Determined)
Contributions in Relation to the Actuarially
Determined Contributions
2023-24 2022-23
2021-22 2020-21
2019-20 2018-19
2017-18 2016-17
2015-16 2014-15
$ 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 Contribution Deficiency (Excess) $
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) - $ - $ - $ (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
Notes to Schedule:

Valuation Date
Methods and Assumptions Used
to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality

19.45% 19.01% 18.71% 565.09% 52.25% 48.08% 69.22% 65.66% 62.00% 53.38% 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 Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age (1.00) (1.00) (1.00) (1.00) (1) (1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method

2.30% 2.30% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

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) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
(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
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62— (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted BR the CaIPERS Board. (98)
381

CITY OF PLACENTIA

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS

LAST SEVEN FISCAL YEARS
Measurement Period, Year Ending:

Total OPEB Liability:

Service Cost
Interest
Changes of Benefit Terms
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Member
Contributions
Net change in Total OPEB Liability
6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 $ 296,493 $ 491,712 $ 532,568 $ 359,454 $ 542,976 $ 569,606 $ 675,000 639,487 536,526 691,435 919,735 1,092,405 1,032,870 899,000 (5,302)
(2,319,626)
(1,093,319)
(2,482,267)
Total OPEB Liability - Beginning 18,314,761
Total OPEB Liability - Ending (a)
OPEB Fiduciary Net Position:

Contributions - Employer
Net Investment Income
Benefit Payments, Including Refunds of Member
Contributions
Administrative Expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net OPEB Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability
15,832,494
(2,064,492)
(4,427,399)
(4,989,665)
(1,506,167)
(1,132,073) (1,143,510)
(6,595,726) (6,415,339)
24,910,487 31,325,826
18,314,761
24,910,487
4,699,117
(2,606,242)
332,593
(1,142,314) (1,112,888)
4,835,992 (1,751,156)
26,489,834 28,240,990
31,325,826
26,489,834
(1,089,486) (3,058,000)
(1,107,000) (1,116,000)
(594,010) (2,600,000)
28,835,000 31,435,000
28,240,990
28,835,000
$ 2,800,144 $ 1,132,073 $ 1,146,160 $ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,116,000 132,778 - - -
(1,093,319) (1,132,073) (1,146,160) (1,146,160) (1,142,314) ,6,426) -
1,833,177 - -
1,833,177
13,999,317
18,314,761
24,910,487
31,325,826
26,489,834
(1,112,888) (1,116,000)
28,240,990
28,835,000

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. (99)
382

CITY OF PLACENTIA

SCHEDULE OF CITY'S OPEB CONTRIBUTIONS

LAST SEVEN FISCAL YEARS
Fiscal Year 1
Actuarially Determined Contribution
Contributions in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method/Period
Inflation
Salary Increases
Payroll Growth
Discount Rate
Mortality, Retirement, Disability, and Termination
Mortality Improvement
2023-24 2022-23
2021-22 2020-21
2019-20
2018-19
2017-18
$ 1,086,065 $ 1,093,319 $ 1,132,073 $ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,107,000 (1,172,231) (2,800,144)
$ (86,166)
1,706,825)
(1,132,073) (1,146,160)
(1,142,314)
(1,112,888) (1,107,000)
$ 18,881,076 $ 18,881,076 $ 17,448,843 $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 11,466,203

6.21% 14.83% 6.49% 8.19%
6/30/2023 6/30/2022 6/30/2021 6/30/2020
Entry Age Normal
Level Percentage of Payroll

2.30% Annually
Aggregate 2.80% Annually, Merit - CaIPERS 2000-2019 Experience Study

2.80%

3.54% (Bond Buyer 20 -Bond Index)
CaIPERS Experience Study 2000-2019
Post -retirement mortality projected fully generational with Scale MP -2021 ' Historical information is only presented for measurement periods after GASB 75 implementation. (100)

9.30%
6/30/2019

9.42%
6/30/2017

9.65%
6/30/2017
383

SUPPLEMENTARY INFORMATION
384

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385

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
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Necative)

REVENUES
Investment Earnings
Total Revenues

EXPENDITURES
Debt Service:

General Government
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
$ - $ - $ 479,186 $ 479,186
- - 479,186 479,186
1,860,000
1,959,000
3,819,000
REVENUE OVER (UNDER) EXPENDITURES (3,819,000)

OTHER FINANCING SOURCES
Issuance of Debt
Bond Premium
Transfers In
Transfers Out
Total Other Financing Sources

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
- 2,499 (2,499)
1,860,000 1,860,000 -
2,223,700 2,459,972 (236,272)
4,083,700 4,322,471 (238,771)
(4,083,700) (3,843,285) 240,415
- 9,190,000 9,190,000
- - 352,179 352,179
3,819,000 4,083,700 4,083,700 -
- - (5,922,784) (5,922,784)
3,819,000 4,083,700 7,703,095 3,619,395
$
- $ - 3,859,810 $ 3,859,810
4,153, 709
$ 8,013,519
(101)
386

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(102)
387

NONMAJOR GOVERNMENTAL FUNDS
Miscellaneous Grants Special Revenue Fund — to account for federal, state, county, or other grants received which are not otherwise separately accounted for in other funds.

Park Development Special Revenue Fund — to account for in lieu fees charged to developers on a per unit basis for park development and rehabilitation.

Street Lighting Special Revenue Fund — to account for funds received from special assessments on property owners to provide street lighting in areas of the City not covered by the County lighting district.

Measure M Special Revenue Fund — to account for funds received by the City as a result of the voter - approved ballot measure in 1990 and extended by voter approval in 2006 to increase sales tax by Y2`)/0 in Orange County to fund transportation projects.

Storm Drain Construction Special Revenue Fund — to account for funds restricted by state law to be spent on storm drain construction, which are received from acreage fees placed on developers at the time of development. The City is divided into eight storm drain areas and funds can be expended only within the area in which funds are collected.

Thoroughfare Construction Special Revenue Fund — to account for funds restricted by City ordinance to be spent for traffic signal, bridge, and culvert construction, which are received from acreage fees placed on developers at the time of development.

Asset Seizure Special Revenue Fund — to account for monies seized from criminal activities. Revenues are restricted for use in law enforcement.

Traffic Offender Special Revenue Fund — to account for revenue generated from driving under the influence (DUI) administrative impound fees that are restricted to be spent on traffic enforcement activities, including, but not limited to, personnel, training, and equipment costs.

Supplemental Law Enforcement Special Revenue Fund — to account for the receipts and expenditures of funds resulting from the Citizen's Option for Public Safety (COPS) program, a state funded program, which are restricted for front line municipal police services.

Air Quality Special Revenue Fund — to account for the City's portion of motor vehicle registration fees collected pursuant to AB2766 passed during the 1990 state legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources, such as cars, trucks, and buses.

Landscape Maintenance District 92-1 Special Revenue Fund — to account for benefit assessments levied under the Landscaping and Lighting Act of 1972, restricted for maintenance, operation, and administration of landscape improvements in certain areas of the City.

Housing and Community Development Special Revenue Fund — to account for U.S. Housing and Community Development Department grants requiring segregated fund accounting, such as the Community Development Block Grant program.
(103)
388

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Gasoline Tax Special Revenue Fund — to account for receipts and expenditures of money apportioned under Streets and Highways Code Sections 2103, 2105, 2106, 2107, and 2107.5 of the state of California. These funds are earmarked for maintenance, rehabilitation, or improvement of public streets.

Sewer Construction Special Revenue Fund — to account for funds restricted by state law to be spent on sewer construction, which are received from acreage fees placed on developers at the time of development.

PEG Special Revenue Fund — to account for a portion of funds received from cable television franchise fees that are restricted for use for Public, Educational, and Governmental (PEG) access channels and related programming.

Affordable Housing in Lieu Fund — to account for the receipt and expenditure of developer fees restricted for affordable housing purposes.

SB1 Gas Tax Fund — to account for the receipts and expenditures of Road Maintenance and Rehabilitation Account (RMRA) funds resulting from the Road Repair and Accountability Act of 2017 (SB 1). Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges, and other transit related improvements.

North Orange County Public Safety Grant Fund — to account for the receipts and expenditures of the North Orange County Public Safety Task Force (NOC) grant funds to the City. Funds are restricted to be used for law enforcement activities, including, but not limited to, pertaining to violence prevention, intervention, and suppression activities.

Community Based Transitional Housing Grant Fund — to account for the receipts and expenditures of the Community -Based Transitional Housing Program Grant awarded by the state of California Department of Finance. Funds are restricted to be used to provide transitional support housing that provides treatment and reentry programming to individuals who will benefit from those services.

TOD Impact Fee Special Revenue Fund — to account for the receipts and expenditures of new development impact on the City's sewer collection system in the City's Transit -Oriented Development Zone (TOD). Funds are restricted within the TOD project area, including, but not limited to acquisition, financing, construction, and reconstruction of sanitary or sewer facilities and infrastructure in the TOD.

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. (104)
389

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Housing Successor Fund — to account for the residual balance of the former low- and moderate -income housing fund of the former Placentia Redevelopment Agency, and revenues and expenditures related to such housing projects and programs.

Orangethorpe Corridor Fund — to account for financing and construction of all rail projects within the boundaries of the City.

Cal Recycle Grant Fund — to account for the receipts and expenditures related to the funding received from CalRecycle grants related to recycling and material diversion programs.

Enhanced Infrastructure Financing District (EIFD) — to account for revenue and expenditures for the EIFD established with the County of Orange. The purpose of the EIFD is to finance public capital facilities or other specified projects of community -wide significance that provide benefits to the district or the surrounding community.

Fire Impact Fee Fund — to account for revenues and expenditures associated with new development within Placentia for fire protection -related services. The purpose of the fire impact fee is to fund the cost of fire protection and emergency response facilities, apparatus, and equipment attributable to new residential and nonresidential development in the City. The fire impact fee will ensure that new development will not burden existing development with the cost of expanded facilities, apparatus, and equipment required to accommodate growth as it occurs within the City.

Animal Shelter Impact Fee Fund — to account for the revenues and expenditures associated with the cost of animal shelter facilities for new residential development in the City. The animal shelter impact fee will ensure that new development will not burden existing development with the cost of expanded animal shelter facilities required to accommodate growth as it occurs within the City.

Opioid Settlement Fund — to account for the distribution of monies received from the California Opioid Settlement Funds. Expenditures are restricted for opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services.

City Capital Projects Fund — to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of major capital facilities within the boundaries of the City.

Gas Tax Debt Service Fund — to account for the receipt and expenditure of gas tax revenues pledged for the payment of debt service on debt payable from Gas Tax proceeds. (105)
390

CITY OF PLACENTIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure ASSETS
Cash and Investments
Receivables:

Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 86,797 $ 20,903 $ 22,555 $ 488,821 $ 530 $ 4,879 $ 1,334,140 519 115,820 -
321,487
$ 408,284 $ 20,903 $ 23,074 $ 604,641 $ 530 $ 4,879 $ 1,334,140 $ 43,248 $ $ 23,074 $ 57,362 $ $ - $ 1,918
11,753 - 30,000 -
500,000 - - -
555,001 23,074 87,362 1,918
321,487
321,487
20,903 - 517,279 530 4,879 1,332,222
(468,204) - - -
(468,204) 20,903 - 517,279 530 4,879 1,332,222
$ 408,284 $ 20,903 $ 23,074 $ 604,641 $ 530 $ 4,879 $ 1,334,140 (106)
391

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction ASSETS
Cash and Investments
Receivables:

Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 4,698 $ 237,022 $ 326,907 $
1,126
- $ $
2,309 310,520
124,575 800
$ 5,824 $ 237,022 $ 326,907 $ 2,309 $ 310,520 $ 124,575 $ 800 $
- $ $ 14,341 $ 34,900 $ 11,525 $ 65,694 $
- 4,923 -
- - - 40,000
- 19,213 589,355 35,622
14,341 59,036 600,880 141,316
- - 220,800
124,149
124,149
- - 220,800 -
5,824 237,022 312,566 - - -
- (56,727) (511,160) (16,741) (123,349)
5,824 237,022 312,566 (56,727) (511,160) (16,741) (123,349) $ 5,824 $ 237,022 $ 326,907 $ 2,309 $ 310,520 $ 124,575 $ 800 (107)
392

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
ASSETS
Cash and Investments
Receivables:

Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
PEG
Affordable
Housing
In -Lieu
SB1 Gas Tax
Community Based
NOC Public Transitional TOD
Safety Grant Housing Grant Impact Fee
$ 83,394 $ 404 $ 688,770 $ 123,046 $ 75 $ 1,693,722
17,839 109,299 - -
38,050
$ 101,233 $ 404 $ 798,069 $ 123,046 $ 75 $ 1,731,772
$ 12,416 $
12,416
$ 124,603 $ 544 $
1,322
55,597
48,460
180,200 50,326
75 $ 234,414
73,111
41,805
75 349,330
38,050
38,050
88,817 404 617,869 72,720 - 1,344,392
88,817 404 617,869 72,720 - 1,344,392
$ 101,233 $ 404 $ 798,069 $ 123,046 $ 75 $ 1,731,772
(108)
393

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
ASSETS
Cash and Investments
Receivables:

Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
General Plan Technology Housing Orangethorpe Cal Recycle Update Fee Impact Fee Successor Corridor Grant
$ 1,163,718 $ 649,434 $ 520,135 $
EIFD
168 $ 149,208 $
Fire
Impact Fee
98,706 $ 21,024
44 - -
533,749 - 16,433
6,845 - -
- 1,036,760
$ 1,163,718 $ 649,434 $ 2,097,533 $ 168 $ 149,208 $ 98,706 $ 37,457 $
- $ 71,384 $
- 71,384
- $ 455 $ 989 $ -
- 780 -
168 -
- - 13,248 -
168 14,483
10,241 -
989 -
16,433
- 10,241 - 16,433
1,163,718 578,050 2,087,292 - 134,725 97,717 21,024
1,163,718 578,050 2,087,292 - 134,725 97,717 21,024
$ 1,163,718 $ 649,434 $ 2,097,533 $ 168 $ 149,208 $ 98,706 $ 37,457 (109)
394

CITY OF PLACENTIA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Capital Debt
Special Revenue Funds Projects Fund Service Fund
Animal Total Other
Shelter Opioid City Capital Governmental
Impact Fee Settlement Projects Gas Tax Funds
ASSETS
Cash and Investments
Receivables:

Accounts
Grants
Accrued Interest
Loans and Notes
Leases
Prepaid Items
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Retentions Payable
Due to Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
16,433
$ 1,867 $
407,609
363,161
$ 87,394 $ 7,808,317
1,090,416
684,648
44 604,665
6,845
1,036,760
$ 16,433 $ 409,476 $ 363,161 $ 87,394 $ 11,231,695
$ - $
16,433
$ 101,227 $
20,346
125,000
15,602
81,391
$ 798,094
27,446
125,168
226,063
891,535
561,708
343,566 - 2,630,014
407,609 195,764
10,241
1,216,576
16,433 407,609 195,764 - 1,226,817
- 1,867 87,394 8,727,214
- - (176,169) - (1,352,350)
- 1,867 (176,169) 87,394 7,374,864
$ 16,433 $ 409,476 $ 363,161 $ 87,394 $ 11,231,695
(110)
395

CITY OF PLACENTIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure

REVENUES
Intergovernmental
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures
$ 120,003 $
$ - $ 1,216,010 $
11,859 442
135,856
12,964
131,862 442 135,856 1,228,974
113,419
5,162
411,024
549,040
$ - $
90,578
74 28,580
74 119,158
46,985
159,244 - -
600,000 - 121,395
429,296 - -
50,420 -
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 (111)
396

CITY OF PLACENTIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction

REVENUES
Intergovernmental
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGES IN FUND BALANCES
Fund Balance - Beginning, As Originally Reported
Change within financial reporting entity (nonmajor to major) Fund Balance - Beginning, As Adjusted

FUND BALANCES - END OF YEAR
$ 186,159 $
73 7,587 6,556
73 193,746 59,519
52,963 $
- $ 469,592 $ 1,442,514 $ -
- - 4,862 -
454,844 - -
454,844 469,592
1,447, 376 -
- 501,359 - 315,666 18,247
- 35,818 - 443,353 -
- - - 800,000 4,874
35,818 501,359 443,353 1,115,666 23,121
73 193,746 23,701 (46,515) 26,239 331,710 (23,121)
- (186,159) - - (403,750) -
- (186,159) - - (403,750) -
73 7,587 23,701 (46,515) 26,239 (72,040) (23,121)
5,751 229,435 288,865 (10,212) (537,399) 55,299 (100,228) 5,751 229,435 288,865 (10,212) (537,399) 55,299 (100,228) $ 5,824 $ 237,022 $ 312,566 $ (56,727) $ (511,160) $ (16,741) $ (123,349) (112)
397

CITY OF PLACENTIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds
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
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGES IN FUND BALANCES
Fund Balance - Beginning, As Originally Reported
Change within financial reporting entity (nonmajor to major) Fund Balance - Beginning, As Adjusted

FUND BALANCES - END OF YEAR
$ - $ - $ 1,354,999 $ 54,540 $ - $ $ -
1,400
90,259
15,101 3,241 - 39,349
91,659 1,370,100
36,637
10,430 1,236,552
47,067 1,236,552
44,592 133,548
44,592
44,225
57,781 - 39,349
58,560
3,753
634,983
62,313 634,983
(4,532) - (595,634)
133,548 (4,532)
404 484,321 77,252
(595,634)
1,940,026
44,225 404 484,321 77,252 - 1,940,026
$ 88,817 $ 404 $ 617,869 $ 72,720 $
(113)
(1,635,925)
1,635,925
$ 1,344,392 $
398

CITY OF PLACENTIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds

REVENUES
Intergovernmental
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures
General Plan Technology Housing Orangethorpe Cal Recycle Update Fee Impact Fee Successor Corridor Grant
- $ $
25,045
201,460
226,505
12,521
101,151
4,126
10,368
113,672 14,494
86,995
60,992
80,797
167,792 60,992
EIFD
Fire
Impact Fee
- $ 144,054 $ 54,153 $
516 1,252
144,570
10,666
294
20,730
55,405 21,024
28,144
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 (114)
399

CITY OF PLACENTIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

REVENUES
Intergovernmental
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGES IN FUND BALANCES
Fund Balance - Beginning, As Originally Reported
Change within financial reporting entity (nonmajor to major) Fund Balance - Beginning, As Adjusted

FUND BALANCES - END OF YEAR
Special Revenue Funds
Capital Debt
Projects Fund Service Fund
Animal
Shelter Opioid City Capital
Impact Fee Settlement Projects
Gas Tax
Total Other
Governmental
Funds
- $ 19,263 $ 585,070 $ - $ 5,699,320
- - 90,578
- 516 368 172,600
- - 1,004,300
- - 4,126
- 196,963 - 207,331
- 19,779 782,033 368 7,178,255
2,186
29,161
735,855
153,962
319,783
1,384,312
638,415
8,915
4,635,910
358,000 787,296
42,265 92,685
31,347 735,855 400,265 8,021,278
(11,568) 46,178 (399,897) (843,023)
403,750 816,934
- (589,909)
403,750 227,025
(11,568) 46,178 3,853 (615,998)
13,435 (222,347) 83,541 6,354,937
- 1,635,925
13,435 (222,347) 83,541 7,990,862
$ 1,867 $ (176,169) $ 87,394 $ 7,374,864
(115)
400

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Public Safety
Community Services
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 500,000 $ 2,655,224 $ 120,003 $ (2,535,221)
- - 11,859 11,859
500,000 2,655,224 131,862 (2,523,362)
- - 113,419 (113,419)
- - 5,162 (5,162)
500,000 2,653,604 411,024 2,242,580
500,000 2,653,604 529,605 2,123,999
$ - $ 1,620 (397,743) $ (399,363)
(70,461)
$ (468,204
(116)
401

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
Variance with
Final Budget
Budgeted Amounts Actual Positive
OriYinal Final Amounts (Negative)

REVENUES
Charges for Services
Total Revenues

EXPENDITURES
Current:

Public Works
Total Expenditures

REVENUE OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES
Transfers In
Total Other Financing Sources

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 135,286 $ 135,286 $ 135,856 $ 570
135,286 135,286 135,856 570
171,500 171,500
171,500 171,500
(36,214) (36,214)
36,214 36,214
36,214 36,214
549,040 (377,540)
549,040 (377,540)
(413,184) (376,970)
413,184 376,970
413,184 376,970
(117)
402

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Community Development
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
Budgeted Amounts
Original
$ 1,275,373
1,275,373
Final
$ 1,275,373
1,275,373
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 1,216,010 $ (59,363)
12,964 12,964
1,228,974 (46,399)
83,400 150,560 159,244 (8,684)
600,000 636,064 600,000 36,064
400,000 400,000 429,296 (29,296)
13,750 13,750 50,420 (36,670)
1,097,150
1,200,374 1,238,960 (38,586)
$ 178,223 $ 74,999 (9,986) $ (84,985)
527,265
$ 517,279
(118)
403

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

REVENUES
Investment Earnings
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$
$
$
$ 74 $ 74
74 74
4,172 - 4,172
4,172 - 4,172
$ (4,172)
74 $ 4,246
4,805
$ 4,879
(119)
404

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

REVENUES
Fines and Forfeitures
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Public Safety
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ - $ - $ 90,578 $ 90,578
- - 28,580 28,580
- - 119,158 119,158
70,000 40,897
35,000 1,114,103
105,000 1,155,000
46,985 (6,088)
121,395 992,708
168,380 986,620
$ (105,000) $ (1,155,000) (49,222) $ 1,105,778
1,381,444
$ 1,332,222
(120)
405

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
Variance with
Final Budget
Budgeted Amounts 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
(121)
406

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Community Development
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
Budgeted Amounts
Original Final
$ 65,900 $
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
65,900 $ 52,963 $ (12,937)
6,556 6,556
65,900 65,900
20,900 32,640
115,000 285,638
135,900 318,278
$ (70,000) $ (252,378)
59,519 (6,381)
35,818
35,818 285,638
23,701 $ 276,079
288,865
$ 312,566
285,638
(122)
407

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

REVENUES
Charges for Services
Total Revenues

EXPENDITURES
Current:

Public Works
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 450,858 $ 450,858 $ 454,844 $ 3,986
450,858 450,858 454,844 3,986
419,200 432,867 501,359 (68,492)
419,200 432,867 501,359 (68,492)
$ 31,658 $ 17,991 (46,515) $ (64,506)
(10,212)
$ (56,727)
(123)
408

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

REVENUES
Intergovernmental
Total Revenues

EXPENDITURES
Current:

Community Development
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 280,514 $ 359,997 $ 469,592 $ 109,595
280,514 359,997 469,592 109,595
339,514 390,061
339,514 390,061
$
59,000) $ (30,064)
443,353 (53,292)
443,353 (53,292)
26,239 $ 56,303
(537,399)
$ (511,160)
(124)
409

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Public Works
Capital Outlay
Total expenditures

REVENUE OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing (Uses)

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
Budgeted Amounts Actual
Original Final Amounts
$ 1,476,847 $ 1,476,847 $ 1,442,514
- - 4,862
1,476,847 1,476, 847 1,447,376
994,558 994,558 315,666
800,000 800,000 800,000
1,794,558 1,794,558 1,115,666
(317,711) (317,711) 331,710
(403,750) (403,750) (403,750,
(403,750) (403,750) (403,750)
Variance with
Final Budget
Positive
(Negative)
$ (34,333)
4,862
(29,471)
678,892
678,892
649,421
$ (721,461) $ (721,461) (72,040) $ 649,421
55,299
$ (16,741)
(125)
410

CITY OF PLACENTIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

BUDGET AND ACTUAL

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

REVENUES
Investment Earnings
Charges for Services
Total Revenues

EXPENDITURES
Current:

General Government
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$
$
80,000 80,000
80,000 80,000
$ 1,400 $ 1,400
90,259 10,259
91,659 11,659
9,700 45,700 36,637 9,063
69,000 69,000 10,430 58,570
78,700 114,700
47,067 67,633
$ 1,300 $ (34,700) 44,592 79,292
44,225
$ 88,817
(126)
411

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 1,280,805 $ 1,280,805 $ 1,354,999 $ 74,194
- - 15,101 15,101
1,280,805 1,280,805 1,370,100 89,295
1,000,000 1,511,059 1,236,552 274,507
1,000,000 1,511,059 1,236,552 274,507
$ 280,805 $ (230,254) 133,548 $ 363,802
484,321
$ 617,869
(127)
412

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Public Safety
Community Services
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
Budgeted Amounts
Original
Final
Actual
Amounts
$ 62,000 $ 78,700 $
62,000
78,700
40,000 40,000
- 16,700
40,000 56,700
$ 22,000 $ 22,000
Variance with
Final Budget
Positive
(Negative)
54,540 $ (24,160)
3,241 3,241
57,781 (20,919)
58,560 (18,560)
3,753 12,947
62,313 (5,613)
(4,532) $ (26,532)
77,252
$ 72,720
(128)
413

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

REVENUES
Investment Earnings
Charges for Services
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ - $
90,000
90,000
90,000 90,000
550,000 885,506
550,000 885,506
$ 39,349 $ 39,349
- (90,000)
39,349 (50,651)
634,983 250,523
634,983 250,523
$ (460,000) $ (795,506) (595,634) $ 199,872
1,940,026
$ 1,344,392
(129)
414

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

REVENUES
Intergovernmental
Investment Earnings
Charges for Services
Total Revenues

EXPENDITURES
Current:

General Government
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ - $
150,000
150,000
150,000 150,000
$ - $
25,045 25,045
201,460 51,460
226,505 76,505
- 191,100 86,995 104,105
- 257,819 80,797 177,022
- 448,919 167,792 281,127
$ 150,000 $ (298,919) 58,713 $ 357,632
1,105,005
$ 1,163,718
(130)
415

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

REVENUES
Investment Earnings
Charges for Services
Total Revenues

EXPENDITURES
Current:

Public Safety
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ - $ - $ 12,521 $ 12,521
- - 101,151 101,151
- - 113,672 113,672
55,000 60,992 (5,992)
71,385 - 71,385
126,385 60,992 65,393
$ - $
126,385) 52,680 $ 179,065
525,370
$ 578,050
(131)
416

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

REVENUES
Intergovernmental
Investment Earnings
Total Revenues

EXPENDITURES
Current:

Public Safety
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ - $ - $ 144,054 $ 144,054
- - 516 516
- - 144,570 144,570
13,181 13,181
13,181 13,181
10,666 2,515
10,666 2,515
$ (13,181) $ (13,181) 133,904 $ 147,085
821
$ 134,725
(132)
417

CITY OF PLACENTIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

BUDGET AND ACTUAL

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

REVENUES
Intergovernmental
Investment Earnings
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$ 5,000 $ 5,000 $ 54,153 $ 49,153
- 1,252 1,252
5,000 5,000
55,405 50,405
- 28,144 (28,144)
- 28,144 (28,144)
$ 5,000 $ 5,000 27,261 $ 22,261
70,456
$ 97,717
(133)
418

CITY OF PLACENTIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

BUDGET AND ACTUAL

CITY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental
Miscellaneous
Total Revenues
Expenditures:

Current:

Community Development
Capital Outlay
Total Expenditures

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$
- $ 4,133,286 $ 585,070 $ (3,548,216)
- 709,362 196,963 (512,399)
- 4,842,648 782,033 (4,060,615)
281,700 281,700 - 281,700
- 4,344,404 735,855 3,608,549
281,700 4,626,104
735,855 3,890,249
$ (281,700) $ 216,544 46,178 $ (170,366)
(222,347)
$ (176,169)
(134)
419

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

REVENUES
Investment Earnings
Total Revenues

EXPENDITURES
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

REVENUE OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year

FUND BALANCE - END OF YEAR
$
$
$ 368 $ 368
- - 368 368
358,000 358,000 358,000
45,750 45,750 42,265
403,750 403,750 400,265
(403,750) (403,750) (399,897)
403,750 403,750 403,750
403,750 403,750 403,750
3,485
3,485
3,853
$ - $ - 3,853 $ 3,853
83,541
$ 87,394
(135)
420

CITY OF PLACENTIA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2024
ASSETS
Current Assets:

Cash and Investments
Receivable:

Accounts
Prepaids
Total Current Assets
Risk Health and Equipment
Management Welfare Replacement
Total
$ 2,356,201 $ 39,065 $ 76,967 $ 2,472,233
595
2,356,796
31,524 32,119
1,309 - 1,309
40,374 108,491 2,505,661
Total Assets 2,356,796 40,374 206,032 2,603,202

LIABILITIES
Current Liabilities:

Accounts Payable
Accrued Liabilities
Due to Other Funds
Accrued Claims and Judgments - Due Within One Year
Total Current Liabilities
Noncurrent Liabilities:

Accrued Claims and Judgments - Due in More
Than One Year
Total Noncurrent Liabilities
64,502
16,513
1,702
291
66,204
16,804
941,479 941,479
1,022,494
1,993 1,024,487
2,879,437 2,879,437
2,879,437 2,879,437
Total Liabilities 3,901,931

NET POSITION
Unrestricted
Total Net Position
(1,545,135
1,993 3,903,924
38,381 108,491 (1,398,263)
$ (1,545,135) $ 38,381 $ 206,032 $ (1,300,722)
(136)
421

CITY OF PLACENTIA

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

ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
Governmental Activities

OPERATING REVENUES
Reimbursements
Sales and Service Charges
Other Revenues
Total Operating Revenues

OPERATING EXPENSES
Administration
Reinsurance Premiums
Claims
Medical and Dental Premiums
Liability Insurance Premiums
Depreciation Expense
Total Operating Expenses
Risk Health and Equipment
Management Welfare Replacement
Total
$ 540,994 $ 122,460 $ - $ 663,454
2,258,306 1,088,243 - 3,346,549
- - 95,488 95,488
2,799,300 1,210,703 95,488 4,105,491
230,386
815,101
1,752,138
2,797,625
OPERATING INCOME (LOSS) 1,675

NONOPERATING INCOME (LOSS)
Gain on Disposal of Capital Assets

CHANGES IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
8,540 1,740 240,666
187,603 - 187,603
- - 815,101
990,260 - 990,260
4,935 - 1,757,073
- 40,376 40,376
1,191,338 42,116 4,031,079
19,365 53,372 74,412
57,912 57,912
1,675 19,365 111,284 132,324
(1,546,810) 19,016 94,748 (1,433,046)
$ (1,545,135) $ 38,381 $ 206,032 $ (1,300,722)
(137)
422

CITY OF PLACENTIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users
Cash Paid to Suppliers for Goods and Services
Cash Paid for Insurance Claims
Net Cash Provided (Used) by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Payment Made on Interfund Borrowing
Net Cash Used by Noncapital
Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

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

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO STATEMENT OF NET POSITION
Beginning of Year
Risk Health and Equipment
Management Welfare Replacement
Total
$ 2,798,705 $ 1,210,812 $ 63,965 $ 4,073,482
(2,166,167) (1,133,425) (65,706) (3,365,298)
(815,101) - - (815,101)
(182,563) 77,387 (1,741) (106,917)
(38,322)
(38,322)
(182,563) 39,065
2,538,764
38,322)
(38,322)
57,912 57,912
57,912 57,912
56,171 (87,327)
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
Adjustments to Reconcile Operating Income
to Net Cash Provided (Used) by Operating Activities:

Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables
(Increase) Decrease in Prepaids
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Liabilities
Increase (Decrease) in Claims Payable
$ 1,675 $ 19,365 $ 53,372 $ 74,412
(595)
30,277
16,508
(230,428)
Net Cash Provided (Used) by Operating Activities $ (182,563) 109 (31,524) (32,010)
57,198 - 57,198
424 (63,965) (33,264)
291 - 16,799
- (230,428)
77,387 $ (1,741)
(106,917)
(138)
423

FIDUCIARY FUNDS

CUSTODIAL FUNDS
Community Facilities District Fund — to account for the Community Facilities District No. 89-1 (East Placentia). This fund accounts for the service of $25,000,000 of Community Facilities District No. 89-1 (East Placentia) Special Tax Bonds issued to finance the construction of street and drainage infrastructure improvements and to fund development of a 13 -acre park/recreation sports complex to benefit properties within the District.

Public Safety CFD 2014-01 Fund — to account for revenues and expenditures to provide public safety services associated with new development within Placentia including, but not limited to, police protection, fire protection, and ambulance and paramedic services. The services would be partially paid for through the levy of a Special Tax on real property.

TOD District CFD Fund — to account for the Community Facilities District 2018-1 (Transit Oriented District) providing a special tax to pay for certain public facilities within such community facilities district, to levy such special tax, and to provide non -General Fund and sustainable funding source to pay for the ongoing maintenance and repairs of the public streetscape improvements constructed within the Transit Oriented District.
(139)
424

CITY OF PLACENTIA

COMBINING STATEMENT OF ASSETS AND LIABILITIES

FIDUCIARY FUNDS
JUNE 30, 2024
Custodial Funds
ASSETS
Cash and Investments
Accounts Receivable
Taxes Receivable
Miscellaneous Receivables
Total Assets

LIABILITIES
Accounts Payable
Accrued Liabilities
Total Liabilities

NET POSITION (DEFICIT)
Restricted for Individuals, Organizations,
and Other Governments
Total Net Position (Deficit)
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD
Total
$ 50,711 $ 311,379 $ 52,203 $ 414,293
1,453 1,453
50,711 312,832
52,203 415,746
241 241
14 14
14 241 255
50,711 312,818
51,962 415,491
$ 50,711 $ 312,818 $ 51,962 $ 415,491
(140)
425

CITY OF PLACENTIA

STATEMENT OF CHANGE IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024
Custodial Funds

ADDITIONS
Charges for Services
Investment Earnings
Total Additions

DEDUCTIONS
Administrative Expenses
Total Deductions
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD
Total
$ - $ 157,859 $ 61,158 $ 219,017
1,296 5,157 6,453
1,296 163,016 61,158 225,470
- - 8,440 8,440
- - 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 (141)
426

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427

STATISTICAL SECTION
428

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429

CITY OF PLACENTIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
This part of the City of Placentia's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents: Page
Financial Trends — These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
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.

Demographic and Economic Information — These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information — These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs. 155
158
161
(144)
430

CITY OF PLACENTIA

NET POSITION BY COMPONENT

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

Net Investment in Capital Assets
Restricted
Unrestricted
$ 66,333 $ 66,799 $ 67,960 $ 67,915 $ 72,176 $ 81,106 $ 86,061 $86,045 $ 103,757 $ 114,777 7,027 7,681 6,199 5,819 6,090 7,732 21,456 20,175 18,361 21,767 (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
Unrestricted
Total Business -Type Activities Net Position
Primary Government:

Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government Net Position
Source: City of Placentia, Finance Department
$ 11,280 $ 10,765 $ 10,303 $ 9,778 $ 9,275 $ 8,748 $ 8,221 $ 7,694 $ 7,166 $ 12,471 1,289 845 1,066 (1,514) (2,055) (2,682) 361 1,842 1,245 1,895 12,569 $ 11,610
11,369 $ 8,264
$ 77,613 $ 77,564 $ 78,263 $
7,027 7,681 6,199
(32,856) (29,645) (31,714)
7,220 $ 6,066 $ 8,582 $ 9,536
8,411 $ 14,366
77,693 $ 81,451 $ 89,854 $ 94,282 $ 93,739 $ 110,923 $ 127,248 5,819 6,090 7,732 21,456 20,175 18,361 21,767
53,603) (52,913) (56,034) (67,902) (21,554) (42,298) (60,449) $ 51,784 $ 55,600 $ 52,748 $ 29,909 $ 34,628 $ 41,552 $ 47,836 $ 92,360 S 86,986 $ 88,566 (145)
431

CITY OF PLACENTIA

CHANGES IN NET POSITION

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

PROGRAM REVENUE
Governmental Activities:

Charges for Services:

General Government
Public Safety
Public Works
Community Development
Community Services
Operating Grants
Capital Grants and Contributions
Total Governmental Activities Program
Revenues
Business -Type Activities:

Charges for Services:

Refuse
Compressed Natural Gas
Sewer Maintenance
Total Business -Type Activities Program
Revenues
Total Primary Government Program
Revenues

EXPENSES
Governmental Activities:

General Government
Public Safety
Public Works
Community Development
Community Services
Interest on Long -Term Debt
Total Governmental Activities
$ 2,053 $ 1,956 $ 2,136 $ 2,206 $ 2,356 $ 2,651 $ 2,754 $ 2,812 $ 3,215 $ 3,298 1,469 1,340 1,092 1,078 742 771 567 928 877 913
854 679 597 670 1,100 776 917 877 811 856
277 1,211 1,074 1,251 1,011 1,670 2,014 1,598 1,700 1,509 - 221 194 314 213 145 148 253 337 497
1,407 4,744 4,637 4,575 7,709 9,588 6,103 6,499 15,643 9,937 3,216 145 465 4,528 1,117 2,994 8,027 1,850 5,025 1,938 9,276 10,296 10,195 14,622 14,248 18,595 20,530 14,817 27,608 18,948 2,874 2,890 2,958 3,039 3,148 3,252 3,688 3,732 4,283 4,813 25 - - - - - - - - -
819 688 722 760 722 723 783 791 1,448 1.511
3,718 3,578 3,680 3,799 3,870 3,975 4,471 4,523 5,731 6,324 12,994 13,874 13,875 18,421 18,118 22,570 25,001 19,340 33,339 25,272 9,248 5,343 10,579 10,046 9,346 11,654 12,850 9,242 19,220 17,490 15,689 18,556 19,188 18,114 20,547 26,139 26,045 (5,341) 39,863 27,471 6,644 7,445 7,246 4,328 2,465 4,926 9,846 3,159 11,632 10,729 1,845 1,373 1,904 1,068 1,502 1,640 2,893 1,554 2,425 2,563 1,263 1,318 1,690 4,401 1,757 2,580 1,685 3,755 4,254
861 837 783 717 588 475 765 2.591 2,372 2.960
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) (146)
432

CITY OF PLACENTIA

CHANGES IN NET POSITION (CONTINUED)

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

GENERAL REVENUE AND OTHER

CHANGES IN NET POSITION
Governmental Activities:

Taxes:

Property
Sales and Use
Utility Users
Franchise
Other
Miscellaneous
Investment Income
Other
Special Item
Contribution from successor Agency
Contribution from Custodial Fund
Extraordinary Item
Transfers
Total Government Activities
$ 12,449 $ 13,259 $ 13,972 $ 14,560 $ 15,478 $ 15,981 $ 16,752 $ 17,191 $ 18,809 $ 20,761 6,284 6,848 7,020 6,948 8,184 13,141 15,113 17,248 17,530 16,870 2,874 2,750 2,637 2,545 2,461 2,362 2,503 2,689 3,200 3,048 2,338 2,332 2,244 2,270 2,340 2,358 2,466 2,651 2,870 3,076 1,177 1,258 1,365 1,316 1,267 1,047 1,022 1,842 2,091 2,146 1,451 35 41 125 136 447 280 256 2,544 282
576 34 31 72 227 312 13 (297) 378 1,901
- - 215 - - -
(2,764) - - - - - - - - -
- 19
(1,035)
165 646 402 251 268 192
30 39 - (5,940)
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
Business -Type Activities
Total Primary Government
Source: City of Placentia, Finance Department
(461) 1,606 (3,111) 6,746 5,760 8,078
2,533 (959) (240) (1,405) (1,045) (1,153)
3,769 43,507 (4,237) (4,375)
2,514 954 (1,124) 5,955
$ 2,072 $ 647 $ (3,351) $ 5,341 $ 4,715 $ 6,925 $ 6,283 $ 44,461 $ (5,361) $ 1,580 (147)
433

CITY OF PLACENTIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
General Fund:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds:

Nonspendable
Restricted
Assigned
Unrestricted
Total All Other Governmental Funds
Source: City of Placentia, Finance Department
2015 2016 2017
2018 2019 2020 2021 2022 2023 2024
$ 4,104 $ 3,881 $ 3,354 $ 4,955 $ 4,706 $ 3,734 $ 3,347 $ 2,522 $ 1,454 $ 896 1,030 1,030 1,024 1,019 571 555 556 2 805 1,644
119 3,600 3,600 3,400 4,528 5,811 6,434 13,856 4,535 1,037 185 286 40 - - - - - - -
2,510 72 56 (1,346) 543 3,866 9,894 7,205 19,919 14,796 $ 7,948 $ 8,869 $ 8,074 $ 8,028 $ 10,348 $ 13,966 $ 20,231 $ 23,585 $ 26,713 $ 18,373 $ - $ - $ - $ - $ - $ $ 10 $ 6 $ 5 $ 3
5,999 6,651 5,175 4,800 5,518 7,177 20,900 20,173 17,555 19,117 485 - - - - - - - - -
- (368) (531) (1,045) (1,552) (1,406) (2,754) (2,577) (3,981) $ 6,484 $ 6,651 $ 4,807 $ 4,269 $ 4,473 $ 5,625 $ 19,504 $ 17,425 $ 14,983 $ 15,139 (148)
434

CITY OF PLACENTIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

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

REVENUES
Property Tax
Sales Tax
Other Tax
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Income
Charges for Services
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:

Principal
Payment to Refunding Bond Escrow Agent
Interest
Debt Issuance Costs
Total Expenditures

EXCESS OF REVENUE OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Issuance of Debt
Other
Total Other Financing Sources (Uses)

EXTRAORDINARY ITEMS

NET CHANGE IN FUND BALANCES
Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures
Source: City of Placentia, Finance Department
$ 12,449 $ 13,259 $ 13,972 $ 14,551 $ 15,478 $ 15,981 $ 16,752 $ 17,191 $ 18,809 $ 20,761 6,284 7,257 7,020 6,948 10,646 13,141 15,113 17,248 17,530 16,870 6,316 6,318 6,222 6,043 3,548 5,708 5,993 7,182 8,090 8,216 4,033 2,998 3,572 6,487 7,530 8,459 6,700 6,498 16,569 9,704 1,690 1,733 1,572 1,702 1,922 2,454 2,828 2,440 2,644 2,536 733 1,154 1,297 592 613 819 314 503 1,777 639
177 34 32 69 228 307 13 (297) 377 1,900
2,228 2,216 1,743 2,197 2,003 4,056 9,334 2,267 2,387 2,446 2,424 2,108 1,892 2,151 2,289 2,327 2,536 3,581 5,783 3,374 36,334 37,077 37,322 40,740 44,257 53,252 59,583 56,613 73,966 66,446 6,432 6,571 10,450 8,109 7,889 8,389 10,995 12,105 15,771 15,493 16,500 17,880 18,436 19,156 18,718 23,442 16,938 17,476 19,139 21,034 4,246 4,824 5,050 5,951 6,078 5,938 5,049 5,262 6,005 6,734 1,824 952 1,858 1,291 1,171 1,693 2,245 2,007 2,165 2,448 - 1,191 1,292 1,526 4,405 1,793 1,547 2,305 2,623 3,441 2,042 1,262 2,340 2,971 1,047 11,534 6,178 - 22,104 29,242 1,070 1,333 1,654 1,855 2,105 1,177 1,904 3,135 4,760 5,014 - - - - - - 2,440
813 837 783 717 587 475 765 489 2,356 2,785
182 - -
32,927 34,850 41,863 41,576 42,000 54,441 45,621 45,401 74,923 86,191 3,407 2,227 (4,541) (836) 2,257 (1,189) 13,962 11,212 (957) (19,745) 4,939 7,000 8,010 4,778 1,515 1,882 2,849 4,034 6,938 11,010 (4,552) (6,354) (7,607) (4,527) (1,247) (1,690) (2,811) (4,034) (6,938) (11,010) 251 - - - 5,766 57,583 2,189 1,643 11,207
(2,764) - - (51,441) (2,069) - 352
(2,377) 897 403 251 268 5,958 6,180 120 1,643 11,559
1,500 - - - - - - -
$ 1,030 $ 3,124 $ (2,638) $ (585) $ 2,525 $ 4,769 $ 20,142 $ 11,332 $ 686 $ (8,186)

6.49% 6.91% 6.57% 7.14% 7.04% 4.00% 7.26% 10.11% 13.48% 13.71% (149)
435

CITY OF PLACENTIA

REVENUES BY SOURCE - GENERAL FUND

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Sales Licenses Fines, Use of Inter- Charges
Property and Other and Forfeitures, Money and Investment Leases Governmental for Current Other Fiscal Year Taxes Use Taxes Taxes Permits and Penalties Property Earnings* and Rents* Revenue Services Revenues Totals 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 (150)
436

CITY OF PLACENTIA

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
City
Public
Fiscal Year Secured Utility
2015 $ 5,359,402
2016 5,706,871
2017 5,948,117
2018 6,259,165
2019 6,564,402
2020 6,862,623
2021 7,160,394
2022 7,373,165
2023 7,915,501
2024 8,744,760
Note:

Unsecured
Taxable
Assessed Direct
Value Rate
292 $ 155,890 $ 5,515,584 0.1644
292 169,843 5,877,006 0.1644
292 186,698 6,135,107 0.1644
292 183,716 6,443,173 0.1644
544 210,294 6,775,240 0.1644
544 189,948 7,053,115 0.1644
544 191,112 7,352,050 0.1644
544 187,422 7,561,131 0.1644
738 213,554 8,129,793 0.1644
738 234,484 8,979,982 0.1644
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
(151)
437

CITY OF PLACENTIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Placentia City
Placentia City Street Lighting Reorg.

Direct City Rate
Overlapping Rates:

OC Water District - Water Reserve
OC Vector Control
OC Transportation Authority
Orange County Water District
OC Harbor Beaches & Parks
OC Department of Education
Orange County Flood Control
OC Sanitation District #2 Operating
Placentia Library District
Orange County General Fund
North OC Comm. College General Fund
Education Revenue Augmentation Fund
Placentia Yorba Linda Unified Gen. Fund
Total Overlapping Rate
Metropolitan Water District
Placentia Yorba Linda Unified
N. Orange County Community College
Total Rate
Note:

0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340

0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304

0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644

0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001

0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011

0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026

0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080

0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144

0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171

0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186

0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309

0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376

0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579

0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655

0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876

0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943

0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8357 0.8356 0.8357

0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035

0.0582 0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 0.0485 0.0464 0.0424

0.0170 0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 0.0288 0.0278 0.0172

1.0787 1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 1.0809 1.0777 1.0632 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
(152)
438

CITY OF PLACENTIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT AND NINE YEARS AGO
(AMOUNTS EXPRESS IN THOUSANDS)
Taxpayer
310 S Jefferson Street Ground Owner LP
MG Herald Apartments LLC
Jefferson Centerpoint LLC
Placentia 422
Villa Angelina Apartment Fund LTD
GRI Village Center LLC
Gelt Cherry Street Fee Owner LLC
HP Bradford Terrace LLC
NMC Placentia LLC
Sedona-Placentia Owner LLC
Total
Source: HdL Coren Cone
2023
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$179,064 $ 1,791 1.99 %
134,665 1,347 1.50
68,579 686 .76
63,061 631 .70
60,090 601 .67
59,400 594 .66
49,362 494 .55
44,880 449 .50
41,399 414 .46
41,251 413 .46
$ 741,751 $ 7,418 8.26 %
Taxpayer
OC of SD Holdings
Placentia 422
Villa Tierra Apartments LLC
Sommerville Conzelman Com
Placentia -Linda Hospital Inc.

Ora Bradford Court 127 LLC
Donahue Schriber Realty Group
Reef Imperial Rose Inc.

Inland Western Placentia LLC
Hartwell Corporation
(153)
Total
2014
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$72,762 $ 728 1.32 %
53,520 535 .97
35,157 352 .64
33,144 331 .60
31,747 317 .58
26,883 269 .49
25,755 258 .47
24,483 245 .44
23,271 233 .42
20,675 207 .37
$ 347,397 $ 3,474 6.30 %
439

CITY OF PLACENTIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
Collected within the Collections
Taxes Levied Fiscal Year of Levy in
for the Percent Subsequent
Fiscal Year Fiscal Year Amount of Levy Years
Note:

Total Collections to Date
Amount
Percent
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
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
(154)
440

CITY OF PLACENTIA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS, EXCEPT PER CAPITA)
Fiscal Year
Governmental Activities
Business -Type
Activities
Tax Allocation Certificates Leases & Total Percent of Percent of Bonds Loans of Subscriptions Loans Primary Assessed Per Personal and Notes Payable Participation Payable Payable Government Valuation Capita Income 2015 $ 3,579 $ 41 $ 9,147 $ - $ - $ 12,767 .231
2016 3,063 218 8,697 - - 11,978 .204
2017 2,242 162 8,237 - - 10,641 .173
2018 1,226 1,325 7,737 - - 10,288 .160
2019 - 1,144 7,680 - - 8,824 .130
2020 - 6,154 7,095 - - 13,249 .188
2021 58,266 5,587 2,845 - - 66,698 .907
2022 55,970 8,657 - 651 - 65,278 .863
2023 53,755 7,549 - 2,838 - 64,142 .789
2024 60,710 5,566 - 4,411 - 70,687 .787
Source: City of Placentia, Finance Department
(155)
245 .83
229 .76
204 .66
195 .60
169 .49
257 .70
1,303 3.40
1,275 3.22
1,222 3.04
1,353 3.05
441

CITY OF PLACENTIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
JUNE 30, 2024
2023-24 Assessed Valuation (in thousands):

Successor Agency Incremental Valuation (in thousands):

Adjusted Assessed Valuation (in thousands):

Direct Debt:

Placentia 2022 Ref and Improv Cops
Placentia Electric Vehicles Loan Payable
Placentia Public Safety Radio Loan Payable
Placentia Fire Loan Payable #1
Placentia Fire Loan Payable #2
Placentia Melrose Easement
Placentia Fire UAL Loan Payoff
Placentia OCTA Advance
Placentia Motorola Equipment Loan Payable
Placentia 2021 Installment Sale Agreement
Placentia PFA 2020A Lease Revenue Bonds
Placentia PFA 2023A Lease Revenue Bonds
Total Direct Debt
Overlapping Tax and Assessment Debt:

Orange County General Fund Obligations
Orange County Board of Education COP
North Orange County Regional Occupation Program COP
Placentia-Yorba Linda Unified School District COP
Placentia -Yorba Linda Unified 2002, 2008, 2012 Bond
Metropolitan Water District
N. OC Community College 2002, 2014 Bond
Total Overlapping Debt
Total Direct and Overlapping Debt
$ 9,628,618
645,643
$ 8,982,975
Total Debt % Applicable
June 30, 2024 (1)
$ 1,331,266 100.00 %
96,530 100.00
362,479 100.00
2,096,314 100.00
1,098,741 100.00
222,672 100.00
344,932 100.00
714,982 100.00
1,197,159 100.00
2,293,000 100.00
48,530,000 100.00
9,190,000 100.00
City's Share
of Debt
June 30, 2024
$ 1,331,266
96,530
362,479
2,096,314
1,098,741
222,672
344,932
714,982
1,197,159
2,293,000
48,530,000
9,190,000
67,478,075
$ 440,385,000 1.167 % $ 5,139,293
10, 030, 000 1.167 117,050
7,350,000 5.395 396,533
79,900,000 23.272 18,594,328
197,150,879 23.272 45,880,953
18,210,000 .232 42,247
291,560,678 5.246 15,295,273
85,465,676
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.

Ratios of Direct vs. Overlapping Debt:

Direct Debt
Overlapping Debt
Total Debt
Ratios of Debt to Assessed Valuation:

Direct Debt
Overlapping Debt
Total Debt
Source: HdL, Coren Cone

44.12 %

55.88 100.00 %
.75 %
.95

1.70 %
$ 152,943,751
(156)
442

CITY OF PLACENTIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Legal Debt Margin Calculation for the Current Year:

Assessed Value
Debt Limit (3.75% of Assessed Value)
Debt Applicable to Limit
Legal Debt Margin - Current Year
Fiscal
Year
Note:

Debt
Limit
Debt
Applicable
to Limit
2015 $ 213,385,760 $
2016 220,387,742
2017 230,066,512
2018 248,734,552
2019 261,192,507
2020 271,595,021
2021 283,280,448
2022 291,210,596
2023 312,538,330
2024 344,780,034
Legal
Debt
Marcin
$ 213,385,760
220,387,742
230,066,512
248,734,552
261,192,507
271,595,021
283,280,448
291,210,596
312,538,330
344,780,034
$ 9,194,134,236
344,780,034
$ 344,780,034
Debt as
Percentage
of Limit
-%
The City charter includes a debt limit of 15%; however, at the time the charter was established, only 25% of the market value was used. For the purpose of determining the debt limit, the City is following the intent of the charter and reducing the debt limit to 3.75% of assessed valuation.

Source: City of Placentia, Finance Department
(157)
443

CITY OF PLACENTIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(PERSONAL INCOME IN THOUSANDS, EXCEPT PER CAPITA)
Per Capita
Calendar City Personal Personal Unemployment
Year Population Income Income Rate
2014 52,084 $ 1,540,384 $ 29,575
2015 52,263 1,567,115 29,985
2016 52,268 1,614,628 30,891
2017 52,755 1,716,075 32,529
2018 52,333 1,805,719 34,504
2019 51,494 1,899,759 36,892
2020 51,173 1,959,175 38,285
2021 51,204 2,024,718 39,542
2022 52,507 2,109,099 40,167
2023 52,226 2,319,890 44,420
Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HdL, Coren Cone

6.2 5.1

4.5 3.5

3.0 2.9

8.7 5.8

3.2 3.6
(158)
444

CITY OF PLACENTIA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
Calendar Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Service Stations
Other Retail Stores
All Other Outlets
Note:
$ - $ - $ - $ - $ - $ - $ - $21,114 $21,854 $23,060
6,459 6,635 6,759 7,178 7,440 7,649 8,208 7,907 7,535 4,620 17,898 18,529 17,919 17,102 17,530 18,363 20,539 19,152 20,029 20,552 66,582 79,730 84,676 85,373 83,083 87,912 77,897 101,361 105,185 106,523 48,092 38,156 55,996 60,664 68,803 74,767 69,616 89,608 98,051 101,532 85,659 105,341 107,146 104,963 82,789 72,781 71,301 99,240 118,317 116,350 78,562 70,961 62,495 68,101 74,924 73,200 49,981 72,505 95,585 86,634 64,434 60,419 70,775 74,578 75,597 76,411 65,702 62,668 64,773 44,736 213,510 255,719 240,166 234,501 245,115 268,067 269,831 278,458 292,479 272,051 Total $ 581,196 $ 635,490 $ 645,932 $ 652,460 $ 655,281 $ 679,150 $ 633,075 $ 752,013 $ 823,808 $ 776,058 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 (159)
445

CITY OF PLACENTIA

BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT

LAST TEN FISCAL YEARS
Fiscal Year
Department
City Clerk
City Administrator
Administrative Services (formerly Administration)
Finance
Development Services
Police
Fire and Life Safety
Public Works
Community Services
Total
Note:
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2.00 2.00 2.00 2.00

8.00 7.00 7.00 11.50

6.00 7.00 7.00 8.00

4.00 4.75 6.50

67.00 69.50 74.50 80.00

18.00 19.00 20.25 20.75

4.00 6.00 6.50 7.25

99.00 105.00 114.50 122.00
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
(160)

2.00 2.00 2.00 2.00 -
- - - - 5.00

9.50 10.50 25.45 26.45 29.65 32.00

8.00 8.00 9.00 9.00 9.00 9.00

8.50 8.50 8.55 9.55 11.35 12.00

76.00 84.00 71.00 72.00 75.00 76.00
- - 25.00 27.00 28.00 30.00

20.00 22.00 22.00 26.00 28.00 30.00

7.00 7.00 7.00 8.00 9.00 10.00
136.00 142.00 170.00 180.00 192.00 204.00
446

CITY OF PLACENTIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year
Function/Program
Police:

Physical Arrests
Parking Citations
Traffic Citations
Community Development:

Building Permits
Building and Zoning Inspections
Public Works:

Feet of Sewer Main Cleaned
Streetsweeping Miles
Traffic Signals Maintained
Culture and Recreation:

Recreation Classes
Source: City of Placentia, Finance Department
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1,732 1,373 1,250 1,381 1,282 1,053 1,257 1,400 1,380 1,360 11,141 12,729 13,161 2,359 7,398 4,646 3,742 2,974 7,585 9,755 2,498 2,060 1,824 2,659 7,707 1,601 1,162 509 818 1,944 1,411 1,472 1,268 1,347 1,263 1,407 1,346 1,425 1,461 1,509 178 133 128 87 92 126 181 128 435 127
401,280 401,280 249,134 385,510 318,118 396,000 372,246 372,246 372,246 295,421 21,684 21,684 21,684 7,955 7,955 8,772 8,772 8,772 8,772 8,772 57 57 57 61 61 63 63 63 63 63
787 747 727
(161)
645 610 577 387 421 477 637
447

CITY OF PLACENTIA

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Fiscal Year
Function/Program
Public Safety:

Police Stations
Sworn Officers
Patrol Vehicles
Fire Stations
Highways and Streets:

Miles of Streets
Street Trees
Traffic Signals
Street Lights
Sewer:

Miles of Sanitary Sewers
Storm Drains
Culture and Recreation:

Parks
Area of Parks (Acres)
Community Buildings
Community Centers
Senior Centers
Baseball Diamonds
Basketball Courts
Soccer Fields
Pools
Gymnasiums
Tennis Courts
Pickleball Courts
Handball Courts
Note:
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1 1 1 1 1 1 1 1 1 1
46 46 46 51 51 46 51 46 48 51
26 26 26 32 32 33 16 16 17 17
2 2 2 2 2 2 2 2 2 2
107 107 107 107 132 132 132 133 133 133
9,214 9,214 9,214 9,139 7,175 7,077 6,929 6,688 6,915 6,863 229 229 229 230 230 230 230 230 230 230
3,656 3,656 3,656 3,660 3,660 3,656 3,656 3,656 3,915 3,656 76 76 76 76 76 84 84 84 84 84
506 506 506 506 506 506 506 531 531 531
16 16 16 16 16 15 15 15 15 15

72.9 72.9 72.9 72.9 100.9 60.9 60.9 60.9 60.9 60.9
7 7 7 7 7 7 7 7 7 7
3 3 3 3 3 3 3 3 3 3
1 1 1 1 1 1 1 1 1 1
7 7 7 7 7 7 7 7 7 7
8 8 8 8 8 7 7 7 7 7
1 1 1 1 1 1 1 1 1 1
2 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1
- - - 1 1
4 4
6 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
(162)
448

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CITY OF PLACENTIA, CALIFORNIA

SINGLE AUDIT OF FEDERALLY ASSISTED

GRANT PROGRAMS
YEAR ENDED JUNE 30, 2024
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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

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

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
1 3
6 7
8 452

8 CliftonLarsonAllen LLP
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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.

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453

Members of the City Council
City of Placentia
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
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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 " CLAglobal.com/disclaimer (3)
455

Members of the City Council
City of Placentia
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.
(4)
456

Members of the City Council
City of Placentia
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
(5)
457

CITY OF PLACENTIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024
Federal Grantor/Pass-Through Grantor/
Program/Cluster Title/Project
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
Community Development Block Grant
COVID-19 - Community Development Block Grant
Total Community Development Block Grants/ Entitlement Grants Cluster and U.S. Department of Housing and Urban Development U.S. Department of Justice
Direct Assistance:

Bulletproof Vest Partnership Program
Equitable Sharing Program
Passed -through The Children's Initiative:

Project Safe Neighborhoods
Passed -through The Orange County Sherriffs Department:

Edward Byrne Memorial Justice Assistance Grant Program
Federal
Assistance Pass -Through Passed -
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients

14.218 22-23-0018-HCD $ 35,919 $

14.218 012-23011328 357,435

14.218 012 -23010698 -CV 50,000
443,354

16.607 N/A 7,199

16.922 N/A 7,666

16.609 2019-GP-BX-0134 93,309
15PBJA-21-GG-

16.738 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
Passed -Through the Orange County Transportation Authority:

Highway Planning and Construction

20.205 HSIPL-2569(028) 39,264

20.205 ORA190913 27,029
Total U.S. Department of Transportation 66,293
U.S. Department of Treasury
Direct Assistance:

Equitable Sharing
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds

21.016

21.027
N/A
N/A
110,870
1,371,749
Total U.S. Department of Treasury 1,482,619
Total Expenditures of Federal Awards $ 2,105,330 $
See accompanying Notes to Schedule of Expenditures of Federal Awards. (6)
458

CITY OF PLACENTIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2024
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.
(7)
459

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Section I — Summary of Auditors' Results
Financial Statements

1. Type of auditors' report issued:

2. Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?

3. Noncompliance material to financial
statements noted?
Federal Awards

1. Internal control over major federal programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?

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

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)?
Identification of Major Federal Programs
Assistance Listing Number(s)

21.027
Dollar threshold used to distinguish between
Type A and Type B programs:

Unmodified
x yes
yes
yes
Unmodified
yes
no
x none reported
x no
x no
yes x none reported
yes
x no
Name of Federal Program or Cluster
Coronavirus State and Local Fiscal
Recovery Funds
$ 750,000
Auditee qualified as low -risk auditee? yes x no
(8)
460

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2024
Section 11 - 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 CaIPERS 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.
(9)
461

CITY OF PLACENTIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2024
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.
(10)
462

Global

INDEPENDENT

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Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.
463

8 Members of the City Council
City of Placentia
Placentia, California
CliftonLarsonAllen LLP
CLAconnect.com
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 CaIPERS 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 464

Members of the City Council
City of Placentia

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Placentia City CouncilApril 15, 2025

Placentia City Council
April 15, 2025