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?
245
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
Fiduciary
Funds
FUND DESCRIPTIONS
Operating
Budget
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 1827
246
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.
247
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. 1829
248
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 249
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.
250
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
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.
COMMUNITY PROFILE
Demographics
O O O
00000
h'h
53,759 Total Population
39.1 Median Age
49.2% Male & 50.8% Female
63.6% Homeownership Rate
251
44.2% of Population with
bachelor's degree or Higher
110 0
° 1I
yME MEME ME�
ME
ME
ME
ME
ME
Median Income- $115,929
17,891 Total Housing Units
1832
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.
COMMUNITY PROFILE
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
252
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
Accrual Basis of
Accounting
Adjusted / Amended
Budget
Air Quality
Management District
(AQMD)
Air Quality
Management Plan
(AQM P)
Allocation of Funds
Annual
Comprehensive
Financial Report
(AC F R)
Appropriation
Arterial Highway
Financing Program
(AH FP)
Assessed Property
Assessed Valuation
Assessed Valuation
(Secured)
Assessed Valuation
(Unsecured)
BUDGET GLOSSARY
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.
The adopted budget plus any modifications (increases, decreases and transfers) approved by the City Council during the fiscal year.
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 ( ).
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.
Setting aside funds for a specific purpose or program. An allocation of funds makes them available for expenditure.
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.
A specific amount of money authorized by the City Council for an approved work program.
A Measure M funded program for pavement rehabilitation projects on arterial roadways in the county.
The value set upon real estate or other property by the County Tax Assessor.
A measure of the taxable value of property located within the City against which the tax rate is applied.
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.
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.
253
Assessment District
(AD)
Audit
Balanced Budget
Bond Refinancing
Bonds
Bradley Burns
Uniform Local Sales
& Use Tax
Budget Surplus
Budget Amendment
California
Environmental
Quality Act
(CEQA)
BUDGET GLOSSARY
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.
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.
A budget in which planned expenditures do not exceed planned revenues.
The pay off and re -issuance of bonds to obtain better interest rates and/or bond conditions.
A certificate of debt issued by an entity, guaranteeing payment of the original investments, plus interest.
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.
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).
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.
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). 1835
California
Transportation
Commission
(CTC)
Capital Equipment
Capital Expenditure
Capital Improvement
Program Budget
(CIP)
Certificates of
Participation
(COPS)
City Council
(CC)
Community
Development Block
Grant (CDBG)
Community Facilities
District
(CFD)
Community Oriented
Policing Services
(COPS)
BUDGET GLOSSARY
The agency responsible for programming and allocating funds for the construction of highway, passenger rail and transit improvements throughout California (Avww.catc.ca.aov)
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.
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.
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.
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.
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.
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.
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.
A grant program that provides partial funding of salaries for several front line law enforcement positions.
255
Conditional Use
Permit
(CUP)
Congestion
Management Plan
(CMP)
Consumer Price
Index
(CPI)
Contingency Reserve
Cost Allocated
Debt Service
Department,
(Function) Division
Discretionary
Funding
Opportunities
Drug Abuse
Resistance Program
Encumbrance
Enterprise Fund
BUDGET GLOSSARY
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.
Defines a network of state highways and arterials, level of service standards and related procedures.
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.
The City has established a policy to set aside a percentage of its General Fund operating expenditures as a contingency reserve.
A method used to charge General Fund costs budgeted in one department to another department or another fund.
The payment of principal and interest on borrowed funds such as bonds.
Section Organizational units within the Operations Budget that group resources together to provide related types of services.
Pertains to funds, grants or other resources that are not restricted as to use.
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.cor ).
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.
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.
1837
Environmental
Enhancement and
Mitigation Program
(EEMP)
Environmental
Impact Report
(EIR)
Expenditure
Fair Housing Council
of Orange County
(FHCOC)
Fees
Fiscal Year
(FY)
Fixed Asset
Franchise Tax
Fringe Benefits
BUDGET GLOSSARY
A state funded grant program for projects related to environmental enhancement or design, particularly of transportation facilities.
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.
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.
A private non-profit organization which fosters diversity in housing through education and the enforcement of state and federal fair housing laws ( www.fairhousinaoc.orc ).
A general term used for any charge levied by government for providing a service or permitting an activity.
Any period of 12 consecutive months designated as the budget year.
Placentia's budget year begins on July 1 and ends on June 30.
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.
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.
These include retirement/pension; health, life, and disability insurance; workers' compensation; and vacation, administrative, medical and special leave of absence time.
257
Full -Time Equivalent
(FTE)
Fund
Fund Balance
Gas Tax
General Fund
General Plan
Geographical
Information System
(GIS)
Goal
Government Finance
Officers Association
(G FOA)
Governmental
Accounting
Standards Board
(GASB)
Grants
Gross Domestic
Product (Real)
(GDP)
Gross State Product
(GSP)
BUDGET GLOSSARY
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)
A self -balancing set of accounts to record revenues and expenditures associated with a specific purpose.
Within a specific fund, the funds remaining when all current and prior year liabilities (expenditures) are subtracted from current and prior year assets (revenues).
State tax received from gasoline sales utilized solely for street related purposes, such as new construction, rehabilitation or maintenance.
The primary operating fund of the City (as opposed to all other City funds, which are designated as "Special Funds").
A comprehensive, long-range, policy document required by state law.
The document establishes the City's overall spatial and temporal development pattern.
A computer system capable of assembling, storing, manipulating and displaying geographically referenced information.
A time/phased strategy that will implement a specific course of action or plan, typically, a long-term process.
A professional association of state/provincial and local finance officers in the United States and Canada ( ).
Organized in 1984 by the Financial Accounting Foundation to establish standards of financial accounting and reporting for state and local governmental entities ( www.aasb.ora) .
Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity or facility.
The total of the goods and services produced by labor and property located in the United States.
The total of the goods and services produced by labor and property located in the State of California.
258
Growth Management
Area
(G MA)
Growth Management
Program
(GMP)
Hotel Tax (TOT)
Infrastructure
Inter -Fund Transfers
Landscape, Lighting,
and Park
Maintenance
(LLPM)
Lease -Purchase
Agreement
Level of Effort
Levy
Local Agency
Formation
Commission
(LAFCO)
Local Agency
Investment Fund
(LAIF)
BUDGET GLOSSARY
Inter jurisdictional planning regions within Orange County.
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.
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.
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.
Payments from one fund to another fund, primarily for work or services provided
An assessment district to provide funds for park and parkway landscaping, lighting and park maintenance.
Contractual agreements which are termed leases, but whose lease amount is applied to the purchase.
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.
To impose taxes, special assessments or service charges for the support of governmental activities.
Reviews proposals for the formation of new local governmental agencies and changes of organization in existing agencies ( www.oclafco.ora) .
A voluntary program created by statute in 1977 in which participating agencies (local governments and special districts) invest public funds. 1840
Long -Term Debt
Major Fund
Measure M
Measure M - Growth
Management Area
(M-GMA)
Measure M -
Turnback
Measure U
Memorandum of
Understanding
(MOU)
Modified Accrual
National Pollutant
Discharge
Elimination System
BUDGET GLOSSARY
Debt with a maturity of more than one year after issuance.
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.
County -wide sales tax measure used to fund a variety of transportation related projects.
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.
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.
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.
An agreement outlining the terms of employment entered into between the City and employees of various bargaining units.
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.
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.
260
Objective
Operating Budget
Orange County Fire
Authority
(OCFA)
Orange County
Investment Pool
(OCIP)
Orange County
Transportation
Authority
(OCTA)
Ordinances
Outputs
Part I Crimes
Part II Crimes
Pavement
Management System
Pavement Quality
Index
(PQI)
Performance Budget
Performance
Measurements
BUDGET GLOSSARY
Describes an outcome to be accomplished in specific, well-defined and measurable terms and is achievable within a specific timeframe; generally, programs have objectives.
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.
An agency that provides fire prevention/suppression and emergency services to 23 cities and all the unincorporated areas in Orange County ( www.ocfa.org) .
A pooling of cash by the county, local agencies and school districts for investment purposes run by the Orange County Treasurer.
A regional transportation agency formed in 1991 to develop and implement unified transportation programs and services for Orange County ( ww.octa.n€ ).
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.
The general results expected from programs and functions.
The most serious criminal offenses, including murder, rape, robbery, aggravated assault, burglary, larceny/theft, auto theft and arson.
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.
A scale from 1 to 10 that measures the structure, surface condition and riding comfort of the roadway.
A budget wherein expenditures are tied to the measurable performance of activities and work programs.
Statistical measures that are collected to show the impact of dollars spent on City services.
261
Personnel Expenses
Priority E
Priority I Calls
Program
Program Budget
Property Tax
Proposition 218
Public Employees'
Retirement System
(PERS)
Ralph M. Brown Act
Redevelopment
Agency
(RDA)
BUDGET GLOSSARY
Salaries and fringe benefits, such as pensions and insurance, for full- time and part-time employees of the City.
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.
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.
Represents major areas or support functions that can be defined as a service provided to citizens, other departments or other agencies.
A budget wherein expenditures are displayed primarily on programs of work and secondarily by the character and object class of the expenditure.
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.
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.
Provides retirement and health benefit services to members from the state, school districts and local public agencies ( vww.calpers.ca.aov).
The Brown Act is a California law that insures the public can attend and participate in meetings of local government.
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 262
Regional Surface
Transportation
Program
(RSTP)
Reserve
Resolution
Resources
Revenue
Right of Way
Southern California
Association of
Governments
(SCAG)
Special Funds
Traffic Enforcement
Index
Transaction Sales
Tax (District Tax)
BUDGET GLOSSARY
California Supreme Court. As a result, all redevelopment agencies in California were dissolved effective February 1, 2012.
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.
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.
A special or temporary order of a legislative body (e.g. City Council or Planning Commission) requiring less formality than an ordinance.
Units of dollars or physical input, such as work years or work hours, and other assets used to support and attain program objectives.
Annual income received by the City.
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.
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 (������.�
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.
The number of moving citations divided by the number of injury accidents.
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.
263
Transfers-In/Out
Transient Occupancy
Tax
(TOT)
Transportation
Management
Association
(TMA)
Transportation
Management Plan
(TM P)
Unencumbered
Appropriation
Voice Over Internet
Protocol
(VoIP)
BUDGET GLOSSARY
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.
A 10% tax added to the cost of renting a hotel room within the City.
Also known as the Hotel or Bed Tax.
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.
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.
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.
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
eetei Peewee:a-
Proposed Annual Operating Budget &
CIP
fiscal Year 2026-27
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 1,r IN( ,
370 STORES
175 STORES
ALL STORES
500 STORES
27 STORES
700 STORES
66 STORES
i DOLLAR TREE
FAMILY it r1111411
amazon
waewieen
KOHL'S
Advance,. r;
Aut Thrts ■R
*macys
claire's
300 STORES
Valero Self Serve Gasalinel
669.
ms 6190
689 0
STOCKS TUMBLE, OIL EXTENDS RALL
MIDEAST CONFLICT WIDENS AS IRAN WAR ENTERS DAY 4
ilitkL An**
1847
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 fOgul.Mkons and high costs
2 a.
I
1. low
x rt #
11. NIL
'old FAO 1...11%y CI C.E.E iJF•}CT ARP!:
•
Valero'
r
CONSIDERS
CLOSING REFINERY
•@anode Refinery
tTpShut Down By
End Of April 2076
• It's The 6th Largest
k4f1nery In California
War
....n1 11001%'
r3
1848
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
1849
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
1850
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 $164,036 in Section 115 trust funds and $775,896 in one time revenue
1851
Proposed FY 2026/27 Budget All Funds
Total Proposed Revenues- $97,571,128
Total Proposed Expenditures- $97,443,570
Special
Revenue
21%
DIF Agency
0% 711 2%
Internal
Service_10
7%
Opera
ing
90%
Enterprise
Funds
9% General
Fund
56%
Fiduciary
5%
FY 2026/27 Proposed Budget Overview (All Funds)
Revenues &
Transfers In
Expenditures &
Transfers Out
Net Incr/ (Decr)
to Fund Balance
General Fund
S • ecial Revenue
Enter • rise
Internal Service
Fiducia
A. enc
DIF
Totals
56,519,981 ar 54,763,281 Mr 1,857,200
18,911,442
8,562,679
6,172,000
20,377,146 (1,465,704)
8,439,058 123,621
6,250,500 (78,500)
5,253,068 5,253,068
2,151,958
0 2,151,958
208,560
0 0
(208,560)
$97,571,128
$97,443,570 $127,557
1853
Proposed FY 2026/27 Budget
General Fund Revenues - $56,519,981
Charges for
Services
4%
Permits Measure U
6% Reserve
' 3%
Intergovernmental
1%
Centennial
0°
0 Misc. Revenue /
2% /
Fines &J
Forfeitures
1%
■
General Fund Operating Revenues
Pro • ert Taxes
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 Adopted
Bud • et
22,755,799
8,449,079
8,852,995
3,484,117
675,300
450,915
2,358,860
1,122,500
48,149,565
677,100
2026/2
ro • osed Bud
23,757,098
8,659,079
9,135,477
3,387,834
811,033
413,900
2,467,964
1,066,000
49,462,287
1,219,997
riance to FY25/26
Ado • ted Bud • et
4.40%
2.49%
3.19%
(2.76)%
20.10%
(8.21 %)
4.63%
(5.03%)
2.73%
80.18%
2,665,800 2,785,800 4.50%
888,600 928,600 4.50%
888,600 1,857,200 109.00%
5,120,100 6,791,597 32.65%
53,269,665 56,489,981 6.05%
1855
Proposed FY 2026/27 Budget
General Fund Expenditures - $54,763,281
Admin
Cse vies
0 Publl�
Safety
0 00
Operating
$48,925,299
89%
• eix 1 upx
Transfers
Out
$61,000
0%
Debt
Service
$5,776,982
11%
FY 2026/27 General Fund Operating
Expenditures by Department
Legislative
FY 2025/26
Ado•t
•
FY 2026/27
Proposed
Bud•e
Variance to
FY25/26 Adopted
Bud
1,006,073
944,342
(6.14%)
City Administrator
Administrative Services
Human Resources
Community Services
Development Services
Fire & Life Safety
Police
Public Works
General Government
Total Expendi
689,987
5,548,750
821,667
4,905,398
19.08%
(11.60%)
880,400
869,138 (1.28%)
3,830,886
3,131,228 (18.26)%
1,627,540
1,588,761 (2.38)%
1,448,000
1,412,709 (2.44%)
5,402,550
5,932,606
9.81%
14,584,486
16,209,312 11.14%
4,610,350
5,678,973 23.18%
6,389,943 7,300,664
$46,079,965 $48,855,799
1857
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
1858
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).
1859
Citywide FTE by Department Proposed FY 2026/27
111:.yAfA
194.0
FTE
■ Community Services
■ Public Works
■ Fire & Life Safety
■ Police
■ Development Services
■ Finance
■ Human Resources
■ Adminstrative Serviceti'
S
■ City Adminstrator
1860
Capital Improvement Program
(CIP)
MMMWMMMWelt
MirT'•
•••••-•-1- •
s.
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
1862
CIP Projects by Funding
Source
Total New CIP
Funding:
$10,147,629
Sewer,
$1,840,000
Misc. Other
Sources,
$1,206,077
Measure U,
$4,080,001
Meaure M,
$1,198,336
Dev Impact Fees,
$308,560
1863
0 4
1 A
n
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r ••� • CITY OF PLACENTIA ••�
•
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f.LE .
NdY
•
•
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i RD
MIAS MILT
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IAPRACR
LA VILE LA
ERAOFOID
AvE
Pi
a
•
ORUZ OR PE RRr OR
o
S
A
TuFFREE BLVD
NERITIkTE SAVE
LARKSPUR OR
KrAISTOR L45 A
KRAEMtk tllyD
BROOKHAVEN BLVD
VALENCIA AVE
uu.aRIME •
AvE
FY 2026/27 Street Projects
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
ivkL
1865
CIP Projects: Traffic & Transportation
Project
Amount
Kraemer TSSP Project
Total Traffic
$191, 950
$191,950
CIP Projects: Utilities (Storm and Sewer)
Old Town Sewer Rehab Project
Area B1 Sewer Rehab Project
Kevin Way Storm Drain Improvements
Total Utilities
Amount
$1,770,000
$70,000
$250, 000
$2,090,000
NIkOkY tIR lU
10 •r 6203
11 YiTrl l...3 C14y Pipe_4 10/2025 11:32:3NI
2615 11_32_31
aA_9:436600/lOd0a/-2614-f M26!Ott4Ei_2015M70_11/806_421 pp 00 ,D4 O5 50 Iglk 30111 «do& 10 1 o'clock, N4,.n 8'+N
1867
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
1868
CIP Projects: Technology
City Facilities Server/Network Upgrades
Desktop Computer Replacement
Program
Public Safety IT Infrastructure Modernization
and Cybersecurity Compliance
Total Technology
$60,000
$60,000
1869
CIP Projects: Parks
Los Vaqueros Playground Renovation Project
$325,000
Samp Park Exercise Equipment
$75,000
Total Parks $400,000
1870
CIP Projects: Vehicles & Equipment
Project
Amount
Police Vehicle Outfitting (4 Vehicles)
$125,000
Fire Department Radio Equipment
$40,00
Total Vehicles
$165,000
41:. iktot
1871
Recommendations
1. Open the Public Hearing concerning the City of Placentia Budget for Fiscal Year 2026-27 and Capital Improvement Program (CIP) for Fiscal Year 2026-27, consider all public testimony, ask questions of Staff, and close the public hearing; and
2. Adopt Resolution No. R-2026-39, a Resolution of the City Council of the City of Placentia, California, taking actions necessary to adopt the Fiscal Year 2026-27 Annual Budget; and taking actions necessary to adopt the Fiscal Year 2026-27 Capital Improvement Program (CIP) Budget with an appropriation of $10,147,629; and authorizing the Position Allocation Plan and Compensation Plan for Fiscal Year 2026-27; and
3. Authorize the City Administrator to release appropriation controls for the General Government Department and Risk Management fund outside of the normal quarterly process, as necessary; and
4. Approve the use of the County's population growth and California per capita income growth as determined by the State Department of Finance for the calculation of the Fiscal Year 2026-27 Annual Appropriation Limit; and
1872
Recommendations
5. Adopt Resolution R-2026-40, a Resolution of the City Council of the City of Placentia, California, approving and adopting the Annual Appropriations Limit (GANN) for the Fiscal Year 2026-27 in the amount of $131,672,638.
It is recommended that the Placentia Public Financing Authority take the following actions:
1. Conduct the Public Hearing concerning the Placentia Public Financing Authority Budget for Fiscal Year 2026-27; and
2. Adopt Resolution No. PPFA-2026-01, a Resolution of the Placentia Public Financing Authority (PPFA) Board of Directors of the City of Placentia, California, taking actions necessary to adopt the PPFA's Fiscal Year 2026-27 Annual Budget. 1873
Questions & Comments
3;kc,25,Eggolk
Agenda Item No: 3.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: June 16, 2026
Submitted by: Brooke Lovell
From: City Clerk
Subject:
ADOPTION OF CITY COUNCIL POLICY NO. 136 - TECHNOLOGICAL DISRUPTION
DURING CITY COUNCIL MEETINGS
Financial Impact:
None.
Summary:
Senate Bill 707 (2025) amended the Ralph M. Brown Act to require all eligible legislative bodies, including the Placentia City Council, to provide two-way remote public participation beginning July 1, 2026, and to adopt a formal policy describing how disruptions to telephonic or Internet services will be handled during public meetings.
Proposed City Council Policy No. 136 establishes the procedures the City will follow in the event of a disruption to services preventing members of the public from listening, observing, or participating remotely in a City Council meeting. The policy outlines the steps taken by the Presiding Officer, City Clerk, and Staff when a disruption occurs; requires good -faith efforts to restore service; and clarifies how and when the City Council may recess, reconvene, or continue its meeting if remote access remains unavailable.
Adoption of Policy No. 136 ensures compliance with SB 707 and helps maintain transparency, operational consistency, and accessibility during technological interruptions.
Recommended Action:
It is recommended that the City Council:
Adopt City Council Policy No. 136 - Technological Disruption During City Council Meetings, effective July 1, 2026, in order to comply with SB 707.
Strategic Plan Statement:
This item supports Strategic Plan Goal No. 5: Organizational Excellence, by promoting transparent, consistent, and compliant public meeting procedures. The policy strengthens internal processes and ensures the City can maintain accessibility and continuity of government even during technological disruptions.
Discussion:
SB 707 requires the City Council to adopt a written policy describing how the City will respond 1875
when a disruption in telephonic or internet service prevents the public from participating remotely. These requirements take effect July 1, 2026, and apply only to meetings of the City Council.
Policy No. 136 provides a clear response framework. When a disruption occurs, the Presiding Officer will announce the issue and recess the meeting while Staff works to restore service.
The City Council may continue any properly noticed closed session during this period. Good - faith restoration efforts may include troubleshooting equipment or software, attempting alternative connections, contacting technical support, or using backup systems.
If service is restored within one hour, the meeting will resume as normal. If not, the Council may either adjourn or continue the meeting after adopting the required Brown Act finding that good -faith efforts were made and that continuing the meeting serves the public interest. The policy also directs the Clerk to record the disruption, restoration efforts, and City Council actions in the meeting minutes.
The policy aligns with current operational capabilities and maintains flexibility for Staff to use the most appropriate restoration methods based on the circumstances. It also reflects best practices observed in other jurisdictions preparing for SB 707 implementation.
Financial Summary:
None.
Attachments
DRAFT - POLICY NO. 136 TECHNOLOGICAL DISRUPTION DURING CITY COUNCIL MEETINGS.docx
1876
ELECTED OFFICIALS POLICY NO. 136
TECHNOLOGICAL DISRUPTION DURING CITY COUNCIL MEETINGS
Purpose
This policy establishes procedures for responding to a disruption in the telephonic or internet services that provide two-way remote public access to meetings of the City Council, as required by the Ralph M. Brown Act (Gov. Code § 54953.4).
Applicability
This policy applies only to meetings of the City Council at which two-way remote public participation is offered or required.
This policy does not apply to City boards, commissions or committees, nor does it apply to disruptions of one-way livestream or broadcast services. A meeting may continue if one-way services fail, provided two-way public access remains functional.
Definitions
"Disruption" means any failure, outage, or interruption of the City's telephonic or internet service that prevents the public from attending or observing a meeting through the City's two-way remote access services.
"Remote access services" means the two-way telephonic service and/or two-way audiovisual platform used to provide real time remote public attendance and observation of City Council meetings.
Response to a Disruption
If the Presiding Officer or City Clerk/ Deputy City Clerk becomes aware of a disruption to the City's remote access services:
• The disruption shall immediately be announced to the public. • The Presiding Officer shall then call for a recess of the open session. A disruption does not preclude the City Council from meeting in a closed session that has been properly noticed and is consistent with the Ralph M. Brown Act. • Staff shall begin efforts to identify and restore the disrupted service. • The meeting shall remain in recess for at least one hour or until the service is restored, whichever occurs first. The recess may be extended while restoration efforts continue.
Efforts to Restore Service
The City shall make good -faith efforts to restore remote access services, which may include:
• Troubleshooting the teleconferencing platform or software
DRAFT POLICY MANUAL CITY COUNCIL
TECHNOLOGICAL DISRUPTION POLICY MM/YYYY
Printed on Recycled Paper
1877
ELECTED OFFICIALS POLICY NO. 136
• Resetting or replacing audiovisual equipment
• Attempting alternative connection methods
• Contacting technical support staff or service providers • Using available backup equipment or platforms
The technical staff shall document the restoration efforts undertaken.
Reconvening the Meeting
If Service Is Restored
If remote access service is restored before or at the time the meeting reconvenes, the meeting will continue as normal.
If Service Is Not Restored After One Hour
If service has not been restored after one hour, the City Council may reconvene to take one of the following actions:
1. Adjourn the meeting; or
2. Continue the meeting in open session by adopting, by roll -call vote, the following or a substantially similar finding:
"The City has made good -faith efforts to restore telephonic or internet service in accordance with its adopted policy, and the public interest in continuing the meeting outweighs the public interest in remote public access." Upon adopting this finding, the City Council may resume open session even though remote access services have not been restored.
Recordkeepinq
The City Clerk/ Deputy City Clerk shall document the disruption in the meeting minutes, including:
• The nature and time of the disruption
• The restoration efforts undertaken
• The time the meeting was reconvened (if applicable)
• Any finding adopted pursuant to this policy
Review and Updates
This policy may be amended by the City Council at a noticed public meeting in open session, not on the consent calendar.
DRAFT POLICY MANUAL CITY COUNCIL
TECHNOLOGICAL DISRUPTION POLICY MM/YYYY
Printed on Recycled Paper
1878
3;kc,25,Eggolk
Agenda Item No: 3.b
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: June 16, 2026
Submitted by: Brooke Lovell
From: City Attorney's Office
Subject:
RESOLUTION SUBMITTING A HOTEL TAX MEASURE TO THE ELECTORATE AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION AND REQUESTING THAT THE
ELECTION BE CONSOLIDATED WITH OTHER ELECTIONS TO BE HELD ON THAT DATE Financial Impact:
If enacted by voters, generates approximately $715,000 annually in new locally -controlled revenue. One time election -related costs of approximately $8.500.
Summary:
The Transient Occupancy Tax ("TOT") is a tax imposed on visitors who stay in hotels, short- term rentals, and similar lodging establishments within the City. Commonly referred to as a "hotel tax," the TOT has remained at a rate of ten percent (10%) for decades. The tax is paid by visitors occupying lodging accommodations within the City for periods of thirty (30) consecutive days or less. Revenue generated through TOT supports essential municipal services and helps offset the increased demand placed on City infrastructure, public safety, and other public services by visitors and hotel occupants. TOT revenue may be used to support a variety of municipal functions, including, but not limited to, neighborhood police patrols, fire protection, 911 response, and road repairs. Similar transient occupancy taxes are imposed by over 95% of cities throughout California.
Given increasing operational costs, inflationary pressures, and ongoing demands for municipal services, it is appropriate for the City to evaluate the feasibility of adjusting the TOT rate. Such an evaluation would help ensure that City revenues remain adequate to sustain current service levels, address future community needs, and support the City's long-term fiscal stability. Additionally, a potential adjustment to the TOT rate would help ensure that visitors and overnight guests contribute an equitable share toward the municipal services and infrastructure they utilize while staying in the City of Placentia.
Pursuant to California law, any increase to the City's TOT rate must be approved by the voters. The proposed action would adopt a Resolution placing before the voters, at the November 3, 2026 General Municipal Election, a ballot measure to increase the City's TOT rate by four percent (4%), increasing the rate from ten percent (10%) to fourteen percent (14%). The Resolution also directs the City Attorney to prepare an impartial analysis of the measure and authorizes the filing of ballot arguments and rebuttals in accordance with 1879
applicable law.
Recommended Action:
It is recommended that the City Council:
1. Approve Resolution No. R-2026-49, a Resolution of the City Council of the City of Placentia, California Submitting a Hotel Tax Measure to the Electorate at the November 3, 2026 General Municipal Election and Reiterating its Request that the Election be Consolidated with Other Elections to be Held on that Date; and
2. Authorize the City Administrator, or designee, to execute all necessary documents and take all actions necessary to effectuate the intent of the Resolution, subject to approval as to form by the City Attorney.
Strategic Plan Statement:
This item is consistent with the City Council's adopted Strategic Goals to ensure the City's long-term financial stability through responsible fiscal management, strategic investment, and the maintenance of a balanced budget that supports high-quality municipal services.
If approved by the voters, the proposed TOT increase would provide an ongoing locally controlled revenue source to continue to support essential City services and programs, including but not limited to public safety, infrastructure maintenance and improvements, parks and recreational amenities, and community programs serving residents, seniors, and youth.
Discussion:
In March 2026, the City engaged William Berry and Embold Research to assist in evaluating the feasibility of placing a Transient Occupancy Tax increase before the voters. As part of this effort, community polling and outreach were conducted to obtain public input regarding their interest in a revenue measure that could appear on the November 3, 2026 General Municipal Election ballot.
The polling results indicated voter support for a proposed TOT increase at levels exceeding the simple majority threshold required for passage. In addition to public polling, the City developed an informational webpage and will be holding community engagement meetings to provide information regarding the proposed measure and solicit community feedback through surveys and public discussion. City staff has continued outreach efforts through existing City communication channels, including social media, email communications, and participation in community organizations and stakeholder meetings.
Based on the results of this outreach and community engagement process, staff has prepared a proposed ordinance that would increase the City's Transient Occupancy Tax rate by four percent (4%), from ten percent (10%) to fourteen percent (14%), subject to voter approval.
If approved by the voters, the measure is estimated to generate approximately $715,000 annually in additional revenue.
ANALYSIS:
The City of Placentia is committed to maintaining a high quality of life and providing reliable municipal services that support residents, businesses, and visitors. Maintaining these services requires ongoing investment in public safety, infrastructure, parks, and community programs.
If approved by the voters, the proposed TOT increase would diversify and strengthen the City's revenue base by generating additional locally controlled funding paid by visitors staying 1880
in local lodging establishments. This increase would also ensure that out-of-town visitors pay their fair share of the local services they use when in Placentia.
The City currently imposes a ten percent (10%) TOT, which has remained unchanged since 1985. During that period, the City has experienced significant changes in tourism patterns, lodging accommodations, operational costs, and inflation. Additionally, the growth of short- term rental platforms has expanded the lodging market beyond traditional hotels and motels.
Compared to surrounding jurisdictions, the City's current TOT rate remains relatively modest.
A four percent (4%) increase would align the City more closely with rates imposed by neighboring cities, such as Anaheim which is currently at 15%.
Based on the available lodging data for Placentia, the estimated average daily room rate is about $145 per night. A proposed increase in the TOT from 10% to 14% would add an extra 4% tax to the nightly rate. This increase is estimated to result in an additional cost of approximately $5.80 per night on average for hotel and short-term rental guests.
Following adoption of the Resolution, City staff will complete all actions necessary to place the measure before the voters at the November 3, 2026 General Municipal Election. These actions include publication requirements, coordination with the Orange County Registrar of Voters, preparation of the City Attorney's impartial analysis, and administration of the ballot argument and rebuttal process pursuant to applicable provisions of the California Elections Code.
Financial Summary:
If approved by the voters, the proposed four percent (4%) increase in the Transient Occupancy Tax is estimated to generate approximately $715,000 annually in additional General Fund revenue.
The estimated incremental cost associated with placing the measure on the November 3, 2026 General Municipal Election ballot is $8,500.
If approved by the electorate, the Ordinance would become operative on January 1, 2027.
Attachments
CC RES R-2026-49 -TOT.docx
Exhibit A - Placentia TOT Ordinance.docx
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RESOLUTION NO. R-2026-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, SUBMITTING A HOTEL TAX
MEASURE TO THE ELECTORATE AT THE NOVEMBER 3,
2026 GENERAL MUNICIPAL ELECTION AND
REITERATING ITS REQUEST THAT THE ELECTION TO
BE CONSOLIDATED WITH OTHER ELECTIONS TO BE
HELD ON THAT DATE
A. Recitals
WHEREAS, pursuant to Chapter 3.20 of the Municipal Code, the City imposes a transient occupancy tax ("Hotel Tax"); and
WHEREAS, the Hotel Tax is paid by or on behalf of "transients" (hotel guests) and is collected by the operators of each hotel and remitted to the City; and WHEREAS, pursuant to Section 5.08.500 of the Municipal Code, the current rate of the Hotel Tax is 10% of the rent paid by the hotel guest; and WHEREAS, proceeds of the hotel tax are deposited in the general fund, available for any lawful municipal purpose, and used by the City to fund general services such as neighborhood police patrols, fire protection, 911 response, and road repairs; and WHEREAS, by its Resolution No. R-2026-37 (the "Election Resolution"), the City Council has called a General Municipal Election for November 3, 2026 (the "Election") and has requested that the Election be consolidated with the statewide general election held on the same date and administered by the Orange County Registrar of Voters; and WHEREAS, the City Council desires to give the voters the opportunity at the Election to vote to increase the rate of the Hotel Tax.
B. Resolution
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLACENTIA AS FOLLOWS:
Section 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are correct.
Section 2. Ballot Measure Submitted. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the ordinance attached hereto as Exhibit "A" and incorporated herein by reference, be submitted to the voters at the Election. Adoption of the ordinance requires a majority vote of those voting on the matter.
Resolution No. R-2026-49
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Section 3. Ballot Question. The question submitted by Section 2 of this Resolution shall appear on the ballot as follows:
PLACENTIA HOTEL TAX MEASURE.
Shall the measure increasing the rate of the City of Placentia's existing transient occupancy tax (hotel tax), paid only by hotel guests, to 14%, funding city services such as police patrols, fire protection, 911 response, and road repairs; requiring citizen oversight and annual audits, generating about $715,000
annually, until ended by voters, be adopted?
YES
NO
Section 4. Consolidation. Pursuant Section 10400 et seq. of the Elections Code, the City Council reiterates its request set forth in the Election Resolution that Board of Supervisors of Orange County consolidate the Election with any other elections held on the same day in the same territory or in the territory that is in part the same.
Section 5. Conduct of Election. Pursuant to Section 10002 of the Elections Code, the City Council reiterates its request that the Orange County Board of Supervisors permit the Orange County Registrar of Voters to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro -rations and allocation procedures. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code. In all matters, the Election shall be held as set forth in the Election Resolution.
Section 6. Filing with County. The City Clerk shall file a certified copy of this Resolution with the Board of Supervisors and the Orange County Registrar of Voters.
Section 7. Impartial Analysis. The City Attorney shall prepare an impartial analysis of the measure. The analysis shall be included with other ballot materials.
Section 8. Arguments. Any person may prepare an argument for or against the measure not exceeding 300 words in length. Rebuttal arguments shall be permitted as provided by state law. If more than one argument is submitted for or against the measure, or more than one rebuttal is submitted for or against the measure, for each, the City Clerk shall select the argument/rebuttal to be included with the ballot materials in the manner provided by state law.
Section 9. Effective Date. This Resolution shall be effective upon its adoption.
Resolution No. R-2026-49
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APPROVED and ADOPTED this 16th day of June 2026
Chad P. Wanke, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 16th day of June 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution No. R-2026-49
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Exhibit "A"
Tax Ordinance
Resolution No. R-2026-49
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AN ORDINANCE OF THE CITY OF PLACENTIA,
CALIFORNIA, AMENDING SECTION 5.08.500 OF THE
MUNICIPAL CODE TO CHANGE THE RATE OF THE
TRANSIENT OCCUPANCY TAX AND ADDING SECTION
3.20.100 TO THE MUNICIPAL CODE TO REQUIRE
CERTAIN ACCOUNTABILITY MEASURES
WHEREAS, Section 3.20.020 of the Placentia Municipal Code requires that, for the privilege of occupancy in any hotel, each transient is subject to and shall pay a transient occupancy tax at the rate set forth in Section 5.08.500 of the Municipal Code; and WHEREAS, the transient occupancy tax is collected by the hotel operator from the transient and then remitted by the operator to the City; and WHEREAS, the transient occupancy tax is governed by Chapter 3.20 of the Municipal Code; and
WHEREAS, Section 3.20.010 of the Municipal Code provides that "transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days and that any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy; and WHEREAS, Section 3.20.010 of the Municipal Code provides that "hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio motel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof; and WHEREAS, Section 3.20.010 of the Municipal Code provides that "rent" means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever; and
WHEREAS, the rate of the Transient Occupancy Tax is currently 10%; and WHEREAS, the People of the City of Placentia desire to increase the rate of the tax to 14%, and to adopt certain accountability measures.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF PLACENTIA DO HEREBY ORDAIN AS FOLLOWS:
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SECTION 1. Section 5.08.500 of Chapter 5.08 (Finance Department—Business Licenses) of the Municipal Code is hereby amended to read:
§ 5.08.500 Transient Occupancy Tax
The rate of the transient occupancy tax imposed by Section 3.20.020 of this Code is 14% of the rent charged by the operator.
SECTION 2. Section 3.20.100 is added to Chapter 3.20 (Transient Occupancy Tax) of the Municipal Code to read as follows:
§3.20.100 Accountability
A. The proceeds of the transient occupancy tax as well as the expenditure thereof, shall be audited annually by an independent accounting firm. Such independent audit may be a part of any other independent audit of municipal finances. The report of the audit shall be filed with the City Council and shall be a public record of the City.
B. The citizen's oversight committee established by Section 3.32.020 of this code shall, in addition to its other duties, review the expenditure of funds generated by the transient occupancy tax. It shall prepare an annual report on such expenditures which shall be presented to the city council and shall also be published on the city's webpage. Unless otherwise directed by resolution or ordinance of the city council, or by Chapter 3.32 or other provision of this code, the committee shall not have any function, power, or authority other than those expressly provided in this section. In no event shall a failure of the city council or the committee to meet, or to take any other action required by this section, invalidate any tax imposed or collected under this chapter; however, any court of competent jurisdiction may issue an order to the city compelling the city to comply with the requirements of this section.
C. The proceeds of the transient occupancy tax shall be deposited in the general fund of the city and may be used for any lawful municipal purpose. The tax is a general tax imposed for general government purposes.
SECTION 3. The City Council may, by ordinance, amend this Ordinance. However, the City Council shall not increase the rate of the tax imposed by this Ordinance above the rate set forth in this Ordinance without the approval of the increase by a vote of the Electorate.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is held invalid, such decision shall not affect the validity of the remaining provisions of this Ordinance.
SECTION 5. This Ordinance shall take effect on January 1, 2027.
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PASSED, APPROVED AND ADOPTED by the People of the City of Placentia at the General Municipal Election held on November 3, 2026.
Chad P. Wanke, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
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