Police
DEPT. PROJECT MGR:
Tom McKenzie/Teri Knutson
SCHEDULE:
Design Complete:
Construction Complete:
Project Delivery:
FY 2026/27
FY 2026/27
FY 2026/27
PROJECT LOCATION
CITYWIDE
PROJECT DESCRIPTI ON: The lease of (4) Dodge Durangos and required outfitting.
PROJECT NEED: With the 24/7 type of operational schedule PD vehicles endure, they are recommended for replacement between 70-80k miles . Beyond that mileage maintenance costs and vehicle down time drastically increase SOURCE DOCUMENT: N/A
STRATEGIC PLAN GOAL: Public Safety
PROJECT PH ASE
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Pla nni ng
De sign
Constru ctio n
Other (Lease)
Ou tfitting
$ 125,000
TOTAL
$
$ 125,000
FUNDING SOURCES
FY 25/26
FY 26/27
$ 125,000
FY 27/28
FY 28/29
FY 29/30
Measure U
TOTAL
$
$ 125,000
TOTAL PROJECT COST:
$ 125,000
PROJECT TYPE:
New
CATEGORY: Vehicles & Equipment
CITY OF PL ACENTI A
L IMPROVEME NT PROJECT INFORMATION
PROJECT TITLE: Fire Department Radio
Replacement
PROJECT #: 27-802
DEPARTMENT:
Fire
DEPT. PROJECT MGR:
Api Weinert/Crystal Adams
SCHEDULE:
Design Complete:
Construction Complete:
Project Delivery:
FY 2026/27
PROJECT LOCATION
CITYWIDE
PROJECT DESCRIPTI ON:
PROJECT NEED:
S OURCE DOCUMENT:
STR ATEGIC PLAN GOAL:
Additional radios for Fire and Life Safety: (3) Replacement radios with comprehensive installation package, and additional batteries to replace the ones purchased in 2020.
As the department increases in size, we begun utilizing the radios set for strike teams/reserves and reassigning them to our front line staff. We need additional radios to replace our reserve radios and replace frontline equipment (batteries, lapel mics, etc.) purchased in 2020.
N/A
Public Safet
PROJECT PHASE
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Planning
Design
Co nstructio n
O ther (Purcha se)
$ 40,000
TOTAL
$
$ 40,000
-
FUNDING SOURCES
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Measure U
$ 40,000
-
T
TOTAL
$
$ 40,000
TOTA L PROJECT COST:
$ 40,000
PROJECT TYPE:
C ATEGORY:
New
Vehicles & Equipment
FY2025-26 Ongoing Capital Projects
Project Type
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities
City Buildings & Faciulities Total
Project Description
105213 - Public Safety Building
105213 - Public Safety Building
26-501 Fuel Tank Replacement
26-502 Whitten Center Kitchen Renovation
26-503 Aguirre Building Renovation
26-504 Powell Building Improvement Project - Windows
505003 - Powell Build HVAC
586508 - Council Chambers / Media Room
675311- Refurbish PD Motor Barn
685503 -117 N. Main Street Demo
795003- Powell Building Improvement Pr
795505 - Removal of Corp Yd Gas Tank
795510 - Tynes Gym Roof Replacement
796508 - Council Chambers / Media Room
Funding Source
101- General Fund
221- Technology Impact Fees
102 - Measure U
307 - Parks & Rec Impact Fee
307 - Parks & Rec Impact Fee
225 - State Grants
DNU-280 - Misc Grant Fund
214 -PEG
301- Public Safety Impact Fee
304 -Affordable Housing Impact Fee
102 - Measure U
102 - Measure U
102 - Measure U
102 - Measure U
Project Balances
1,094,626
(3,802)
543,894
30,000
40,000
112,350
167,528
62,615
25,000
55,000
175,000
95,913
10,964
2,890
2,411,977
Major Studies
Major Studies
Major Studies
Major Studies
Major Studies
Major Studies
Major Studies
Major Studies
Major Studies Total
109402- IT Strategic Plan & Smart City
749104 - Chapman Corridor
749504 - DIF Update and Creation of Suc
749505 - SP5 Update
749506 - CEQA Updates
749507 - Housing Element Update 2025
796506 - Develop Cybersecurity Plan
799202- EFID Design
101- General Fund
208 - General Plan Update Fees
208 - General Plan Update Fees
208 - General Plan Update Fees
208 - General Plan Update Fees
208 - General Plan Update Fees
102 - Measure U
102 - Measure U
16,940
241,882
61,076
98,000
47,597
93,800
60,000
13,113
632,407
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks
Parks Total
26-702 Samp and Los Vaqueros Park Playground Renovations 26-703 Replace Park Benches
26-705 Los Vaqueros Storm Drain
507313 - Jaycee Parkette Renovation
637502 - Restroom Renovations (Citywide
637504 - McFadden Park Playground Reno
637506 - Tuffree Park Sports Fields Lig
697202- Kraemer Park Memorial Fountain
697210 - Playground Resurfacing (Variou
697212- McFadden Pergola Replacement
697303 - Replace Park Benches
797311- Gomez Park Landscape Improveme
797507 - Tuffree Park Sidewalk Replacem
225 - State Grants
307 - Parks & Rec Impact Fee
307 - Parks & Rec Impact Fee
DNU-280 - Misc Grant Fund
307 - Parks & Rec Impact Fee
307 - Parks & Rec Impact Fee
307 - Parks & Rec Impact Fee
307 - Parks & Rec Impact Fee
302 - Quimby In Lieu Imapct Fee
302 - Quimby In Lieu Imapct Fee
302 - Quimby In Lieu Imapct Fee
102 - Measure U
102 - Measure U
600,000
60,000
150,000
521,179
28,000
90,000
44,013
6,407
150,000
50,000
49,270
24,701
64,649
1,838,219
Sewer
Sewer
Sewer Total
103101 - TOD/Crowther Sewer Project
713101- TOD/Crowther Sewer Line Projec
101- General Fund
308 - TOD Sewer Impact Fee
8,731
47,876
56,607
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
Streets & Streetscapes
101206 - Caltrans Public Art Program
107507 - Tuffree Park Sidewalk Replacem
186098 - FY 23-24 Roadway Rehab Constru
26-101 Old Town Streetscape Improvements
26-102 FY 25-26 Annual Sidewalk and Curb Ramp Repairs
26-103 Golden Avenue Bridge Replacement Project Construction 26-103 Golden Avenue Bridge Replacement Project Construction 26-104 FY 24-25 Residential Street Rehabilitation
26-104 FY 24-25 Residential Street Rehabilitation
26-104 FY 24-25 Residential Street Rehabilitation
26-104 FY 24-25 Residential Street Rehabilitation
331201- FY 2021-22 Roadway Rehab Proj
331506 - FY23-24 Residential Slurry
331801- GoldenAv Bridge JL61116
336098 - FY 23-24 Roadway Rehab Constru
506098 - FY 23-24 Roadway Rehab Constru
606098 - FY 23-24 Roadway Rehab Constru
791502 - FY 24-25 Concrete Repair Progr
791503 - FY 24-25 Annual Tree Planting
791506 - FY23-24 Residential Slurry
796098 - FY 23-24 Roadway Rehab Constru
861501- Old Town Streetscape Improveme
101- General Fund
101- General Fund
211- Measure M
206 - EIFD
204-CDBG
102 - Measure U
224 - Federal Grants
102 - Measure U
211- Measure M
217 - State Gas Tax - RMRA
218 - State Gas Tax
505 - City Capital Projects
505 - City Capital Projects
505 - City Capital Projects
505 - City Capital Projects
DNU-280 - Misc Grant Fund
217 - State Gas Tax - RMRA
102 - Measure U
102 - Measure U
102 - Measure U
102 - Measure U
206 - EIFD
32,170
254,280
276,345
150,000
34,838
819,575
3,502,724
295,424
654,176
1,414,458
151,548
62,145
10,000
2,493,905
51,300
557,000
218,076
20,445
6,670
140,703
277,233
9,770,060
217
FY2025-26 Ongoing Capital Projects
Project Type Project Description
Funding Source Project Balances
Streets & Streetscapes Total 21,193,075
Technology
Technology
Technology
Technology Total
26-601 Desktop Computer Replacement Program
26-603 Public Safety Operations HW Upgrades
26-604 City Facilities Server/Network Upgrades
221- Technology Impact Fees
221- Technology Impact Fees
221- Technology Impact Fees
45,980
42,963
39,803
128,746
Traffic & Transportation 192002 - Orangethorpe TS Sync
Traffic & Transportation 192203 - Rose/Tustin Regional Traffic S Traffic & Transportation 192504 - Yorba Linda TSSP
Traffic & Transportation 192808-ImpHwy TS Synch-JL68010 Traffic & Transportation 192809 - ChapMalTSSynch-JL68004 Traffic & Transportation 26-201 Citywide Signal Hardware Upgrades Traffic & Transportation 26-202 Safe Streets for All
Traffic & Transportation 26-202 Safe Streets for All
Traffic & Transportation 26-203 Highway Safety Improvement Program (HSIP) Cycle 12 Traffic & Transportation 26-203 Highway Safety Improvement Program (HSIP) Cycle 12 Traffic & Transportation 332908 - HSIP Traffic Singals
Traffic & Transportation 502502 - Atwood Trail Project
Traffic & Transportation 502504 - Yorba Linda TSSP
Traffic & Transportation 602503- Residential Streets Curb Ramps Traffic & Transportation 652002 - Orangethorpe TS Synchro Traffic & Transportation 652203 - Rose/Tustin Regional Traffic S Traffic & Transportation 692502 - Atwood Trail Project - Final E Traffic & Transportation 702001- TOD Traf Mitigation
Traffic & Transportation Total
201- Air Quality Management
201- Air Quality Management
201- Air Quality Management
201- Air Quality Management
201- Air Quality Management
303 - Traffic Impact Fee
102 - Measure U
225 - State Grants
102 - Measure U
225 - State Grants
505 - City Capital Projects
226 - County Grants
DNU-280 - Misc Grant Fund
217 - State Gas Tax - RMRA
303 - Traffic Impact Fee
303 - Traffic Impact Fee
302 - Quimby In Lieu Imapct Fee
310 - TOD Traffic Impact Fee
22,000
53,000
27,695
5,280
45,638
154,848
30,000
120,000
28,110
252,990
634,865
65,852
105,001
27,736
8,000
100,000
37,200
181,382
1,899,597
Vehicles and Equipment 108501- Reserve Fire Truck
Vehicles and Equipment 26-801 Fleet Lift Replacement
Vehicles and Equipment 26-802 Fire Department Equipment Vehicles and Equipment Total
Grand Total
101- General Fund
503 - Equipment Replacement
311- Fire Impact Fee
170,000
35,000
29,709
234,709
28,395,337
218
7 Year Capital Projects
Project
FY 24-25 Residential Street Rehabilitation
$ 4,505,951
$ 4,505,951
FY 2025-26 Street Resurfacing and Slurry Seal Projects
$ 4,731,248
$ 4,731,248
FY 2026-27 Street Resurfacing and Slurry Seal Projects
$ 4,967,811
$ 4,967,811
FY 2027-28 Street Resurfacing and Slurry Seal Projects
$ 5,216,201
$ 5,216,201
FY 2028-29 Street Resurfacing and Slurry Seal Projects
$ 5,477,011
$ 5,477,011
FY 2029-30 Street Resurfacing and Slurry Seal Projects
$ 5,750,862
$ 5,750,862
FY 2030-31 Street Resurfacing and Slurry Seal Projects
$ 6,038,405
$ 6,038,405
Repay Hamer Island Infrastructure Fund
$ 350,000
$ 350,000
FY 25-26 Annual Sidewalk and Curb Ramp Repairs
$ 175,000
$ 175,000
FY 2026-27 Co ncrete Repair Program
$ 183,750
$ 183,750
FY 2027-28 Co ncrete Repair Program
$ 192,938
$ 192,938
FY 2028-29 Co ncrete Repair Program
$ 202,584
$ 202,584
FY 2029-30 Co ncrete Repair Program
$ 212,714
$ 212,714
FY 2030-31 Co ncrete Repair Program
$ 223,349
$ 223,349
FY 2031-32 Concrete Repair Program
$ 234,517
$ 234,517
FY 2026-27 Annual Tree Planting Project
$ 40,000
$ 40,000
FY 2027-28 Annual Tree Planting Project
$ 45,000
$ 45,000
FY 2028-29 Annual Tree Planting Project
$ 50,000
$ 50,000
FY 2029-30 Annual Tree Planting Project
$ 55,000
$ 55,000
FY 2030-31 Annual Tree Planting Project
$ 60,000
$ 60,000
FY 2031-32 Annual Tree Planting Project
$ 63,000
$ 63,000
TO D Wayfinding Signage Project (with Gantry Sign) Phase 3 $ 750,000
$ 750,000
Old Town Streetscape EIFD Improvement Project
$ 150,000
$ 11,000,000
$ 11,150,000
Go lden Avenue Bridge Replacement Project Constructio n $ 3,582,340
$ 3,582,340
Tota l Stree ts &Stree tscapes
$ 8,413,291
$ 5,304 ,998
$ 16, 205,748
$ 6 ,218,786
$ 5 ,744,725
$ 6,034,211
$ 6,335,92 2
$ 54,257 ,681
Richfield/M iraloma and Miraloma/Van Buren Traffic Signal Improvements $ 400,000
$ 400,000
Traffic Co ntrol Sign Reflectivity Study
$ 300,000
$ 300,000
Yo rba Lin da Bo ulevard Traffic Signal Synchronizatio n Pro ject $ -
Bastanchury Ro ad Traffic Signal Synchronizatio n Pro ject $ 200,000
$ 200,000
Placen tia Av enue Traffic Signal Synchronization Pro ject $ 200,000
$ 200,000
Chapman Av enue Traffic Signal Synchron iz atio n Pro ject $ 220,000
$ 220,000
Kraemer Bo ulev ard Traffic Signal Synchron izatio n Project $ 220,000
$ 220,000
2019 SSARP In tersectio n Project #1
$ 426,000
$ 426,000
2019 SSARP Intersectio n Project #5
$ 35,500
$ 35,500
2019 SSARP Intersectio n Project #9
$ 15,000
$ 15,000
2019 SSARP Intersectio n Project #10
$ 71,000
$ 71,000
2019 SSARP Intersectio n Project #13
$ 28,400
$ 28,400
2019 SSARP Intersectio n Project #14
$ 14,200
$ 14,200
2019 SSARP Intersectio n Project #15
$ 355,000
$ 355,000
2019 SSARP Ro adway Segment Pro ject #2
$ 497,000
$ 497,000
2019 SSARP Ro adway Segment Pro ject #4
$ 170,400
$ 170,400
2019 SSARP Ro adway Segment Pro ject #6
$ 426,000
$ 426,000
2019 SSARP Ro adway Segment Pro ject #14
$ 142,000
$ 142,000
2019 SSARP Ro adway Segment Pro ject #15
$ 20,000
$ 20,000
2019 SSARP Ro adway Segment Pro ject #16
$ 355,000
$ 355,000
Intersectio n Safety Light LED Conversion Pro ject
$ 250,000
$ 250,000
2023 LRSP Pedestrian Signal Upgrade Project
$ 588,200
$ 588,200
2023 LRSP Citywide Signal Hardware Upgrade
$ 154,848
$ 118,052
$ 272,900
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
FY 31/32
Grand T otals
548
7 Year Capital Projects
Project
2023 LRSP Signal Timing Impr ovements *
$ 512,720
$ 512,720
2023 LRSP Access M anagement at Signalized Intersections * $ 1,460,000
$ 1,460,000
2023 LRSP Pedestrian Improvements at Non -Signalized Intersecti ons * $ 305,750
$ 305,750
2023 LRSP Adv anced Dilemma Zone Detection Devices *
$ 595,000
$ 595,000
* multiple loca tions , ca n be included with individual street resurfa cing proje cts
Tota l Tra ffic a nd Tra ns porta tion Ops $ 154,848 $ 815,352 $ 1, 243,150 $ 1,822,720 $ 1, 292,000 $ 2 ,532 ,000 $ 220,000 $ 8 ,080,070
O ld To wn Sewer Rehab Project
$ 1,800,000
$ 1,800,000
A2 Sewer Capacity Project - 2018 Sewer Master Plan
$ 3,200,000
$ 3,200,000
A3 Sewer Capacity Project - 2018 Sewer Master Plan
$ 4,626,000
$ 4,626,000
A4 Sewer Capacity Project - 2018 Sewer Master Plan
$ 1,677,000
$ 1,677,000
A5 Sewer Capacity Project - 2018 Sewer Master Plan
$ 2,391,000
$ 2,391,000
A6 Sewer Capacity Project - 2018 Sewer Master Plan
$ 634,000
$ 634,000
A7 Sewer Capacity Project - 2018 Sewer Master Plan
$ 393,000
$ 393,000
B1 Pipeline Rehab Project - 2018 Sewer Master Plan
$ 456,000
$ 456,000
B2 Pipeline Rehab Project - 2018 Sewer Master Plan
$ 561,000
$ 561,000
B3 Pipeline Rehab Project - 2018 Sewer Master Plan
$ 945,000
$ 945,000
M anho le Rehab Project (walls) - 2018 Sewer Master Plan $ 243,000
$ 243,000
M anho le Rehab Project (bench/channel) - 2018 Sewer M aster Plan $ 35,000
$ 35,000
To ta l Se wer $ - $ 1,800, 000 $ 1 ,223, 000 $ 4, 290, 000 $ 5 ,580 , 000 $ 1,677,000 $ 2,391, 000 $ 16,961, 000
Bradfo rd Av enue Sto rm Drain Impro vement Project
$ 108,000
$ 108,000
Walnut Av enue Storm Drain Improv ement Project
$ 129,000
$ 129,000
Seav iew Circle Storm Drain Improvement Pro ject
$ 505,000
$ 505,000
Kev in Way Sto rm Drain Improvement Project
$ 524,000
$ 524,000
Sunset Dr Storm Drain Improvement Pro ject
$ 105,000
$ 105,000
Kraemer Park Storm Drain Improvement Pro ject
$ 34,000
$ 34,000
Naple/Pinehurst Av enue Strom Drain Improvement Pro ject $ 3,660,000
$ 3,660,000
Naple/Pinehurst Av enue Strom Drain Improvement Pro ject $ 3,660,000
$ 3,660,000
Pinehurst Avenue Stro m Drain Impro vement Pro ject
$ 1,985,000
$ 1,985,000
Tota l Sto rm Dra ins $ - $ 23Z000 $ 505,000 $ 663,000 $ 3,660,000 $ 3,660,000 $ 1 ,985 , 000 $ 10 ,710, 000
Whitten Center Kitchen Renovation
$ 30,000
$ 30,000
Aguirre Building Renovation
$ 40,000
$ 40,000
Powell Building Improvement Project - Windows
$ 112,350
$ 112,350
City Hall Roof Repairs
$ 1,000,000
$ 1,000,000
Tynes Gym Ro of Replacement Project
$ 300,000
$ 300,000
Civic Center Fountain Renovation Project
$ 300,000
$ 300,000
Civic Center Campus Lighting and Landscape Improvement Project $ 400,000
$ 400,000
City Yard Administrative Building Reno vation Pro ject
$ 500,000
$ 500,000
Tynes Gym Renovation Project
$ 1,500,000
$ 1,500,000
Water To wer Renovation Project
$ 150,000
$ 150,000
Fuel Tank Replacement Project
$ 220,000
$ 220,000
City Hall Switchgear replacement
$ 1,000,000
$ 1,000,000
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
FY 31/32
Grand Totals
Tota l City Buildings & Fa cilities
$ 1,402, 350
$ .4100,000
$ 2,900, 000
$ 150, 000
$ 5 ,552,350
549
7 Year Capital Projects
Project
$
525,000
Deskto p Co mputer Replacement Program
$ 75,000
$
75,000
$
75,000
$ 75,000
$ 75,000
$
75,000
$ 75,000
Enterprise Camera and Security Upgrades
$ 95,535
$
95,535
Public Safety Operations HW Upgrades
$ 75,000
$
75,000
City Facilities Server/Network Upgrades
$ 50,000
$
50,000
$
50,000
$ 50,000
$ 50,000
$
50,000
$ 50,000
$
350,000
Tota l Te chnology $ 295,535 $
1 25 ,000 $
125 ,000 $ 125 ,000 $ 125,000 $
125,000 $ 125,000
$
1,045, 535
Samp & Lo s Vaqueros Park Reno vation Project
$ 600,000
$
600,000
Kraemer Park Fountain Renovation Project
$
750,000
$
750,000
Tuffree Park Spo rts Field Renov ation Pro ject
$ 500,000
$
500,000
Champio ns Spo rts Park Renovation Project
$ 650,000
$
650,000
Bradfo rd Park Renov ation Pro ject
$
500,000
$
500,000
Tynes Gym Ro of Replacement
$ 255,000
$
255,000
Kraemer Park Renovation Project
$ 700,000
$
700,000
Replace Park Benches
$ 60,000
$
60,000
Whitten Center Pool ADA Renovatio n
$
750,000
$
750,000
Los Vaqueros Storm Drain
$ 150,000
$
150,000
To tal P arks $ 1 ,065,000 $ 1,500,000 $
- $ 500,000 $ 650 ,000 $
500,000 $ 700,000 $
4,915,000
Fleet Lift Replacement
$ 35,000
$
35,000
Fire Department Equipment
$ 17,200
$
18,060
$
18,963
$ 19,911
$ 100,000
$
21,902
$ 22,997
$
219,034
Annual Vehicle Replacemen t Program
$
500,000
$
500,000
Ann ual Vehicle Replacement Program
$
525,000
$
525,000
Annual Vehicle Replacement Program
$ 551,250
$
551,250
Annual Vehicle Replacement Program
$ 578,813
$
578,813
Ann ual Vehicle Replacement Program
$
607,753
$
607,753
Annual Vehicle Replacemen t Program
$ 638,141
$
638,141
Tota l Ve hidesa ndEquip me nt $ 52,200 $
518,060 $
543,963 $ 571,161 $ 678,813 $
629,655 $ 661,138
$
3,654 ,990
Smart City Master Plan
Tota l Ma jor Studies
$ - $
- $
- $ - $ - $
-
$
-
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
FY 31/32
Grand Totals
Tota l A ll P ro je cts
$ 11,383,224 $ 11, 400,410 $ 2 2,745,861 $ 14,340,667 $ 1Z730,537 $ 15,157,867 $ 12,418,060 $ 105,176 ,626
550
GANN APPROPRIATIONS LIMIT
In November 1979 the voters of the State of California approved Proposition 4, commonly known as the "Gann Initiative" or "Gann Limit." The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government from the "proceeds of taxes." Proposition 4 became effective for the 1980-81 fiscal year, but the formula for calculating the limit was based on the 1978-79 "base year" revenues, with adjustments being made annually to reflect increases in population and cost of living.
Section 9710 of the California Government Code, added in 1980 by the State Legislature, provides that "each year, the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following year." In June of 1990 the California Voters approved Proposition 111. Among other things, Proposition 111 provided new adjustment formulas, which make the Appropriations Limit more responsive to local growth issues. Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations and other non - tax proceeds are not subject to the limit. Proposition 111 also established a requirement for an annual review of Limit calculations. Each year the City Council must adopt by resolution the City's appropriations limit for the following year. The following is the calculation for the City's Gann Appropriations Limit for FY2026-27.
The City of Placentia's annual appropriation limit has been determined in accordance with Article XIIIB of the California State Constitution and Section 7902 of the California Government Code. The City will be below its legal appropriations limit by $77,347,205 using the per capita personal income growth and county population growth factors.
GANN APPROPRIATIONS LIMIT CALCULATION FY 2026-27
FY 2025-26 Appropriations Limit
$128,022,711
Population Growth (City or County) = -0.02%
0.9800
Cost of Living (Per Capita or Non-residential construction growth) = 4.95%
1.0495
FY 2025-26 Appropriations Limit
($128,022,711 x 0.9800 x 1.0495)
$131,672,638
222
GANN APPROPRIATIONS LIMIT
Appropriations Table
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0 N. N. N. tiro t ti% ti� "V 'V "V L'' "V "V ti� tit
N. ti N. ti� ti1 ti� ti ti� "V titi tiV "V 'V ti�
LO "V 'LO 'V LO 1O "V 1O 1O 'V 1O "V LO 1O "V
• Legal Limit • Appropriations • Amount Under
552
FINANCIAL POLICIES
One of the chief responsibilities of the City of Placentia to its residents is the care of public funds.
These budget and financial management policies are designed to ensure the fiscal stability of the City of Placentia and guide the development and administration of the annual operating and capital improvement budgets through wise and prudent management of municipal finances, while providing for the adequate funding of the services desired by the public and the maintenance of public facilities.
Objectives
The City's financial objectives address revenues, cash management, expenditures, debt and risk management, capital needs, budgeting and management. Specific objectives are:
➢ To protect the policy -making ability of the City Council by ensuring important policy decisions are not dictated by financial problems or emergencies. ➢ To assist City management by providing accurate and timely information on financial conditions.
➢ To provide sound principles to guide the fiscal decisions of the City Council and City management.
➢ To provide essential public and capital facilities and prevent their deterioration. ➢ To set forth operational principles that minimize the cost of government and financial risk, to the extent consistent with services desired by the public. ➢ To enhance the policy -making ability of the City Council by providing accurate information on program costs.
➢ To employ revenue policies that seek to prevent undue or unbalanced reliance on one or a relatively few revenue sources; and,
➢ To implement a system of internal controls that ensures the legal and appropriate use of all City funds
BUDGET POLICIES
The City develops an annual
Operating Budget which:
➢ Establishes budgets for
all funds of the City
➢ Is balanced as to
resources and
appropriations
➢ Does not exceed state
constitutional limits
➢ Is adopted prior to the
beginning of the fiscal
Departments begin
preparing their indivival
budgets
February 2026
Fiscal Year Begins
July 1, 2026
Budget Approval
City Council
June 2026
City Administrator presents
Proposed FY2026/27 Budget
to Public and City Council
May 2026
Finance finalizes revenue
projections, internal
service charges and
personnel expenses
April 2026
Finance and Public
Works finalize Capital
Improvement Plan
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FINANCIAL POLICIES
year in which they are to take effect
➢ Allows adjustments to the budget throughout the fiscal year with proper approvals ➢ Utilizes encumbrances of appropriations as a budgetary control technique ➢ Is adopted by resolution of the City Council
➢ Exercises budget controls at the department level
Balanced Budget
The City Administrator will present a balanced budget for adoption by the City Council prior to the beginning of the fiscal year. A balanced budget is defined as operating revenues equal to or greater than operating expenditures, including any debt service obligations. In some years, it is allowable for total expenditures to exceed revenues with the difference supported by unassigned fund balance, if necessary to fund capital improvements projects or other one-time, non -recurring expenditures.
Budget Process & Calendar
The City of Placentia operates on a fiscal year basis, starting July 1 and ending June 30. The budget is prepared by the Finance Department with the support of each operating department under the direct supervision of the City Administrator.
The Finance Department is responsible for coordinating all revenue estimates contained in the budget. Estimates are reached by analyzing revenue history; national and local economic trends and indices; and development patterns in our local economy. Revenue projections used in the context of the annual budget are based on conservative assumptions to assure the City has adequate financial resources to meet its obligations and complete all programs approved by the City Council within the course of the fiscal year. When appropriate, these assumptions and specific program allocations are adjusted during the fiscal year.
The Finance Department coordinates the development of the expenditure and internal service budgets with the support of each operating department and the City Administrator.
The proposed budget is then presented to the City Council and the community in public workshop meetings in May and June for review, public input, and deliberation. After providing opportunities for public review and discussion at City Council workshops and City Council meetings, the budget is adopted by the City Council prior to June 30 at either a regular or special City Council meeting.
After adoption, the budget may be amended by the City Council.
Budget Structure:
The budget is prepared using Modified Accrual Basis, which recognizes revenues when they are measurable and available, and expenditures are recognized when the liability is incurred (except long term items like debt).
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FINANCIAL POLICIES
The General Fund budget, typically referred to as the operating budget, is the City's annual fiscal blueprint. The General Fund is a guide for the receipt and disbursement of funds used to provide daily, routine public services to the community. The General Fund outlines the many municipal services, programs and projects provided by the City during the fiscal year.
Special Funds are used to account for revenues and expenditures that are restricted by law or set aside for a special purpose. Each fund can be classified into one of six categories: Committed or Assigned General Fund Reserve, Special (Restricted), Capital Project, Debt Service, Enterprise, Internal Service, or Trust and Agency Funds.
The Capital Improvement Program (CIP) budget details the acquisition, construction or rehabilitation of major capital facilities and infrastructure within the current fiscal year. The CIP budget is used to account for the receipt and disbursement of funds for specific CIP projects. For many projects, revenue resources and expenditures may extend over several years and continuing appropriations will be a part of the annual budget to track multi -year capital projects. In addition, the City will update the seven-year Capital Improvement Plan each budget year. However, the adoption of the plan does not authorize the funding for projects beyond the current fiscal year.
Budget Administration
The Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Administrator has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect authorized year-end fund balances.
Each operating department will be responsible for the bottom -line budget within each department/ fund. In addition, each department will ensure that adequate funds are available within each expenditure line item before a purchase is made. Departments are required to complete a budget transfer form and get approval to move budgeted money from one operating line item to another within the same fund. Only the City Administrator is authorized to transfer budgeted money from/to salaries, internal service or capital line items within the same fund.
Financial Reporting
On a regular basis, the Finance Department will evaluate financial performance relative to the adopted and adjusted budget, and prepare and present reports to the City Administrator, City Department Directors and Managers. The purpose of these reports is as follows:
➢ Provide an early warning of potential concerns and problems. ➢ Identify, investigate and correct accounting errors.
➢ Evaluate and explain significance of on -going variances. ➢ Give decision makers time to consider actions that may be needed if major deviations in budget -to -actual expenditures or revenues become evident.
General Fund Budgeting
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FINANCIAL POLICIES
The basic format of the budget shall identify programs within organizational structures. Programs are defined as specific services provided to the public, other departments, or other organizations.
All assumptions, transfers and other relevant budget data shall be clearly stated.
The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' expenses, such as postponing expenditures, accruing future years' revenues, or rolling over short-term debt. Where possible, the budget and subsequent status reports will integrate performance measurement and productivity indicators.
In instances where specific activities/purchases are authorized by the City Council in a certain fiscal year and remain incomplete and/or unexpended, revenues and/or fund balance may be carried forward, at City Council's discretion, into the next fiscal year to support such activities/purchases through the continuing appropriation authorization.
Provisions will be made for adequate maintenance of capital and equipment and for orderly rehabilitation and replacement within available revenue and budgetary limits. To show the true cost of services, revenues and expenditures will be budgeted and accounted for directly in the appropriate fund. Costs for services provided by Special Funds to General Fund activities will be budgeted as an expense in the General Fund and as revenue to the Special Fund.
Budgetary and accounting procedures will conform to Generally Accepted Accounting Principles (GAAP) for governmental agencies.
Special Fund Budgeting
The term "Special Funds" shall be used to identify all funds other than the General Fund, inclusive of the following fund types: General Reserve, Special Revenue, Capital Projects, Debt Service, Enterprise, and Internal Service Funds. Special Funds shall be created when legally required, requested by the City Council, or to facilitate internal accounting and financial reporting procedures.
The annual budget for each Special Fund shall be prepared in conjunction with the General Fund budget and shall be submitted to the City Council for adoption prior to the beginning of the fiscal year. Special Funds budgetary and accounting procedures will conform to GAAP.
Activities of the Special Funds shall be reported to the City Council on a regular basis consistent with General Fund reporting responsibilities. To show the true cost of services, revenues and expenditures will be budgeted and accounted for directly in the appropriate fund. Costs for services provided between funds will be budgeted as an expense in the fund receiving the services and as revenue to the fund providing the services.
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FINANCIAL POLICIES
REVENUE MANAGEMENT POLICIES
Sources of Revenue
The City will strive to maintain a diversified and stable revenue portfolio to provide protection from short -run fluctuations in any single revenue source to promote consistent service levels.
Intergovernmental assistance shall be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in Operating Budget forecasts.
Programs and services funded by restricted revenue will be clearly designated as such. Restricted revenue shall only be used for purposes legally permissible and in a fiscally responsible manner.
Restricted revenues shall be used prior to unrestricted revenue as legally permissible.
The City shall develop and maintain methods of forecasting future revenues and expenditures.
These methods shall project the City's future revenues and expenditures through a variety of methods including, but not limited to, forecasts of the economy and future development of the City.
Revenue Collection
The City shall strive to improve its tax collection rate through legislative initiative and advocacy at the state level and cooperative effort at the county level.
Revenue Projection
The City will estimate General Fund revenues using an objective and analytical process, as well as documenting and maintaining specific assumptions. In instances where there is uncertainty as to assumptions, conservative revenue projections shall be provided.
Fees and Cost Recovery
User fees and charges shall be established at a level related to the direct and indirect cost of providing the service, wherever possible. The City will recalculate the full cost of activities supported by user fees to identify the impact of inflation and other cost increases. Fees shall be adjusted where appropriate to reflect these increases.
Development process costs and related administrative expenses shall be totally offset by development fees, wherever possible.
In setting user fees and cost recovery levels, the following factors will be considered:
Community -Wide versus Special Benefit- The level of user fee cost recovery should consider the community -wide versus special service nature of the program or activity. The use of general - 228
FINANCIAL POLICIES
purpose revenues is appropriate for community -wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups.
Service Recipient versus Service Driver After considering community -wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary; however, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate.
Effect of Pricing on the Demand for Services: The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly -stimulated by artificially low prices.
Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low-income groups.
Feasibility of Collection and Recovery: Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source.
Grants and Federal Funds
The City shall aggressively pursue all grant opportunities; however, before accepting grants, the City will consider the current and future implications of both accepting and rejecting the monies, including:
➢ The amount of matching funds required.
➢ In -kind services needed to be provided.
➢ Requirements for reporting, earmarking and level of effort requirements. ➢ The related operating expenses; and
➢ Length of grant and consequential disposition of service (i.e. is the City obliged to continue the services after the grant has ended).
Gifts, Bequests and Donations to the City
Gifts and donations to the City will be evaluated to determine what, if any, obligations are to be placed upon the City. Gifts and bequests will be considered as "over and above" basic City appropriations and recorded in accordance with the Generally Accepted Accounting Principles.
Any gift, donation and/or bequest given shall solely be used for the purpose intended by the donor.
Unrestricted gifts will be expended in a manner deemed best by the City Council and/ or appropriate board or commission.
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FINANCIAL POLICIES
EXPENDITURE POLICIES
The City will maintain a level of expenditures which will provide for the public well-being and safety of the residents of the community.
City Council approval is required before expending General Fund or contingency reserves.
Unexpended expenditures budgeted in one fiscal year are not automatically carried over into the next budget year. In instances where the purpose for which the expenditure was budgeted has not been completed by the end of the fiscal year, it may be reauthorized in the following fiscal year through the continuing appropriations process. Multi -year CIP projects that are under construction will be carried into the next fiscal year utilizing the continuing appropriations process.
Staffing
The annual Operating Budget will fully appropriate the
resources needed for authorized regular staffing and will limit programs to the regular staffing authorized. The City Council will annually approve an Authorized Position
Control Schedule. Operating expenditure budgets which
have been changed solely as the result of City Council
approved labor agreements need not be re -approved by
the Council.
Overtime Management
Overtime should be used only when necessary and when other alternatives are not feasible or cost effective.
All overtime must be pre -authorized by a department head or designee unless it is assumed pre - approved by its nature. For example, overtime that results when an employee must respond to an emergency and/or overtime automatically created as a result of a memoranda of understanding.
Department operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures and will be held accountable for such expenditures.
When considering the addition of regular or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account:
➢ The duration that additional staff resources may be needed. ➢ The cost of overtime versus the cost of additional staff. ➢ The skills and abilities of current staff.
➢ Training costs associated with hiring additional staff. 230
FINANCIAL POLICIES
Overtime which is reimbursable from another government agency such as Fire Strike Teams or mutual aid is not subject to the above requirements. However, such expenses and the resulting reimbursements require City Council approval.
Measure U
The City of Placentia is committed to sound financial policies that maximize the highest level of City services for the people of Placentia. The City Council recognizes the need to protect the City's assets and to ensure long-term financial sustainability.
In November 2018, Placentia voters overwhelmingly approved Measure U, a 1% sales tax increase to help fund the cost of much -needed infrastructure repairs and maintenance as well as public safety and other critical services. To ensure the Measure U funds are spent accordingly, the Placentia City Council voted to update the Policy 460, a reserve policy including guidelines for appropriating new ongoing or one-time unrestricted revenues to be used for specific purposes.
The purpose of these funding allocations is to ensure that the new reserve areas are prioritized long-term and ultimately improve the City's fiscal health. To ensure that the policy is applied consistently by future City administrations and Councils, any modification to this policy requires a supermajority or 4/5ths vote of the City Council. The current allocations of Measure U monies are:
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FINANCIAL POLICIES
Before GF
Reserve (25%)
met
After GF Reserve
(25%) met
Infrastructure, Vehicles, and Equipment Reserve
40%
50%
Other Post -Employment Benefits (OPEB) Sustainability
Reserve
10%
10%
Employee Recruitment and Retention Reserve (including
additional staff)
30%
30%
General Fund Contingency Reserve
20%
10%
Lastly, Measure U also established an independent Citizens Oversight Committee. The Committee reviews and reports on all Measure U expenditure plans and financial reports to ensure spending is consistent with General Fund Reserve Policy No. 460, as outlined in the above table. The Citizens Oversight Committee will meet regularly at meetings that are open to the public.
ACCOUNTING POLICIES
Accounting and Annual Reporting Policies
The City's Annual Comprehensive Financial Report (ACFR) presents the government and its component units' (entities for which the government is considered to be financially accountable) financial and operating activities. The City's blended component units, although legally separate entities, are, in substance, part of the City's operations and financial data from these units are combined with data of the City. The City's financial statements and accounting records are maintained in accordance with the recommendations of the Governmental Accounting Standards Board (GASB).
The government -wide financial statements report information on all the non -fiduciary activities of the primary government and its component units. For the most part, the effect of inter -fund activity has been removed from these statements. Governmental activities, normally supported by taxes and inter -governmental revenues, are reported separately from business -type activities that rely, to a significant extent, on fees and charges for support. 232
FINANCIAL POLICIES
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met. As a general rule, the effect of inter -fund activity has been eliminated from the government - wide financial statements. Direct expenses have not been eliminated from the functional categories; indirect expenses and internal payments have been eliminated.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers revenues available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due.
Taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and are therefore recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered measurable and available only when the City receives cash.
The City reports the following governmental fund types:
➢ Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. ➢ Debt Service Funds account for the accumulation of resources for and the payment of principal and interest on general long-term debt.
➢ Capital Projects Funds account for financial resources used for the acquisition or construction of infrastructure and major capital facilities.
The City reports the following proprietary funds:
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FINANCIAL POLICIES
➢ The Sewer Maintenance Fund accounts for the fees and services for sewer activities. ➢ The Refuse Fund accounts for the fees and services for trash disposal.
Additionally, the City reports the following fund types:
➢ Internal Service Funds account for operations that provide services to other departments of the City on a cost reimbursement basis. These services include self-insurance (liability/workers compensation); acquisition, replacement and maintenance of the City's vehicle fleet & equipment; Strategic IT technology equipment; and employee benefits. ➢ The Other Post -Employment Benefit (OPEB) Trust Fund accounts for the resources set -aside for pre -funding OPEB obligations.
➢ Agency Funds are used to account for various activities in which the City acts as an agent, not as a principal. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
➢ Successor Agency activity is accounted for in a Private -Purpose Trust Fund.
Audit and Financial Reporting
Each year an audit will be conducted by an independent Certified Public Accountant Firm (CPA Firm). The selection of the independent CPA Firm shall be in conformance with the City's professional services bidding procedures. Generally, the City shall request bids for audit services no less frequently than every five years. The CPA Firm shall provide the City Council with an Audit Communication Letter addressing significant findings of the auditors in conjunction with their opinion on the City's Comprehensive Annual Financial Report. These reports shall be submitted to the City Council within sixty (60) days of receipt of the report.
During the annual budget process, the City will make available a preliminary year-end, unaudited, General Fund fund balance. It should be recognized, however, that the balance provided is subject to both unforeseen financial transactions of a material nature and subject to the findings of the independent audit. An audit verified year-end balance will be available by the end of December and will be included within the year-end financial analysis report.
The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA's Award for Excellence.
INVESTMENT POLICIES
The City has adopted a formal Investment Policy that is reviewed annually and approved by the City Council. The City's Investment Policy is intended to provide specific criteria for the prudent investment of City funds with the goal of enhancing the economic status of the City while protecting pooled funds and meeting daily cash flow demands. 234
FINANCIAL POLICIES
The Investment Policy is in conformance with all
federal, state and local laws governing the investment
of monies under the control of the City Treasurer and
applies to the City's Pooled Investment Portfolio. The
portfolio includes the General Fund, Capital Project
funds, Debt Service funds, Trust & Agency, Proprietary
funds, Special Revenue funds, Reserve funds and
Other funds as created.
Financial assets held and invested by trustees or fiscal agents are subject to and governed according to the regulations established by the State of California pertaining to local agencies as well as any relative bond indentures or trust agreements.
Delegation of Authority
➢ The Placentia Municipal Code and the authority granted by City Council assign the responsibility of investing unexpended cash to the City Treasurer, an elected position. ➢ The City Treasurer may delegate daily investment activity, such as carrying out the treasurer's investment instructions, confirming treasury transactions and other routine activities.
➢ Investments with a maturity of greater than five years must be approved by the City Council.
Prudence
➢ The treasurer operates the City's pooled cash investment program under § 53600.3 of the California Government Code, applicable state laws, and a Prudent Investor Rule. This affords a broad spectrum of investment opportunities so long as the investment is deemed prudent and permissible by the State of California, various bond indentures and the City's Annual Investment Policy. The treasurer strives to invest 100% of idle funds.
Treasury Objectives
➢ The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in over -investing in specific instruments, individual financial institutions, or maturities.
➢ The Treasurer maintains a diversified portfolio to accomplish the primary objectives in the following order of priority: safety, liquidity, and yield.
Maximum Maturities
➢ Maturities of investments will be selected based on liquidity requirements to minimize interest rate risk and maximize earnings. Current and expected yield curve analysis will be monitored and the portfolio will be invested accordingly. ➢ The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.
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FINANCIAL POLICIES
Portfolio Reporting
On a quarterly basis, or as otherwise requested by the City Administrator, the City Treasurer shall provide the City Council a report indicating each of the City's investments. The report shall include a statement certifying the ability of the City to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient
money shall, or may not, be available. The investment
portfolio report shall include market information for all investments.
Authorized Investments
The City is governed by the California Government
Code, §§ 53600 et seq. Within the context of these
limitations and based on the cost at time of purchase.
A more detailed list of authorized investments is in the adopted Investment Policy.
FUND BALANCE POLICY
To maintain the City's credit rating and meet seasonal cash flow shortfalls, economic downturns or a local disaster, the budget shall provide for an anticipated fund balance for general government and enterprise fund types. Fund balance shall be exclusive of all restrictions, commitments, and assignments not available for use in emergencies and contingencies.
There are almost always important limitations on the purpose for which all or a portion of the resources of a governmental fund can be used. The forces of these limitations can vary significantly, depending upon their source. Therefore, the various components of fund balance are designed to indicate, "•••the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent." Fund balance is categorized in five classifications, depicting the relative strength of the spending constraints placed on the purposes for which the resources can be used. The five classifications are:
Non -spendable: amounts not in spendable form or are required to be maintained intact (inventories, prepaid items, endowment)
Restricted: portions of fund balance that reflect resources subject to externally enforceable legal restrictions. Amounts constrained to specific purposes by their providers, through constitutional provisions, or by enabling legislation (bond proceeds, Pension Trust Fund assets, Measure M, creditors, grantors, restricted donations or contributions)
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FINANCIAL POLICIES
Committed: amounts constrained to specific purposes by a government itself, using its highest level of decision -making authority (City Council), and remains binding unless removed in the same manner
Assigned: amounts a government intends to use for a specific purpose; intent can be expressed by the governing body, or by an official or body to which the governing body delegates the authority (year-end encumbrances, infrastructure and rehabilitation funding)
Unassigned: amounts available for any purpose; reported only in the General Fund Internal Service Funds
Fleet Management:The City has established and maintains a Fleet Management Fund to provide for the timely replacement of vehicles and related equipment. The amount retained in this fund, coupled with the annual contributions received by it from any source, shall be adequate to fully fund the replacements approved in the seven-year Capital Improvement Plan Plan in any given year. The City is currently striving to meet this goal. The FY 2026-27 budget does not set aside funding for future capital needs.
Information Services Fund: The City has established an Information Services Fund to provide for the timely replacement of information technology, both hardware and software. The amount retained in this fund, coupled with annual contributions received by it from any source, shall be adequate to fully fund the improvements included in the seven-year Capital Improvement Plan in any given year. The City is currently striving to meet this goal. The FY 2026-27 budget does not set aside funding for future capital needs.
Employee Benefits: Reserves will be maintained at a level to cover the cost of ongoing employee benefits during each fiscal year.
Se/f-Insurance: Reserves will be maintained at a level which, together with purchased insurance policies, adequately protect the City.
CAPITAL IMPROVEMENT POLICIES
The City utilizes the following policies to govern its Capital Improvement Program and the use of special funds that address community capital project needs.
Seven -Year Capital Improvement Program
The City Administrator shall develop and maintain a seven-year projection of capital improvement projects based on the General Plan, Specific Plans, and City Council approved projects. The seven- year projection shall be presented as part of the proposed annual budget. The Capital 237
FINANCIAL POLICIES
Improvement Program (CIP) should be tied to projected revenue and expenditure constraints.
Future planning should consider periods of revenue surplus and shortfall and adjust projects and programs accordingly. The seven-year projection shall include new capital projects, rehabilitation needs and long-term maintenance.
Capital Improvement Program (CIP) -- Current Fiscal Year Appropriation The current fiscal year CIP budget details the projected costs of acquisition, design, construction or rehabilitation of major capital facilities and infrastructure. The Measure U Fund and other special revenue funds are used to track the receipt and disbursement of funds for specific CIP projects.
For many projects, revenue resources and expenditures may extend over several years and continuing appropriations will be a part of the annual budget to track multi -year capital projects.
Accordingly, project appropriations are generally made when contracts are awarded. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available:
➢ Eliminate the project.
➢ Defer the project for consideration to the next Financial Plan period. ➢ Re -scope or change the phasing of the project to meet the existing budget. ➢ Transfer funding from another specified, lower priority project. ➢ Appropriate additional resources as necessary from fund balance.
The City's CIP projects are budgeted on an annual basis. As a result, monies are allocated to projects in the fiscal year the funding sources are identified, available and approved by Council.
Annual appropriations for capital projects are contained in the appropriate special funds budget.
Seven -Year Capital Improvement Plan
The City will update the seven-year Capital Improvement Plan each budget year. However, the adoption of the seven-year plan does not authorize the funding of projects identified within the seven-year plan beyond the current fiscal year.
The City's capital improvement plan will recognize the borrowing limitation of not only the City but also the debt tolerance (direct and overlapping debt) of the City as a whole. The adopted annual budget shall contain a seven-year summary projection of revenues and expenditures, which specifies the revenue sources and anticipated allocation schedule for the seven-year CIP. This multi -year plan shall be updated on an annual basis. Individual capital improvement projects shall include a projected cost amount for City administration, whereby project estimates reflect the total cost of the project.
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FINANCIAL POLICIES
Capital Improvement Funding
Within the limitation of existing law, various funding sources may be utilized for capital improvements. Capital projects shall not be dictated by the nature of funding available except to the extent that the projects meet an initial test required to achieve City goals and to the extent that projects must be placed in priority to utilize outside funding. The City shall actively pursue outside funding sources for all capital improvement
projects.
CIP Budget Carryover
Unexpended project balances shall be carried
forward to future fiscal years to complete the intent
of the original budget, contingent upon approval
by the City Council. The annual budget shall
identify an estimated "Continuing Appropriation"
balance that will be carried over to complete each specific multi -year project. The City Council will adopt by resolution all continuing appropriations after the fiscal year is closed and final numbers are known.
Upon completion of each capital project, unspent funds shall be reported to the City Council through the year-end budget report. The City Administrator shall provide recommendations to redirect the use of unspent capital project funds in the year-end report and the annual budget.
CIP Funding Criteria
The City will use the following criteria to evaluate pay-as-you-go versus long-term financing (pay - as -you -use) in funding capital improvements:
Factors Favoring - Pay -As -You -Go Financing
➢ Current revenues and adequate fund balances are available, or project phasing can be accomplished.
➢ Existing debt levels adversely affect the City's credit rating. ➢ Market conditions are unstable or present difficulties in marketing.
Factors Favoring - Long Term Financing (Pay -As -You -Use) ➢ Revenues available for debt service are deemed sufficient and reliable so that long-term financings can be marketed with investment grade credit ratings. ➢ The project securing the financing is of the type which will support an investment grade credit rating.
➢ Market conditions present favorable interest rates and demand for City financings. ➢ A project is mandated by state or federal requirements, and resources are insufficient or unavailable.
➢ The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable.
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FINANCIAL POLICIES
➢ The life of the project or asset to be financed is ten (10) years or longer. ➢ Vehicle leasing when market conditions and operational circumstances present favorable opportunities.
In no case shall projects incur a funding deficit without the approval of the City Council.
ENTERPRISE FUND FEES AND RATE STRUCTURE
Water, Solid Waste and Sewer_ The City will set fees and rates at levels which fully cover the total direct and indirect costs, including operations, capital outlay, and debt service —of the following enterprise programs: refuse and sewer maintenance.
Ongoing Rate Review: The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable.
City Services: In accordance with long-standing practices, the City will treat the refuse and sewer maintenance funds in the same manner as if they were privately owned and operated. This means assessing reasonable charges that are reimbursed to the City for the use of City owned facilities, equipment, vehicles and other related services to fully recover these costs.
Enterprise Fund Debt Capacity; The City will set enterprise fund rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration, and capital improvement costs. The ability to pay new debt for enterprise operations will be evaluated as an integral part of the City's rate review and setting process.
APPROPRIATIONS LIMIT
The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII-B of the Constitution of the State of California, §7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit.
The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 10 days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget.
The City will strive to develop revenue sources, both new and existing, which are considered non - tax proceeds in calculating its appropriations subject to limitation. 240
FINANCIAL POLICIES
The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General or Enterprise Funds.
The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council.
The City will seek voter approval to amend its appropriation limit at such a time that tax proceeds are in excess of allowable limits.
DEBT POLICIES
Debt Financing
Debt financing shall generally be limited to one-time capital improvement projects and only under the following circumstances:
➢ When the project's useful life will exceed the term of the financing; ➢ When project revenue or resources will be sufficient to service the debt; and ➢ When the project will benefit the residents of Placentia.
Debt financing shall not be considered appropriate for:
➢ Investment leveraging purposes,
➢ Current operating and maintenance expenses except for issuing short-term instruments such as revenue anticipation notes or tax anticipation notes; and ➢ Any recurring purpose (except as indicated above).
Debt Management
➢ The City will not obligate the General Fund to secure long-term financing except when marketability can be significantly enhanced.
➢ An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. ➢ The City will generally conduct financing on a competitive basis. However, negotiated financing may be used due to market volatility or the use of an unusual or complex financing or security structure.
➢ The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability, and cost-effectiveness. ➢ 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.
241
FINANCIAL POLICIES
> 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
Genera/ 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. 242
FINANCIAL POLICIES
Legal Debt Limit Calculation (General Obligation Debt)
Assessed Valuation, FY 2025-26*
$9,995,957,277
Adjusted Assessed Valuation (x25%)
$2,498,914,319
Legal Debt Limit- 15% of Adjusted Assessed Valuation
$374,837,148
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
Ending
June 30
Motorola
Lease
2021
Installment
Sale
Fire
Loan #1
Fire
Loan
#2
2013 Tax
Allocation
Refunding
2020A
Lease
Revenue
Bonds
2023A
Lease
Revenue
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
Total
1,222,896
2,013,349
1,856,660
972,004
8,028,182
64,329,254
16,231,450
Principal
999,666
1,925,000
1,737,717
910,617
6,705,001
46,339,998
9,050,000
Interest
223,230
88,349
118,943
61,387
1,323,181
17,989,256
7,181,450
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 CaIPERS. 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.
243
FINANCIAL POLICIES
Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services.
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?
244
FUND DESCRIPTIONS
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
Operating
Budget
Fiduciary
Funds
Governmental
Funds
Successor
Agency Fund
OPEB Trust
General Fund
Proprietary
Funds
Special
Revenue Funds
Enterprise
Funds
Internal
Service 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 245
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.
246
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. 247
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.
Successor Agency of the Redevelopment Agency of the City of Placentia 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 248
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.
249
COMMUNITY PROFILE
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
City Council from among its membership and
_
i ie Rrcr�.
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
00000
O
n
1 53,759 Total Population
39.1 Median Age
49.2% Male & 50.8% Female
63.6% Homeownership Rate
o
O
o
M
ME ME
ME ME
I I
ME
ME
ME
ME
ME
44.2% of Population with
bachelor's degree or Higher
Median Income- $115,929
17,891 Total Housing Units
250
COMMUNITY PROFILE
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
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
Avenue and Melrose Avenue retain their names today.
of the town and, in his honor, Bradford
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
Arco Gas Station
Audi Leasing Ltd Bentley Leasing
Audi North OC
Beacon Sales Acquisition
Bejac
Chevron
Chick-Fil-A
Fairway Ford
Lx Hausys America
Marshalls
Mason West
Petroleum Marketing Equipment
Print & Finishing Solutions
Prosource of North Orange County
Ralphs
Roofing Wholesale
Ross
Schorr Metals
Stater Bros
Suburban Heating Oil Partners
United Service Technologies
251
BUDGET GLOSSARY
Accrual Basis of
Accounting
A method of accounting that recognizes the financial effect of transactions, events, and inter -fund activities when they occur, regardless of the timing of related cash flows.
Adjusted / Amended
Budget
The adopted budget plus any modifications (increases, decreases and transfers) approved by the City Council during the fiscal year.
Air Quality
Management District
(AQMD)
The air pollution control agency for the four -county region including Los Angeles and Orange counties, as well as parts of Riverside and San Bernardino counties ( .vw.acmd.go ).
Air Quality
Management Plan
(AQMP)
A plan developed by the AQMD that serves as the blueprint for all the future rules necessary to bring the area into compliance with federal 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
Comprehensive
Financial Report
(ACFR)
The summarization of the City's financial activity for the previous fiscal year which also includes a summarization of significant milestones that were accomplished during the year by department, fiscal policies, 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
Financing Program
(AH FP)
A Measure M funded program for pavement rehabilitation projects on arterial roadways in the county.
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
(Secured)
That part of the assessment roll containing state assessed property and property the taxes on which are a lien on real property sufficient to secure payment of taxes.
Assessed Valuation
(Unsecured)
The remainder of the assessment roll that is not on the secured roll.
The taxes on the unsecured roll are a personal liability of the assessed owner.
252
BUDGET GLOSSARY
Assessment District
(AD)
A separate unit of government that manages specific resources within 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
Uniform Local Sales
& Use Tax
A 1% local sales tax is collected by the State of California as part of the larger sales and use tax levied on the total retail price of tangible 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
Environmental
Quality Act
(CEQA)
A state statute enacted in 1970 that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible (ceres.ca.gov/ceqa). 253
BUDGET GLOSSARY
California
Transportation
Commission
(CTC)
The agency responsible for programming and allocating funds for the construction of highway, passenger rail and transit improvements throughout California (A/ww.catc.ca.gov)
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
Program Budget
(CI P)
A multi -year financial plan for construction of infrastructure, facilities, and rehabilitation such as buildings, streets, storm drains, and recreational facilities with an initial individual cost of at least $50,000 and an estimated useful life greater than two years.
Certificates of
Participation
(COPs)
Tax-exempt bonds issued by state entities usually secured with revenue from an equipment or facility lease. COPs enable 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
(CC)
Comprised of five City Councilmembers who are elected by district by 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
Development Block
Grant (CDBG)
Provides eligible metropolitan cities and urban counties with annual direct grants to revitalize neighborhoods; expand affordable housing and economic opportunities; and/or improve community facilities and services, principally to benefit low- and moderate -income persons.
Community Facilities
District
(CFD)
A special district that can issue tax-exempt bonds as a mechanism by which public entities finance construction and/or acquisition of facilities and provide public services to the district.
Community Oriented
Policing Services
(COPS)
A grant program that provides partial funding of salaries for several front line law enforcement positions.
254
BUDGET GLOSSARY
Conditional Use
Permit
(CUP)
Allows a city or county to consider special uses which may be essential or desirable to a particular community, but which are not allowed as a matter of right within a zoning district, through a public hearing process.
Congestion
Management Plan
(C M P)
Defines a network of state highways and arterials, level of service standards and related procedures.
Consumer Price
Index
(CPI)
A statistical description of price levels provided by the U.S.
Department of Labor. The change in this index from year to year is 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,
(Function) Division
Section Organizational units within the Operations Budget that group resources together to provide related types of services.
Discretionary
Funding
Opportunities
Pertains to funds, grants or other resources that are not restricted as to use.
Drug Abuse
Resistance Program
DARE — a police officer -led series of classroom lessons that teaches children from kindergarten through 12th grade how to resist peer pressure and live productive drug- and violence -free lives (Nww.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.
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.
255
BUDGET GLOSSARY
Environmental
Enhancement and
Mitigation Program
(EEMP)
A state funded grant program for projects related to environmental enhancement or design, particularly of transportation facilities.
Environmental
Impact Report
(EIR)
A public document used by governmental agencies to analyze the significant environmental effects of a proposed project, to identify 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
of Orange County
(FHCOC)
A private non-profit organization which fosters diversity in housing through education and the enforcement of state and federal fair housing laws ( www.fairhousincoc.orc ).
Fees
A general term used for any charge levied by government for providing a service or permitting an activity.
Fiscal Year
(FY)
Any period of 12 consecutive months designated as the budget year.
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.
Fringe Benefits
These include retirement/pension; health, life, and disability insurance; workers' compensation; and vacation, administrative, medical and special leave of absence time.
256
BUDGET GLOSSARY
Full -Time Equivalent
(FTE)
Refers to part-time hours converted to one full-time equivalent 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
Information System
(GIS)
A computer system capable of assembling, storing, manipulating and displaying geographically referenced information.
Goal
A time/phased strategy that will implement a specific course of action or plan, typically, a long-term process.
Government Finance
Officers Association
(G FOA)
A professional association of state/provincial and local finance officers in the United States and Canada ( www.cfoa.orc) .
Governmental
Accounting
Standards Board
(GASB)
Organized in 1984 by the Financial Accounting Foundation to establish standards of financial accounting and reporting for state and local governmental entities ( www.casb.orc ).
Grants
Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity or facility.
Gross Domestic
Product (Real)
(GDP)
The total of the goods and services produced by labor and property located in the United States.
Gross State Product
(GSP)
The total of the goods and services produced by labor and property located in the State of California.
257
BUDGET GLOSSARY
Growth Management
Area
(G MA)
Inter jurisdictional planning regions within Orange County.
Growth Management
Program
(GMP)
A Measure M funded program intended to address the cumulative regional traffic impacts of development not addressed by specific 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, Lighting,
and Park
Maintenance
(LLPM)
An assessment district to provide funds for park and parkway landscaping, lighting and park maintenance.
Lease -Purchase
Agreement
Contractual agreements which are termed leases, but whose lease 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
Formation
Commission
(LAFCO)
Reviews proposals for the formation of new local governmental agencies and changes of organization in existing agencies (A/ww.oclafco.orci).
Local Agency
Investment Fund
(LAIF)
A voluntary program created by statute in 1977 in which participating agencies (local governments and special districts) invest public funds. 258
BUDGET GLOSSARY
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
Management Area
(M-GMA)
A county grant program that provides funding for projects that benefit the greatest number of jurisdictions within a designated growth 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 —
Turnback
The non-competitive portion of the sales tax revenue generated 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
Understanding
(MOU)
An agreement outlining the terms of employment entered into between the City and employees of various bargaining units.
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.
National Pollutant
Discharge
Elimination System
NPDES — a permit program authorized by the Clean Water Act that controls water pollution by regulating point sources that discharge pollutants into waters of the United States.
259
BUDGET GLOSSARY
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
Authority
(OCFA)
An agency that provides fire prevention/suppression and emergency services to 23 cities and all the unincorporated areas in Orange County ( www.ocfa.org) .
Orange County
Investment Pool
(OCIP)
A pooling of cash by the county, local agencies and school districts for investment purposes run by the Orange County Treasurer.
Orange County
Transportation
Authority
(OCTA)
A regional transportation agency formed in 1991 to develop and implement unified transportation programs and services for Orange County ( ,vw.octa.n€ ).
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
Pavement
Management System
All other criminal offenses not defined as Part I crimes.
PMS — a computer -assisted decision -making process designed to help cities and counties prevent pavement problems through maintenance and repair in a timely, cost-effective manner.
Pavement Quality
Index
(PQI)
A scale from 1 to 10 that measures the structure, surface condition and riding comfort of the roadway.
Performance Budget
A budget wherein expenditures are tied to the measurable performance of activities and work programs.
Performance
Measurements
Statistical measures that are collected to show the impact of dollars spent on City services.
260
BUDGET GLOSSARY
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'
Retirement System
(PERS)
Provides retirement and health benefit services to members from the state, school districts and local public agencies ( vww.caloers.ca.gov).
Ralph M. Brown Act
The Brown Act is a California law that insures the public can attend and participate in meetings of local government.
Redevelopment
Agency
(RDA)
Formerly charged with the oversight for the redevelopment process for the City of Placentia. In June 2011, the Redevelopment Dissolution Act, AB1x26, was signed by the Governor and later upheld by the 261
BUDGET GLOSSARY
California Supreme Court. As a result, all redevelopment agencies in California were dissolved effective February 1, 2012.
Regional Surface
Transportation
Program
(RSTP)
A federal and state funded grant program used for projects located on highway systems (classified higher than local roads or rural minor collectors), bridges on any public highway, and transit systems.
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
Association of
Governments
(SCAG)
The Metropolitan Planning Organization for Los Angeles, Orange, San Bernardino, Riverside, Ventura and Imperial counties, that is mandated by the federal government to research and draw up plans for transportation, growth management, hazardous waste management and air quality (vvvvvv. t_d .k_a. ).
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
Index
The number of moving citations divided by the number of injury accidents.
Transaction Sales
Tax (District Tax)
Similar to the Bradley Burns Sales Tax, a transactions and use sales 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.
262
BUDGET GLOSSARY
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
Tax
(TOT)
A 10% tax added to the cost of renting a hotel room within the City.
Also known as the Hotel or Bed Tax.
Transportation
Management
Association
(TMA)
An association comprised of employers and property owners that promotes the use of alternative forms of commuting to the single occupant vehicle. Traffic congestion relief and air quality benefits are the primary goals of TMA.
Transportation
Management Plan
(TMP)
A plan that promotes the reduction of single occupant vehicle use in order to improve air quality and relieve congestion. Transportation Subventions Funds from outside sources used to construct transportation improvements that must be used for specific projects.
Unencumbered
Appropriation
That portion of an allocation not yet expended or committed to a specific purpose. Unexpended Appropriation is that portion of an allocation not yet actually paid.
Voice Over Internet
Protocol
(VoIP)
Used to manage the delivery of voice information over the Internet.
Year -End Surplus Funds remaining at the end of a fiscal year that are available for allocation or for one-time purchases (not for on -going programs or services).
263
Proposed Annual Operating Budget &
CIP
Fiscal Year 2026-27
Presentation Overview
• Economic Challenges
• FY 2026/27 Proposed Budget Overview (All Funds)
• FY 2026/27 Proposed General Fund Budget
• Position Allocation (staffing)
• Measure U
• Fund Balance Projections
• Next Steps
• Capital Improvement Program (CIP)
I
Economic Challenges
• Uncertainty in the market due to tariffs
• Low consumer confidence
• Impact of market volatility on CaIPERS
• Lack of funding for capital projects
• Refineries closing in CA
• War in Iran
STORE CLOSURES IN 2026...
30 STORES I€\ IN(
370 STORES
175 STORES
amazon ALL STORES
%PJaee#r. 500 STORES
KOHL'S 27 STORES
700 STORES
66 STORES
I DOLLAR TREE
FAMILYI)
Advanc%4;
AutoPares ■a
*macys
claire's
300 STORES
Valero Self Serve Gasolinel
669.
Fa 6190
U N LIAR
SUPER
689&
STOCKS TUMBLE, OIL EXTENDS RA
MIDEAST CONFLICT WIDENS AS IRAN WAR ENTERS 9
DOhV
ALL 2,578.53
ssINDEXP Soo
'-1.65.
-11310 6 766 52
-0.20 -2.82% As
MARKET CAP $≥ ^m
E..,0.'VS E 116 -0.0771 4 PpundJUS S 1.
-77.41 -2.91% glic01N
595
Economic Challenges
•Sales tax trending upward Statewide
• Statewide sales tax projected to be up 2.2% in FY
2026-27
• High interest rates and tariffs have negatively
impacted purchase of new and used vehicles —
Placentia's highest earning business type
• Consumer spending patterns have changed as
costs of utilities, restaurant prices and threat of
recession
• Significant increase in gas prices
• 5 of the City's top 25 sales tax producers are gas
stations
• Gas prices are skyrocketing due to strict environmental regulations in California, two refineries shutting down and ongoing War in Iran
Vsler& may close Benicia refinery by next year, citing
CA rOgulOilions and high costs
1 a.
i nt
3 � �
oFf. . f.
•y
fr --
5.1.1.i 1110 Mnr'I,CeSE RE NICIdRfFINPR. iJEX1 £RRII ._ 1r-
)rW
Valero'
CONSIDERS
CLOSING REFINERY
• @enecia Refinery
tTpShut Down By
End Of April 2026
• It's The 6th Largest
kbfleery I. California
3 of pe
7"A
596
Economic Challenges- Specific to Placentia
•Expense increases outside the City's control:
• Increase of $333,686 in Unfunded Actuarial Liability (UAL) • Payment from $917,000 to $1,252,057 CaIPERS required due to their recent rate of returns
• Since FY 23/24 increase of $1,252,057
• Increased insurance costs- $525,000
• General Liability/ Property- 25%
• Payment from $2,100,000 to $2,625,000
• Since FY 23/24 increase of $1,065,452
597
Economic Challenges- Specific to Placentia
• Higher costs of goods and services citywide — software costs • Unfunded capital needs identified in recently completed facility, ADA and IT assessments
• Increase of approx. $2.1 million in personnel expenses due to recent Memoranda of Understandings and merit increases
598
Response to Economic Challenges & Key
Assumptions in Budget
• Preliminary deficit identified initially due largely to nominal revenue increases and increased expenses — personnel costs
• Department budgets held to current fiscal year's budget and/ or reduced wherever possible
• Use of $682,454 in Section 115 trust funds and $775,896 in one time revenue
599
Proposed FY 2026/27 Budget All Funds
Total Proposed Revenues- $97,335,031
Total Proposed Expenditures- $96,249,473
Opera
ing
890
Special
Revenue
20%
DIF Agency
oil
0% 2%
Enterprise
Funds
9%
Internal
Service 0
7%
Fiduciary 7 A
5%
illii
General
Fund
57%
J
FY 2026/27 Proposed Budget Overview (All Funds)
56,253,884 ar 54,396,684 Mr 1,857,200
General Fund
S • ecial Revenue
Enter • rise
Internal Service
Fiducia
A•enc
DIF
Totals
19,449,146
8,562,679
6,172,000
5,253,068
2,151,958
0 19,549,646
8,439,058
6,250,500
5,253,068
2,151,958
208,560
507,704
123,621
(78,500)
0 0
(208,560)
$97,335,031 $96,249,473 $1,085,557
601
Proposed FY 2026/27 Budget
General Fund Revenues - $56,283,884
Charges for
Services
4%
Permits
6°/a
Intergovernmental
1%
Centennial
00 Misc. Revenue_
2%
Fines &
Forfeitures
1% UUT
Other Taxes 6%
7%
Measure U
Reserve
30 I
602
General Fund Revenue - Top Sources
Property Tax
25,000,000
23,000,000
21,000,000
19,000,000
17,000,000
15,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
A> ,10 0'� 0CD 4: 0;
\0'
do
aid .a�n.
Sales Tax
o 2r
603
Pro • ert Taxes
General Fund Operating _ Revenues
■
Sales & Use Taxes
Other Taxes
Permits
Fines & Forfeitures
Inter• overnmental
Char• es for Services
Miscellaneous
Total 0 • eratin • Revenues
Transfers In
Measure U Transfers In
Em • to ee Retention
OPEB
Measure U Reserve
Total Transfers In
Total Resources
FY 2025/26
Bud • et
22,755,799
8,449,079
8,852,995
3,484,117
675,300
2026/2
Pro • osed Bud
23,757,098
8,659,079
9,135,477
riance to FY25/26
Amended Bud • et
4.40%
2.49%
3.19%
3,387,834 (2.76)%
811,033
450,915 413,900
2,358,860 2,231,867
1,122,500 1,066,000
48,149,565 49,462,287
677,100
2,665,800
888,600
888,600
20.10%
(8.21%)
(5.38%)
(5.03%)
2.73%
1,219,997 80.18%
2,785,800 4.50%
928,600
4.50%
1,857,200 109.00%
5,120,100 6,791,597
53,269,665
32.65%
56,253,884 5.60%
604
Proposed FY 2026/27 Budget
General Fund Expenditures - $54,527,184
Transfers
Out
$61,000
0%
Debt
Service
$5,776,982
11%
Operating
$48,689,202
lich
89%
FY 2026/27 General Fund Operating
Expenditures by Department
De • ailment
Legislative
FY 2025/26
Ado 'ted Bud set
FY 2026/27
Proposed
Bud • et
Variance to
FY25/26
Amended
Bud•e
V
1,006,073
944,342
(6.14%)
City Administrator
Administrative Services
Human Resources
Community Services
Development Services
Finance
Fire & Life Safety
Police
Public Works
General Government
otal Expenditures
689,987
5,548,750
880,400
3,830,886
1,627,540
1,448,000
5,402,550
14,584,486
4,610,350
6,389,943
821,667
5,147,998
869,138
2,895,131
1,588,761
1,427,710
5,932,606
16,209,312
5,789,791
6,910,996
19.08%
(7.22%)
(1.28%)
(24.43)%
(2.38)%
(1.40%)
9.81%
11.14%
25.58%
8.49%
$46,079,965
$48,619,702
5.51%
606
Position Allocation
• Proposed budget includes funding for 194.0 FTE
employees, and authorization for 4.0 FTE over hires in
Police and Public Safety Communication Departments
607
Proposed Staffing Changes
Reclassifications
1. Reclassification of one Facilities Maintenance Technician to Facilities Maintenance Technician 11($10,000 annual costs).
Proposed Full Time Employee
1. One Information Technology Specialist ($0 increase in annual salaries offset by equal decrease in contract costs).
608
Citywide FTE by Department Proposed FY 2026/27
194.0
30 30
12 or
FTE
■ Community Services
■ Public Works
■ Fire & Life Safety
■ Police
■ Development Services
■ Finance
■ Human Resources
■ Adminstrative Services
■ City Adminstrator
609
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
610
FY 2026/27 - Measure U - Contributions to Reserves
• Replenishes reserves to
20.58%
0 • -27 Proposed Measure U Budget - $9,286,000
Current Allocations
Infrastructure, Vehicles, and
Equipment*
Post -Employment Benefits
Sustainability
Employee Recruitment and
Retention
Measure U Contingency Reserve
GF After GF
Reserve Reserve Amount
Target Not Target Met*
Met
40% 50% $3,714,400
10% 10% $928,600
30% 30% $2,785,800
20% 10% $1,857,200
611
Measure U Historical Performance
10,000,000
7,000,000
4,000,000
1,000,000
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 Proj. Prop.
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
Sales Tax
o\' \'L ti� ��\�� ��\�h Q,'
.ti �� <� - . < \(o
tii
612
Next Steps
• Equipment replacement policy
• Including any surplus fund rules and designations
• 5 year General Fund forecast during Q1
• Staff will continue to streamline processes and cut expenses • Public Hearing on 6/2/26
614
Capital Improvement Program
(CIP)
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
CIP by Project Types
New
Projec
t
Project Type Count
Streets &
Streetscapes
Traffic and
Transportation
Sewer
Storm Drain
City Buildings &
Facilities
Technology
Parks
Vehicles &
Equipment
Total
Amount
4 $4,865,679
1 $191,950
2 $1,840,000
1 $250,000
4 $2,235,000
3 $200,000
2 $400,000
2 $165,000
19 $10,147,629
617
CIP Projects by Funding
Source
Total New CIP
Funding:
$10,147,629
Sewer,
$1,840,000
Misc. Other
Sources,
$1,206,077
Meaure M,
$1,198,336
Dev Impact Fees,
$308,560
Measure U,
$4,080,001
618
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VALENCIA AVE
LAMM OGE
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9+VeKER
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CIP Projects: Streets
Project
FY 26-27 Residential Roadway Rehabilitation
Project
$2,300,000
FY 26-27 Arterial Roadway Rehabilitation
Project
$2,200,00
0 Rose Drive Rehabilitation Project from Alta
Vista to Yorba Linda Blvd
$189,000
CDBG Sidewalk and Curb Ramp ADA
Improvement Project
$176,679
Total Streets $4,865,679
620
CIP Projects: Traffic & Transportation
Project
Amount
Kraemer TSSP Project
$191, 950
Total Traffic
$191,950
Old Town Sewer Rehab Project
CIP Projects: Utilities (Storm and Sewer)
Amount
Area B1 Sewer Rehab Project
Kevin Way Storm Drain Improvements
$1, 770, 000
$70, 000
$250, 000
Total Utilities $2,090,000
2075 11_32_31
./,'.od13II o• *10 00I2Ck l4d2660cNJE1 :^_,, -.�•^ 1•:�r� i;•r; :r ��r.:. �.. . ,+ar Ran 11 a'UOQ b I a docl, eVe. 8 nCr.
-
IEREY Y CIR 30
0 6203
it rifled Cl
622
CIP Projects: City Buildings and Facilities
Project
Amount
City Hall Roof Renovation
Project $1,050,000
PD Sallyport Replacement Project
$75,000
Fire Station 2 Rolling Gate
Installation
$40,000
PD Women's Locker Room
Renovation
$1,070,000
Total City Buildings $2,235,000
623
CIP Projects: Technology
City Facilities Server/Network Upgrades
Desktop Computer Replacement
Program
Public Safety IT Infrastructure Modernization
and Cybersecurity Compliance
$60,000
$60,000
$80,000
Total Technology $200,0000
624
CIP Projects: Parks
Project
Amount
Los Vaqueros Playground Renovation Project
Samp Park Exercise Equipment
$325,000
ill— $75,000
Total Parks $400,000
625
CIP Projects: Vehicles & Equipment
Project
Police Vehicle Outfitting (4 Vehicles)
Fire Department Radio Equipment
Total Vehicles
Amount
$125,000
$40,00
$165,000
626
Recommendations
It is recommended that the City Council take the following actions:
1. Review and discuss the Proposed FY 2026-27 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 2, 2026, at 6:00 p.m.
627
Questions & Comments