Agenda packet — Placentia City Council, May 20, 2025 (part 3 of 3)

➢ The City will monitor all forms of debt annually coincident with the City's Financial Plan preparation and review process and report concerns and remedies, if needed, to the Council.
➢ The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations.
➢ The City will maintain good, ongoing communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement).

Debt Refinancing
General Guidelines Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancing will be considered (within federal tax law constraints) under the following conditions:
➢ There is a net economic benefit.
➢ It is needed to modernize covenants that are adversely affecting the City's financial position or operations; and
➢ The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources.

Standards for Economic Savings: In general, refinancing for economic savings will be undertaken whenever net present value savings of at least five percent (5%) of the refunded debt can be achieved.
➢ Refinancing that produces net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent (3%) of the refunded debt.
➢ Refinancing with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective.

Legal Debt Margin
Under state law, the City has a legal debt limitation not to exceed 15% of the total adjusted assessed valuation of taxable property within City boundaries. In accordance with California Government Code § 43605, only the City's general obligation bonds are subject to that legal debt limit. The City has no outstanding general obligation bonds.

Legal Debt Limit Calculation (General Obligation Debt)
Assessed Valuation, FY 2024-25* $9,492,983,106
Adjusted Assessed Valuation (x25%) $2,373,245,777
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Legal Debt Limit- 15% of Adjusted Assessed Valuation
$355,986,867
Total Net Debt Applicable to Limitation: General Obligation Bonds $0
Percentage of Debt Applicable to the Legal Limit:
0%
'Source: Orange County Assessor's Office
Year
2021
2013 Tax
2020A Lease
2023A Lease
Ending
Motorola
Installment
Fire Loan
Fire Loan
Allocation
Revenue
Revenue
June 30
Lease
Sale
#1
#2
Refunding
Bonds
Bonds
2026
152,862
403,220
412,591
216,001
1,008,188
4,283,036
559,675
2027
152,862
401,049
412,591
216,001
1,008,788
4,281,944
562,175
2028
152,862
404,795
412,591
216,001
1,007,700
4,282,596
559,300
2029
152,862
403,385
412,591
216,001
1,002,375
4,284,270
561,050
2030
152,862
400,900
206,296
108,000
1,002,950
4,284,129
562,300
2031
152,862
1,001,625
4,283,105
558,175
2032
152,862
998,400
4,284,134
558,675
2033
152,862
998,156
4,282,992
558,675
2034
4,285,791
558,175
2035-
2045
25,777,257
11,193,250
1,222,896
2,013,349
1,856,660
972,004
8,028,182
64,329,254
16,231,450
Interest
223,232
88,349
118,942
61,387
1,323,182
17,989,256
7,181,450
Principal
999,664
1,925,000
1737,718
910,619
6,705,000
46,340,098
9,050,000
The City has issued debt to support large capital projects and initiatives such as the creation and start up of the Placentia Fire and Life Safety Department in 2020 as well as the public safety building that is currently under construction. Additionally, the City issued debt in 2020 to pay off the City's unfunded actuarial liability for pension debt with CalPERS. The City balances the need to issue debt for larger purchases with the impact the ongoing debt service commitments have on the City's operating budget.

CONTRACTING FOR SERVICES
General Policy Guidelines
Contracting with the private sector for the delivery of services provides the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs.

Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services. 385
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In evaluating the costs of private sector contracts compared with in-house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered.

Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below.

For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment, or absorption by the contractor.

Evaluation Criteria
Within the general policy guidelines stated above, the cost-effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria:
➢ Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? ➢ Can the contract be effectively and efficiently administered? ➢ What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? ➢ Can a private sector contractor better respond to expansions, contractions or special requirements of the service?
➢ Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? ➢ Does the use of contract services provide us with an opportunity to redefine service levels?
➢ Will the contract limit our ability to deliver emergency or other high priority services? ➢ Overall, can the City successfully delegate the performance of the service and still retain accountability and responsibility for its delivery?
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The City budget consists of a number of
different funds. A fund is defined as a fiscal
and accounting entity with a self -balancing
set of accounts, segregated for the purpose
of carrying on specific activities, or
complying with special regulations,
restrictions, or limitations. The following
provides a description of accounting funds
used by the City of Placentia.

Each distinct fund contains program
expenditures and revenues that relate to the
purpose of the fund. The three types of fund
categories are governmental funds,
proprietary funds and fiduciary funds and
are defined in detail below.

GOVERNMENTAL FUNDS

FUND DESCRIPTIONS
M
Fiduciary Governmental Proprietary
Funds Funds Funds
The measurement focus for governmental funds is on current spendable resources, and as such, the balance sheets for these types of funds include only current assets and current liabilities.

Governmental funds are accounted for on a modified accrual basis, thus revenues are recognized when measurable and available, (60 days) and expenditures are recorded when the related liability is incurred.

GENERAL FUND
The General Fund is the City's single largest fund type and accounts for unrestricted revenues such as general taxes and intergovernmental revenue, user fees, fines, rents, and other miscellaneous general revenues. This fund supports basic services including Police, Fire & Life Safety, Development Services, Community Services, and general administration.

SPECIAL FUNDS (Restricted)
Special revenue funds are used to account for the proceeds from specific revenue sources that are legally or contractually restricted to expenditures for specific purposes.

AB2766 - Air Quality Management Fund
This fund accounts for the City's programs implementing Assembly Bill (AB) 2766, the California Clean Air Act of 1988. Under the provisions of AB 2766, 40% of the fees imposed by the South Coast Air Quality Management District (SCAQMD) are allocated to local jurisdictions to fund expenditures for the reduction of air pollution from motor vehicles. Past qualifying projects have 387
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FUND DESCRIPTIONS
included the purchase of alternative fuel (CNG) vehicles, and various educational and outreach programs to encourage commuter use of transit and rail systems.

Criminal Diversion (Federal & State Asset Forfeiture / Other Public Safety Grants) The Asset Forfeiture fund is the depository for equitable sharing payments received from the Departments of Justice and US Department of the Treasury for assistance in forfeiture cases.

Under state and federal statutes, the City of Placentia receives an equitable share of seized drug funds and real property, along with reimbursement of related overtime expenses in exchange for participating in the program.

By law, these funds may only be spent for law enforcement purposes and are intended to supplement, not supplant, existing funds. Examples of uses of these funds include training, supplies, equipment, and ammunition. Due to the uncertain nature of the timing and amount of forfeitures, and in accordance with fund guidelines, revenues should not be budgeted until actually received.

Citizen Options for Public Safety (COPS/SLESF) - Supplemental Law Enforcement Services Funds Grant
Assembly Bill 3229, Chapter 134, Statue of 1996, established the Citizen's Option for Public Safety (COPS) Program. Per Government Code §§ 30061-30065, compliant cities are allocated a proportionate share of COPS funds by the State, for the exclusive purpose of funding supplemental front line law enforcement services. Proportionate shares are based on population estimates determined by the California Department of Finance. Under the standard grant program allocation, the City of Placentia is eligible to receive the minimum grant amount of $100,000 each year. Funds from this program cannot supplant existing funding and are to be used for one-time items including equipment.

Housing and Community Development (CDBG)
This fund was established to satisfy legal requirements that Community Development Block Grant (CDBG) funds be segregated from other funds. CDBG funds are used to provide a variety of public service programs throughout the community.

Gas Tax
The City receives Gas Tax funds per various sections of the Streets and Highways Code.

State law requires these funds be utilized solely for
street -related purposes such as new street
construction, rehabilitation, and maintenance.

Specific capital projects for street and traffic signal improvements and rehabilitation endeavors are
identified in the Capital Improvement Program (CIP)
budget.
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FUND DESCRIPTIONS
Housing Successor Fund — (Former Redevelopment)
In June 2011, the Redevelopment Dissolution Act, AB1x26, was signed by the Governor and later upheld by the California Supreme Court on December 29, 2011. As a result of the Court's ruling on the Dissolution Act, all redevelopment agencies in California were dissolved effective February 1, 2012. This fund accounts 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.

City Capital Projects Fund
Used 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.

Measure M Fund
This fund accounts for the City's share of the Measure M2 one-half cent sales tax approved by Orange County voters and administered by the Orange County Transportation Authority.

Funding is allocated to the City for streets, roads and transit projects. Measure M also provides funds for the City's Senior Mobility program.

Road Maintenance & Rehabilitation Program (SB1)
This fund was created to account for the City's share of proceeds from SB 1, the Road Repair and Accountability Act of 2017. Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges and other transit related improvements.

Placentia Regional Navigation Center
This fund accounts 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) grand and SB2 funds. Future revenue
sources will include reimbursements from the North Orange County Cities.

TOD Impact Fee Special Revenue Fund
This fund accounts 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. 389
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FUND DESCRIPTIONS

PROPRIETARY FUNDS
Proprietary funds account for operations that are financed and operated in a manner similar to private sector enterprises, in that goods and services are provided to the general public (external users) or other City department (internal users), and the costs are financed or recovered primarily through fees and service charges charged directly to the users of the goods and services.

ENTERPRISE FUNDS
Enterprise funds are used to report activities for which service charges or fees are charged to external users. Costs for providing the goods and services to the general public (Utility Customers) is paid through a user rate structure that is appropriate, fair and equitable based on the cost of the commodity.

Refuse Fund
The City contracts with Republic Services to provide residential and commercial waste collection, and recycling. The City utilizes the property tax assessment process to include the waste collection charges owed to Republic Services.

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 sewer system.

INTERNAL SERVICE FUNDS
Internal Service Funds are used to report activities for which service charges or fees are charged to internal users. These funds account for the financing of goods or services provided by one department to another on a cost reimbursement basis. These functions include risk management, employee health and welfare and equipment replacement.

FIDUCIARY FUNDS
Funds that account for resource held in a trustee, custodial or agency capacity for others.

Housing Successor Fund — (Former Redevelopment)
In June 2011, the Redevelopment Dissolution Act, AB1x26, was signed by the Governor and later upheld by the California Supreme Court on December 29, 2011. As a result of the Court's ruling on the Dissolution Act, all redevelopment agencies in California were dissolved effective February 1, 2012. On February 1, 2012, the City elected to become the Successor Agency to 390
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FUND DESCRIPTIONS
the RDA to wind down its affairs. A new fund was created to account for the activities of the Successor Agency during the dissolution process.

Community Facilities District Fund
This fund accounts for the Community Facilities Districts No. 89-1 (East Placentia) and 2018-1 (Transit Oriented District) providing a special tax to pay for certain public facilities within such community facilities district, to levy such special tax and to provide non -General Fund and sustainable funding source to pay for the ongoing maintenance and repairs of the public streetscape improvements constructed within the Transit Oriented District. This fund also accounts for the service of $25,000,000 of Community Facilities District No. 89-1 (East Placentia) Special Tax Bonds issued to finance the construction of street and drainage infrastructure improvements and to fund development of a 13 -acre park/recreation sports complex to benefit properties within the District.

Public Safety CFD 2014-01 Fund
This fund accounts 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.
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Community Overview
The City of Placentia is located in the northern part
of Orange County and encompasses just under
seven square miles adjacent to the cities of Yorba
Linda, Brea, Fullerton and Anaheim.

The City was incorporated in 1926 and became a
charter city in 1967. It is governed by a five -
member elected City Council. The city operates
under the Council/Administrator form of city
government whereby City Council members serve
staggered, four-year terms, with a three
consecutive term limit. The Mayor is selected by the
ami
Placentia
i
City Council from among its membership and
serves a one-year term. The City Administrator is appointed by the City Council to carry out the policies and direction of the City Council, oversee the day-to-day operations of the City, and appoint department directors.

Placentia is a full-service city that provides the following services: police, fire & life safety, street and park maintenance, recreation, traffic/transportation, public improvements, economic development, building and planning, zoning, and general administrative services.

Demographics
0 0 0
o
9990 52,384 Total Population 43.7% of Population with
NU N Y �� bachelor's degree or Higher

38.0 Median Age
in, R WMedian Income- $110,575

49.3% Male & 50.7% Female ° � °
f! Y 61.3% Homeownership Rate 17,545 Total Housing Units 392
215

History
Placentia's rich history began in 1837 when the
governor of Mexico granted the Rancho San Juan
Cajon De Santa Ana to Juan Ontiveros. This land grant
�• Mui,,
included the area that today comprises Placentia, ?�
Anaheim, Brea, and Fullerton. Placentia was placed on��;� the map in 1910 when A.S. Bradford persuaded the
Santa Fe Railroad to re-route their track through this
area, thus shortening the rail distance to Los Angeles.

A station was built and packing houses were
established for the town's growing citrus industry. Mr.

Bradford and Richard Melrose laid out the main streets of the town and, in his honor, Bradford Avenue and Melrose Avenue retain their names today.

Placentia's climate and rich land attracted an ever-growing number of new residents. The area was well suited for raising citrus fruit, walnuts, avocados, and grapes. Placentia became the center of Valencia Orange Growing and Packing, and its 500 citizens voted to incorporate the City in 1926.

In 1960, Placentia's population had reached only 5,000; however, a phenomenal growth period was just beginning. By 1970, the population had increased five -fold to nearly 25,000. Today, Placentia is still a fast-growing community with over 50,000 residents, beautiful suburban homes, good schools, stately churches, and wholesome recreation.

Top Sales Tax Producers (in alphabetical order)
76 Adamson Police Products
Arco AM PM
Audi North OC
Beacon Sales Acquisition
Bejac
Chevron
CTS Appliance
CVS Pharmacy
Facility Solutions Group
Fairway Ford Sales
LX Hausys America
216
Mason West
Marshalls
Nickey Petroleum
Petroleum Marketing Equipment
Prosource of North Orange County
Ralphs
Roofing Wholesale
Ross
Schorr Metals
Stater Bros
Suburban Propane
TMG
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A method of accounting that recognizes the financial effect of Accrual Basis of
transactions, events, and inter -fund activities when they occur, Accounting
regardless of the timing of related cash flows.

Adjusted / Amended
The adopted budget plus any modifications (increases, decreases and Budget
transfers) approved by the City Council during the fiscal year.

Air Quality
The air pollution control agency for the four -county region including Management District
Los Angeles and Orange counties, as well as parts of Riverside and San (AQMD)
Bernardino counties ( ).

Air Quality
A plan developed by the AQMD that serves as the blueprint for all the Management Plan
future rules necessary to bring the area into compliance with federal (AQMP)
and state clean air standards.

Allocation of Funds
Setting aside funds for a specific purpose or program. An allocation of funds makes them available for expenditure.

Annual
The summarization of the City's financial activity for the previous fiscal Comprehensive
year which also includes a summarization of significant milestones Financial Report
that were accomplished during the year by department, fiscal policies, (ACFR)
and statistical information. The ACFR is prepared by December of each year.

Appropriation
A specific amount of money authorized by the City Council for an approved work program.

Arterial Highway
A Measure M funded program for pavement rehabilitation projects on Financing Program
arterial roadways in the county.
(AHFP)
Assessed Property
The value set upon real estate or other property by the County Tax Assessor.

Assessed Valuation
A measure of the taxable value of property located within the City against which the tax rate is applied.

Assessed Valuation
That part of the assessment roll containing state assessed property (Secured)
and property the taxes on which are a lien on real property sufficient to secure payment of taxes.

Assessed Valuation
The remainder of the assessment roll that is not on the secured roll. (Unsecured)
The taxes on the unsecured roll are a personal liability of the assessed owner.
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Assessment District
A separate unit of government that manages specific resources within (AD)
defined boundaries. Through self-financing, it can raise predictable funds, such as taxes, user fees or bonds, directly from the people who benefit from the services.

Audit
Prepared by an independent certified public accountant (CPA), the primary objective of an audit is to determine if the City's financial statements fairly represent the City's financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with performing an audit, independent auditors customarily issue a Management letter stating the adequacy of the City's internal controls as well as recommending improvements to the City's financial management practices.

Balanced Budget
A budget in which planned expenditures do not exceed planned revenues.

Bond Refinancing
The pay off and re-issuance of bonds to obtain better interest rates and/or bond conditions.

Bonds
A certificate of debt issued by an entity, guaranteeing payment of the original investments, plus interest.

Bradley Burns
A 1% local sales tax is collected by the State of California as part of the Uniform Local Sales
larger sales and use tax levied on the total retail price of tangible & Use Tax
personal property based on business location. Use Tax is the complement of sales tax and imposed on the purchaser, usually for goods purchased out-of-state for local use.

Budget Surplus
The difference between operating revenues and operating expenditures. The Budget Surplus may be used for ongoing expenses (as opposed to year-end balance, which may be used only for one- time expenses).

Budget Amendment
The Council has the sole responsibility for adopting the City's budget and may amend or supplement the budget at any time after adoption by majority vote. The City Administrator has the authority to approve transfers within funds.

California
A state statute enacted in 1970 that requires state and local agencies Environmental
to identify the significant environmental impacts of their actions and Quality Act
to avoid or mitigate those impacts, if feasible (ceres.ca.gov/ceqa). (C EQA)
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California
The agency responsible for programming and allocating funds for the Transportation
construction of highway, passenger rail and transit improvements Commission
throughout California ( )
(CTC)
Capital Equipment
Equipment (fixed assets) with an initial individual cost of $2,500 or more and an expected useful life greater than two years, such as automobiles, microcomputers and furniture.

Capital Expenditure
Expenditure for tangible property with an initial individual cost of $25,000 or more and an expected useful life greater than two years per item.

Capital Improvement
A multi-year financial plan for construction of infrastructure, facilities, Program Budget
and rehabilitation such as buildings, streets, storm drains, and (CIP)
recreational facilities with an initial individual cost of at least $50,000 and an estimated useful life greater than two years.

Certificates of
Tax-exempt bonds issued by state entities usually secured with Participation
revenue from an equipment or facility lease. COPS enable (COPS)
governmental entities to finance capital projects without technically issuing long-term debt. This can be advantageous, as the issuance of long-term debt is commonly subject to voter approval and other state constitutional and statutory requirements. COPs have been used by municipalities to pay for prisons, office buildings, vehicles, and even parks.

City Council
Comprised of five City Councilmembers who are elected by district by (CC)
registered voters of the City. Councilmembers each serve a four-year term. The mayor is selected by fellow councilmembers and serves a one-year term. The City Council adopts legislation, sets policy, adjudicates issues and establishes the budget of the City.

Community
Provides eligible metropolitan cities and urban counties with annual Development Block
direct grants to revitalize neighborhoods; expand affordable housing Grant (CDBG)
and economic opportunities; and/or improve community facilities and services, principally to benefit low- and moderate -income persons.

Community Facilities
A special district that can issue tax-exempt bonds as a mechanism by District
which public entities finance construction and/or acquisition of (CFD)
facilities and provide public services to the district.

Community Oriented
A grant program that provides partial funding of salaries for several Policing Services
front line law enforcement positions.
(COPS)
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Conditional Use
Allows a city or county to consider special uses which may be essential Permit
or desirable to a particular community, but which are not allowed as a (CUP)
matter of right within a zoning district, through a public hearing process.

Congestion
Defines a network of state highways and arterials, level of service Management Plan
standards and related procedures.
(CMP)
Consumer Price
A statistical description of price levels provided by the U.S.

Index
Department of Labor. The change in this index from year to year is (CPI)
used to measure the cost of living and economic inflation.

Contingency Reserve
The City has established a policy to set aside a percentage of its General Fund operating expenditures as a contingency reserve.

Cost Allocated
A method used to charge General Fund costs budgeted in one department to another department or another fund.

Debt Service
The payment of principal and interest on borrowed funds such as bonds.

Department,
Section Organizational units within the Operations Budget that group (Function) Division
resources together to provide related types of services.

Discretionary
Pertains to funds, grants or other resources that are not restricted as Funding
to use.

Opportunities
Drug Abuse
DARE — a police officer -led series of classroom lessons that teaches Resistance Program
children from kindergarten through 12th grade how to resist peer pressure and live productive drug- and violence -free lives ( www.dare.con ).

Encumbrance
An encumbrance is not an expenditure, but a reservation of funds to be expended at a future date. A commitment is usually made through a purchase order for the future payment of goods and services not yet received or paid for.

Enhanced
A separate government entity to be created by a city or county within Infrastructure
a defined area to finance infrastructure projects with community -wide Financing District
benefits.
(EIFD)
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Enterprise Fund
This fund type is used to account for operations that are: (a) financed and operated in a manner similar to private sector enterprises and it is the City's intent that the costs (including depreciation) of providing goods or services to the general public be financed or recovered primarily through user charges.

Environmental
A state funded grant program for projects related to environmental Enhancement and
enhancement or design, particularly of transportation facilities.

Mitigation Program
(EEMP)
Environmental
A public document used by governmental agencies to analyze the Impact Report
significant environmental effects of a proposed project, to identify (EIR)
alternatives and disclose possible ways to reduce or avoid potential environmental damage. The California Environmental Quality Act requires an EIR whenever the initial study or other evidence in the record has produced substantial evidence that the proposed project might produce significant environmental effects.

Expenditure
The outflow of funds paid or to be paid for an asset, goods or services regardless of when the invoice is actually paid. This term applies to all funds.

Fair Housing Council
A private non-profit organization which fosters diversity in housing of Orange County
through education and the enforcement of state and federal fair (FHCOC)
housing laws (Jyyyyy.ldll l luuJll i uu.u. ).

Fees
A general term used for any charge levied by government for providing a service or permitting an activity.

Fiscal Year
Any period of 12 consecutive months designated as the budget year. (FY)
Placentia's budget year begins on July 1 and ends on June 30.

Fixed Asset
Assets that are long-term in nature such as land, buildings, machinery, furniture and other equipment. The City has defined such assets as those with an expected life in excess of one year and an acquisition cost in excess of $5,000.

Franchise Tax
Revenue generated from taxes paid by a business that gave an exclusive contractual agreement to operate and use the public right- of-way in the City Examples includes Southern California Edison, Cable Television, Southern California Gas and Republic Disposal. 398
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Fringe Benefits
These include retirement/pension; health, life, and disability insurance; workers' compensation; and vacation, administrative, medical and special leave of absence time.

Full-Time Equivalent
Refers to part-time hours converted to one full-time equivalent (FTE)
position, which equals 40 hours per week, 52 weeks per year. (2080 hours per year)
Fund
A self-balancing set of accounts to record revenues and expenditures associated with a specific purpose.

Fund Balance
Within a specific fund, the funds remaining when all current and prior year liabilities (expenditures) are subtracted from current and prior year assets (revenues).

Gas Tax
State tax received from gasoline sales utilized solely for street related purposes, such as new construction, rehabilitation or maintenance.

General Fund
The primary operating fund of the City (as opposed to all other City funds, which are designated as "Special Funds").

General Plan
A comprehensive, long-range, policy document required by state law.

The document establishes the City's overall spatial and temporal development pattern.

Geographical
A computer system capable of assembling, storing, manipulating and Information System
displaying geographically referenced information.
(GIS)
Goal
A time/phased strategy that will implement a specific course of action or plan, typically, a long-term process.

Government Finance
A professional association of state/provincial and local finance officers Officers Association
in the United States and Canada ( ).
(GFOA)
Governmental
Organized in 1984 by the Financial Accounting Foundation to Accounting
establish standards of financial accounting and reporting for state and Standards Board
local governmental entities ( iww.e aq sb.org).
(GASB)
Grants
Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity or facility.
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Gross Domestic
The total of the goods and services produced by labor and property Product (Real)
located in the United States.
(GDP)
Gross State Product
The total of the goods and services produced by labor and property (GSP)
located in the State of California.

Growth Management
Inter -jurisdictional planning regions within Orange County.

Area
(GMA)
Growth Management
A Measure M funded program intended to address the cumulative Program
regional traffic impacts of development not addressed by specific (GMP)
project mitigation and existing system deficiencies.

Hotel Tax (TOT)
Also known as the Transient Occupancy Tax (TOT) or bed tax — a 10% tax added to the cost of renting a hotel room within the City.

Infrastructure
Inputs Includes the City's street, bridge, traffic signal, landscaping, and trail networks. To be capitalized as part of the City's infrastructure network, a related component must have an initial individual cost of at least $50,000 and an estimated useful life greater than two years.

Resources (e.g. dollars, staff and other assets) required to accomplish a job or provide a service.

Inter -Fund Transfers
Payments from one fund to another fund, primarily for work or services provided
Landscape
An assessment district to provide funds for park and parkway Maintenance District
landscaping, lighting and park maintenance.
(LMD)
Lease -Purchase
Contractual agreements which are termed leases, but whose lease Agreement
amount is applied to the purchase.

Level of Effort
Generally used to identify the number of staff providing a particular service. Level of Services Generally used to define the existing or current services, programs and facilities provided by government.

Levy
To impose taxes, special assessments or service charges for the support of governmental activities.

Local Agency
Reviews proposals for the formation of new local governmental Formation
agencies and changes of organization in existing agencies Commission
( www.ociatco.orc; ).
(LAFCO)
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Local Agency
A voluntary program created by statute in 1977 in which participating Investment Fund
agencies (local governments and special districts) invest public funds. (LAIF)
Long -Term Debt
Debt with a maturity of more than one year after issuance.

Major Fund
A fund that comprises more than 10% of total citywide budgeted revenues and transfers -in and/or 10% of total budgeted appropriations and transfers -out. Please see the "Major Funds — Summary by Budget Category" tables presented in the Budget Summary chapter.

Measure M
County -wide sales tax measure used to fund a variety of transportation related projects.

Measure M - Growth
A county grant program that provides funding for projects that benefit Management Area
the greatest number of jurisdictions within a designated growth (M-GMA)
management area (GMA) in Orange County. The primary objective of this program is to address current traffic deficiencies and the cumulative regional traffic impacts of development not addressed by specific project mitigation and existing system deficiencies.

Measure M —
The non-competitive portion of the sales tax revenue generated Turnback
through Measure M that is "turned back" to the City. Funds are restricted to circulation related projects (street, traffic signal, etc.) and are received quarterly.

Measure U
A 1% sales tax approved by the voters in November 2018 and effective April, 2019 to help fund much-needed infrastructure repairs and maintenance as well as public safety and other critical services.

Memorandum of
An agreement outlining the terms of employment entered into Understanding
between the City and employees of various bargaining units. (MOU)
Modified Accrual
Basis of Accounting Basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, or measurable, except for un -matured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.
401
224

National Pollutant
NPDES — a permit program authorized by the Clean Water Act that Discharge
controls water pollution by regulating point sources that discharge Elimination System
pollutants into waters of the United States.

Objective
Describes an outcome to be accomplished in specific, well-defined and measurable terms and is achievable within a specific timeframe; generally, programs have objectives.

Operating Budget
A budget for General Fund department service delivery expenditures such as salaries, utilities and supplies. The day-to-day costs of delivering essential City services.

Orange County Fire
An agency that provides fire prevention/suppression and emergency Authority
services to 23 cities and all the unincorporated areas in Orange County (OCFA)
( www.ocfa.org) .

Orange County
A pooling of cash by the county, local agencies and school districts for Investment Pool
investment purposes run by the Orange County Treasurer. (OCIP)
Orange County
A regional transportation agency formed in 1991 to develop and Transportation
implement unified transportation programs and services for Orange Authority
County ( vw.octa.n� ).
(OCTA)
Ordinances
A formal legislative enactment by the governing board (i.e. City Council) of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies.

Outputs
The general results expected from programs and functions.

Part I Crimes
The most serious criminal offenses, including murder, rape, robbery, aggravated assault, burglary, larceny/theft, auto theft and arson.

Part II Crimes
All other criminal offenses not defined as Part I crimes.

Pavement
PMS — a computer-assisted decision-making process designed to help Management System
cities and counties prevent pavement problems through maintenance and repair in a timely, cost-effective manner.

Pavement Condition
A scale from 1 to 10 that measures the structure, surface condition Index
and riding comfort of the roadway.
(PCI)
Performance Budget
A budget wherein expenditures are tied to the measurable performance of activities and work programs.
402
225

403
226
Performance
Statistical measures that are collected to show the impact of dollars Measurements
spent on City services.

Personnel Expenses
Salaries and fringe benefits, such as pensions and insurance, for full- time and part-time employees of the City.

Priority E
Calls Refers to the most serious calls for emergency response for serious emergencies, in -progress calls and potentially life-threatening incidents that require a Code 3 (use of lights and siren) response.

Priority I Calls
Refers to calls for emergency response for serious emergencies, in progress calls and potentially life-threatening incidents that do not require a Code 3 (use of lights and siren) response.

Program
Represents major areas or support functions that can be defined as a service provided to citizens, other departments or other agencies.

Program Budget
A budget wherein expenditures are displayed primarily on programs of work and secondarily by the character and object class of the expenditure.

Property Tax
A tax levied on the assessed value of real property; also known as ad valorem tax. In California, this tax is limited to 1% with the exception of pre -Proposition 13 approved bond debt service. Proposition 13 On June 6, 1978, the California electorate approved Proposition 13, the "People's Initiative to Limit Property Taxation," which limited the tax rate for real estate as follows: the maximum amount of any tax on real property shall not exceed 1% of the full cash value of such property.

The City of Placentia receives $0.1340 cents per dollar of the Prop 13 tax.

Proposition 218
On November 5, 1996, the California electorate approved Proposition 218, the self -titled "Right to Vote on Taxes Act." Proposition 218 added articles XIIIC and XIIID to the California Constitution and made numerous changes to local government finance law. Public officials are required to conduct the public's business in compliance with Proposition 218.

Public Employees'
Provides retirement and health benefit services to members from the Retirement System
state, school districts and local public agencies (ww.calpers.ca.cc ). (PERS)
Ralph M. Brown Act
The Brown Act is a California law that insures the public can attend and participate in meetings of local government.
403
226

404
227
Redevelopment
Formerly charged with the oversight for the redevelopment process Agency
for the City of Placentia. In June 2011, the Redevelopment Dissolution (RDA)
Act, AB1x26, was signed by the Governor and later upheld by the California Supreme Court. As a result, all redevelopment agencies in California were dissolved effective February 1, 2012.

Regional Surface
A federal and state funded grant program used for projects located Transportation
on highway systems (classified higher than local roads or rural minor Program
collectors), bridges on any public highway, and transit systems. (RSTP)
Reserve
A designated amount of funds set aside from a fund's balance which is legally restricted for a specific purpose and is therefore not available for general appropriations.

Resolution
A special or temporary order of a legislative body (e.g. City Council or Planning Commission) requiring less formality than an ordinance.

Resources
Units of dollars or physical input, such as work years or work hours, and other assets used to support and attain program objectives.

Revenue
Annual income received by the City.

Right of Way
ROW — a strip of land occupied or intended to be occupied by a street, crosswalk, railroad, electric transmission line, oil or gas pipeline, water main, sanitary or storm sewer main, shade trees, or special use.

Southern California
The Metropolitan Planning Organization for Los Angeles, Orange, San Association of
Bernardino, Riverside, Ventura and Imperial counties, that is mandated Governments
by the federal government to research and draw up plans for (SCAG)
transportation, growth management, hazardous waste management and air quality ( www.scag.ca.gov) .

Special Funds
The City's accounts are broken into distinct funds, each earmarked for a different purpose, with the principle and interest of the funds tracked separately. The City's main operating fund is its General Fund, while other City funds are designated as Special Funds. These funds are legally restricted for a specific purpose and is therefore not available for general use.

Traffic Enforcement
The number of moving citations divided by the number of injury Index
accidents.
404
227

Transaction Sales
Similar to the Bradley Burns Sales Tax, a transactions and use sales tax Tax (District Tax)
is allocated to the district where the tangible goods are delivered or placed into use. Voter approved district taxes are levied within incorporated city limits. Placentia has a 1% transaction tax authorized in November 2018.

Transfers-In/Out
A transfer of resources between different City funds (see glossary definition of "Fund"). A transfer of cash from the City's General Fund to a City Special Fund, for example, would be designated as a transfer - out in the General Fund, and then a transfer -in in the receiving Special Fund.

Transient Occupancy
A 10% tax added to the cost of renting a hotel room within the City.

Tax
Also known as the Hotel or Bed Tax.
(TOT)
Transportation
An association comprised of employers and property owners that Management
promotes the use of alternative forms of commuting to the single Association
occupant vehicle. Traffic congestion relief and air quality benefits are (TMA)
the primary goals of TMA.

Transportation
A plan that promotes the reduction of single occupant vehicle use in Management Plan
order to improve air quality and relieve congestion. Transportation (TMP)
Subventions Funds from outside sources used to construct transportation improvements that must be used for specific projects.

Unencumbered
That portion of an allocation not yet expended or committed to a Appropriation
specific purpose. Unexpended Appropriation is that portion of an allocation not yet actually paid.

Voice Over Internet
Used to manage the delivery of voice information over the Internet.

Protocol
Year -End Surplus Funds remaining at the end of a fiscal year that are (VoIP)
available for allocation or for one-time purchases (not for on-going programs or services).
405
228

Job Classification Description
Equal Employment Opportunity

SENIOR BUILDING PERMIT TECHNICIAN
JOB FAMILY: Development Services
PAY PLAN: Full -Time Pay Plan
EEO CATEGORY:

UNION STATUS: PCEA
FLSA: Non -Exempt
GRADE:

JOB CLASS CODE:

Adopted: May 2025
PURPOSE STATEMENT:

Under the direction of the Building Inspection Manager, the Senior Building Permit Technician performs advanced technical, administrative, and customer service functions related to the processing, coordination, and issuance of building permits. This classification is distinguished from the Building Permit Technician by its responsibility for complex projects, technical guidance to staff, participation in process improvements, and greater independence of judgment and decision-making. The Senior Building Permit Technician ensures compliance with applicable laws, regulations, and City policies, and may act as a lead to permit staff.

ESSENTIAL FUNCTIONS, DUTIES, AND TASKS:

The following list of functions, duties, and tasks is typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform other closely related or department -specific functions, duties, and tasks from those set forth below to address business needs and changing business practices. • Provides customer service to the public at the building counter and over the telephone; processes building permits and applications; responds to inquiries and permit discrepancies; provides information regarding permit procedures, policies, and functions.
• Provides technical and procedural support to Building Permit Technicians and other staff; assists with training and onboarding new personnel; reviews the work of permit staff for accuracy and completeness.
• Assists in the development, revision, and implementation of procedures, checklists, and standards related to permitting and public counter services; recommends process improvements. • Serves as a technical resource to customers, contractors, architects, engineers, and internal departments regarding complex or unusual permitting issues, code requirements, and plan routing. • Assists in the process of reviewing and adopting periodic updates to the City's Building Codes, Fire Codes, and all Code revisions related to the Building Division. • Calculates, reviews, and verifies complex fees and valuations for building permits, plan reviews, and other related services; reconciles and audits fee collection data for accuracy. • Schedules building inspections in cooperation with building inspection personnel after reviewing service requests.
• Tracks and reports on the status of construction projects in plan check review. • Assists customers in viewing microfiche, laser fiche, hard copies of permits, or in making copies; assists other agencies and customers with record inquiries and retrieves requested building plans and permits from archives.
• Prepares reports, statistical summaries, and permit activity logs; assists with data entry and management of permit tracking software and databases.

Senior Building Permit Technician Page 1 of 3
406

• Processes check requests related to the Building Division including those related to "pass-through" fees related to building permits.
• Maintains building division records, including a variety of forms and logs; provides downloads of information related to the city's website.
• Prepares departmental activity records and reports, including the faxing of utility releases. • Compiles data and conducts various reporting related to the Building Division. • Supports electronic plan check and digital permit services; assists customers and staff with technical troubleshooting and submittal procedures.

OTHER DUTIES:
• Performs other related duties as assigned to ensure the efficient and effective functioning of the work unit and the City.

KNOWLEDGE, SKILLS, AND ABILITIES
(At time of application)
Knowledge of:
• General inspection practices associated with the use of the Uniform Building Code, Uniform Administrative Code, Uniform Zoning Code, and the legal aspects of Code Administration and City Municipal Code
• Planning review procedures
• Application of building permit fees
• Building inspection scheduling practices
• Customer service principles and techniques
• Basic math calculations and functions
• General office procedures and protocols as well as department operations and services • Techniques for analyzing and streamlining business processes in a regulatory environment • Principles of technical training and guidance
Skills and Abilities to:
• Understand, interpret, and enforce Municipal Code pertaining to the issuance of building permits, handling of documents, and recording of fees
• Lead and support permit staff, including providing training and resolving work-related issues • Operate standard office equipment, including a computer terminal, and use permit processing, word processing, and spreadsheet software programs
• Organize and schedule inspections
• Prepare and maintain records and standard reports
• Coordinate multi -departmental reviews and resolve plan check issues or discrepancies • Analyze and solve basic work problems by applying departmental procedures • Communicate clearly and concisely, orally and in writing • Establish, interact, and maintain effective working relations with city staff, other departmental representatives, developers, contractors, and the general public • Use written and oral communication skills
• Read and interpret data, information, and documents
• Analyze and solve problems
• Use math and mathematical reasoning
• Observe and interpret situations
• Prioritize multiple tasks and projects in a fast -paced environment with frequent interruptions • Maintain confidentiality, professionalism, and accuracy in dealing with sensitive materials Senior Building Permit Technician Page 2 of 3
407

• Type at a rate sufficient to effectively perform job duties JOB QUALIFICATIONS / REQUIREMENTS:
(At time of application and in addition to the Knowledge, Skills, and Abilities listed above.) EDUCATION AND EXPERIENCE:

Any combination of training, education, and experience that would provide the required knowledge, skills, and abilities is qualifying.
• A high school diploma or GED or equivalent and two years of experience in permit processing, customer service, and engineering or building services support work. • Four (4) years of increasingly responsible experience in building permit processing, building division support, or related technical clerical work, including at least one year in a lead or advanced technical capacity.

LICENSE(S) REQUIRED:
• None required
CERTIFICATIONS AND TESTING REQUIRED:
• Possession of a valid International Code Council (ICC) Permit Technician Certification is required at the time of appointment.
• Additional ICC certifications (e.g., Plans Examiner, Building Inspector) are desirable.

WORK ENVIRONMENT/ PHYSICAL DEMANDS:
(Must be performed with or without reasonable accommodations) • Works in an office setting and the noise level is typically quiet or moderately quiet • Frequently required to use hands to finger, handle, feel, or operate objects, controls, and standard office equipment
• Reach with hands and arms
• Frequently required to sit, stand, walk, talk, and hear • Occasionally required to stoop, kneel, and crouch
• Occasionally lifts and carries plans, permits, and other documents typically weighing less than 25 pounds • Specific vision abilities required by this job include close vision, color vision, and the ability to adjust focus
Senior Building Permit Technician Page 3 of 3
408

Job Classification Description
Equal Employment Opportunity

POLICE RECORDS TECHNICIAN
JOB FAMILY: Police Department/Records
PAY PLAN: Full -Time Pay Plan
EEO CATEGORY:

UNION STATUS: PCEA
FLSA: Non -Exempt
GRADE:

JOB CLASS CODE:

UPDATED: May 2025
PREVIOUS UPDATE: June 2020
PURPOSE STATEMENT:

Under the direction of the Support Services Administrator, the Police Records Technician prepares, processes, maintains, and retrieves police records, data, and reports; answers questions and provides information and assistance to other agencies and the public, in person and by telephone; provides a variety of clerical and general office assistance to Police Department personnel: and performs related duties as assigned.

ESSENTIAL FUNCTIONS, DUTIES, AND TASKS:

The following list of functions, duties, and tasks is typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform other closely related or department -specific functions, duties, and tasks from those set forth below to address business needs and changing business practices. • Types up logs and forms such as memoranda, form letters, envelopes, police clearances, licenses and permits, declarations, court appearance calendars, and misdemeanor complaints • Responds to officers' requests for information by researching, collecting, and disseminating authorization information
• Monitors an automated storage queue for incoming documents and processes according to priority, proofreading documents for accuracy and completeness.
• Enters a variety of information such as personal identifiers, vehicle information, property descriptions, serial numbers, criminal offense codes, tattoos, etc. from several different types of documents into the automated RM, and performs quality control on data entered into RMS. • Assemble materials and prepare misdemeanor citation packets for court. • Retrieves, print and duplicates documents utilizing a microfilm reader, an optical retrieval system, a records management system, and hard copy files.
• Answers phone inquiries from the public and other law enforcement and governmental agencies; and assists the public, other law enforcement, and governmental personnel at the service counters. • Processes record sealings requiring research and collection of any correlating documents throughout the department, deletion of indexes, sealing, and storage of records until ordered destruction. • Coordinates with background investigators, other departmental and city personnel for processing of applicants (internal, external, and business) and sex, arson, and narcotic registrants; processes and maintains electronic and hard copy files, issues permits.

OTHER DUTIES:

Performs other related duties as assigned to ensure the efficient and effective functioning of the work unit and the City.

Police Records Technician Page 1 of 3
409

KNOWLEDGE, SKILLS, AND ABILITIES
(At time of application)
Knowledge of:
• Modern office equipment and procedures
• English usage, spelling, grammar, and punctuation
• Filing procedures (alpha and numeric)
• Basic math
• Telephone procedures and etiquette
Skills and Abilities to:
• Read, understand, and apply difficult materials
• Operate a computer keyboard with accuracy
• Proofread text and data fields for accuracy and compliance with entry rules • Work with a high level of interruption
• Establish and maintain effective relationships with those contacted in the course of work • Use written and oral communication skills
• Read and interpret data, information, and documents
• Analyze and solve problems
• Work under intensive deadlines, and interact with city managers, staff, customers, the public, and others encountered in the course of work
JOB QUALIFICATIONS / REQUIREMENTS:
(At time of application and in addition to the Knowledge, Skills, and Abilities listed above.) EDUCATION AND EXPERIENCE:

Any combination of training, education, and experience that would provide the required knowledge, skills, and abilities is qualifying.
• A high school diploma or G.E.D. equivalent and completion of specialized clerical courses; one year of heavy telephone, public contact, or dispatch experience and ability to learn the geography and location of streets, landmarks, and public and private facilities in and around the City of Placentia.

LICENSE(S) REQUIRED:
• Valid, current driver's license
o This position does not typically require driving; however, the ability to use reliable transportation for occasional offsite duties may be necessary.

CERTIFICATIONS AND TESTING REQUIRED:
• None required
WORK ENVIRONMENT/ PHYSICAL DEMANDS:
(Must be performed with or without reasonable accommodations) • Works in both office and field settings. In the office, the noise level is frequently quiet or moderately quiet
• When conducting field observation, the employee is subject to loud construction noise • Regularly required to use hands to finger, handle, feel, or operate objects, tools, or controls and reach with hands and arms
• Talk and hear
• Frequently sit and occasionally stand and walk to access work areas and files Police Records Technician Page 2 of 3
410

• Stoop, kneel, or crouch to access or place records or files • Lift and carry records and documents, typically weighing less than 20 pounds • Specific vision abilities required by this job include close vision and the ability to adjust focus Police Records Technician Page 3 of 3
411

Job Classification Description
Equal Employment Opportunity

SUPPORT SERVICES ADMINISTRATOR
JOB FAMILY:

PAY PLAN: Full -Time Pay Plan
EEO CATEGORY:

UNION STATUS: Non -Represented
FLSA: Exempt
GRADE:

JOB CLASS CODE:

UPDATED: May 2025
PREVIOUS UPDATE: Mar 1993
PURPOSE STATEMENT:

Under the direction of the Police Sergeant, the Support Services Administrator performs and supervises a variety of technical law enforcement -related functions in such areas as communications, property, evidence, jail and other police services activities, and technical law enforcement -related functions; participates in the research and development activities of the Police Department; and does other auxiliary police functions as required.

ESSENTIAL FUNCTIONS, DUTIES, AND TASKS:

OTHER DUTIES:
• Performs other related duties as assigned to ensure the efficient and effective functioning of the work unit and the City.

KNOWLEDGE, SKILLS, AND ABILITIES
(At time of application)
Knowledge of:
• Technical aspects of public safety operations
• Statistical analysis, systems analysis, and research methods • Effective supervisory principles and practices
Support Services Administrator Page 1 of 2
E,IPA

• Office procedures, department policies, and the understanding of California Penal Codes • Investigation techniques
• Maintenance equipment and procedures
• Organization or department operations, services, and policies Skills and Abilities to:
• Communicate effectively orally and in writing
• Establish and maintain effective working relationships with supervisors, subordinates, fellow employees, and the public
• Auditory and visual comprehension (understanding and processing the written and spoken word) • Short- and long-term memory recall
• Read, write, drive, and function independently
• Interacting effectively in group situations
• Ensure problems are resolved quickly and with compassion while maintaining policy JOB QUALIFICATIONS / REQUIREMENTS:
(At time of application and in addition to the Knowledge, Skills, and Abilities listed above.) EDUCATION AND EXPERIENCE:

Any combination of training, education, and experience that would provide the required knowledge, skills, and abilities is qualifying.
• Bachelor's degree in public administration, business administration, criminology, or a related field; or equivalent. Five years of experience.

LICENSE(S) REQUIRED:
• Valid, current driver's license.
o The City reasonably expects driving to be one of the job functions for the position, and the City reasonably believes that using an alternative form of transportation would not be comparable in travel time or cost to the City.

CERTIFICATIONS AND TESTING REQUIRED:
• CLETS certification immediately upon hire
• First aid and CPR certification
• CSI certification
WORK ENVIRONMENT/ PHYSICAL DEMANDS:
(Must be performed with or without reasonable accommodations) • Frequently required to stand, walk, bend, twist, reach, stretch, push, pull, drag, lift up to 50 pounds • Climb, kneel/crouch/squat, use feet to drive, and use hands for feeling, simple grasping, firm grasping, and fine manipulation (dominant hand)
• Specific vision abilities required by this position include close vision, distance vision, peripheral vision, depth perception, and the ability to adjust focus
• Specific hearing abilities required by the position include adequate hearing at close proximity, at a distance, and in both ears
Support Services Administrator Page 2 of 2
413

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Fiscal Year 2025-26
May 20, 2025
414

Presentation Overview
• Economic Challenges
• FY 2025/26 Proposed Budget Overview (All Funds)
• FY 2025/26 Proposed General Fund Budget
• Position Allocation (staffing)
• Measure U
• Fund Balance Projections
• Capital Improvement Program (CIP)
• Next Steps
5 Economic Challenges
• Uncertainty in the market due to tariffs
• Low consumer confidence
• Impact of market volatility on CaIPERS
• Lack of funding for capital projects

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*Sales tax trending downward Statewide
Statewide sales tax projected to be down 1.0% in current fiscal year
Persistently high interest rates and threat of tariffs have negatively impacted purchase of new and used vehicles
Consumer spending patterns have changed as costs of
utilities, restaurant prices and threat of recession
Gas prices down compared to last year in current fiscal year
6 of the City's top 25 sales tax producers are gas stations Gas prices are projected to increase in FY25/26 due to strict environmental regulations in California and looming
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Economic Challenges- Specific to Placentia
•Expense increases outside the City's control:

Increase in Unfunded Actuarial Liability (UAL) payment from $447,000 to $917,000 CaIPERS required due to their recent rate of returns Increase of approx. $1.5 million in personnel expenses due to Memoranda of Understandings and merit increases
Increased insurance costs- $463,000
• Workers Compensation- $228, 000
• General Liability/ Property- $235, 000
Increased animal care services contract- $52,000
Higher costs of goods and services citywide
Unfunded capital needs identified in recently completed facility — assessments
3 Response to Economic Challenges & Key
Assumptions in Budget
• Preliminary deficit identified initially due largely to nominal revenue increases and increased expenses
• Department budgets held to current fiscal year's budget and/ or reduced wherever possible
• Elimination of several vacant positions
• Use of $1 ,000,000 in Section 115 trust funds and $500,000 in one time revenue
• $125,000 allocated to the City's Centennial celebration, with possible need for less General Fund funding based on fundraising efforts • Consolidation of Tamale Festival &Annual Tree Lighting ($30,000 savings)
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Total Proposed Revenues- $89,665,708
Total Proposed Expenditures- $92,686,878
Debt Service
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FY 2025/26 Proposed Budget Overview (All Funds)
Fund Type
General Fund 7
Totals
$53,543,058
18,017,996
403,300
6,392,880
55548,700
4,290,600
1,469,174
$89,6651708
$52,654,458 $888,600
20,996,497 (2,978,501)
403,300 -
355,700
(355,700)
5,850,885
5411995
516621700
(114,000)
51290,600 (11000,000)
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421

Proposed FY 2025/26 Budget
General Fund Revenues - $53,543,058
Intergovernm
1%
Charges for Servic
3%
Misc. Revenue
4%
Fines & Forfeitures
1%
Permits
r- o/-
4%
2 25,000,000
23,000,000
21,000,000
19,000,000
17,000,000
15,000,000
General Fund Revenue - Top Sources
Property Tax
tProperty Tax
$9,000,000
$7,000,000
$6,000,000
$5,000,000
Sales Tax
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Projected Proposed
--*--Sales Tax

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General Fund Operating Revenues
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Revenue Type
Property Taxes
Sales & Use Taxes
Other Taxes
$21,796,023
8,333,000
8,396,040
3,003,903
575,000
1,464,103
1,945,786
2,254,237
47,768,092
465,100
2,665,800
888,600
888,600
4,019,500
52,676,192
$22,7551799
8,449,079
8,852,995
3,073,242
644,200
329,015
1,885,975
2,159,260
48,149,565
950,493
2,665,800
888,600
888,600
5,393,493
53,543,058

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2.3%

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(3.1%)
(4.2%)

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Fire & Life
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$6,301,100
12%

FY 2025/26 General Fund Expenditures by
w M qMI
Department
Department
$1,175,316
$11006,073
(14.4%)
11536,501
752,975
(51.0%)
517801344
515481750
(4.0%)
3,441,650
315481786

3.1%
119351400
119551352

1.0%
114321100
11495,000

4.4%
514921918
514021550
(1.6%)
9681700
8801400
(9.1%)
1416381308
1417161986

0.5%
418411256
41685,350
(3.2%)
51259,700
61300,136

19.8%
$46,502,193 $46,292,358

Position Allocation
• Proposed budget includes funding for 197.0 FTE
employees, and authorization for 4.0 FTE overhires in
Police and Public Safety Communication Departments
• Hiring "Frost" continues to remain in place. Public Safety and revenue generating positions will be prioritized, all others will remain vacant as long as possible and
reviewed for possible consolidation or elimination

Proposed Staffing Changes
Reductions

1. Elimination of one Recreation Coordinator ($93,124) in Community Services

2. Elimination of one Management Assistant ($82,600) in Public Works

3. Elimination of one Engineering Aide ($75,600) in Public Works

4. Elimination of one Senior Management Analyst in the City Administrator's office -Economic Development ($148,815) Position officially eliminated in FY 2024-25, but savings used to balance proposed budget

PLACE NTIA
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Proposed Staffing Changes
Reclassifications

1. Reclassification of one Public Works Manager to Deputy Director of Public Works (Operations) to reflect duties currently being performed and span of control for entire operations division including facility and landscape maintenance and fleet operations ($9,626 annual costs).

2. Reclassification of one vacant Maintenance Worker to a Facilities Maintenance Technician in Public Works to allow the department to recruit for skills needed including irrigation repair needed citywide ($6, 000 annual salary increase offset by equal reduction in contract costs)
a

Proposed Staffing Changes
Reclassifications

3. Reclassification of three Office Specialists in the Police Department to Police Records Technicians to more appropriately classify the position based on duties being performed. ($24,143 annual cost)

4. Reclassification of one Police Services Supervisor to Support Services Administrator in the Police Department to more appropriately classify the position based on duties being performed ($8,056 annual costs)

Proposed Staffing Changes
Reclassifications

5. Reclassification of one Building Permit Technician to Senior Building Permit Technician in the Development Services
Department to reflect the higher level duties and oversight needed and being performed at the front counter. ($4,600 annual costs)

PLACENTIA
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431

PZI-61
155
Item
55 61
-45
Citywide FTE by Department
FY24/25 Adopted
■ Admin. Svcs
■ Human Resources
■ Police
■ Comm Svcs
■ Fire
■ PW
FY25/26 Proposed
Finance
Dev Svcs
■ City Administr
Excludes Over -hires

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432

General Fund Reserve Policy
General Fund Reserve Policy 460 was designed as a result of approval of Measure U by voters and establishes:
• Guidelines for reserves
• Minimum contingency reserve of 25% of operating
expenditures
• Allocation formulas for new, unrestricted on-going and one-time revenues for specific purposes
• Purposes and uses of reserves
3 FY 2025/26 - Measure U
Contributions to Reserves
• The Proposed FY 2025-26 Budget
DOES NOT include the use of the
10% contribution to the Measure
U -Contingency Reserve
($888,600), to support operations.
• Replenishes reserves to 25.03%
After GF
Reserve Target
Met*
$4,443,000
$2,665,800
4 10,000,000
7,000,000
4,000,000
1,000,000
Measure U Historical Performance
$9,000,000
$8,000,000
$7,000,000 0.000
$6,000,000
$5,000,000
Sales Tax
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 Proj. FY25/26 Prop. o�ncFNr�n 435

0 Estimated Beginning Fund Balance 7
7/1/2025 $11,609,800
Projected Change in Fund Balance
Projected Ending Fund Balance at
6/30/26
Fund Balance Designations
Non -Spendable
General Fund Reserve
Contingency Reserve
Unassigned Fund Balance
Estimated Ending Fund Balance
6/30/26 $ ,498,401
Projected Operating Expenditures •
25% FB Target :: •
Reserve total (FB less Non -Spendable) •
General Fund Operating Reserve % KDOWIN,

anital Improvement Proar;;
F..
i
'P
t
Aft—
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AMMIR
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The City's Capital Improvement Program
(CIP) identifies major public improvements
to the City's infrastructure for the next year
and includes new projects and carryover
projects from previous years encompassing
upgrades to existing facilities as well as
rehabilitation of streets and roadways.

�J bv Protect Tvr)e
New Project
Project Type Count
Streets & Streetsca pes
Traffic and Transportation
Sewer
Storm Drain
City Buildings & Facilities
Technology
Parks
Vehicles & Equipment
Major Studies
Total
Total
Of Total Projects
New CIP with
Amount Funding Carryover

�J Protects bv Funding Sc
Measure h
$665,857
Misc. Other
Sources
$3,719,397
SB 1/Gas Tax
$1,483,470
Measure U Dev Impacl
$4,379,172 Fees
$1,152,583

FY 2025/26 Gas Tax Projections
• Measure M and Gas Tax projections down
Gas Tax reduced by $97,690
Measure M reduced by $297,465
Total reduction in anticipated street budget: $395,155
• $880,000 of Measure U funds previously identified for use by the Underground Storage Tank (UST) replacement could:

Be allocated towards tank installation
Be allocated toward the City Hall roof repair project. Combined with $220,000 from Public Safety DIF to fully fund project (Staff recommendation)
$395,155 to backfill street project deficit
Or remain unallocated

FY 2025/26 Gas Tax Projections
it

ROADWAY

REHABILITATION PROJECT
FY 2024-25
" No Street Left Behind"
Public Works Department
March 25, 2025
Fiscal Years - 2024-2025
p Opp d Streets_9revendtive Maintenance
Proposed Streets_Rehahililatio-n
Total Sq. Pt
393F770 (Preventative Maintenance)
649,154 (Rehabilitation)

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ROADWAY

CIP Projects: Streets
Project
6,
Amount
-4
Old Town Streetscape Improvements $150,000
FY 25-26 Annual Sidewalk and Curb Ramp
Repairs $175,000
Golden Avenue Bridge Replacement Project
Construction $3,582,340
FY 24-25 Residential Street Rehabilitation $4,493,206
Total Streets $8,400,546
3 CIP Projects: Traffic & Transportation
LPrqLecC
Citywide Signal Hardware Upgrades
Amount
Total Traffic $154,848
4 CIP Projects: City Buildings and Facilities
r- r-
Project.,-i�
Fuel Tank Removal
Whitten Center Kitchen Renovation
Aguirre Building Renovation
Powell Building Improvement Project -
Windows
City Hall Roof Repairs
Total City Buildings
$220,000
$30,000
$40,000
$112,350
$1,,0001000
$1,402,350
5 CIP Projects: Technology
kL Projecti
Desktop Computer Replacement Program
Enterprise Camera and Security Upgrades
Public Safety Operations HW Upgrades
City Facilities Server/Network Upgrades
61 Amount
Total Technology
$75,000
$95,535
$75,000
$50,000
$295,535

CIP Projects: Parks
Project Aw
Tynes Gym Roof Replacement
Samp and Los Vaqueros Park Playground
Renovations
Replace Park Benches
Whitten Center Pool Deck Repair
Los Vaqueros Storm Drain
Total Parks
rl- 09
$255,000
$600,000
$60,000
$30,000
$150,000
$1,095,000

CIP Projects: Vehicles & Equipment
Fleet Lift Replacement
Fire Department Equipment
Total Vehicles
Amount is
$35,000
$17,200
$52,200

Recommendations
It is recommended that the City Council take the following actions:

1. Review and discuss the Proposed FY 2025-26 Annual
Operating Budget and CIP and provide input and direction for final budget adoption; and

2. Set the
date
of
the
public hearing for budget adoption as
June
3,
2025,
at
7:00
p.m.
a

FAMAMA
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11m
ONE

PLACENTIA
Rich Heritage, Bright Future

PLACENTIA
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450

Placentia City CouncilMay 20, 2025

Placentia City Council
May 20, 2025