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Agenda Item No: 3.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: June 30, 2026
Submitted by: Gavin Houn
From: Finance
Subject:
ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE PERIOD ENDING JUNE 30, 2025
Financial Impact:
None.
Summary:
The annual audit of the City's financial records has been completed by the City's audit firm, Clifton Allen Larson (CLA). Part of the audit contract includes working with Staff to complete the Annual Comprehensive Financial Report ("ACFR"). The ACFR will be reviewed with the Financial Audit Oversight Committee ("FAOC") on June 29, 2026 and if the FAOC approves the report, it will be recommended for the City Council to receive and file without any material modifications.
Recommended Action:
It is recommended that the City Council:
1. Receive and file the Annual Comprehensive Financial Report for the period ending June 30, 2025, as recommended by the Financial Audit Oversight Committee; and
2. Receive and file the Single Audit of Federally Assisted Grant Programs for the period ending June 30, 2025, as recommended by the Financial Audit Oversight Committee.
Strategic Plan Statement:
This action is not related to any Strategic Plan goal or objective.
Discussion:
Each year the City has an external audit performed by an independent auditing firm. At the conclusion of the audit process, the auditors and the City's Finance Department complete the Annual Comprehensive Financial Report (ACFR). As required by the Government Accounting Standards Board (GASB), the report's format includes standardized reporting information such as the Management Discussion and Analysis (MD&A), Required Supplementary Information, and Government -wide Financial Statements including the Statement of Net Position and Statement of Activities.
Also included in the report is the Independent Auditors' Report. In the opinion of the auditors (CLA), the financial statements are presented fairly in all material respects. The audit of the 1 City's financial records was completed in accordance with generally accepted auditing standards applicable to financial audits contained in Government Audit Standards issued by the Government Accountability Office. The City received a "clean" or unmodified opinion for the audit this year with one material weakness noted. The weakness identified were misstatements that if not corrected, would cause the City's financial statements to be materially misstated. The misstatements included moving some capital projects from "construction in progress" into a non -depreciating "capital assets" category instead of depreciating asset category and inadvertently including the employee share of CaIPERS for pension related deferred inflow of resources when it should have just been the employer paid portion. All misstatements were corrected, and Finance has updated its year-end checklist to ensure these misstatements will not be repeated.
The ACFR will be presented to the Financial Audit Oversight Committee at its meeting on June 29, 2026. Upon the Committee's approval, the report will be recommended to the City Council to receive and file..
Financial Summary:
There is no fiscal impact to the recommended action.
Attachments
ACFR - FY 25 City of Placentia Final.pdf
City of Placentia Results Presentation FY 2025 - FINAL.pptx 2 City of Placentia
Annual
Comprehensive
Financial Report
Fiscal Year
2024-25
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4 CITY OF PLACENTIA
PLACENTIA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
PREPARED BY THE FINANCE DEPARTMENT
OF THE CITY OF PLACENTIA
5 This page intentionally left blank
6 CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
CITYWIDE ORGANIZATION CHART viii
PRINCIPAL OFFICIALS ix
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 5
GOVERNMENT -WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 21
STATEMENT OF ACTIVITIES 23
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUND FINANCIAL STATEMENTS
BALANCE SHEET 25
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION 26
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 27
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
PROPRIETARY FUNDS FINANCIAL STATEMENTS
28 STATEMENT OF NET POSITION 29
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 30
STATEMENT OF CASH FLOWS 31
FIDUCIARY FUNDS FINANCIAL STATEMENTS
7 CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
STATEMENT OF FIDUCIARY NET POSITION 33
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 34
NOTES TO BASIC FINANCIAL STATEMENTS 35
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND 91
BUDGETARY COMPARISON SCHEDULE - CITYWIDE DEVELOPMENT
IMPACT FEE SPECIAL REVENUE FUND 92
BUDGETARY COMPARISON SCHEDULE - PLACENTIA REGIONAL
NAVIGATION CENTER SPECIAL REVENUE FUND 93
NOTES TO BUDGETARY COMPARISON SCHEDULES 94
SCHEDULES OF THE CITY'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITIES AND RELATED RATIOS 95
SCHEDULES OF CITY'S PENSION CONTRIBUTIONS 97
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND
RELATED RATIOS
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND
(MAJOR FUND)
99 100
101
SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 106
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 111
SCHEDULES OF REVENUE, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
116
STREET LIGHTING SPECIAL REVENUE FUND 117
8 CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
MEASURE M SPECIAL REVENUE FUND 118
THOROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND 119
ASSET SEIZURE SPECIAL REVENUE FUND 120
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 121
AIR QUALITY SPECIAL REVENUE FUND 122
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND 123 HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND 124 GASOLINE TAX SPECIAL REVENUE FUND 125
PEG REVENUE FUND 126
SB1 RMRA GAS TAX SPECIAL REVENUE FUND 127
NORTH ORANGE COUNTY (NOC) PUBLIC SAFETY GRANT SPECIAL
REVENUE FUND 128
TOD IMPACT FEE SPECIAL REVENUE FUND 129
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND 130
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND 131
CAL RECYCLE GRANT SPECIAL REVENUE FUND 132
EFID SPECIAL REVENUE FUND 133
FIRE IMPACT FEE FUND 134
ANIMAL SHELTER IMPACT FEE FUND 135
OPIOID SETTLEMENT FUND 136
CITY CAPITAL PROJECTS FUND 137
GAS TAX DEBT SERVICE FUND 138
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 139
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 140
9 CITY OF PLACENTIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
COMBINING STATEMENT OF CASH FLOWS 141
FIDUCIARY FUNDS - CUSTODIAL FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES 143
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION 144
STATISTICAL SECTION
NET POSITION BY COMPONENT 147
CHANGES IN NET POSITION 148
FUND BALANCES OF GOVERNMENTAL FUNDS 150
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 151
REVENUES BY SOURCE - GENERAL FUND 152
ASSESSED VALUE OF TAXABLE PROPERTY 153
DIRECT AND OVERLAPPING PROPERTY TAX RATES 154
PRINCIPAL PROPERTY TAX PAYERS 155
PROPERTY TAX LEVIES AND COLLECTIONS 156
RATIO OF OUTSTANDING DEBT BY TYPE 157
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT 158
LEGAL DEBT MARGIN INFORMATION 159
DEMOGRAPHIC AND ECONOMIC STATISTICS 160
TAXABLE SALES BY CATEGORY 161
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT 162
OPERATING INDICATORS BY FUNCTION 163
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM 164
10 Mayor
CHAD P. WANKE
Mayor Pro Tem
JEREMY B. YAMAGUCHI
Councilmembers:
THOMAS HUMMER
KEVIN KIRWIN
WARD L. SMITH
June 12, 2026
The People are the City
401 East Chapman Avenue — Placentia, California 92870
City Clerk:
ROBERT S. MCKINNELL
City Treasurer
KEVIN A. LARSON
City Administrator
JENNIFER LAMPMAN
To the Honorable Mayor, Members of the City Council, and Citizens of Placentia:
It is our pleasure to present the Annual Comprehensive Financial Report (ACFR) of the City of Placentia for the fiscal year ended June 30, 2025. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the City. It is our opinion that the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of the operations of the City and contains all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs.
The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Placentia, California. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient and reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by the Clifton Larson Allen, LLP., a public accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Placentia, California for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Placentia, California's financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis 11 (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Placentia's MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.
CITY PROFILE
The City of Placentia is located in north Orange County, in the heart of Southern California, with Los Angeles County to the north and San Diego County to the south. Orange County is the third largest county in California, trailing only Los Angeles and San Diego counties, and represents 8% of the state's population. There are currently 34 cities within the County. The City consists of approximately 6.7 square miles of land area and serves a population of 52,000.
The City was founded in 1910 and incorporated in 1926. It was home to major citrus growing companies. Under the City Charter adopted in 1965, the City government is organized in the Council -Administrator form. The City Council includes five (5) members, each of whom is elected at -large to overlapping four-year terms. In 2018, the City was divided into five districts with two of the districts electing a Councilmember in November of that year and the three remaining districts electing their Councilmembers in 2020. The City Council annually selects a Mayor and Mayor Pro Tem for a one-year term. The City Council serves as the legislative and policy-making body of the City government. The City Council appoints a City Administrator and a City Attorney.
The City Administrator is the City's chief executive officer and appoints all other City staff. The City Administrator is responsible for the daily administration of the City government and provides overall direction to all City departments. The City Clerk and City Treasurer are separately elected by the voters.
The City provides a full range of municipal services including police, fire and life safety, maintenance of streets and parks, community development (e.g., building, planning, code compliance), recreational and cultural activities, economic development, and administrative services (e.g., personnel, finance, information services). Refuse collection is franchised to a private waste company, Republic Services.
FINANCIAL POLICIES
Budget: The annual budget serves as the foundation for the City's financial planning and control.
The Finance Department, with City Administrator direction, develops revenue estimates and budget guidelines for each department every year in January. The departments then submit expenditure appropriation requests which are summarized by the Finance Department and presented to the City Administrator for review. The City Administrator then meets with each department and prepares a proposed budget document for presentation to the City Council.
The City's Charter requires that the City Administrator submit a proposed budget to the City Council at least 35 days prior to the start of each fiscal year. After the budget has been presented, it must be adopted by the City Council following a noticed public hearing. ii
12 The annual budget includes all the City's governmental and proprietary funds. The legal level of budgetary control is the fund level. The City Administrator has the discretion to transfer appropriations between departments within a fund but transfers between funds and additional appropriations and transfers must be approved by City Council.
General Fund Reserve Policy: The City's General Fund Reserve Policy provides guidance in the creation, maintenance, and use of reserves. The policy covers the allocation of new and one- time revenues to different committed reserves such as infrastructure, vehicles, and equipment reserve; post -employment benefits sustainability reserve; employee recruitment and retention reserve; and the General Fund contingency reserve. To ensure the availability of adequate reserves for potential contingencies or emergencies, the City Council established the City's General Fund Reserve Policy with a required general fund contingency reserve of 25% of annual General Fund operating expenditures. While the fund balance of the General Fund was approximately $14.3 million on June 30, 2025, the unassigned fund balance was approximately $9.1 million, a $5.7 million decrease from June 30, 2024. A relatively large portion of the current unrestricted fund balance is committed for the City's capital projects which include street projects and for the continued construction of the public safety building.
Fees: In FY 2017-18, the Council adopted Citywide Development Impact and Residential Affordable Housing Impact Fees and updated its Comprehensive Fee Schedule following a comprehensive cost of services/user fee study in FY 2021-22. The fee schedule was proposed to be updated annually based upon consumer price index with another fee study to be conducted in the fifth year. Both the Citywide Development Impact Fees and the Comprehensive Fee Schedule were updated in FY 2024-25.
FACTORS AFFECTING THE CITY'S ECONOMIC CONDITION
Local Economy: Placentia's economic outlook is promising. Taxes represent seventy-four percent (74%) of the City's total General Fund operating revenue and primarily include property taxes, sales and use taxes (including Measure U), utility users' tax, franchise fees, and other taxes. Tax revenues, exclusive of sales tax, for FY 2024-25 generally slightly exceeded budget and are expected to meet budgeted amounts for FY 2025-26.
LONG-TERM FINANCIAL PLANNING
Pension Unfunded Accrued Liability: On November 12, 2020, the City of Placentia issued lease revenue bonds through the Placentia Public Financing Authority taking advantage of the historic low interest rate environment. This bond issuance funded 100% of the City's CaIPERS unfunded actuarial liability (UAL) for the miscellaneous and safety plans. Upon issuance of the bonds, the City paid approximately $43.8 million to CaIPERS for deposit to the CaIPERS payment fund.
This transaction will provide $14.3 million in savings over the term of the bonds and over $600,000 annually during the first 15 years. Due to CaIPERS rates of returns in prior years being lower than their assumed discount rate of 6.8%, the City faced an unfunded actuarial liability (UAL) in FY 2024-25 of approximately $447,000 in addition to the debt service relating to the lease revenue bonds.
13 Post Employment Benefits: The City's General Fund Reserve Policy includes provisions to set aside 10% of ongoing new revenue and 10% of one-time new revenue for unfunded liabilities. In addition, when the General Fund reaches its minimum fund balance of 25%, an additional 10% of one-time new revenue will be allocated toward funding this liability for a total of 20% annually.
DEVELOPMENT INITIATIVES
Enhanced Infrastructure Financing District: In response to the elimination of redevelopment agencies the California Senate Bill 628, effective January 1, 2015, and California Assembly Bill 313, effective January 1, 2016, authorized the formation of an Enhanced Infrastructure Financing District ("EIFD"), which is intended to succeed the former Redevelopment financing mechanism and provide more flexibility than Infrastructure Financing Districts ("IFDs"). An EIFD is a governmental entity, separate and distinct from the city or county that establishes it and is governed by a Public Financing Authority ("PFA"). EIFDs can aid local government entities in funding public capital facilities, or other specified projects of communitywide significance, primarily by capturing tax increment revenue ("TI") generated within the district. EIFDs provide an opportunity for agencies to issue bonds for an array of public infrastructure projects as well as supporting economic development efforts in specific areas.
At the April 23, 2019, Orange County Board of Supervisors meeting, the Board Members approved a partnership to participate in an EIFD with the City of Placentia. This is one of four EIFDs established in California, and the first EIFD in the State of California to involve a partnership between a city and county for improved infrastructure.
The City of Placentia and the Southern California Association of Governments (SCAG) worked on a comprehensive plan for the establishment of an EIFD in Placentia. Under this plan, the County would contribute 46% of its share of property tax increment within the boundary of the District, which would amount to approximately $3.5 million over 20 years, or $175,000 annually. The City's contribution would be 50% of its property taxes generated in the District, or about $8.2 million over two decades. The total partnership between the County and the City would amount to $11.7 million to make the necessary infrastructure improvements to the Old Town Placentia area. This includes public infrastructure improvements near the proposed Metrolink Station, Placentia Old Town area, and the Transit -Oriented Development District near the 57 and 91 freeways. With this unique City -County partnership, the City will be able to produce over 1,600 new units of housing, create 3,900 construction jobs, and over 1,100 permanent jobs at full build- out.
Transit -Oriented Development: The City has been given a unique opportunity with the future development of a new state-of-the-art Metrolink train station and 246 -space parking structure within the Old Town Placentia area. The proposed station will help transform the Packing House District (near Melrose Street and Crowther Avenue) into an active, vibrant destination. Transit - Oriented Development (TOD) is a type of community development that includes a mixture of housing, office, retail, and/or other amenities integrated into a walkable neighborhood and located within a half -mile of a public transportation stop. It will also support existing retail and restaurant businesses while growing the City's local economy. iv
14 Based on an economic development analysis conducted by Kosmont Associates, the public and private investments in the future TOD and Old Town Revitalization Plan (OTP) areas are expected at build -out to generate up to $540 million in local economic output and $800 million in Countywide economic output. Upon completion, the TOD and OTP areas are estimated to generate approximately $92 million annually in local economic output. Additionally, the proposed District areas would assist with reconstructing streets and street improvements, utilizing non -General Fund resources. In total, construction of the TOD and Old Town District is estimated to generate approximately 3,900 construction jobs and 1,100 permanent jobs.
Placentia's Old Town is a 33 -acre area located in the southern and western portions of the City, north of a section of the Burlington Northern Santa Fe (BNSF) railroad. To take advantage of the upcoming Metrolink station and parking structure developments scheduled to begin construction at a future, unknown date, the Old Town Placentia Revitalization Plan was adopted by the City Council in July 2017. The plan's primary goal is to create a vibrant, safe, and pedestrian friendly area that respects the community's historical and cultural diversity, while also creating new opportunities for development and investment into the area. This comprehensive plan incorporates well- designed private and public physical improvements and amenities.
Based on the Plan's expectation of 853,000 square feet of new improvements at build -out, the Old Town Revitalization Plan is expected to generate $217 million of private development activity, development impact fees of $8.3 million and additional annual tax revenues for the City of $900,000. In addition, 1,057 construction jobs and 823 of new on-site permanent jobs are anticipated as a result of the Plan.
As mentioned previously, to expedite these improvements in Old Town Placentia, the City partnered with the County of Orange to establish an EIFD near the City's future Metrolink Station, including the Old Town Placentia area and TOD Packing House District. The purpose of this district is to create a funding mechanism that can facilitate the construction of public infrastructure improvements in this area. A portion of the property tax increment (the amount above the property taxes collected in base year 2019) that the City and the County of Orange receive would be specifically restricted to pay for the infrastructure projects listed in the Infrastructure Financing Plan (IFP) at an estimated cost of $8.2 million. These infrastructure improvements include street improvements, pedestrian connectivity, and landscaping and lighting upgrades.
The EIFD does not result in new taxes or fees to the property owners in the EIFD boundaries or the City's residents.
Commercial/Residential Development:
Toll Brothers, Inc. are constructing a development of 100 single-family detached homes. This development will be located northeast of Alta Vista Street and Rose Drive. As of June 30, 2025 all phases are under construction. Home sales are underway for the remaining units including the model homes.
Orangethorpe Investment Partners, LLC are constructing a 75 -unit townhome development including five, live work units on a 2.72 acre lot. This development will be located at 777 W. v
15 Orangethorpe Avenue. As of June 2026 this development has been approved by city council and is anticipated to submit for building plan check shortly.
Yagnesh Patel of CY Hospitality is constructing a 63 -foot -tall hotel totaling 42,631 square feet with 86 guest rooms. It will also include a 24,210 square foot subterranean garage, rooftop deck and on site alcohol sales. This development will be located at 450 S Placentia Avenue. As of June 2026 this development has been approved by council and is currently in the building plan check phase.
Toffoli Investments/Risewell Homes are constructing a 139 -unit residential townhome development called "Hudson." Hudson is located at 455 S. Van Buren Street and will consist of 22 separate three-story buildings. Six floor plans are proposed consisting of 25 one -bedroom units, 52 two-bedroom units, and 62 three-bedroom units. The unit types will measure between 762 square feet and 1,349 square feet in overall floor area and feature an attached one or two - car garage per unit. Hudson amenities will include a tot lot, barbeques, fire pits, bike racks, a dog run, and more. As of June 30, 2025 construction of most of the buildings are complete. Home sales are underway for the remaining units including the model homes.
Toffoli Investments/Risewell Homes are constructing a 39 -unit three-story residential condominiums development called "Hudson East." Hudson East will be located at East Veterans Way near Lakeview Avenue on a 1.3 -acre lot. As of June 30, 2025 construction of final phases are under construction.
Toffoli Investments/Risewell Homes are constructing a development of 140 -unit three-story condominium residential townhomes called "Sumner Village." This development will be located at 440 North Jefferson Street on a 4.97 -acre property. As of June 2026 construction of model homes, phases 1 and 2 (out of 12) are under construction.
Chick-fil-A restaurant, located at the southeast corner 1200 E. Alta Vista Street was under construction as of June 30, 2025 and opened for business October 2025. The newly constructed 5,525 -square -foot Chick-fil-A features a modern design with a drive-thru and outdoor seating area, offering guests a welcoming and convenient dining experience. Distinctive drive-thru canopy structures and high-quality exterior finishes complete the restaurant's polished look. This represents the final phase of the development originally approved in 2018 on the southeast corner of Alta Vista Street and Rose Drive, which combines both commercial and residential uses while preserving many of the site's originally approved landscape and hardscape features.
Dutch Bros Coffee is constructing a 1,025 -square foot commercial building, with dual drive-thru lanes, including hardscape and landscape improvements in a 28,446 -square foot former parking lot at the Placentia Town Center, located at 150 E. Yorba Linda Boulevard. As of June 2026 this development has been approved by Planning Commission and is currently in the building plan check phase.
vi
16 Buy Local Incentive Programs
Residential Vehicle Rebate Program: Placentia residents purchasing or leasing a new vehicle from Fairway Ford or Audi North OC are eligible to receive a $500 rebate with proof of residency as part of the Buy Local Incentive Program. The Resident Vehicle Rebate Program expired on April 30, 2025.
Acknowledgments
The preparation of this report could not have been accomplished without the efficient and dedicated service of the entire Finance Department. Special recognition is also given to the audit firm of the Clifton Larson Allen, LLP. We also wish to recognize the commitment of the City Council to the high standards embodied in this report and express appreciation to them and each City department for their cooperation and support in conducting the fiscal operations of the City.
Respectfully submitted,
Jerry Griggs
Director of Finance
vii
Jennifer Lampman
City Administrator
17 Citywide Organizational Chart
Deputy City
Administrator
Administration
Human
Resources/IT
Emergency
Services
City Treasurer
City Attorney
Citizens
City Council City Clerk
City
Administrator
Legislative and
Economic
Development
Public
Relations and
Marketing
VIII
Committees/
Commissions
Deputy City
Administrator
CIP/Engineering
Development
Services
Public Works
Community
Services
18 CITY OF PLACENTIA
PRINCIPAL OFFICIALS
AS OF JUNE 12, 2026
Chad P. Wanke
Jeremy B. Yamaguchi
Ward L. Smith
Thomas Hummer
Kevin Kirwin
Robert S. McKinnell
Kevin A. Larson
Jennifer Lampman
Christian L. Bettenhausen
Jerry Griggs
Rosanna Ramirez
Lydie Gutfeld
Joseph M. Lambert
Alice Burnett
Chris Tanio
Brad Butts
Jason Dobine
CITY COUNCIL
Mayor
Mayor Pro Tempore
Councilmember
Councilmember
Councilmember
CITY OFFICIALS
ix
City Clerk
City Treasurer
City Administrator
City Attorney
Director of Finance
Director of Administrative Services
Director of Community Services
Director of Development Services
Director of Human Resources
Director of Public Works
Police Chief
Fire Chief
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x
20 FINANCIAL SECTION
xi
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xii
22 6
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the City Council
City of Placentia
Placentia, California
CliftonLarsonAllen LLP
CLAconnect.com
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Placentia (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer (1)
23 Honorable Mayor and Members of the City Council
City of Placentia
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
(2)
24 Honorable Mayor and Members of the City Council
City of Placentia
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedules - General and Major Special Revenue Funds, the schedules of the City's proportionate share of the net pension liabilities and related ratios and the schedules of plan contributions for the City's pension plans, the schedule of changes in the net other post -employment benefit (OPEB) liability and related ratios, and the schedule of OPEB plan contributions, identified as Required Supplementary Information (RSI) in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (3)
25 Honorable Mayor and Members of the City Council
City of Placentia
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 12, 2026, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. ��.gza.c LLQ
CliftonLarsonAllen LLP
Irvine, California
June 12, 2026
(4)
26 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The following Management's Discussion and Analysis (MD&A) of the financial activities of the City of Placentia ("City") provides an overview of the City's financial performance for the fiscal year ended June 30, 2025. Please read it in conjunction with the accompanying basic financial statements and notes to the financial statements.
FINANCIAL HIGHLIGHTS
• The City's total net position increased by approximately $100,000 during FY 2024-25, increasing from $88.6 million to $88.7 million.
• Governmental activities revenues totaled approximately $70.1 million, consisting primarily of taxes, intergovernmental revenues, charges for services, and investment earnings. Governmental activities expenses totaled approximately $71.2 million.
• The City's business -type activities, consisting of refuse and sewer maintenance operations, reported positive operating income of approximately $1.0 million during the fiscal year, compared to an operating loss of approximately $30,000 in the prior year.
• Total governmental fund balances decreased by approximately $4.5 million during fiscal year 2024-25, from $33.5 million to $29.0 million. The decrease was primarily attributable to continued capital improvement program expenditures, roadway rehabilitation projects, public safety facility planning and design activities, and the use of accumulated reserves to fund infrastructure and operational needs. • The General Fund reported a fund balance of approximately $14.3 million at June 30, 2025, compared to $18.4 million in the prior year. The decrease was primarily due to a decrease in transfers and a decrease in debt issuance as a financing source.
• The City continued significant investment in infrastructure, facilities, roadway rehabilitation, public safety improvements, park enhancements, and technology modernization projects during fiscal year 2024-25.
Governmental capital asset additions totaled approximately $12.9 million. • Total long-term governmental liabilities decreased from approximately $99.0 million to $95.0 million due primarily to scheduled debt service payments and reductions in financed purchase obligations, leases, and other debt obligations.
• The City's unrestricted net position for governmental activities remained negative at approximately $(66.6) million, primarily due to long-term pension and other post -employment benefit ("OPEB") liabilities, bonded indebtedness, and deferred inflows related to pension, OPEB, and lease accounting standards.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements include:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
In addition to the basic financial statements, this report also contains required supplementary information and supplementary schedules.
Government -wide Financial Statements
The government -wide financial statements provide readers with a broad overview of the City's finances using the accrual basis of accounting, similar to private -sector businesses. (5)
27 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The Statement of Net Position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City's financial position is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the fiscal year.
All changes in net position are reported when the underlying event occurs, regardless of when cash is received or paid.
The government -wide financial statements distinguish functions of the City principally supported by taxes and intergovernmental revenues (governmental activities) from functions intended to recover all or a significant portion of costs through user fees and charges (business -type activities).
Governmental activities include general government, public safety, public works, community development, and community services. Business -type activities include refuse and sewer maintenance operations.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
The City's funds are divided into three categories:
• Governmental funds
• Proprietary funds
• Fiduciary funds
Governmental Funds
Governmental funds are used to account for the governmental activities reported in government -wide financial statements. Most of the City's basic services are included in the governmental funds. The basis of accounting is different between the governmental fund statements and the government -wide financial statements.
The governmental funds focus on near-term revenues/financial resources and expenditures, while the government -wide financial statements include both near-term and long-term revenues/financial resources and expenses. The information in the governmental fund statements can be used to evaluate the City's near-term financing requirements and immediate fiscal health. Comparing the governmental fund statements with the government -wide financial statements can help the reader better understand the long-term impact of the City's financing decisions. To assist in this comparison, reconciliations between the governmental fund statements and the government -wide financial statements are included with the governmental fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances.
Proprietary Funds
The City maintains two different types of proprietary funds: enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for refuse and sewer services. (6)
28 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Internal service funds are used to accumulate and allocate costs internally among the City's various functions.
The internal service funds primarily benefit the governmental activities and, therefore, the internal service fund information has been included with the governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for each of the two business -type activities individually, but combined information for the City's three internal service funds. In the Supplementary Information section of this report, information for each of the three internal service funds is provided.
Fiduciary Funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds.
Fiduciary funds are not included in the government -wide financial statements because their assets are not available to support the City's activities.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is important to obtain a full understanding of the data in the government -wide and fund financial statements. The notes are located immediately following the basic financial statements.
Other Information
In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements. The combining statements for other governmental funds, the individual fund schedules, the internal service fund statements, and agency -type fiduciary fund schedules are presented immediately following the required supplementary information.
(7)
29 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
Cash and Investments
Other Assets
Capital Assets
Total Assets
Governmental Activities
Business -type Activities
Total
$ 32,210,256 $ 34,155,584 $ 4,584,263 $ 2,719,521 $ 36,794,519 $ 36,875,105 36,443,524 37,938,186 168,373 212,976 36,611,897 38,151,162 141,005,918 135,430, 593 11,835, 573 12,470,619 152,841,491 147,901, 212 209,659,698 207,524,363 16,588,209 15,403,116 226,247,907 222,927,479
DEFERRED OUTFLOW OF RESOURCES
6,272,491 13,060,378
83,000 391,435
6,355,491 13,451,813
LIABILITIES
Current Liabilities
19,910,274 16,004,625
500,212 462,236
20,410,486 16,466,861
Long -Term Liabilities
87,064,388 92,362,502
406,183 580,755
87,470,571 92,943,257
Total Liabilities
DEFERRED INFLOW OF RESOURCES
NET POSITION
Net Investment in Capital Assets
Restricted
Unrestricted
TOTAL NET POSITION
106, 974,662 108,367,127
35,765,734 38,017,644
118,813,090
20,961,876
(66,583,173)
114,776,612
21,767,364
(62,344,006)
906,395 1,042,991
290,985 385,908
11,835,573 12,470,619
3,638,256 1,895,033
107,881,057 109,410,118
36,056,719 38,403,552
130,648,663
20,961,876
(62, 944, 917 )
r
$ 73,191,793 $ 74,199,970 $ 15,473,829 $ 14,365,652 88,665,622 127,247,231
21,767,364
(60,448,973)
88,565,622
As of June 30, 2025, the City's total net position increased slightly by $100,000 from the prior fiscal year, increasing from $88.6 million in FY 2023-24 to $88.7 million in FY 2024-25. Governmental activities reported a decrease in net position of approximately $1.0 million, while business -type activities reported an increase of approximately $1.1 million.
Governmental activities total assets and deferred outflows decreased from approximately $220.6 million in FY 2023- 24 to $215.9 million in FY 2024-25. The decrease was primarily attributable to lower cash and investments, reduced grant receivables, and decreases in deferred outflows related to pension and OPEB actuarial adjustments. Cash and investments for governmental activities decreased by approximately $1.9 million, largely due to continued capital project expenditures, debt service payments, and operating transfers during the fiscal year.
Total governmental liabilities and deferred inflows decreased from approximately $146.4 million in FY 2023-24 to $142.7 million in FY 2024-25. The decrease was primarily attributable to scheduled debt repayments, reductions in net pension and OPEB liabilities, and lower deferred inflows related to OPEB. Long-term debt due within and beyond one year decreased by approximately $1.4 million as the City continued making scheduled debt service payments.
Governmental activities unrestricted net position decreased further from a deficit of $62.3 million in FY 2023-24 to a deficit of $66.6 million in FY 2024-25. Although the unrestricted deficit remains significant, it is primarily (8)
30 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
attributable to the recognition of long-term pension and OPEB obligations required under governmental accounting standards.
Business -type activities net position increased from $14.4 million in FY 2023-24 to $15.5 million in FY 2024-25. The increase was primarily attributable to positive operating results in both the Refuse and Sewer Maintenance Funds with increases to fees collected through property taxes and sewer maintenance fees, respectively.
The largest portion of the City's net position continues to reflect its investment in capital assets. As of June 30, 2025, the City reported $130.6 million invested in capital assets, net of related debt, compared to $127.2 million in the prior year.
Restricted net position decreased from $21.8 million in FY 2023-24 to $21.0 million in FY 2024-25. The decrease was primarily due to planned use of restricted debt service reserves and transportation -related resources for capital improvement and infrastructure projects.
Change in Net Position
Governmental Activities
Business -type Activities Total
REVENUES
Program Revenues:
Charges for Services
$ 8,216,617 $ 7,072,927
Operating contribution and grants 7,574,540 9,936,713
Capital contributions and grants 4,764,786 1,938,279
General Revenues:
Taxes 47,450,242 45,901,213
Investment income 1,682,894 1,900,697
Gain on sale of property
Miscellaneous 460,735 281,897
Total revenues 70,149,814 67,031,726
$ 6,929,407 $ 6,324,092
103,730 44,933
7,033,137 6,369,025
460,735 281,897
$ 15,146,024 $ 13,397,019
7,574,540 9,936,713
4,764,786 1,938,279
47,450,242 45,901,213
1,786,624 1,945,630
77,182,951 73,400,751
EXPENSES
General government 18,872,842 17,490,713 - 18,872,842 17,490,713 Public safety 28,180,805 27,470,712 28,180,805 27,470,712 Public works 13,857,129 10,729,394 - 13,857,129 10,729,394 2,988,099 2,563,283 - 2,988,099 2,563,283
Commuityservices 4,654,541 4,253,514 - 4,654,541 4,253,514 2,604,575 2,959,601 2,604,575 2,959,601
Refuse - - 4,919,556 4,887,578 4,919,556 4,887,578
1,005,404 1,466,857 1,005,404 1,466,857
Total Expenses 71,157,991 65,467,217 5,924,960 6,354,435 77,082,951 71,821,652 CHANGES IN NET POSITION BEFORE TRANSFERS (1,008,177) 1,564,509 1,108,177 14,590 100,000 1,579,099 Community development
Interest
Sewer maintenance
TRANSFERS - (5,939,707) - 5,939,707 - -
CHANGES IN NET POSITION (1,008,177) (4,375,198) 1,108,177 5,954,297 100,000 1,579,099 NET POSITION, BEGINNING OF YEAR 74,199,970 78,575,168 14,365,652 8,411,355 88,565,622 86,986,523 NET POSITION, END OF YEAR $ 73,191,793 $ 74,199,970 $ 15,473,829 $ 14,365,652 $ 88,665,622 $ 88,565,622, (9)
31 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The following is a summary of activities for the years ending June 30, 2025, and 2024:
Governmental Activities:
Governmental activities decreased the City's net position by approximately $1.0 million during FY 2024-25, compared to a decrease of $4.4 million in FY 2023-24. The improved operating results were primarily attributable to continued growth in tax revenues, increased program revenues, and lower one-time financing activity compared to the prior year.
Revenues
Total governmental revenues, including program revenues and general revenues, increased from approximately $67.0 million in FY 2023-24 to $70.1 million in FY 2024-25. General revenues increased by approximately $1.5 million, driven primarily by continued strength in property tax, sales tax, utility users tax, and franchise tax revenues.
The following chart illustrates the percentage breakdown of revenue generated by governmental activities:
Taxes, 67.64%
Revenue Sources
Governmental Activities
Fiscal Year Ended June 30, 2025
Investment Income,
2.40% \
Miscellaneous, 0.66%
Charges For Services,
11.71%
_ Operating Contributions
& Grants, 10.80%
Capital Contributions &
Grants, 6.79%
E Charges For Services 11 Operating Contributions & Grants o Capital Contributions & Grants ■ Taxes o Investment Income ■ Gain (Loss) on Sale of Property IR Miscellaneous
Property tax revenues increased by approximately $1.2 million, or 5.7%, reflecting continued growth in assessed property valuations throughout the City. Sales tax revenues increased modestly by approximately $136,000 due to continued consumer spending and economic stability within the region.
Program revenues increased significantly in certain functional areas. Community development charges for services increased significantly from $1.5 million to $2.6 million, or 71.0% due to higher permit activity, fire plan check activity, and continued private development throughout the city. Public safety charges for services also increased by $233,055, or 25.51% due primarily to increased ordinance -related parking fines and enforcement activity. Public (10)
32 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Safety operating grants increased due to reimbursement for the operations of the Placentia Navigation Center.
Public Works operating and capital grants increased substantially due to ongoing federally and state -funded infrastructure and transportation improvement projects.
Capital Contributions and Grants saw an increase of $2.8 million, primarily due to housing development activity occurring throughout the City and continued infrastructure -related reimbursement activity.
Investment income remained strong during FY 2024-25 with a slight decrease of $217,803 mostly due to a market value adjustment.
Several major private development projects also remained active throughout the fiscal year, contributing to increased permit revenues, plan check activity, and future economic development opportunities within the City.
Significant projects included:
• A 140 -unit condominium townhome development at 440 N. Jefferson Street • A 68 -unit affordable housing development on Baker Street • Multiple infill townhome and condominium developments • The Toll Brothers residential development northeast of Alta Vista Street and Rose Drive • The Orangethorpe mixed-use residential and commercial development project Expenses
Governmental expenses increased from approximately $65.5 million in FY 2023-24 to $71.2 million in FY 2024-25.
Much of the increase was attributable to higher public safety costs, capital improvement activity, infrastructure maintenance, and increases in personnel -related expenditures.
General Government expenses increased by approximately $1.4 million due primarily to increased personnel costs, professional services, technology -related expenditures, and administrative support costs.
Public Safety remained the City's largest governmental function, representing approximately 40% of total governmental activity expenses. Public Safety expenses increased by approximately $710,000 over the prior year due primarily to higher personnel costs, contractual services, and operational expenditures.
Public Works expenses increased significantly by approximately $3.1 million due to expanded infrastructure maintenance activities, street improvements, and capital project expenditures funded through grants and transportation -related revenues.
33 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The following chart illustrates the percentage breakdown of expenses related to governmental activities:
Functional Expenses
Governmental Activities
Fiscal Year Ended June 30, 2025
Public Works, 19.47%
Public Safety,
39.60%
o General Govemment u Public Safety
Community
Development, 4.20%
Community Services,
6.54%
Interest Expense, 3.66%
General Government,
26.52%
o Public Works
• Community Development O Community Services • Interest Expense Business -Type Activities:
Business -type activities increased the City's net position by approximately $1.1 million during FY 2024-25, compared to an increase of approximately $6.0 million during FY 2023-24. The prior year increase was significantly impacted by a one-time capital contribution of approximately $5.9 million related to sewer infrastructure assets transferred from governmental activities.
Excluding the prior year capital contribution, business -type activities experienced improved operational performance during FY 2024-25.
Total business -type operating revenues increased from approximately $6.3 million in FY 2023-24 to $6.9 million in FY 2024-25, while operating expenses decreased from approximately $6.4 million to $5.9 million. (12)
34 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Business -Type Activities
2025
2024
Operating Revenues
$ 6,929,407
$ 6,324,092
Operating Expenses
$ 5,924,960
6,354,435
Operating Income (loss)
1,004,447
(30,343)
Non-operating Income
$ 103,730
44,933
Income(loss)before Transfers &Special Items
1,108,177
14,590
Transfers
$ -
5,939,707
Change in Net Position
$ 1,108,177
5,954,297
Net Position - Beginning of Year
$ 14,365,652
8,411,355
Net Position - End of Year
$ 15,473,829
$ 14,365,652
Refuse
The City of Placentia contracts with Republic Services to provide weekly waste collection services for residential, multi -family, and commercial properties. The Refuse Fund reported an increase in net position of approximately $344,985 during FY 2024-25, compared to a decrease of approximately $65,000 in the prior year. Operating revenues increased due to higher refuse service charges and customer billings, while operating expenses increased at a slower rate.
Refuse
2025
2024
Operating Revenues
$ 5,241,178
$4,812,880
Operating Expenses
4,919,556
4,887,578
Operating Income (loss)
321,622
(74,698)
Non-operating Income
23,363
9,797
Income(loss)before Transfers & Special Items
344,985
(64,901)
Transfers
-
-
Change in Net Position
344,985
(64,901)
Net Position - Beginning of Year
147,521
212,422
Net Position - End of Year
$ 492,506
$ 147,521,
Sewer
The City operates and maintains 84 miles of gravity sanitary sewer pipelines that serve the majority of parcels within the 6.6 square mile city limits. Operations, maintenance, and repair activities include sewer line cleaning, root removal, manhole maintenance and repair, sewer line video inspection, and sewer lateral maintenance, repair, and replacement.
(13)
35 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The Sewer Maintenance Fund reported an increase in net position of approximately $763,192 during FY 2024-25.
The increase was primarily attributable to stable operating revenues, controlled maintenance costs, a decrease in staff allocated to the fund, and continued positive operating cash flows.
Sewer
2025
2024
Operating Revenues
$ 1,688,229
$ 1,511,212
Operating Expenses
1,005,404
1,466,857
Operating Income (loss)
682,825
44,355
Non-operating Income
80,367
35,136
Income(loss)before Transfers &Special Items
763,192
79,491
Transfers
-
5,939,707
Change in Net Position
763,192
6,019,198
Net Position - Beginning of Year
14,218,131
8,198,933
Net Position - End of Year
$14,981,323
$14,218,131
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is valuable in assessing the City's financing needs. In particular, the assigned and unassigned fund balances serve as key indicators of the government's net resources available for spending at the end of the fiscal year. The unassigned fund balance represents the portion of the fund balance that has not been committed for a specific purpose by an external party, the City Council, or anyone authorized to allocate resources.
As of June 30, 2025, the City's governmental funds reported combined ending fund balances of approximately $29.0 million, a decrease of approximately $4.5 million from the prior year balance of $33.5 million. (14)
36 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
5 -
$474,769
Nonspendable
Components of Fund Balance
Fiscal Year Ended June 30, 2025
(Governmental Funds)
$20,063,493
Restricted
$1,396,102
$1,996,732
$5,061,818
Committed Assigned Unassigned
The total fund balance includes $474,769 in non -spendable fund balance, which consists of long-term loans receivable, inventories of supplies, prepaid expenditures, and prepaid items. These resources cannot be used to finance operating expenditures.
The restricted fund balance of $20.0 million represents resources that can only be spent for specific purposes due to constraints imposed either (1) externally by creditors (such as debt covenants), grantors, or laws and regulations of other governments, or (2) by law through constitutional provisions or enabling legislation. This reflects an approximate decrease of $696,603 compared to the previous year, primarily due to a decrease in cash within the Pension Stability fund.
The City Council, the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts are classified as committed fund balance. As of June 30, 2025, the City has committed $2.0 million from Measure U Funds for the continuation of infrastructure projects and other capital projects.
Assigned fund balance represents funds that are constrained by the City's intent to use them for specific purposes.
As of June 30, 2025, the City had $1.4 million assigned fund balance intended to cover prior year purchase order commitments.
Unassigned fund balance represents the portion of the fund balance that does not fall into any of the other four fund balance categories and has no specific spending limitations. As of June 30, 2025, the unassigned fund balance for all governmental funds combined is $5.1 million. This includes $9.1 million in unassigned fund balance in the General Fund, offset by combined unassigned deficits totaling $4 million across several funds, including the Navigation Center Fund, Miscellaneous Grants Fund, Measure M, LMD 92-1 Fund, Housing and Community Development Fund, and the City Capital Projects Fund.
(15)
37 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The decrease in total governmental fund balance was primarily attributable to planned capital project expenditures, continued infrastructure investment, debt service payments, and use of restricted resources for transportation and capital improvement projects.
General Fund:
The General Fund is the City's chief operating fund. As of June 30, 2025, the General Fund reported a fund balance of approximately $14.3 million, a decrease of approximately $4.1 million from the prior year. This change was primarily due to a decrease in incoming transfers and a decrease in debt issuance.
Revenue
General Fund revenues remained relatively stable during the fiscal year. Revenues totaled approximately $56.7 million in FY 2024-25, compared to $57.1 million in FY 2023-24. While tax revenues increased overall, total revenues declined slightly due primarily to reductions in miscellaneous revenues and lower one-time revenue activity compared to the prior year.
Expense
General Fund expenditures as of June 30, 2025, amounted to $60.3 million, a sharp decrease of $8.8 million compared to the previous year, or 12.73%. The decrease in expenditures was primarily driven by lower capital outlay.
General Government
General government expenses increased due to higher costs for professional services and a scheduled increase in salaries and associated benefits.
Public Safety
Public safety expenses increased due to a scheduled increase in salaries and associated benefits.
Capital Outlay
Capital outlay was the largest contributor to the decrease in expenses. Capital outlay decreased by $11.8 million, or 53.53%, compared to the prior year. The expenditure decreased significantly compared to the prior year because a substantial portion of the Public Safety Building construction costs had already occurred during FY 2023-24.
Proprietary Funds
The City maintains proprietary funds for sewer maintenance and refuse operations. At the end of the fiscal year, the combined net position of these two funds totaled $15.4 million, reflecting an increase of $1.1 million.
The sewer maintenance fund had a net position of $15.0 million, of which $11.8 million is invested in capital assets.
There were no significant changes between the current year and the previous fiscal year.
In fiscal year 2024-25, the Refuse Fund reported a positive net position of $492,506, an increase of $344,985 compared to the previous year. While the Refuse Fund experienced an increase in revenue from sales and service charges, this was offset by higher landfill and contractor charges due to an increase in units serviced. (16)
38 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The combined internal service funds had a negative net position of $4.7 million as of June 30, 2025, compared to a negative net position of $1.3 million on June 30, 2024. The change in net position for 2025 was $3.4 million, primarily due to an increase in claims and liability insurance premiums.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, adjustments were made to the estimated revenues and appropriations in the General Fund to more accurately reflect actual amounts received and expended. It is standard practice for the City to conduct a comprehensive analysis of estimated revenues and appropriations at the end of the first six months of the fiscal year. In accordance with City policy, any increases to the total General Fund appropriations for the year must be approved by the City Council.
The adopted General Fund budget for fiscal year 2024-25, including transfers from other funds, was nearly $50.4 million. This budget was later increased through amendments totaling $9.5 million, resulting in a final budget of $59.9 million. Actual revenues for the year totaled $56.7 million, with the largest negative budget variance of $5.7 million occurring in Capital Projects Revenue. This variance is primarily due to a project being funded with bond proceeds or grants, which are recorded on a reimbursement basis.
The adopted General Fund expenditure budget for fiscal year 2024-25 was $50.9 million. However, the City Council approved amendments that increased appropriations by $12.5 million, resulting in a final amended budget of $63.5 million. The largest increases were allocated to Capital Outlay, which includes improvements to the City's streets, fire station, parks, and the purchase of machinery and equipment. In fiscal year 2023-24, the City issued bonds and used fund balance to construct a new Public Safety building, which will house facilities for storing and processing evidence, provide a new Emergency Operations Center, and support a new Public Safety Communications Center.
As of fiscal year 2024-25, the project is still ongoing.
During the fiscal year, the City recognized that' costs continued to rise and worked to limit spending to essential items and services in order to remain fiscally responsible. In response, the City issued a stop spending order in April 2025, limiting purchases to essential items.. With the fund balance committed for the construction of the new Public Safety building and other capital projects, the City ended the fiscal year with an estimated reduction in fund balance of $4.1 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City continued significant investment in capital infrastructure during FY 2024-25. Capital asset activity included roadway rehabilitation, sewer infrastructure improvements, park renovations, public safety improvements, technology infrastructure upgrades, and facility modernization projects.
Major capital project expenditures during the fiscal year included:
• Public Safety Building construction
• Residential slurry and roadway rehabilitation projects • Tuffree Park Sports Field Lighting project
• McFadden Park Playground Renovation
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39 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
• La Placita Parkette Improvements
• Citywide wayfinding signage improvements
• Transit -oriented sewer infrastructure improvements
• IT infrastructure replacement and ERP modernization
• Vehicle and equipment replacement projects
• Park and facility renovation projects
Construction in progress remained significant at year-end due primarily to ongoing Public Safety Building construction and infrastructure projects underway throughout the City.
The City's capital assets, net of accumulated depreciation, for its governmental and business -type activities as of June 30, 2025, totaled $152.8 million, marking an increase of approximately $4.9 million, or 3.34%, from the prior year. Capital assets encompass land, buildings, infrastructure, and equipment.
Governmental activities saw an increase of $5.6 million, net of accumulated depreciation. This growth was primarily driven by the completion of street network projects, such as previously uncapitalized roadway rehabilitation projects, as well as the completion of improvements to the Transit Oriented Development (TOD) sewer project.
Additionally, construction in progress (CIP) activity rose due to the ongoing construction of the public safety building, which has yet to be completed.
Total business -type capital assets, net of accumulated depreciation, decreased during the fiscal year due to scheduled depreciation of structures and improvements with no new assets put in place throughout the year. After accounting for depreciation, the net decrease in capital assets for business -type activities was $635,046.
Governmental Activities
Business -type Activities
Total
Land
Land - Right of Way
Trees
Construction in Progress
Structures & Improvements
Equipment
Right -to -Use Lease Land
Right -to -Use Lease Equipment
Subscription Assets
Land Improvements
Infrastructure
Streets Network
Streets Appurtenances
Storm Drains
Tota I Ca pita I Assets
$
2025 2024 2025 2024
26,118,971 $ 26,118,971 $
1,008,822 1,008,822
3,196,564 3,196,564
34,920,491 26,554, 604
16,134,383 16,823,769
5,703,890 6,568,336
228,303
684,661 758,743
2,108,084 2,141,596
31,584 37,380
11,817,337
18,236
12,440,432
30,187
40,331,045 41,221,385 -
8,781,689 8,598,144 -
1,985,734 2,173,976
$ 141,005,918 $ 135,430,593 $ 11,835,573
26,118,971
1,008,822
3,196,564
34,920,491
27,951,720
5,722,126
684,661
2,108, 084
31,584
40,331,045
8,781,689
1,985,734
12,470,619 $ 152,841,491
$ 26,118,971
1,008,822
3,196,564
26,554,604
29,264,201
6,598,523
228,303
758,743
2,141,596
37,380
41,221,385
8,598,144
2,173,976
$ 147,901,212,
For further detailed information see Note 5, Capital Assets.
Debt Administration
As of June 30, 2025, the City's long-term debt totaled approximately $95.0 million, reflecting an decrease of $4.1 million from the prior year. This change was attributed to scheduled principal and interest payments on outstanding debt obligations during FY 2024-25. Total long-term liabilities decreased primarily due to normal debt amortization and reductions in financed purchase obligations and lease liabilities. (18)
40 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
The City continues to monitor long-term pension and OPEB obligations, which remain significant components of the City's overall liabilities.
Governmental Activities
Business -t •e Activities Total
2025 2024 2025 2024 2025 2024
Capital Leases (Radio)
Fire Lease#1
Fire Lease#2
Melrose Easement
Electric Vehicles
OCTA Adva nce
Fire UAL Payoff Loan
Motorola Equipment
2022 Loan Payable (2003 COP)
2021 Installment Sale Agreement
2020A Lease Revenue Bond
2023 Lease Revenue Bond
Unamortized Bond Premium
Leases Payable
Subscription Liability
Claims Payable
Compensated Absences
Other Postemployment Benefit
Pension Liabilities
Total Long -Term Liabilities
$ 204,512 $ 362,479 $
1,737,718 2,096,314
910,618 1,098,741
157,266 222,672
66,482 96,530
254,583 714,982
344,932
1,100,683 1,197,159
898,219 1,331,266
1,925,000 2,293,000
46,340,000 48,530,000
9,050,000 9,190,000
340,440 352,179
681,495 998,122
1,779,522 1,859,215
7,201,839 3,820,916
2,508,871 2,928,780
12, 588, 382 13, 621, 646
7,241,058 7,985,498
$ 94,986,688 $ 99,044,431 $
204,512
1,737,718
910,618
157,266
66,482
254,583
$ 362,479
2,096,314
1,098,741
222,672
96,530
714,982
344,932
1,100,683 1,197,159
898,219 1,331,266
1,925,000 2,293,000
46,340,000 48,530,000
9,050,000 9,190,000
340,440 352,179
681,495 998,122
1,779,522 1,859,215
7,201,839 3,820,916
36,395 31,632 2,545,266 2,960,412
349,023 377,671 12,937,405 13,999,317
34,335 172,847 7,275,393 8,158,345
419,753 $ 582,150 $ 95,406,441 $ 99,626,581
For further detailed information see Note 6, Long -Term Liabilities.
NEXT YEAR'S BUDGET, TAX RATES AND FEE LEVELS
The fiscal year 2025-26 General Fund operating budget was adopted with a projected surplus of $888,600, driven by use of one time revenues and reduction of non-essential expenses.
General Fund revenues and transfers from other funds are currently estimated at $53.3 million for fiscal year 2025- 26, which is in line with the actual revenues for fiscal year 2024-25. The adopted fiscal year 2025-26 General Fund budget includes $46.1 million in appropriations for expenditures (excluding CIP expenditures) and transfers to other funds. The City made efforts to limit any increases in expenditures to essential services or necessary contract increases.
Through this approach, the City was able to reduce expenditures by $1.7 million compared to the fiscal year 2024- 25 actuals. The approved staffing for fiscal year 2025-26 includes 193 full-time positions, 4 unfunded over -hires, and 76 elected and appointed personnel. As in previous years, contracts for services across all departments were carefully reviewed during budget development. In cases where contracts offered no potential cost savings or where a higher level of service could be provided for the same or lower cost, contract personnel were replaced by City employees.
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41 City of Placentia
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
REQUESTS FOR INFORMATION
This financial report is intended to provide a general overview of the City's finances for all individuals with an interest in the government's financial activities. If you have any questions regarding the information presented in this report or require additional financial details, please contact the City's Finance Department at the City of Placentia, 401 East Chapman Avenue, Placentia, California 92870, call (714) 993-8237 or visit our website at www.placentia.org .
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42 BASIC FINANCIAL STATEMENTS
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44 GOVERNMENT -WIDE FINANCIAL STATEMENTS
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46 CITY OF PLACENTIA
STATEMENT OF NET POSITION
JUNE 30, 2025
Primary Government
Governmental Business -Type
Activities Activities
ASSETS
Current Assets:
Cash and Investments $ 27,606,553
Receivables, Net of Allowance:
Accounts 3,266,313
Taxes 4,200,022
Grants 639,999
Interest 373,762
Loans 1,894,101
Leases 574,218
Prepaid Items 69,485
Inventory 7,740
Total Current Assets 38,632,193
$ 4,584,263
138,294
30,079
4,752,636
Total
$ 32,190,816
3,404,607
4,230,101
639,999
373,762
1,894,101
574,218
69,485
7,740
43,384,829
Noncurrent Assets:
Land Held for Resale 1,036,761 - 1,036,761
Leases Receivable 23,047,053 - 23,047,053
Restricted Assets:
Cash and Investments with Fiscal Agent 4,603,703 - 4,603,703 Pension Stability Fund 1,334,070 - 1,334,070
Capital Assets - Nondepreciable 65,244,848 - 65,244,848 Capital Assets - Depreciable/Amortizable, Net 75,761,070 11,835,573 87,596,643 Total Noncurrent Assets 171,027,505 11,835,573 182,863,078 Total Assets 209,659,698 16,588,209 226,247,907
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding 154,460 - 154,460
Deferred Outflows of Resources Related
to Pensions 4,077,463 26,423 4,103,886
Deferred Outflows of Resources Related
to OPEB 2,040,568 56,577 2,097,145
Total Deferred Outflows of Resources 6,272,491 83,000 6,355,491 See accompanying Notes to Basic Financial Statements.
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47 CITY OF PLACENTIA
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2025
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Payroll and Benefits
Deposits Payable
Retentions Payable
Accrued Interest Payable
Unearned Revenues
Long -Term Debt Due Within One Year
Claims Payable Due Within One Year
Compensated Absences Due Within One Year
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt Due in More Than One Year
Claims Payable Due in More Than One Year
Compensated Absences Due in More Than
One Year
Net OPEB Liability
Aggregate Net Pension Liabilities
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Leases Related
Deferred Pension - Related Items
Deferred OPEB - Related Items
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted for:
Public Safety
Public Works
Community Development
Community Services
Debt Service
Transportation
Park Development
Air Quality
Affordable Housing
Pension Stability
Total Restricted
Unrestricted (Deficit)
Total Net Position
See accompanying Notes to Basic Financial Statements.
Governmental
Activities
$ 6,873,777
1,474,589
1,411,777
1,115,769
385,354
726,708
5,186,365
1,800,460
935,475
19,910,274
60,260,173
5,401,379
1,573,396
12,588,382
7,241,058
87,064,388
106,974,662
22,830,294
2,893,567
10,041,873
35,765,734
118,813,090
2,067,013
1,214,430
8,067,122
535,911
4,764,278
464,823
21,518
382,443
2,110,268
1,334,070
20,961,876
(66,583,173)
$ 73,191,793
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Primary Government
Business -Type
Activities
$ 416,032
70,610
13,570
500,212
22,825
349,023
34,335
406,183
906,395
12,566
278,419
290,985
11,835,573
3,638,256
$ 15,473,829
Total
$ 7,289,809
1,545,199
1,411,777
1,115,769
385,354
726,708
5,186,365
1,800,460
949,045
20,410,486
60,260,173
5,401,379
1,596,221
12,937,405
7,275,393
87,470,571
107,881,057
22,830,294
2,906,133
10,320,292
36,056,719
130,648,663
2,067,013
1,214,430
8,067,122
535,911
4,764,278
464,823
21,518
382,443
2,110,268
1,334,070
20,961,876
(62,944,917)
$ 88,665,622
48 CITY OF PLACENTIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
Net Revenue (Expense)
Program Revenues and Changes in Net Positions
Capital Grants
Charges for Operating Grants and Governmental Business -Type Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 18,872,842 $ 3,106,022 $ 263,550 $ $ (15,503,270) $ $ (15,503,270) Public Safety 28,180,805 1,146,530 4,113,843 - (22,920,432) (22,920,432) Public Works 13,857,129 987,054 3,193,714 4,369,352 (5,307,009) (5,307,009) Community Development 2,988,099 2,580,254 3,433 395,434 (8,978) (8,978) Community Services 4,654,541 396,757 - - (4,257,784) (4,257,784) Interest 2,604,575 - - (2,604,575) (2,604,575)
Total Governmental Activities 71,157,991 8,216,617 7,574,540 4,764,786 (50,602,048) (50,602,048) Business -Type Activities:
Refuse 4,919,556 5,241,178 - - 321,622 321,622
Sewer Maintenance 1,005,404 1,688,229 - 682,825 682,825 Total Business -Type Activities 5,924,960 6,929,407 - 1,004,447 1,004,447 Total Primary Government $ 77.082.951 $ 15.146.024 $ 7,574.540 $ 4.764.786 (50,602,048) 1,004,447 (49,597,601) See accompanying Notes to Basic Financial Statements.
GENERAL REVENUES
Taxes:
Property Taxes 21,951,143 21,951,143
Sales Taxes 17,005,105 17,005,105
Utility Users Tax 3,234,789 3,234,789
Franchise Taxes 3,163,809 3,163,809
Transient Occupancy Taxes 1,800,796 1,800,796
Real Property Transfer Taxes 289,192 289,192
Other Taxes 5,408 5,408
Investment Earnings 1,682,894 103,730 1,786,624
Miscellaneous 460,735 460,735
Total General Revenues 49,593,871 103,730 49,697,601
CHANGES IN NET POSITION (1,008,177) 1,108,177 100,000
Net Position - Beginning of Year 74,199,970 14,365,652 88,565,622 NET POSITION - END OF YEAR $ 73,191,793 $ 15,473,829 $ 88,665,622 (23)
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50 FUND FINANCIAL STATEMENTS
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52 GOVERNMENTAL FUND FINANCIAL STATEMENTS
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54 CITY OF PLACENTIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
Major Funds
Placentia
Citywide Regional
Development Navigation
Impact Fee Center Other
General Special Special Debt Governmental
Fund Revenue Fund Revenue Fund Service Fund Funds
ASSETS
Total
Cash and Investments $ 11,065,294 $ 5,154,044 $ 9,000 $ 73,181 $ 8,804,610 $ 25,106,129 Receivables:
Accounts 466,129 1,843,270 - 956,914 3,266,313
Taxes 4,200,022 - 4,200,022
Grants - - 639,999 639,999
Accrued Interest 373,730 - 32 373,762
Loans and Notes 786,121 509,148 - 598,832 1,894,101
Leases 23,614,232 - - 7,039 23,621,271
Prepaid Items 66,203 3,282 - 69,485
Due from Other Funds 1,350,603 - 1,350,603
Inventories 7,740 - 7,740
Land Held for Resale - 1,036,761 1,036,761
Restricted Assets:
Cash and Investments with
Fiscal Agents - - 4,603,703 4,603,703
Pension Stability Fund 1,334,070 - - - 1,334,070
Total Assets $ 43,264,144 $ 5,666,474 $ 1,852,270 $ 4,676,884 $ 12,044,187 $ 67,503,959
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts Payable $ 2,534,872 $ $ 1,959,870 $ $ 2,334,529 $ 6,829,271 Accrued Payroll and Benefits 1,401,629 19,571 40,555 1,461,755 Deposits Payable 1,286,609 - - 125,168 1,411,777
Retentions Payable 901,495 1,250 - 213,024 1,115,769
Due to Other Funds - 210,900 - 1,139,703 1,350,603
Unearned Revenue 11,000 624,000 - 91,708 726.708
Total Liabilities 6,135,605 1,250 2,814,341 3,944,687 12,895,883
DEFERRED INFLOWS OF
RESOURCES
Leases 22,823,467 - 6,827 22,830,294
Unavailable Revenues 28,216 509,148 1,218,270 - 1,029,234 2,784,868 Total Deferred Inflows of
Resources 22,851,683 509,148 1,218,270 - 1,036,061 25,615,162
FUND BALANCES
Nonspendable 471,487 3,282 - - - 474,769
Restricted 1,334,070 5,152,794 4,676,884 8,899,745 20,063,493 Committed 1,996,732 - - - 1,996,732
Assigned 1,396,102 - - - 1,396,102
Unassigned (Deficit) 9,078,465 - 2,180,341) - (1,836,306) 5,061,818 Total Fund Balances 14,276,856 5,156,076 2,180,341) 4,676,884 7,063,439 28,992,914 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances
$ 43.264.144 $ 5.666.474 $ 1.852.270 $ 4.676.884 $ 12.044.187 $ 67.503.959 See accompanying Notes to Basic Financial Statements.
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55 CITY OF PLACENTIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT -WIDE STATEMENT OF NET POSITION
JUNE 30, 2025
Total Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of net position were reported differently because:
$ 28,992,914
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet.
Nondepreciable 65,244,848
Depreciable and Amortizable 75,655,872
140,900,720
The loss incurred by the City resulting from the refunding of long-term liabilities are recorded as deferred outflows of resources and amortized over the remaining service life, equal to the lesser of the remaining bond -years on the refunded debt or the bond years on the refunding debt.
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the government -wide financial statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds.
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the statement of net position:
Financed Purchases
OCTA Advance
Compensated Absences
Loans Payable
Bonds Payable
Leases Payable
Subscription Liability
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
Pension Related Deferred Outflows of Resources
Aggregate Net Pension Liabilities
Pension Related Deferred Inflows of Resources
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
OPEB Related Deferred Outflows of Resources
Net OPEB Liability
OPEB Related Deferred Inflows of Resources
154,460
2,784,868
(385,354)
(3,076,596)
(254,583)
(2,508,871)
(3,923,902)
(55,730,440)
(681,495)
(1,779,522)
(67,955,409)
4,077,463
(7,241,058)
(2,893,567)
2,040,568
(12,588,382)
(10,041,873)
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the government -wide statement of net position. (4,653,557)
Net Position of Governmental Activities as Reported on the Statement of Net Position $ 73,191,793 See accompanying Notes to Basic Financial Statements.
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56 CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Earnings
Charges for Services
Leases and Rents
Contributions
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
(USES)
Issuance of Debt
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND
BALANCES
Fund Balance - Beginning of Year
FUND BALANCES - END OF
YEAR
General
Fund
Major Funds
Placentia
Regional
Navigation
Center
Special Debt
Revenue Fund Service Fund
Citywide
Development
Impact Fee
Special
Revenue Fund
$ 47,216,243 $
533,191
3,202,633
764,685
1,070,564
1,604,224
1,579,509
706,522
56,677,571
16,586,077
20,563,786
5,174,844
1,894,731
3,288,610
10,234,402
108,913
2,896,668
3,488,019
239,536
3,005,581 3,488,019 239,536
2,260
226,307
2,311,372
201,154 -
60,254,976 228,567
(3,577,405) 2,777,014
474,582
3,561,683
(4,553,777)
(517,512)
(4,094,917)
18,371,773
$ 14,276,856 $
3,039,702
3,039,702
448,317
2,777,014 448,317
2,379,062 (2,628,658)
2,500
2,330,000
2,360,573
4,693,073
(4,453,537)
4,483,922
(3,367,020)
Other
Governmental
Funds Total
- $ 47,216,243
9,870,315
3,202,633
862,769
1,682,687
2,736,343
1,586,622
2,896,668
864,858
70,919,138
5,849,105
98,084
263,674
1,132,119
7,113
158,336
7,508,431
45,446
301,905
1,638,561
351,811
7,843
4,458,917
828,400
62,165
7,695,048
16,634,023
23,907,653
6,813,405
2,246,542
3,296,453
14,919,626
5,469,772
2,623,892
75,911,366
(186,617) (4,992,228)
474,582
474,172 8,519,777
(598,980) (8,519,777)
474,582
1,116,902 (124,808)
(3,336,635) (311,425)
8,013,519 7,374,864
(4,517,646)
33,510,560
5,156,076 $ (2,180,341) $ 4,676,884 $ 7,063,439 $ 28,992,914 See accompanying Notes to Basic Financial Statements.
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57 CITY OF PLACENTIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
Net Change in Fund Balances - Total Governmental Funds
Governmental activities in the Statement of Activities were reported differently because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in governmental funds.
Capital Outlay
Depreciation and Amortization
Net Effect on Disposal of Capital Assets
Contribution of Asset to the Sewer Fund
Amortization of the deferred charges on refunding is recognized as interest expense in the statement of activities.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the statement of activities.
Proceeds from the issuance of long-term debt is not a revenue in the statement of activities, but is reported as a liability on the government -wide statement of net position.
Principal repayment on long-term debt is not an expense in the statement of activities, but is considered an expenditure in governmental funds.
Long -Term Debt
Financed Purchases
OCTA Advance
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.
Compensated absences were reported in the government -wide statement of activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.
Certain OPEB expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Certain pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.
Change in Net Position of Governmental Activities as Reported in the Statement of Activities See accompanying Notes to Basic Financial Statements.
(28)
$ (4,517,646)
12,904,979
(6,035,510)
(1,301,801)
5,567,668
(50,358)
(811,943)
(474,582)
4,110,164
1,145,072
460,399
5,715,635
19,317
419,909
1,441,661
(4,965,003)
(3,352,835)
$ (1,008,177)
58 PROPRIETARY FUND FINANCIAL STATEMENTS
59 This page intentionally left blank
60 CITY OF PLACENTIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
ASSETS
Current Assets:
Cash and Investments
Receivables:
Accounts
Taxes
Total Current Assets
Noncurrent Assets:
Capital Assets, Net of Accumulated Depreciation
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources Related to Pensions
Deferred Outflows of Resources Related to OPEB
Total Deferred Outflows of Resources
Business -Type Governmental
Major Enterprise Funds Activities Activities
Sewer Internal
Refuse Maintenance Total Service Funds
$ 1,164,170 $ 3,420,093 $ 4,584,263 $ 2,500,424
- 138,294 138,294
30,079 - 30,079
1,194,249 3,558,387 4,752,636
11,835,573
11,835,573
1,194,249 15,393,960
9,251
23,821
33,072
17,172
32,756
49,928
11,835,573
11,835,573
2,500,424
105,198
105,198
16,588,209 2,605,622
26,423
56,577
83,000
LIABILITIES
Current Liabilities:
Accounts Payable 414,329 1,703 416,032 44,506
Accrued Payroll and Benefits 28,491 42,119 70,610 12,834 Compensated Absences - Due Within One Year 4,251 9,319 13,570 Claims And Judgments - Due Within One Year - - - 1,800,460 Total Current Liabilities 447,071 53,141 500,212 1,857,800 Noncurrent Liabilities:
Compensated Absences - Due in More Than One Year
Claims And Judgments - Due in More Than One Year
Net OPEB Liability
Aggregate Net Pension Liabilities
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOW OF RESOURCES
Deferred Inflows of Resources Related to Pensions
Deferred Inflows of Resources Related to OPEB
Total Deferred Inflows of Resources
NET POSITION
Investment in Capital Assets
Unrestricted (Deficit)
7,149
146,951
12,021
166,121
15,676 22,825
202,072
22,314
240,062
613,192 293,203
4,399
117,224
121,623
492,506
8,167
161,195
169,362
11,835,573
3,145, 750
5,401,379
349,023
34,335
406,183 5,401, 379
906,395 7,259,179
12,566
278,419
290,985
11,835,573
3,638,256
105,198
(4,758,755)
Total Net Position $ 492,506 $ 14,981,323 $ 15,473,829 $ (4,653,557) See accompanying Notes to Basic Financial Statements.
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61 CITY OF PLACENTIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
Refuse
Business -Type Activities
Sewer
Maintenance
Total
Governmental
Activities
Internal
Service
OPERATING REVENUES
Reimbursements $ 52,356 $ - $ 52,356 $ 1,443,903
Sales and Service Charges 5,188,822 1,688,229 6,877,051 3,438,858 Total Operating Revenues 5,241,178 1,688,229 6,929,407 4,882,761
OPERATING EXPENSES
Administration 300,271 247,978 548,249 636,148
Reinsurance Premiums - - 203,798
Claims - - 4,255,759
Medical and Dental Premiums - - 883,797
Liability Insurance Premiums - 2,294,884
Maintenance - 122,380 122,380
Landfill and Contractor Charges 4,619,285 - 4,619,285
Depreciation Expense 635,046 635,046 3,829
Total Operating Expenses 4,919,556 1,005,404 5,924,960 8,278,215 OPERATING INCOME (LOSS) 321,622 682,825 1,004,447 (3,395,454)
NONOPERATING INCOME (LOSS)
Investment Earnings 23,363 80,367 103,730
Gain on Disposal of Capital Assets - - 42,619
Total Nonoperating Income 23,363 80,367 103,730 42,619
CHANGES IN NET POSITION 344,985 763,192 1,108,177 (3,352,835) Net Position - Beginning of Year 147,521 14,218,131 14,365,652 (1,300,722) NET POSITION - END OF YEAR $ 492,506 $ 14,981,323 $ 15,473,829 $ (4,653,557) See accompanying Notes to Basic Financial Statements.
(30)
62 CITY OF PLACENTIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users
Cash Paid to Suppliers for Goods and Services
Cash Paid to Employees for Services
Cash Paid for Insurance Claims
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from Sale of Capital Assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
CASH AND CASH EQUIVALENTS
Cash and Investments
See accompanying Notes to Basic Financial Statements.
Refuse
Business -Type Activities
Sewer
Maintenance
$ 5,279,415
(4,586,755)
(280,046)
412,614
23,363
435,977
728,193
$ 1,694,595
(139, 041)
(207,156)
1,348,398
80,367
1,428,765
1,991,328
Total
$ 6,974,010
(4,725,796)
(487,202)
1,761,012
103,730
1,864,742
2,719,521
Governmental
Activities
Internal
Service
$ 4,914,880
(662,063)
(4,255,759)
(2,942)
31,133
28,191
2,472,233
$ 1,164,170 $ 3,420,093 $ 4,584,263 $ 2,500,424
$ 1,164,170 $ 3,420,093 $ 4,584,263 $ 2,500,424
(31)
63 CITY OF PLACENTIA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
Refuse
Business -Type Activities
Sewer
Maintenance
Total
Governmental
Activities
Internal
Service
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BR OPERATING ACTIVITIES
Operating Income (Loss) $ 321,622 $ 682,825 $ 1,004,447 $ (3,395,454) Adjustments to Reconcile Operating (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation - 635,046 635,046 3,829
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables 28,857 6,366 35,223 32,119 (Increase) Decrease in Taxes Receivables 9,380 - 9,380 - (Increase) Decrease in Prepaids - 1,309
(Increase) Decrease in Deferred Outflows of
Resources Related to Pension 113,357 159,981 273,338
(Increase) Decrease in Deferred Outflows of
Resources Related to OPEB 14,777 20,320 35,097
Increase (Decrease) in Accounts Payable 32,530 (16,661) 15,869 (21,698) Increase (Decrease) in Accrued Liabilities 3,871 6,061 9,932 (3,970) Increase (Decrease) in Compensated Absences (917) 5,680 4,763 - Increase (Decrease) in Claims Payable - - 3,380,923
Increase (Decrease) in Net Pension Liabilities (58,677) (79,835) (138,512) Increase (Decrease) in Net OPEB Liabilities (12,062) (16,586) (28,648) Increase (Decrease) in Deferred Inflows of
Resources Related to Pension (20,578) (27,923) (48,501) Increase (Decrease) in Deferred Inflows of
Resources Related to OPEB (19,546) (26,876) (46,422)
Net Cash Provided (Used) by Operating Activities $ 412,614 $ 1,348,398 $ 1,761,012 $ (2,942) See accompanying Notes to Basic Financial Statements.
(32)
64 FIDUCIARY FUND FINANCIAL STATEMENTS
65 This page intentionally left blank
66 CITY OF PLACENTIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
RDA
Successor Custodial
Agency Funds
ASSETS
Pooled Cash and Investments $ 640,796 $ 673,603
Receivables:
Miscellaneous 726
Restricted Assets:
Cash and Investments with Fiscal Agents 730,018 -
Total Assets 1,370,814 674,329
LIABILITIES
Accounts Payable 2,700 1,596
Accrued Liability 8,812 14
Accrued Interest 124,693
Long -Term Liabilities:
Due in One Year 1,108,577
Due in More Than One Year 7,399,077
Total Liabilities 8,643,859 1,610
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations, and Other
Governments (7,273,045) 672,719
Total Net Position (Deficit) $ (7,273,045) $ 672,719
See accompanying Notes to Basic Financial Statements.
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67 CITY OF PLACENTIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
ADDITIONS
Property Taxes
Charges for Services
Investment Earnings
Total Additions
DEDUCTIONS
Program Costs
Administrative Expenses
Interest Expense
Contributions to the City
Total Deductions
RDA
Successor Custodial
Agency Funds
$ 1,470,639 $
- 298,491
16,099 15,634
1,486,738 314,125
22,925
5,200 14,616
299,814
50,000 42,281
377,939 56,897
CHANGE IN NET POSITION 1,108,799 257,228
Net Position (Deficit) - Beginning of Year (8,381,844) 415,491 NET POSITION (DEFICIT) - END OF YEAR $ (7,273,045) $ 672,719 See accompanying Notes to Basic Financial Statements.
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68 NOTES TO BASIC FINANCIAL STATEMENTS
69 This page intentionally left blank
70 CITY OF PLACENTIA
INDEX TO THE NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Page
Note 1 — Summary of Significant Accounting Policies 37
A. Financial Reporting Entity 37
B. Basis of Accounting and Measurement Focus 38
C. Cash and Investments 41
D. Fair Value Measurement 42
E. Property Taxes Receivable 42
F. Prepaid Items 42
G. Inventories 43
H. Capital Assets 43
I. Leases 44
J. Subscription -Based Information Technology Arrangements (SBITAs) 44 K. Unearned and Unavailable Revenue 45
L. Compensated Absences Payable 45
M. Claims Payable 46
N. Pensions 46
O. Other Postemployment Benefits (OPEB) 46
P. Long -Term Obligations 46
Q. Net Position 46
R. Fund Balances 47
S. Spending Policy 47
T. Use of Estimates 48
Note 2 — Cash and Investments 48
A. Demand Deposits 49
B. Investments Authorized by the California Government Code and the City's Investment Policy 50
C. Investments Authorized by Debt Agreements 50
D. Fair Value Measurement 51
E. Risk Disclosures 52
F. Investment in Local Agency Investment Fund (LAIF) 54 G. California Asset Management Program (CAMP) 54
Note 3 — Interfund Transactions 55
A. Due From/To Other Funds 55
B. Transfers 55
Note 4 — Long -Term Receivables 56
A. Loans Receivable 56
B. Leases Receivable 57
Note 5 — Capital Assets 58
(35)
71 CITY OF PLACENTIA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2025
Page
Note 6 — Long -Term Liabilities 60
A. Governmental Activities 60
B. Business -Type Activities 69
C. Fiduciary Activities 69
Note 7 — Deferred Compensation Plans 71
Note 8 — Pension Plans 73
A. Summary 73
B. General Information about the Pension Plans 75
C. Pension Liabilities, Pension Expenses, and Deferred
Outflows/Inflows of Resources Related to Pensions 77
D. Payable to the Pension Plan 81
Note 9 — Other Postemployment Benefit Plan 82
A. Summary 82
B. General Information about OPEB 82
C. Net OPEB Liability, OPEB Expense, and Deferred
Outflows/Inflows of Resources Related to OPEB 83
Note 10 — Risk Management and Self Insurance Program 87 A. General Liability 87
B. Workers' Compensation 87
C. Other Insurance 87
Note 11 — Classification on Fund Balances 88
Note 12 — Commitments and Contingencies 89
A. Commitments 89
B. Contingencies 89
C. Grants 89
Note 13 — Other Required Fund Disclosures 90
A. Expenditures in Excess of Appropriation 90
B. Deficit Net Positions and Fund Balances 90
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72 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Placentia, California, (the City) have been prepared in conformity with accounting principles generally accepted in the United States (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City's significant policies:
A. Financial Reporting Entity
The City was incorporated on December 2, 1926, under the General Laws of the state of California. The City operates under a Council -Administrator form of government and under provisions of a City Charter adopted on June 29, 1965.
In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.
Blended Component Units
Management determined that the following entities should be reported as blended component units based on the criteria above. Although the following is legally separate from the City, it has been "blended" as though it is part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.
The Placentia Public Financing Authority — The Placentia Public Financing Authority (the Authority) was formed in 1996 to issue Tax Revenue Bonds. The proceeds of the debt were used to refund the existing Mello -Roos Community Facilities District 89-1 bonds, originally issued in September 1996. The Authority is governed by a five -member board that is the City Council of the City. Separate financial statements are not prepared.
(37)
73 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Financial Reporting Entity (Continued)
Blended Component Units (Continued)
Placentia Enhanced Infrastructure Financing District — The Placentia Enhanced Infrastructure Financing District (EIFD) was formed in September 2019 in partnership with the County of Orange near the City's future Metrolink Station including the Old Town Placentia area and Transit Oriented Development Packing House District. The purpose of this district is to create a funding mechanism that can facilitate the construction of public infrastructure improvements in this area.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
The statement of net position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.
Deferred Outflows of Resources — represent a consumption of net assets that applies to future periods, therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources — represent an acquisition of net assets that applies to future periods, therefore, are not recognized as revenue until that time.
Government -Wide Financial Statements
The government -wide financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements.
Certain types of transactions are reported as program revenues for the City in three categories: charges for services, operating grants and contributions, and capital grants and contributions.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements.
(38)
74 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
All governmental funds are accounted for on a spending, or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues, and other taxes. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Reconciliations of the fund financial statements to the government -wide financial statements are provided to explain the differences.
The City reports the following major Governmental Funds:
General Fund
The General Fund is the City's principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund.
Citywide Development Impact Fee Special Revenue Fund
This fund is used to account for the receipts and expenditures of new development impact on the City's sewer collection system in the City's Transit.
Placentia Regional Navigation Center Special Revenue Fund This fund is used to account for the receipts and expenditures related to the construction and operation of the Placentia Regional Navigation Center. Revenues include the Homeless Emergency Aid Program (HEAP) Grant and SB2 funds. Future revenue sources will include reimbursements from the North Orange County Cities. (39)
75 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Debt Service Fund
This fund is used to account for the debt service related to the governmental activities of the City.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a statement of net position, a statement of revenues, expenses, and changes in net position, and a statement of cash flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. The City's internal service funds include four individual funds that provide services directly to other City funds. These services include risk management, health and welfare, and equipment replacement.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and deferred inflows of resources are included on the statement of net position. The statement of revenues, expenses, and changes in fund net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major Proprietary Funds:
Refuse Fund
This fund is used to account for the provision of refuse services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operation, acquisition of equipment, and related debt service.
(40)
76 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Sewer Maintenance Fund
This fund is used to account for the operations and maintenance of the sewer lines located in the City's sewer system, including administration and capital improvements.
Fees are computed from water consumption amounts provided by local water companies. All residents and businesses connected to the City's sewer system are placed in billing categories based on a percentage of water consumption that is returned to the City's sewer system.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of net position and a statement of changes in fiduciary net position. The City's fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.
The City reports the following fiduciary funds:
Private -Purpose Trust Fund
This fund is used to account for the balances and transactions of the Successor Agency to the former Placentia Redevelopment Agency.
Custodial Funds
These funds account for resources held by the City in a custodial capacity as an agent for individuals, private organizations, other governments, and/or other funds.
C. Cash and Investments
The City's cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes.
Investments are stated at fair value (quoted market price or best available estimate thereof).
(41)
77 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
E. Property Taxes Receivable
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.
Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas. The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day of January preceding the fiscal year for which the taxes are levied. Taxes are levied on July 1 and cover the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1 each year, and are delinquent, if unpaid, on August 31.
F. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method.
(42)
78 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Inventories
Inventories within the various fund types consist of materials and supplies which are valued at cost on a weighted average basis. Reported expenditures reflect the consumption method of recognizing inventory -related expenditures.
H. Capital Assets
In the government -wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, infrastructure (e.g., roads, sidewalks, and similar items), and right -to -use leased assets, are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets with an initial, individual cost of more than $2,500 and an estimated useful life of one year or more.
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include street network, street appurtenances, and storm drains.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
Land, right-of-way, tree infrastructure, and construction in progress are not depreciated.
Other capital assets used in operations are depreciated/amortized over their estimated useful lives using the straight-line method. The estimated useful lives used for depreciation/amortization purposes are as follows:
Structures and Improvements 5 to 50 Years
Civic Center Structures and Improvements 50 Years
Automotive Equipment 2 to 10 Years
Computer Equipment 3 Years
Other Equipment 5 Years
Infrastructure:
Roadways 35 Years
Street Appurtenances 10 to 50 Years
Wastewater 50 to 60 Years
Storm Drains 50 Years
Lease assets and SBITAs are amortized using the straight-line method over the shorter of the agreement term or the useful life of the underlying asset. (43)
79 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Leases
Lessee
The City is a lessee for noncancellable leases of land and improvements and equipment.
The City recognizes a lease liability and an intangible right -to -use asset (lease asset) in the governmental activities in the government -wide statement of net position. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lessor
The City is a lessor for a noncancellable leases of land, buildings and improvements.
The City recognizes a lease receivable and a deferred inflow of resources in the statement of net position and in the governmental fund balance sheet. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
J. Subscription -Based Information Technology Arrangements (SBITAs) The City recognizes a SBITA liability and a SBITA asset at the commencement of the SBITA term, unless the SBITA is a short-term contract, or it transfers ownership of the underlying asset. The SBITA liability is measured at the present value of payments expected to be made during the contract term (less any incentives). The SBITA asset is measured at the amount of the initial measurement of the SBITA liability, plus any payments made to the vendor at or before the commencement of the contract term and certain direct costs.
(44)
80 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Unearned and Unavailable Revenue
In the government -wide financial statements, unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government -wide financial statements are prepaid charges for services and facility rentals paid in advance.
In the fund financial statements, unearned and unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unearned revenue for transactions for which revenues have not been earned, and unavailable revenue when funds are not available to meet current financial obligations in accordance with GASB Statement No. 65. Typical transactions for which unearned or unavailable revenue is recorded are grant receivables, grant award advances, quarterly encroachment fees, and advance registration for recreation classes which were not yet earned.
L. Compensated Absences Payable
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences — vacation and sick leave. The liability for compensated absences is reported as incurred in the government -wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary -related benefits, where applicable.
Vacation
The City's policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee's current pay rate upon separation from employment.
Sick Leave
The City's policy permits employees to accumulate earned but unused sick leave. All sick leave lapses when employees leave the employ of the City and, upon separation from service, no monetary obligation exists. However, a liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences.
(45)
81 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities.
N. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS's website under Forms and Publications.
O. Other Postemployment Benefits (OPEB)
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City's plan, have been determined by an independent actuary in accordance with GASB Statement No. 75.
P. Long -Term Obligations
In the government -wide financial statements, long-term debt and other long-term obligations are reported as Liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Q. Net Position
In the government -wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation/amortization, related debt, and deferred outflows of resources.
Restricted — This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
(46)
82 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable Fund Balance — These amounts cannot be spent because they are not in a spendable form, such as loans receivable or inventory, or because resources legally or contractually must remain intact.
Restricted Fund Balance — These are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws, and regulations of other governments or enabling legislation.
Committed Fund Balance — These have self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment.
Assigned Fund Balance — These have limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose.
Unassigned Fund Balance — These represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
S. Spending Policy
Government -Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as needed.
(47)
83 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Spending Policy (Continued)
Governmental Fund Financial Statements (Continued)
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
• Committed
• Assigned
• Unassigned
T. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments with fiscal agents.
The City had the following cash and investments at June 30, 2025:
Cash and Investments
Cash and Investments with
Fiscal Agent
Pension Stability Fund
Total Cash and Investments
Government -Wide
Statement of Net Position
Governmental Business -Type
Activities Activities
$ 27,606,553 $ 4,584,263
4,603,703
1,334,070
$ 33,544,326
(48)
Statement of
Fiduciary
Net Position Total
$ 1,314,399 $ 33,505,215
730,018 5,333,721
- 1,334,070
$ 4,584,263 $ 2,044,417 $ 40,173,006
84 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
The City's cash and investments at June 30, 2025 in more detail:
Cash and Cash Equivalents:
Demand Deposits
Petty Cash
Total Cash and Cash Equivalents
$ 3,034,266
17,565
3,051,831
Investments:
Local Agency Investment Fund 17,551
CAMP 10,237,367
Money Market Mutual Fund 60,744
Negotiable Certificates of Deposit 5,104,788
U.S. Treasury Securities 11,552,081
Federal Agency Securities 3,480,852
Investments with Fiscal Agent:
Money Market Mutual Fund 5,333,721
Pension Stability Fund 1,334,071
Total Investments 37,121,175
Total Cash and Investments $ 40,173,006
A. Demand Deposits
The carrying amounts of the City's demand deposits were $3,034,266 at June 30, 2025.
Bank balances at that date were $3,527,785, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures.
Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
(49)
85 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Authorized Investment Type
United States (U.S.) Treasury Obligation
Federal Agency Securities
Negotiable Certificates of Deposits
Non -Negotiable Certificates of Deposit
Money Market Funds
Passbook Savings
Commercial Paper
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
Joint Powers Authority Pools (JPA)
California Asset Management Program
Repurchase Agreements
Maximum
Maturity
5 Years
5 Years
5 Years
5 Years
N/A
N/A
270 Days
180 Days
N/A
N/A
N/A
N/A
1 Year
* The table is based on state law requirements or
whichever is more restrictive.
C. Investments Authorized by Debt Agreements
Authorized Investment Type
United States (U.S.) Treasury Obligation
Federal Agency Securities
Negotiable Certificates of Deposits
Non -Negotiable Certificates of Deposit
Money Market Funds
Passbook Savings
Commercial Paper
Banker's Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
(50)
Maximum
Percentage of
Portfolio
None
30%
30%
40%
20%
None
25%
30%
None
None
None
None
30%
investment policy
Maximum
Investment
in One
Issuer
None
15%
$250,000
$250,000
10%
None
10%
30%
None
None
None
None
None
requirements,
Maximum
Maximum Investment
Maximum Percentage of in One
Maturity Portfolio Issuer
N/A None None
N/A None None
N/A None None
N/A None None
N/A None None
N/A None None
270 Days None None
180 Days None None
N/A None None
N/A None None
86 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
C. Investments Authorized by Debt Agreements (Continued) Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk.
D. Fair Value Measurement
At June 30, 2025, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within the GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025:
Measurement Input
Significant Other
Observable Input
Investment Type (Level 2) Uncategorized Total
Local Agency Investment Fund $ - $ 17,551 $ 17,551
California Asset Management Program 10,237,367 10,237,367 Money Market Mutual Funds - 60,744 60,744
Negotiable Certificates of Deposit (1) 5,104,788 5,104,788 U.S. Treasury Securities (1) 11,552,081 - 11,552,081
Federal Agency Securities (1) 3,480,852 3,480,852
Held by Fiscal Agent:
Money Market Mutual Funds - 5,333,721 5,333,721
Pension Stability Fund - 1,334,071 1,334,071
Total $ 20,137,721 $ 16,983,454 $ 37,121,175
(1) Pricing based on institutional bond quotes - evaluations based on various market and industry inputs.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. (51)
87 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
E. Risk Disclosures
Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
Investment Maturities (in Years)
Investment Type Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment
Fund $ 17,551 $ 17,551 $ - $ - $ - $
California Asset Management
Program 10,237,367 10,237,367 - - -
Money Market Mutual Funds 60,744 60,744
Negotiable Certificates of
Deposit 5,104,788 1,476,168 477,735 1,459,296 1,691,589 U.S. Treasury Securities 11,552,081 4,475,556 3,009,255 3,053,130 1,014,140 Federal Agency Securities 3,480,852 488,760 742,627 2,249,465 Held by Fiscal Agent:
Money Market Mutual Funds 5,333,721 5,333,721 - - -
Pension Stability Fund 1,334,071 1,334,071 -
Total $ 37,121,175 $ 18,948.382 $ 5,695,918 $ 6,718,016 $ 4,744,719 $ 1,014,140 Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year-end for each investment type.
Minimum
Legal Not
Investment Type Total Rating AAA Rated
Local Agency Investment Fund $ 17,551 N/A $ $ 17,551
California Asset Management Program 10,237,367 N/A 10,237,367 Money Market Mutual Funds 60,744 AAA 60,744 -
Negotiable Certificates of Deposit 5,104,788 N/A - 5,104,788 U.S. Treasury Securities 11,552,081 N/A 11,552,081
Federal Agency Securities 3,480,852 N/A 3,480,852 -
Held by Fiscal Agent:
Money Market Mutual Funds 5,333,721 AAA 5,333,721 -
Pension Stability Fund 1,334,071 N/A 1,334,071
Total $ 37,121,175 $ 20,427,398 $ 16,693,777
(52)
88 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
E. Risk Disclosures (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.
The City has no investments in any one issuer (other than mutual funds and external investment pools) that represent 5% or more of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the provision for deposits as disclosed in Note 2A.
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. At June 30, 2025, the investments held by bond trustee were held in money market mutual funds, which are considered to be cash equivalents.
F. Investment in Local Agency Investment Fund (LAIF)
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The City's investments with LAIF at June 30, 2025, included a portion of the pool funds invested in Structured Notes and Asset -Backed Securities, which included the following:
Structured Notes — Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset -Backed Securities — Generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables. (53)
89 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
F. Investment in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2025, the City had $17,551 invested in LAIF, which had invested 1.10% of the pool investment funds in structured notes and asset-backed securities. The fair value of the City's portion in the pool is the same as the value of the pool shares and reported at amortized cost.
G. California Asset Management Program (CAMP)
The City invests in this investment trust, California Asset Management Program (CAMP), which is similar to a money market mutual fund. The fund invests primarily in certificates of deposit, commercial paper, and U.S. Government and Agency obligations. The City is a voluntary participant in the investment trust.
The CAMP Cash Reserve Portfolio (the Pool) is exempt from registration with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940 but operates in a manner consistent with SEC Rule 2a-7, "Money Market Funds," of that Act. Accordingly, the Pool meets the definition of a "2a-7 like pool" set forth in GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. While the Pool itself is exempt from SEC registration, the Pool's investment advisor and administrator, PFM Asset Management LLC, is registered with the SEC as an investment advisor under the Investment Advisers Act of 1940. PFM Asset Management LLC has filed with the California Department of Corporations, as well as various other states, as an investment advisor under state securities laws.
In addition, the Pool also meets the definition of "Municipal Fund Security" outlined by Municipal Securities Rulemaking Board (MSRB) Rule 0-12; therefore, contacts with prospective investors relating to shares of the Pool are conducted through PFM Asset Management LLC's wholly owned subsidiary, PFMAM, Inc., a broker/dealer that is registered with the SEC and MSRB and is a member of the National Association of Securities Dealers. The Pool also files an income tax return annually with the Internal Revenue Service, though the net income of the Pool is generally exempt from federal income tax.
(54)
90 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 3 INTERFUND TRANSACTIONS
A. Due From/To Other Funds
At June 30, 2025, the City had the following due from/to other funds:
Due From
Other Funds
Due To Other Funds General Fund Total
Placentia Regional Navigation Center $ 210,900 $ 210,900 Nonmajor Special Revenue Funds:
Miscellaneous Grants 186,753 186,753
Landscape Maintenance District 92-1 11,720 11,720
Housing and Community Development 646,457 646,457
Gasoline Tax 22,891 22,891
Sewer Construction 124,149 124,149
Nonmajor Capital Projects Funds:
City Projects 147,733 147,733
Total $ 1,350,603 $ 1,350,603
The above amounts resulted from when one fund reflects a deficit in its pooled cash account. Short-term loans were made from the General Fund to address these deficits.
B. Transfers
During the year ended June 30, 2025, the City had the following transfers:
Transfers Out
Nonmajor
General Debt Service Governmental
Transfers In Fund Fund Funds Total
Governmental Funds:
General Fund $ - $ 3,367,020 $ 194,663 $ 3,561,683
Debt Service Fund 4,483,922 - 4,483,922
Nonmajor Governmental Funds 69,855 - 404,317 474,172
Total Governmental Funds $ 4.553.777 $ 3.367.020 $ 598.980 $ 8.519.777 In general, transfers are used to 1) use revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services. Some of the more significant transfers are detailed below.
Transfers from the Debt Service Fund to the General Fund of $3,367,020 were for the construction of assets funded by the issuance of bonds.
Transfers from nonmajor governmental funds to the General Fund of $194,663 were to fund police department expenditures.
(55)
91 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 3 INTERFUND TRANSACTIONS (CONTINUED)
B. Transfers (Continued)
The General Fund transferred $69,855 to nonmajor funds as operating subsidies and $4,483,922 to the Debt Service Fund to fund debt service.
The Gas Tax Special Revenue Fund transferred $404,317 to the Gas Tax Debt Service Fund to fund the 2011 Gas Tax Certificate of Participation debt service.
NOTE 4 LONG-TERM RECEIVABLES
A. Loans Receivable
At June 30, 2025, the City has the following loans receivable:
Citywide
Development
Impact Fee Other
General Special Governmental
Fund Revenue Fund Funds
Total
Certificates of Participation
Reimbursement $ 786,121 $ $ - $ 786,121
Owner's Participation Agreement 27,916 27,916
Placentia Veterans Village Loan 500,000 500,000
Placentia Veterans Village DIF
Mitigation Loan 509,148 70,916 580,064
Total $ 786,121 $ 509,148 $ 598,832 $ 1,894,101
Certificates of Participation Reimbursement
On April 16, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for a portion of the lease payment paid by the City to the bond trustee, with respect to the 2003 Certificates of Participation (COP). The 2003 COP were refinance with the 2022 COP during the year (see Note 7).
The portion reimbursed (87.52%) is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the 2003 COP related debt issue that were within the confines of the development project area. (56)
92 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
A. Loans Receivable (Continued)
Owner's Participation Agreement
The Placentia Redevelopment Agency entered into an owner participation agreement dated January 5, 2001. Pursuant to that agreement, the Agency loaned $150,000 to a small business in Placentia. The term of the loan is 30 years and does not bear interest, except upon default. The loan was recorded in the Low and Moderate Housing fund of the former Redevelopment Agency of Placentia. Upon dissolution of the Redevelopment Agency at February 1, 2012, the outstanding loan receivable balance was transferred to the Housing Successor Fund. During the current fiscal year, the City received $5,833 in principal payments. The ending loan receivable balance at June 30, 2025 is $27,916.
Placentia Veterans Village Loan Receivable
On November 13, 2018, the City Council of the Housing Successor Agency to the former Redevelopment Agency of the City of Placentia approved a loan agreement of $500,000 between the Housing Successor Agency and Mercy Housing California to initiate construction of the Placentia Veterans Village. The loan receivable balance at June 30, 2025 is $500,000.
Placentia Veterans Village Developer Impact Fee Mitigation Loan Receivable On February 20, 2018, the City Council of the Housing Successor Agency to the former Redevelopment Agency of the City of Placentia approved a loan agreement between the Housing Successor Agency and Mercy Housing California whereby the collection of up to $582,850 of developer impact fees would be deferred. The loan shall be payable from fifty percent (50%) of the residual receipts of the housing project (to be shared pro -rata with other housing project lenders whose loans are payable from residual receipts), until the loan has been paid in full. The loan receivable balance at June 30, 2025 is $580,064.
B. Leases Receivables
The City, acting as lessor, leases land and improvements under eleven long-term, noncancellable lease agreements. The leases expire at various dates through July 1, 2065. The net present values of the leases receivable were determined using discount rates ranging from 0.218% to 2.184%. Rent payments ranging from $271 to $3,543, are received monthly, or ranging from $50,000 to $250,000, received annually. During the year ended June 30, 2025, the City recognized $578,042 and $310,698 in lease revenue and interest revenue, respectively, pursuant to these lease agreements.
The leases provide for increases in future minimum monthly rent payments, subject to certain stated increases.
(57)
93 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5 CAPITAL ASSETS
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2025:
Balance Balance
June 30, 2024 Additions Deletions Reclassifications June 30, 2025 Capital Assets Not Being
Depreciated/Amortized:
Land $ 26,118,971 $ - $ - $ - $ 26,118,971
Land -Right of Way 1,008,822 - 1,008,822
Infrastructure - Trees 3,196,564 - - 3,196,564
Construction in Progress 26,554,604 11,389,948 (1,062,059) (1,962,002) 34,920,491 Total Capital Assets Not
Being Depreciated 56,878,961 11,389,948 (1,062,059) (1,962,002) 65,244,848 Capital Assets Being
Depreciated/Amortized:
Structures and Improvements 26,163,367 - 283,995 26,447,362 Right -to -Use Lease Land 684,909 - (684,909) -
Right -to -Use Lease Equipment 1,263,360 211,697 (233,956) 1,241,101 Subscription Assets 2,918,849 428,836 (127,406) 3,220,279 Equipment 18,535,058 874,498 (76,717) 19,332,839
Land Improvements 172,528 - - 172,528
Infrastructure:
Streets Network 71,111,938 958,852 72,070,790
Street Appurtenances 25,061,943 719,155 25,781,098
Storm Drains 9,412,120 - 9,412,120
Total Capital Assets
Being Depreciated/Amortized 155,324,072 1,515,031 (1,122,988) 1,962,002 157,678,117 Less: Accumulated
Depreciation/Amortization for:
Structures and Improvements (9,339,598) (973,381) - (10,312,979) Right -to -Use Lease Land (456,606) 456,606
Right -to -Use Lease Equipment (504,617) (285,779) 233,956 (556,440) Subscription Assets (777,253) (462,348) 127,406 (1,112,195) Equipment (11,966,722) (1,738,991) 76,764 (13,628,949)
Land Improvements (135,148) (5,796) - (140,944)
Infrastructure:
Streets Network (29,890,553) (1,849,192) (31,739,745)
Street Appurtenances (16,463,799) (535,610) (16,999,409) Storm Drain (7,238,144) (188,242) (7,426,386)
Total Accumulated
Depreciation/Amortization (76,772,440) (6,039,339) 894,732 (81,917,047) Total Capital Assets Being
Depreciated/Amortized, Net 78,551,632 (4,524,308) (228,256) 1,962,002 75,761,070 Total Governmental
Activities $ 135,430,593 $ 6.865,640 $ (1.290,315) $ - $ 141.005,918 (58)
94 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5 CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2025, as follows:
General Government
Public Safety
Public Works
Community Services
Total Depreciation/Amortization Expense
$ 1,200,162
1,522,736
2,750,188
562,424
$ 6,039,339
The following is a summary of changes in capital assets for the business -type activities for the year ended June 30, 2025:
Balance Balance
June 30, 2024 Additions Deletions June 30, 2025
Capital Assets Being
Depreciated:
Structures and
Improvements $ 34,095,676 $ $ - $ 34,095,676
Equipment 122,158 - 122,158
Total Capital Assets
Being Depreciated 34,217,834 34,217,834
Less: Accumulated
Depreciation for:
Structures and
Improvements (21,655,244) (623,095) (22,278,339)
Equipment (91,971) (11,951) (103,922)
Total Accumulated
Depreciation (21,747,215) (635,046) (22,382,261)
Total Capital Assets
Being Depreciated, Net 12,470,619 (635,046) 11,835,573
Total Business -Type
Activities $ 12,470,619 $ (635,046) $ - $ 11,835,573
Depreciation expense was charged to the Sewer Maintenance Fund within business -type activities.
(59)
95 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025 is as follows:
Classification
Balance Balance Due within Due in More
June 30, 2024 Additions Deletions June 30, 2025 One Year Than One Year Long -Term Debt:
Direct Borrowings and
Placements:
Loan Payable- Radio $ 362,479 $ $ (157,967) $ 204,512 $ 162,969 $ 41,543 Loan Payable -Fire #1 2,096,314 - (358,596) 1,737,718 368,307 1,369,411 Loan Payable -Fire #2 1,098,741 (188,123) 910,618 193,141 717,477 Loan Payable - Easement 222,672 - (65,406) 157,266 69,367 87,899 Loan Payable - Vehicles 96,530 (30,048) 66,482 32,129 34,353 OCTA Advance 714,982 - (460,399) 254,583 254,583
Fire UAL Payoff Loan 344,932 - (344,932) - -
Motorola Equipment 1,197,159 (96,476) 1,100,683 101,020 999,663 Loan Payable -Ref 2003
COP 1,331,266 (433,047) 898,219 443,986 454,233
2021 Installment Sale
Agreement (2011 Gas
Tax Refunding) 2,293,000 - (368,000) 1,925,000 373,000 1,552,000 Total Direct Borrowings
and Placements 9,758,075 - (2,502,994) 7,255,081 1,998,502 5,256,579 2020A Lease Revenue
Bonds 48,530,000 (2,190,000) 46,340,000 2,405,000 43,935,000 2023 Lease Revenue
Bonds 9,190,000 (140,000) 9,050,000 145,000 8,905,000
Unamortized Bond Premium 352,179 (11,739) 340,440 - 340,440 Leases Payable 998,122 200,615 (517,242) 681,495 242,494 439,001 Subscription Liability 1,859,215 273,967 (353,660) 1,779,522 395,369 1,384,153 Total Long -Term Debt 70,687,591 474,582 (5,715,635) 65,446,538 5,186,365 60,260,173 Claims Payable
3,820,916 4,967,976
(1,587,053) 7,201,839
1,800,460 5,401,379
Compensated Absences (a) 2,928,780 (419,909) 2,508,871 935,475 1,573,396 Total Long -Term
Liabilities
$ 77,437,287 $ 5,442,558 $ (7,722,597) $ 75,157,248 $ 7,922,300 $ 67,234,948 (a) Deletions to compensated absences are presented net of additions, as allowed by GASB Statement No. 101, Compensated Absences.
Loan Payable - Refunding of 2003 Certificates of Participation On June 1, 2022, the City entered into a loan payable agreement in the amount of $2,189,027 with the Municipal Finance Corporation to (a) refinance certain obligations relating to the 2003 Refunding and Improvements Project Certificates of Participation Principal is payable annually on January 1. Interest is payable semi-annually on January 1 and July 1, commencing January 1, 2023.
(60)
96 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loan Payable — Refunding of 2003 Certificates of Participation (Continued) On April 17, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for a portion of the lease payment paid by the city to the Bond trustee. The portion reimbursed is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the related debt issue that were within the confines of the redevelopment project area.
The loan payable is the obligation of the City and is reported in full in the government - wide statement of net position, within the governmental activities. A portion of the 2003 Certificates of Participation, which constitutes 87.52% of the total obligation amount, is to be repaid by the former Placentia Redevelopment Agency, pursuant to the reimbursement agreement mentioned above. As such, an amount reflecting the total obligation is reported on the statement of fiduciary net position within the RDA Successor Agency Private -Purpose Trust Fund. A note receivable is reported in the General Fund, relating to the total obligation that the city is expected to have reimbursement by the former Placentia Redevelopment Agency (see Note 4 for additional details). The outstanding balance of the 2022 Certificates of Participation as of June 30, 2025 is $898,219.
The final payment on this refinancing will be January 1, 2027 and may be prepaid in whole or in part on any payment date beginning on July 1, 2025.
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 443,986 $ 21,108 $ 465,094
2027 454,233 10,674 464,907
Total $ 898.219 $ 31.782 $ 930.001
2020 Lease Revenue Bonds
On November 12, 2020, the City issued the 2020A Lease Revenue Bonds through the Placentia Public Financing Authority to pay the City's currently unamortized, unfunded accrued actuarial liability to CaIPERS for the benefit of City employees, to fund certain anticipated increases to the accrued liability to CaIPERS, to fund a reserve account for the bonds and to pay the costs incurred in connection with the issuance of the bonds.
The bonds are issued in denominations or $5,000 and bear interest ranging from 1.7% to 4.0%. Interest on the bonds will be paid semi-annually on June 1 and December 1 of each year, commencing June 1, 2021.
(61)
97 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2020 Lease Revenue Bonds (Continued)
The bonds are secured under an indenture as of November 1, 2020, by the authority and US Bank as trustee. The bonds are payable from the revenues pledged under the indenture. Under the indenture, the revenues are defined as base rental payment made by the City to the Authority as the rental for real property and improvements thereon.
The City is required under the lease agreement to pay to the Authority specified amounts for use and possession of the leased property which amounts are calculated to be sufficient in both time and amount to pay, when due, the principal of and interest on the Bonds. Except for the Authority's right, title, and interest in and to the base rental payments and otherwise to the lease agreement which have been assigned to the trustee, no funds or properties of the Authority or the City are pledged to or otherwise liable for the bonds or any other obligations of the Authority.
The bonds are being issued to fund 100% of the City's unfunded liability for the miscellaneous plan and safety plan. Upon the issuance of the bonds, the city paid $43,777,218 to CaIPERS for deposit to the CaIPERS payment fund. This amount represents the June 30, 2019, unfunded liability for the miscellaneous and safety plans shown in the 2019 CaIPERS reports, rolled forward to November 12, 2020, and taking into account payments made during the fiscal years 2020 and 2021.
The bonds maturing on or after June 1, 2031 are subject to optional redemption prior to maturity on or after June 1, 2030, at the option of the City, in whole or in part, on any date, at a redemption price equal to the principal amount of the bonds to be redeemed, plus accrued but unpaid interest to the redemption date, without premium. The bonds maturing on June 1, 2035 and June 1, 2045 are subject to mandatory redemption on June 1 in each year until maturity, from mandatory sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, provided however, that in lieu of redemption thereof, such term bonds may be purchased by the Authority and tendered to the trustee.
The bonds are reported in full in the government -wide statement of net position, within the governmental activities. The outstanding balance of the 2020A Lease Revenue Bonds as of June 30, 2025 is $46,340,000. The annual debt service requirements are as follows:
Year Ending June 30,
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
Total
Principal
$ 2,405,000 $
2,475,000
2,555,000
2,645,000
2,740,000
15, 365, 000
12,845,000
5,310,000
$ 46,340,000 $
(62)
Interest
1,878,036
1,806,944
1,727,596
1,639,270
1,544,129
6,057,396
2,750,203
585,681
17,989,255
Total
$ 4,283,036
4,281,944
4,282,596
4,284,270
4,284,129
21,422,396
15,595,203
5,895,681
$ 64,329,255
98 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2023 Lease Revenue Bonds
On August 2, 2023, the Placentia Public Financing Authority issued the 2023A Lease Revenue Bonds in the amount of $9,190,000, to finance the construction and equipping of an approximately 18,805 square foot public safety center and to pay the costs incurred in connection with the bond issuance. The term bonds with maturities ranging from October 1, 2033 through October 1, 2053, bear interest ranging from 4.25% to
5.0%. The bonds are subject to mandatory redemption on October 1 in each year in accordance with a set schedule. Interest on the bonds will be paid semi-annually on April 1 and October 1 of each year, commencing April 1, 2024.
The bonds are reported in full in the government -wide statement of net position, within the governmental activities. The outstanding balance of the 2023 Lease Revenue Bonds as of June 30, 2025 is $9,050,000. The annual debt service requirements are as follows:
Year Ending June 30,
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2054
Total
Principal
$ 145,000 $
155,000
160,000
170,000
180,000
1,030,000
1,325,000
1,700,000
2,125,000
2,060,000
$ 9,050,000 $
Interest
414,675
407,175
399,300
391,050
382,300
1,765,750
1,472,375
1,097,656
671,181
179,988
7,181,450
Total
$ 559,675
562,175
559,300
561,050
562,300
2,795,750
2,797,375
2,797,656
2,796,181
2,239,988
$ 16,231,450
Bond premiums are amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
2021 Installment Sale Agreement
On March 1, 2021, the City entered into an installment sale agreement with Trust Bank to refund all outstanding 2011 Gas Tax Certificates of Participation and to pay the costs of issuance in connection with such refunding. The agreement constitutes the legal and valid binding agreement of the City enforceable against the City. The installment payment, in the aggregate, are $3,656,000 and include interest components, calculated at the rate of 1.65%, on the unpaid principal payable on the respective installment payment date. On the closing date, the City used the proceeds to pay (1) the amount of $3,531,754 to the escrow fund and $124,246 to the custodial account used to pay all costs of issuance related to the installment agreement. (63)
99 CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
2021 Installment Sale Agreement (Continued)
The City's obligation to pay the installment payments is a special obligation of the City limited solely to the Gas Tax revenues and all amounts on deposit in the Gas Tax Fund.
Under no circumstances is the City required to advance moneys derived from any source of income other than the Gas Tax revenues and other sources specifically identified in the agreement. The City has the option to prepay the principal components of the installment payments in whole, on any date, commencing on December 1, 2025.
The bonds are reported in full in the government -wide statement of net position, within the governmental activities. The outstanding balance of the 2021 Installment Sale Agreement as of June 30, 2025 is $1,925,000.
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 373,000 $ 30,220 $ 403,220
2027 377,000 24,049 401,049
2028 387,000 17,795 404,795
2029 392,000 11,385 403,385
2030 396,000 4,900 400,900
Total $ 1,925,000 $ 88,349 $ 2,013,349
Loans Payable
800 MHz CCCS Public Safety Radio Upgrade
On October 1, 2016, the City entered into a Purchase Agreement to finance the acquisition and implementation of Citywide public safety radios and dispatch site with the Orange County 800MHz Countywide Coordinated Communications System (CCCS).
The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $1,319,360. The loan is for a period of 10 years with an interest rate of 3.13%. Loan payments are payable quarterly in arrears of the period to which they relate to. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the equipment. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 162,969 $ 4,501 $ 167,470
2027 41,543 325 41,868
Total $ 204,512 $ 4,826 $ 209,338
(64)
100
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Fire Loan Payable #1
On August 27, 2019, the City entered into an agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $3,400,000. The loan is for a period of 10 years with an interest rate of 2.69%. Loan payments are payable on February 1 and August 1, commencing August 1, 2020. The title to the purchased equipment is in the name of the City. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the fire trucks. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 368,307 $ 44,284 $ 412,591
2027 378,281 34,310 412,591
2028 388,525 24,066 412,591
2029 399,047 13,544 412,591
2030 203,558 2,738 206,296
Total $ 1,737,718 $ 118,942 $ 1,856,660
Fire Loan Payable #2
On November 25, 2019, the City entered into an agreement for financing the acquisition of fire trucks and equipment for the Placentia Fire and Life Safety Department. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $1,795,000. The loan is for a period of 10 years with an interest rate of 2.65%. Loan payments are payable on February 1 and August 1, commencing August 1, 2020. The title to the purchased equipment is in the name of the City. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the fire trucks. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 193,141 $ 22,860 $ 216,001
2027 198,293 17,708 216,001
2028 203,583 12,419 216,002
2029 209,013 6,988 216,001
2030 106,588 1,412 108,000
Total $ 910,618 $ 61,387 $ 972,005
(65)
101
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Land Easement Loan
On July 18, 2018, the City entered into an agreement for financing a portion of the acquisition of a land easement. The asset acquired through the financing arrangement is included in the land right-of-way in the amount of $750,000. The loan is for a period of 10 years with an interest rate of 6.00%. Annual loan payments of $78,803 are payable on August 1, through August 1, 2027. The outstanding principal as of June 30, 2025 is $157,266. The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 69,367 $ 9,436 $ 78,803
2027 73,530 5,273 78,803
2028 14,369 862 15,231
Total $ 157,266 $ 15,571 $ 172,837
Vehicles Loan
On July 19, 2018, the City entered into an agreement for financing the acquisition of electric vehicles. The assets acquired through the financing agreement were included in the machinery and equipment for governmental activities in the amount of $160,470. The loan is for a period of 5 years with an interest rate of 6.93%. Annual loan payments of $36,734 are payable on March 1, through March 1, 2027. The agreement contains a provision that in an event of default, the lender may choose to repossess the vehicles.
The outstanding principal as of June 30, 2025 is $66,482.
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 32,129 $ 4,605 $ 36,734
2027 34,353 2,380 36,733
Total $ 66,482 $ 6,985 $ 73,467
Motorola Equipment Loan
On September 15, 2023, the City entered into an agreement for financing the acquisition of equipment. The assets acquired through the financing agreement were included construction in progress for governmental activities in the amount of $1,197,159, as the equipment has not yet been put into use. The loan is for a period of 10 years with an interest rate of 4.71 %. Annual loan payments of $152,862 are payable on September 15, through September 15, 2033. The agreement contains a provision that in an event of default, the lender may choose to make all outstanding amounts due immediately or may repossess the equipment. The outstanding principal as of June 30, 2025 is $1,100,683. (66)
102
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Loans Payable (Continued)
Motorola Equipment Loan (Continued)
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 101,020 $ 51,842 $ 152,862
2027 105,778 47,084 152,862
2028 110,760 42,102 152,862
2029 115,976 36,885 152,861
2030 121,439 31,423 152,862
2031-2034 545,710 65,735 611,445
Total $ 1,100,683 $ 275,071 $ 1,375,754
OCTA Advance
On February 16, 2010, the City entered into a cooperative agreement with the Orange County Transportation Authority (the OCTA). Terms of the cooperative agreement required OCTA to repay CalTrans $1.5 million for previously disallowed costs in exchange for the City's support of OCTA's direction to CalTrans for any eligible project in Orange County. In addition, OCTA advanced the City $4.1 million of future Measure M funds to the City. Principal and accrued but unpaid interest payments are deducted from future Measure M funds at OCTA's discretion over approximately 19 years. Interest is equal to the yield on OCTA's short-term investment portfolio, and resets annually on June 30. The outstanding principal as of June 30, 2025 is $254,583.
Fire UAL Payoff Loan
On May 5, 2020 the City approved a payment plan to Cal PERS to pay off the $1,878,760 unfunded accrued liability (UAL) on the termination of the City's Safety -Fire category of the City's contract with CaIPERS. The payment plan is for a period of 5 years with an interest rate of 1.95%. Payments of $31,664 are payable monthly through May 2025. The balance was paid off during the year.
Leases Payable
The City leases land and improvements for various terms under eighteen long-term, noncancelable lease agreements. The leases expire at various dates through 2029. The net present values of the leases payable were determined using a discount rates ranging from 0.218 to 3.511%. Rent payments ranging from $417 to $1,289, are paid monthly or ranging from $1,483 to $35,490, paid quarterly. The leases provide for increases in future minimum monthly rental payments subject to stated increases.
As of June 30, 2025, lease assets and the related accumulated amortization totaled $1,241,101 and $(556,440), respectively. See Note 5 for Capital Assets. (67)
103
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
A. Governmental Activities (Continued)
Leases Payable (Continued)
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 242,494 $ 14,670 $ 257,164
2027 221,439 8,935 230,374
2028 161,636 3,659 165,295
2029 55,926 774 56,700
Total $ 681,495 $ 28.038 $ 709.533
SBITA Liabilities
The City has entered into subscription based -information technology arrangements (SBITAs) for finance, cloud, and operating information technology systems. The SBITA arrangements expire at various dates through 2037 and provide for renewal options.
As of June 30, 2025, subscription assets and the related accumulated amortization totaled $3,220,279 and $(1,112,195), respectively. See Note 5 for Capital Assets.
The future subscription payments under SBITA agreements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 395,369 $ 37,300 $ 432,669
2027 286,550 28,206 314,756
2028 229,885 21,416 251,301
2029 235,438 15,862 251,300
2030 166,120 11,440 177,560
2031-2035 453,525 18,055 471,580
2036-2037 12,635 367 13,002
Total $ 1,779,522 $ 132,646 $ 1,912,168
There are no variable payments, no payments made related to termination penalties, and no impairment losses on subscription assets. For the SBITA agreements added in the current year, total capitalizable software configuration costs totaled $154,870.
Claims Payable
Estimated claims payable from general liability and workers' compensation claims as determined by outside claims administrator. Outstanding balance as of June 30, 2025 is as follows:
General Liability Claims
Workers' Compensation Claims
Total Claims Payable
(68)
$ 1,824,253
5,377,586
$ 7,201,839
104
NOTE 6
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
LONG-TERM LIABILITIES (CONTINUED)
B. Business -Type Activities
A summary of changes in long-term liabilities for business -type activities for the year ended June 30, 2025 is as follows:
Compensated Absences (a)
Classification
Balance Balance Due Within Due in More
June 30, 2024 Additions Deletions June 30, 2025 One Year than One Year $ 31,632 $ 4,763 $ - $ 36.395 $ 13.570 $ 22.825
(a) Deletions to compensated absences are presented net of additions, as allowed by GASB Statement No. 101, Compensated Absences.
C. Fiduciary Activities
A summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2025 is as follows:
Bonds Payable:
2013 Tax Allocation
Refunding Bonds
Bond Premium:
2013 Tax Allocation
Refunding Bonds
Classification
Balance Balance Due Within Due in More
June 30, 2024 Additions Deletions June 30, 2025 One Year Than One Year $ 7,400,000 $ - $ (695,000) $ 6,705,000 $ 720,000 $ 5,985,000 28,779 (3,560)
25,219 25,219
Other Liabilities:
Reimbursement Due to City 1,165,124 (379,003) 786,121 388,577 397,544 SERAF Obligation 991,314 - - 991,314 - 991,314
Total $ 9.585.217 $ - $ (1.077.5631 $ 8.507.654 $ 1.108.577 $ 7.399.077 2013 Tax Allocation Refunding Bonds
On December 1, 2013, the Successor Agency to the Redevelopment Agency of the City of Placentia issued a tax allocation refunding bond (TARB) in the amount of $13,120,000. Proceeds of the bond were used to refund the 2002 Series A and Series B Tax Allocation Bonds and the 2009 Subordinate Tax Allocation Note. The bond proceeds, together with other funds deposited from reserves, redeemed the 2002 Series A outstanding principal of $2,445,000, the 2002 Series B outstanding principal of $3,670,000, and the 2009 Subordinate TAN outstanding principal of $6,850,000. In lieu of funding the Reserve Account with proceeds of the Bonds, the Successor Agency has determined to purchase a Municipal Bond Debt Service Reserve Insurance Policy issued by the Insurer.
(69)
105
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
C. Fiduciary Activities (Continued)
2013 Tax Allocation Refunding Bonds (Continued)
The bond is a special obligation of the Successor Agency. The bond does not constitute a debt or liability of the City of Placentia, County of Orange, state of California, or of any political subdivision thereof, other than the Successor Agency. The Successor Agency shall only be obligated to pay the principal of the bond, or interest thereon, from the funds described within the Official Statement. Neither the faith and credit nor the taxing power of the City of Placentia, the County of Orange, the state of California, or any of its political subdivisions is pledged to the payment of the principal of or the interest on the bond. The Successor Agency has no taxing power. As of June 30, 2025, the outstanding principal on this bond is $6,705,000.
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 720,000 $ 288,188 $ 1,008,188
2027 750,000 258,788 1,008,788
2028 780,000 227,700 1,007,700
2029 810,000 192,375 1,002,375
2030 850,000 152,950 1,002,950
2031-2033 2,795,000 203,181 2,998,181
Total $ 6,705,000 $ 1,323,182 $ 8,028,182
Debt Related Pledge of Revenue
The Successor Agency has pledged a portion of future tax increment revenues to repay the 2013 TARB as the source of repayment of this debt. Tax increment revenues were projected to produce a certain percentage of the debt service requirements over the life of the debt. Due to the dissolution of the former Placentia Redevelopment Agency, the pledged revenue is deposited to the County of Orange Redevelopment Property Tax Trust Fund (RPTTF). The County forwards the City funds to pay these recognized obligations.
Certificates of Participation City Reimbursement
On April 17, 2007, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a reimbursement agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the former Placentia Redevelopment Agency will reimburse the City for a portion of the lease payment paid by the City to the bond trustee, with respect to the 2003 Refunded and Improvement Project Certificates of Participation.
The portion reimbursed is based upon the portion of the capital improvements and improved facilities benefiting from the original proceeds of the related debt issue that were within the confines of the redevelopment project area. The updated long-term liability balance as of June 30, 2025 of $786,121 represents the portion of the principal balance for which the Successor Agency will reimburse the City. (70)
106
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Certificates of Participation City Reimbursement (Continued) The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 388,577 $ 18,474 $ 407,051
2027 397,544 9,342 406,886
Total $ 786,121 $ 27,816 $ 813,937
Supplemental Education Revenue Augmentation Fund (SERAF) Obligation The Successor Agency has accrued a liability in the amount of $991,314 in regard to its Supplemental Education Revenue Augmentation Fund (SERAF) obligation. This amount includes the unpaid portions from fiscal years 2009-10 and 2010-11. In 2009, the state of California issued a mandate that shifted redevelopment funds to education purposes.
This action required each local redevelopment agency to make payment to their respective County Auditor -Controller. The Placentia Redevelopment Agency did not make payment on this obligation for two fiscal years, as it did not have the means to do so. Nonpayment of SERAF obligations would usually result in suspension of redevelopment activity. Upon dissolution of redevelopment in 2012, this unpaid obligation was transferred to the Successor Agency. The Successor Agency will continue working to resolve this matter. Outstanding balance of SERAF Obligation as of June 30, 2025 was $991,314.
Real Property Loan Obligation
On January 20, 2009, the City Council of the City of Placentia and the Board of Directors of the former Placentia Redevelopment Agency approved a Purchase and Sale agreement between the City and the former Placentia Redevelopment Agency. This agreement provides that the Placentia Redevelopment Agency will finance and purchase two real properties from the City; 312 South Melrose Street and 110 South Bradford Avenue for $2,270,000 based on appraised property values at an interest rate of 7%.
The City received the final payment on the loan in the current year.
NOTE 7 DEFERRED COMPENSATION PLANS
Section 457 Plan
The City has made available to its employees two deferred compensation plans, created in accordance with Internal Revenue Code (the IRC) Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. There are several options available for employees to invest, including annuities, life insurance, savings accounts, and mutual funds. Funds may be withdrawn by participants upon termination of employment, retirement, or a certified emergency. The City makes no contribution under the plans.
(71)
107
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7 DEFERRED COMPENSATION PLANS (CONTINUED)
Section 457 Plan (Continued)
Pursuant to changes in IRC Section 457, the City amended its plans and established a trust into which all assets and income of the 457 plan were transferred during the year ended June 30, 1998. The assets and all income attributable to such amounts are held in trust for the exclusive benefit of the participant and their beneficiaries. These assets are no longer the property of the City, and therefore, are no longer subject to the claims of the City's general creditors. As a result, the assets of the 457 deferred compensation plans are no longer presented in an agency fund of the City's financial statements. The City has minimal involvement in the administration of the 457 plans, and therefore, lacks the fiduciary accountability that would require the 457 assets be recorded in an expendable trust fund.
The Defined Compensation Plan assets are not included in the accompanying basic financial statements.
Section 401(a) Qualified Defined Contribution Pension Plan All City sworn full-time fire personnel are eligible to participate in the Section 401(a) qualified defined contribution pension plan as allowed under the Internal Revenue Code. The plan type sponsored by the City is the Money Purchase Plan (Plan), which was last amended on January 1, 2020. The Plan is a defined contribution retirement plan in which the employer's contribution is nondiscretionary and is based on a formula that is not related to profits. The Plan sponsor guarantees no benefit and bears no investment risk while the Plan participants bear all investment risk and have no guaranteed level of benefits.
An administrative committee comprised of City personnel governs the Plan. The City Council has the authority to establish or amend the Plan's provisions. The Plan's provisions and contribution requirements are established and may be amended by City Council resolution.
Eligible employees begin participating the first day of the month following their employment date of work. The Plan is entirely funded by City contributions of 10% of the participants' base pay to the deferred compensation plan. The City's contributions vest at 100% after completion of four years of uninterrupted employment.
Participants are eligible to begin receiving benefits at age 50 and are required to begin receiving benefits no later than April after age 70-1/2. The employees may also roll their funds to another retirement plan upon separation of service.
The City's payroll for employees covered by the Plan for the year ended June 30, 2025 was $3,929,123. Total employee contributions paid by the City amounted to $293,470.
As of June 30, 2025, the Plan had 28 participants.
(72)
108
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS
A. Summary
Governmental Business -Type
Activities Activities
Total
Deferred Outflows of Resources:
Pension Contribution Made After
Measurement Date:
CaIPERS Miscellaneous $ 387,424 $ 5,396 $ 392,820
CaIPERS Safety 689,865 - 689,865
Total Pension Contribution
Made After Measurement Date 1,077,289 5,396 1,082,685
Change in Assumptions
CaIPERS Miscellaneous 63,365 882 64,247
CaIPERS Safety 117,664 - 117,664
Total Change in Assumptions 181,029 882 181,911
Difference Between Projected and
Actual Investment Earnings:
CaIPERS Miscellaneous 141,926 1,977 143,903
CaIPERS Safety 230,837 - 230,837
Total Difference Between
Projected and Actual
Investment Earnings 372,763 1,977 374,740
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous 213,151 2,969 216,120
CaIPERS Safety 389,741 - 389,741
Total Difference Between
Expected and Actual
Experience 602,892 2,969 605,861
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:
CaIPERS Miscellaneous 1,091,295 15,199 1,106,494
CaIPERS Safety 752,195 - 752,195
Total Employer Contributions
in Excess of Proportionate
Share of Contribution 1,843,490 15,199 1,858,689
Total Deferred Outflows of Resources:
CaIPERS Miscellaneous 1,897,161 26,423 1,923,584
CaIPERS Safety 2,180,302 - 2,180,302
Total Deferred Outflows of
Resources $ 4,077,463 $ 26,423 $ 4,103,886
(73)
109
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Governmental Business -Type
Activities Activities Total
Net Pension Liabilities:
CaIPERS Miscellaneous $ 2,465,341 $ 34,335 $ 2,499,676
CaIPERS Safety 4,775,717 - 4,775,717
Total Net Pension Liabilities $ 7,241,058 $ 34,335 $ 7,275,393 Deferred Inflows of Resources:
Change in Assumptions
CaIPERS Miscellaneous
CaIPERS Safety
Total Change in Assumptions
Changes in Proportion and
differences between employer
contributions and proportionate
share of contributions:
CaIPERS Miscellaneous 893,832 12,450 906,282
CaIPERS Safety 1,978,746 - 1,978,746
Total Adjustment Due to
Difference in Proportions 2,872,578 12,450 2,885,028
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous 8,317 116 8,433
CaIPERS Safety 12,672 - 12,672
Total Difference Between
Expected and Actual
Experience 20,989 116 21,105
Employer Contributions In Excess
of Proportionate Share of
Contribution:
CaIPERS Miscellaneous
CaIPERS Safety
Total Employer Contributions
in Excess of Proportionate
Share of Contribution -
Difference Between Expected and
Actual Experience:
CaIPERS Miscellaneous
CaIPERS Safety
Total Difference Between
Expected and Actual
Experience
Total Deferred Inflows of Resources:
CaIPERS Miscellaneous 902,149 12,566 914,715
CaIPERS Safety 1,991,418 - 1,991,418
Total Deferred Inflows of
Resources $ 2,893,567 $ 12,566 $ 2,906,133
(74)
110
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
A. Summary (Continued)
Pension Expenses:
CaIPERS Miscellaneous
CaIPERS Safety
Total Net Pension Expense
Governmental Business -Type
Activities Activities Total
$ 2,867,744 $ 39,940 $ 2,907,684
3,226,330 3,226,330
$ 6,094,074 $ 39,940 $ 6,134,014
B. General Information about the Pension Plans
Plan Description
The City contributes to the California Public Employees Retirement System (CaIPERS), a cost-sharing, multiple -employer defined benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for participating public entities within the state of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of the CaIPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.
Employees Covered by Benefit Terms
At the June 30, 2024 measurement date the following employees were covered by the benefit terms:
Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Active Employees 29 91 18 33
Transferred Employees 66 62 17 11
Separated Employees 29 47 10 10
Retired Employees and
Beneficiaries 184 6 122 1
Total 308 206 167 55
Benefit Provided
CaIPERS provide retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CaIPERS members become eligible for service retirement upon attainment of age 55 with at least five years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least five years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. (75)
111
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
B. General Information about the Pension Plans (Continued) Benefit Provided (Continued)
Following are the benefit provisions for each plan:
Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a
Percentage of Eligible
Compensation
Required Employee
Contribution Rate
Required Employer
Contribution Rate
Miscellaneous
2.0% @ 55
5 Years
Service
Monthly for Life
55 2.0%
7.000%
12.520%
Miscellaneous
Tier 2
2.0% @ 60
5 Years
Service
Monthly for Life
60 2.0%
7.000%
10.710%
Miscellaneous
PEPRA
2.0% @ 62
5 Years
Service
Monthly for Life
62 2.0%
7.750%
7.870%
Safety
3.0% @ 50
5 Years
Service
Monthly for Life
50 3.0%
9.000%
27.320%
Safety
PEPRA
2.7% @ 57
5 Years
Service
Monthly for Life
50-57
2.7%
13.750%
13.760%
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2025, the City made contributions to each Plan were as follows:
Contributions - Employer
Miscellaneous
$ 392,820
(76)
Safety
$ 689,865
Total
$ 1,082,685
112
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Proportionate Share of Net Pension Liability and Pension (Income) Expense The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's change in the proportionate share of the net pension liability for each Plan as of the June 30, 2023, the measurement date and the June 30, 2024, measurement date was as follows:
Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)
Miscellaneous Safety
0.05376 % 0.07318 %
0.05168 0.06550
(0.00208)% (0.00768)%
For the year ended June 30, 2025, the City recognized pension expense of $2,907,684 and $3,226,330, for the Miscellaneous and Safety plans, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement Date $ 392,820 $ Difference Between Expected and Actual Experience 216,120 8,433 Changes of Assumptions 64,247
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 143,903
Changes in Proportion and Differences Between
Employer Contributions and Proportionate Share
of Contributions 1,106,494 906,282
Total $ 1,923,584 $ 914,715
(77)
113
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) Safety Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contribution Made After the Measurement Date $ 689,865 $ Difference Between Expected and Actual Experience 389,741 12,672 Changes of Assumptions 117,664
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 230,837
Changes in Proportion and Differences Between
Employer Contributions and Proportionate Share
of Contributions 752,195 1,978,746
Total $ 2,180,302 $ 1,991,418
Contribution Made After the Measurement Date
Difference Between Expected and Actual Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Adjustments Due to Difference in Proportions
Total
(78)
Aggregate Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 1,082,685 $
605,861 21,105
181,911
374,740
1,858,689
$ 4,103,886
2,885,028
$ 2,906,133
114
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension (Income) Expense (Continued) For the Miscellaneous Plan and Safety Plan, $392,820 and $689,865, respectively, were reported as deferred outflows of resources related to pensions resulting from City's contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025202520252025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement Period
Ending June 30,
2025
2026
2027
2028
2029
Thereafter
Total
Deferred (Inflows) Outflows of Resources
Safety
Plan
$ 104,253 $
(274,371)
(251,882)
(78,981)
Miscellaneous
Plan
$ 809,026
(58,479)
(85,184)
(49,314)
$ 616,049
Total
913,279
(332,850)
(337,066)
(128,295)
$ (500,981) $ 115,068
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
(79)
Entry Age Normal
6.90%
2.30%
Varies by Entry Age and Service
6.90%
Derived using CaIPERS'
Membership Data for all Funds.
Contract COLA up to 2.3% until
Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.3% thereafter.
115
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions (Continued)
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS experience study for the period from 2001 to 2019. Pre -retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP -2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.
Long -Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap -Weighted 30.00 % 4.45 %
Global Equity - Non -Cap -Weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage -Backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00 %
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study. (80)
116
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8 PENSION PLANS (CONTINUED)
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Chanaes in the Discount Rate
The following presents the City's proportionate share of the net position liability for the Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower or 1 -percentage point higher than the current rate:
Miscellaneous
Safety
Total
Plan's
1%
Decrease
Net Pension (Asset)
Current
Discount Rate
(5.90%) (6.90%)
$ 11,446,990 $ 2,499,676
20,663,785 4,775,717
$ 32,110,775 $ 7,275,393
Liability
1%
Increase
(7.90%)
$ (4,865,280)
(8,218,489)
$ (13,083,769)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports.
D. Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2025.
(81)
117
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN
A. Summary
Governmental Business -Type
Activities Activities
Total
Deferred Outflows of Resources:
Employer Contributions Made Subsequent
to the Measurement Date $ 546,029 $ 15,139 $ 561,168
Changes in Assumptions 1,494,539 41,438 1,535,977
Total Deferred Outflows of Resources $ 2,040,568 $ 56,577 $ 2,097,145 Net OPEB Liability $ 12,588,382 $ 349,023 $ 12,937,405
Deferred Inflows of Resources:
Changes in Assumptions $ 5,224,488 $ 144,853 $ 5,369,341 Difference Between Expected and
Actual Experience 4,716,607 130,772 4,847,379
Net Difference Between Projected
and Actual Earnings 100,778 2,794 103,572
Total Deferred Inflows of Resources $ 10,041,873 $ 278,419 $ 10,320,292 OPEB Income $ (1,254,472) $ (34,781) $ (1,289,253)
B. General Information About OPEB
Plan Description
The City provides post -employment defined benefits to retired employees in the form of a contribution towards their health insurance premiums under the CaIPERS health plan, an agent multiple employer plan, that provides health insurance benefits to eligible retirees in accordance with various labor agreements. The minimum required retiree contributions are established by CaIPERS. Survivor benefits are not provided. Copies of the CaIPERS' annual financial report can be obtained from the CaIPERS Executive Office, 400 P Street, Sacramento, California 95814.
Eligibility
All employees hired prior to November 21, 1995, are in Tier I and become eligible for these benefits as long as they are 50 years of age or older and have worked for the City a minimum of five years and elect a service retirement from the City. The health benefits for Tier I retirees include medical, dental, optical, and life. These benefits are considered to be vested for Tier I employees. The City pays the same contribution for these benefits to Tier I employees as is paid to active employees. Vision benefits are also provided to Tier I employees who retired after September 30, 1990. The life insurance is available to Tier I retirees until they reach age of 70.
(82)
118
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
B. General Information About OPEB (Continued)
All employees hired on or after November 21, 1995 are Tier II. The City pays the minimum required medical insurance contribution established by CaIPERS for Tier II employees.
Membership in the plan consisted of the following at June 30, 2024, the date of the latest actuarial valuation:
Active Plan Members 204
Retirees 149
Total 353
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB
Contributions
Benefit provisions and contribution requirements are established and may be amended through agreements and memorandums of understanding between the City, its management employees, and unions representing the City's employees. The plan does not require employee contributions.
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2025, the City made contributions to the plan totaling $561,168 ($855,087 actual benefit payments and a $169,176 implicit subsidy credit, less trust reimbursements of $463,095). Employees are not required to contribute to the plan.
Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2024. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024. The total OPEB liability at June 30, 2025 was $14,932,515. (83)
119
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Actuarial Assumptions
The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions:
Discount Rate
Inflation
Aggregate Payroll Increases
Expected Long -Term Investment Rate of Return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non -Medicare
Healthcare Trend Rate - Medicare
5.60% (Bond Buyer 20 -Bond Index)
2.40% Annually
2.80%
N/A
CaIPERS 2000-2019 Experience
Study
Modified projected fully generational
with Scale MP -2021
An annual healthcare cost trend
rate of 8.20% for 2025, decreasing
to an ultimate rate of 5.00% in 2031
An annual healthcare cost trend
rate of 7.30% for 2025, decreasing
to an ultimate rate of 4.50% in 2030
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of the November 2021 CaIPERS experience study covering 2000 to 2019.
Discount Rate
The discount rate used to measure the total OPEB liability was 4.80%. This discount rate is the mid -point, rounded to five basis points of the range of three 20 -year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20 -Bond GO Index, and Fidelity GO AA 20 Year Bond Index. (84)
120
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Change in the Net OPEB Liability
Balance - June 30, 2023 (Measurement Date)
Changes Recognized for the Measurement Period:
Service Cost
Interest on the Total OPEB Liability
Difference Between Expected and
Actual Experience
Changes of Assumptions
Contributions from the Employer
Net Investment Income
Administrative Expenses
Benefit Payments
Net Changes
Balance - June 30, 2024 (Measurement Date)
Total OPEB
Liability
$ 15,832,494
304,795
746,786
(684,035)
(95,294)
(1,172,231)
(899,979)
Plan Fiduciary
Net Position
$ 1,833,177
1,172,231
168,079
(6,146)
(1,172,231)
161,933
$ 14,932,515 $ 1,995,110
Net OPEB
Liability
$ 13,999,317
304,795
746,786
(684,035)
(95,294)
(1,172,231)
(168,079)
6,146
(1,061,912)
$ 12,937,405
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1 -percentage point lower (3.80%) or 1 -percentage point higher (5.80%) than the current discount rate:
OPEB Pension Plan
1%
Decrease
(4.50%)
$ 14,512,347
Plan's Total OPEB Liability
Current
Discount Rate
(5.60%)
$ 12,937,405
1%
Increase
(6.60%)
$ 11,608,719
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 -percentage point lower or 1 -percentage point higher than the current healthcare cost trend rates:
OPEB Pension Plan
(85)
1%
Decrease
$ 12,375,916
Plan's Total OPEB Liability
Healthcare
Cost Trend
Rates
$ 12,937,405
1%
Increase
$ 13,604,265
121
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense (Income), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB income of $1,289,253. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Difference Between Expected and Actual Experience
Changes in Assumptions
Employer Contributions Made Subsequent to the
Measurement Date
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Total
Deferred Deferred
Outflows Inflows
of Resources of Resources
$ - $ 4,847,379
1,535,977 5,369,341
561,168
$ 2,097,145
103,572
$ 10,320,292
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 8 years, which was determined as of July 1, 2021, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.
$561,168 was reported as a deferred outflow of resources related to OPEB resulting from the City's contributions subsequent to the measurement date and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Deferred
Outflows
(Inflows)
Fiscal Year Ending June 30, of Resources
2026 $ (1,696,601)
2027 (1,428,627)
2028 (1,816,076)
2029 (1,992,156)
2030 (1,167,053)
Thereafter (683,802)
Total $ (8,784,315)
(86)
122
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 RISK MANAGEMENT AND SELF-INSURANCE PROGRAM
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City participates in municipal agency risk pools for their property, workers' compensation, and excess liability coverage.
A. General Liability
The City is a member of the Public Agency Risk Sharing Authority of California (PARSAC), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers' compensation, and property claims. Under the program, the City has a $100,000 retention limits similar to a deductible with the PARSAC being responsible for losses above that amount up to $1 million.
The PARSAC has additional coverage of $34 million in excess of its $1 million retention limit affiliated risk management authorities. The PARSAC also provides $1 billion aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance.
B. Workers' Compensation
The City is a member of the Local Agency Workers' Compensation Excess (the LAWCX), a joint powers authority, which provides joint protection programs for public entities covering worker's compensation claims. Under the program, the City has a $250,000 retention limits similar to a deductible with the LAWCX being responsible for losses above that amount up to $4.7 million. The City has purchased excess coverage for workers' compensation excess of $5 million.
C. Other Insurance
The City has Crime Bond Insurance coverage as a member of PARSAC under Alliant Crime Insurance Program (the ACIP) excess of $2,500 up to $1 million. This insurance includes coverage for faithful performance of duty, forgery, or alteration, inside premises theft of money and securities, inside premises robbery and safety, burglary other property outside the premises, computer fraud, funds transfer fraud, and money orders and counterfeit paper currency fraud.
(87)
123
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 RISK MANAGEMENT AND SELF-INSURANCE PROGRAM (CONTINUED) C. Other Insurance (Continued)
A reconciliation of changes in aggregates for claims filed in the current and prior fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Liability Estimates Payments Liability One Year One Year Workers' Compensation:
2023-2024 $ 2,883,583 $ 470,637 $ (857,340) $ 2,496,880 $ 624,220 $ 1,872,660 2024-2025 2,496,880 3,858,473 (977,767) 5,377,586 1,344,397 4,033,189 General Liability:
2023-2024 $ 1,167,761 $ 1,074,374 $ (918,099) $ 1,324,036 $ 317,259 $ 1,006,777 2024-2025 1,324,036 743,653 (243,436) 1,824,253 456,063 1,368,190 NOTE 11 CLASSIFICATION OF FUND BALANCES
At June 30, 2025, fund balances are classified in the governmental funds as follows:
Citywide
Development Placentia
Impact Fee Regional Nonmajor
General Special Navigation Debt Governmental
Fund Revenue Fund Center Service Fund Funds Total
Nonspendable:
Inventory $ 7,740 $ - $ $ - $ $ 7,740
Prepaid Items 66,203 3,282 69,485
Loans Receivable 397,544 - - 397,544
Total Nonspendable 471,487 3,282 - - - 474,769
Restricted:
Public Safety 2,050,580 2,050,580
Public Works 1,176,380 1,176,380
Community Development - 5,152,794 - - 2,405,180 7,557,974 Community Services - - 201,159 201,159
Debt Service 4,676,884 87,394 4,764,278
Transportation - 464,823 464,823
Park Development - - - - 21,518 21,518
Air Quality 382,443 382,443
Housing 2,110,268 2,110,268
Pension Stability 1\334\070 - - 1/334/070
Total Restricted 1,334,070 5,152,794 4,676,884 8,899,745 20,063,493 Committed:
Measure U - Infrastructure 1,996,732 1,996,732
Total Committed 1,996,732 1,996,732
Assigned:
Subsequent Year's Budget:
Appropriation of
Fund Balance 1,396,102 1,396,102
Total Assigned 1,396,102 - - - 1,396,102
Unassigned 9,078,465 (2,180,341) (1,836,306) 5,061,818
Total Fund Balances $ 14.276.856 $ 5.156.076 $ (2.180.341) $ 4.676.884 $ 7.063.439 $ 28.992.914 (88)
124
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12 COMMITMENTS AND CONTINGENCIES
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2025. These projects are evidenced by contractual commitments with contractors or other agencies and include:
Projects Commitment
Buildings and Facilities $ 2,636,906
Streets and Streetscapes 14,651,255
Traffic and Transportation 1,512,581
Sewer 61,953
Parks 1,211,306
Major Studies 779,298
Vehicles and Equipment 272,254
Technology 243,263
Total $ 21,368,816
The City has various outstanding purchase commitments. Total commitments at June 30, 2025 are as follows:
Outstanding
Purchase
Commitments
Governmental Funds:
General Fund $ 2,143,266
Other Governmental Funds 3,257,738
Total $ 5,401,004
B. Contingencies
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.
C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.
(89)
125
CITY OF PLACENTIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 13 OTHER REQUIRED FUND DISCLOSURES
A. Expenditures in Excess of Appropriation
Excess of expenditures over appropriations occurred in individual funds during the year ended June 30, 2025, as follows:
Expenditure
in Excess of
Expenditures Appropriation Appropriations
Special Revenue Funds:
Measure M $ 1,906,622 $ 1,848,448 $ (58,174)
Supplemental Law Enforcement 194,663 191,000 (3,663)
Opioid Settlement 10,557 - (10,557)
Debt Service Funds:
Major Debt Service Fund 4,693,073 4,662,800 (30,273)
Gas Tax Debt Service 404,317 368,000 (36,317)
B. Deficit Net Position and Fund Balances
Funds with deficit net position/fund balance at June 30, 2025, are as follows:
Deficit Deficit
Fund Balance Net Position
Special Revenue Funds:
Placentia Regional Navigation Center (Major Fund) $ (2,180,341) Miscellaneous Grants (696,186)
Measure M (174,251)
Landscape Maintenance District 92-1 (67,192)
Housing and Community Development (566,931)
Sewer Construction (123,349)
Total $ (3,808,250)
Capital Projects Fund:
City Capital Projects $ (311,031)
Internal Service Fund:
Risk Management $ (4,924,680)
At June 30, 2025, the City's governmental activities had an unrestricted net position deficit of $(66,583,173) on the statement of net position. This deficit was created from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 and the implementation of GASB Statement 75 (Total OPEB Liability) in 2018. The City expects to eliminate the deficit via increased pension and OPEB contributions consistent with the amortization schedules provided by the City's pension and OPEB administrators.
(90)
126
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
127
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128
CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE —
GENERAL FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Taxes
Intergovernmental
Licenses and Permits
Fines and Forfeitures
Investment Income
Charges for Services
Leases and Rents
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of Debt
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Budgeted Amounts
Original Final
$ 46,986,063
280,000
2,903,140
485,000
800,000
1,458,425
1,081,000
314,400
54,308,028
Actual
Amounts
$ 47,411,063 $ 47,216,243
2,387,654 533,191
3,206,743 3,202,633
575,000 764,685
800,000 1,070,564
1,485,804 1,604,224
1,101,000 1,579,509
637,812 706,522
57,605,076 56,677,571
15,175,710 16,451,945
19,365,868 19, 820, 370
4,566,940 5,133,823
1,782,450 2,024,001
3,481,600 3,412,616
4,348,750 15,377,846
1,611,876 1,611,876
189,286 189,286
50,522,480 64,021,763
3,785,548 (6,416,687)
405,100
(1,998,660)
(1,593,560)
$ 2,191,988
See accompanying Notes to Budgetary Comparison Schedules. (91)
415,100
(1,349,734)
(934,634)
$ (7,351,321)
16,586,077
20,563,786
5,174,844
1,894,731
3,288,610
10,234,402
2,311,372
201,154
60,254,976
(3,577,405)
474,582
3,561,683
(4,553,777)
(517,512)
(4,094,917) $ 3,256,404
Variance with
Final Budget
Positive
(Negative)
$ (194,820)
(1,854,463)
(4,110)
189,685
270,564
118,420
478,509
68,710
(927,505)
(134,132)
(743,416)
(41,021)
129,270
124,006
5,143,444
(699,496)
(11,868)
3,766,787
2,839,282
474,582
3,146,583
(3,204,043)
417,122
18,371,773
$ 14,276,856
129
CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE —
CITYWIDE DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Investment Earnings
Contributions
Total Revenues
EXPENDITURES
Current:
Public Safety
Capital Outlay
Total Expenditures
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ - $ 108,913 $ 108,913
- 1,541,007 2,896,668 1,355,661
- 1,541,007 3,005,581 1,464,574
103,500
411,450
514,950
123,500
1,112,288
1,235,788
2,260
226,307
228,567
121,240
885,981
1,007,221
REVENUE OVER (UNDER) EXPENDITURES (514,950) 305,219 2,777,014 2,471,795 NET CHANGE IN FUND BALANCE $ (514,950) $ 305,219 2,777,014 $ 2,471,795 Fund Balance - Beginning of Year 2,379,062
FUND BALANCE - END OF YEAR $ 5,156,076
See accompanying Notes to Budgetary Comparison Schedules. (92)
130
CITY OF PLACENTIA
BUDGETARY COMPARISON SCHEDULE —
PLACENTIA REGIONAL NAVIGATION CENTER SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 2,933,600 $ 4,315,236 $ 3,488,019 $ (827,217)
EXPENDITURES
Current:
Public Safety 2,933,600 4,314,436 3,039,702 1,274,734
NET CHANGE IN FUND BALANCE $ - $ 800 448,317 $ 447,517
Fund Balance - Beginning of Year (2,628,658)
FUND BALANCE - END OF YEAR $ (2,180,341)
See accompanying Notes to Budgetary Comparison Schedules. (93)
131
CITY OF PLACENTIA
NOTES TO BUDGETARY COMPARISON SCHEDULES
YEAR ENDED JUNE 30, 2025
Budgetary Control and Accounting Policy
The City prepares its budgets on the basis of estimated revenues and expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles. Encumbrance accounting is utilized during the fiscal year, whereby purchase orders, contracts, and other commitments are recorded in order to control appropriations. However, at fiscal year-end, all appropriations lapse.
Accordingly, encumbrances are cancelled and generally are re -appropriated as part of the following year's budget. Encumbrances are not included in reported expenditures.
Annual budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. In 2025, the City did not create a budget for the following governmental special revenue funds: Park Development, Storm Drain, Traffic Offender, Sewer Construction, Affordable Housing In -Lieu, Community Based Transitional Housing Grant, Housing Successor, and Orangethorpe Corridor.
The budgetary level of control for all governmental fund types is the fund level. The City Administrator has the discretion to transfer appropriations between departments within a fund, but transfers between funds must be approved by the City Council.
(94)
132
CITY OF PLACENTIA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
Fiscal Year Ended 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's Proportion of the Net Pension Liability 0.05168% 0.05376% 0.03319% -0.45585% 0.38926% 0.14843% 0.14479% 0.14212% 0.14024% 0.13337% Plan's Proportionate Share of the Net Pension Liability $ 2,499,676 $ 2,688,135 $ 1,552,976 $ 16,419,169 $ 16,419,169 $ 15,209,436 $ 13,952,246 $ 14,094,828 $ 12,135,165 $ 9,154,245 Plan's Covered Payroll $ 9,790,895 $ 8,115,390 $ 7,062,718 $ 6,733,121 $ 5,725,763 $ 5,027,138 $ 4,966,210 $ 4,171,235 $ 4,140,888 $ 3,220,454 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 25.53% 33.12% 21.99% 243.86% 286.76% 332.34% 345.80% 337.91% 293.06% 284.25% Plan's Fiduciary Net Position $ 63,806,001 $ 60,515,009 $ 60,033,972 $ 40,663,791 $ 40,663,791 $ 41,142,220 $ 40,682,189 $ 39,816,871 $ 38,103,697 $ 40,735,920 Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 96.23% 95.75% 97.48% 71.24% 71.24% 74.46% 73.86% 73.86% 75.85% 81.65% Plan's Proportionate Share of Aggregate Employer
Contributions
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
$ 2,435,479 $ 2,515,714 $ 3,114,009 $ 2,642,842 $ 1,383,994 $ 1,139,534 $ 932,993 $ 785,438 $ 667,441 $ 383,155 Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021: There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022: There were no changes in assumptions.
From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%.
From fiscal year June 30, 2023 to June 30, 2024: There were no changes in assumptions.
From fiscal year June 30, 2024 to June 30, 2025: There were no changes in assumptions. (95)
CITY OF PLACENTIA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITIES AND RELATED RATIOS -
SAFETY PLAN
LAST TEN FISCAL YEARS
Fiscal Year Ended 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Measurement Period 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's Proportion of the Net Pension Liability 0.06550% 0.07318% 0.04235% -0.41630% 0.44230% 0.26351% 0.27222% 0.27242% 0.28572% 0.30267% Plan's Proportionate Share of the Net Pension Liability $ 4,775,717 $ 5,470,210 $ 2,910,326 $ 29,467,303 $ 29,467,303 $ 27,002,144 $ 26,231,540 $ 27,017,047 $ 24,723,412 $ 20,774,757 Plan's Covered Payroll $ 6,360,119 $ 5,760,486 $ 5,428,571 $ 5,414,606 $ 4,822,533 $ 4,385,233 $ 4,383,655 $ 4,193,517 $ 4,142,921 $ 4,074,947 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 75.09% 94.96% 53.61% 544.22% 611.03% 615.75% 598.39% 644.26% 596.76% 509.82% Plan's Fiduciary Net Position $ 116,311,710 $ 104,039,873 $ 104,039,873 $ 113,454,370 $ 69,454,497 $ 69,385,418 $ 65,913,238 $ 62,459,293 $ 58,150,629 $ 60,121,518 Plan's Fiduciary Net Position as a Percentage of the
Total Pension Liability 96.06% 95.00% 97.28% 79.38% 70.21% 71.99% 71.53% 69.81% 70.17% 74.32% Plan's Proportionate Share of Aggregate Employer
Contributions
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
$ 4,119,383 $ 4,216,661 $ 6,941,085 $ 6,061,344 $ 2,517,884 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 $ 2,175,167 Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021: There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022: There were no changes in assumptions.
From fiscal year June 30, 2022 to June 30, 2023: In fiscal year 2022-2023, the financial reporting discount rate was reduced from 7.150% to 6.900%.
From fiscal year June 30, 2023 to June 30, 2024: There were no changes in assumptions.
From fiscal year June 30, 2024 to June 30, 2025: There were no changes in assumptions. (96)
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Contractually Determined Contribution
(Actuarially Determined) $ 392,820 $ 854,667 $ 710,758 $ 589,881 $ 1,516,621 $ 1,383,994 $ 1,139,534 $ 932,993 $ 785,438 $ 667,441 Contributions in Relation to the Actuarially
Determined Contributions (392,820) (854,667) (710,758) (589,881) (17,663,643) (1,383,994) (1,139,534) (932,993) (785,438) (667,441) Contribution Deficiency (Excess) $ - $ $ - $ $ (16.147.0221 $ - $ $ $ $ Covered Payroll $ 9,710,922 $ 9,790,895 $ 8,115,390 $ 7,062,718 $ 6,733,121 $ 5,725,763 $ 5,027,138 $ 4,966,210 $ 4,171,235 $ 4,140,888 Contributions as a Percentage of Covered Payroll 4.05% 8.73% 8.76% 8.35% 262.34% 31.07% 26.35% 22.22% 19.27% 16.12% Notes to Schedule:
Valuation Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Methods and Assumptions Used
to Determine
Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.30% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) Investment Rate of Retum 6.9% (3) 6.9% (3) 6.9% (3) 7.150% (3) 7.150% (3) 7.150% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62** (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted BR the CaIPERS Board. (97)
Fiscal Year
Contractually Determined Contribution
(Actuarially Determined)
Contributions in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered
Payroll
Notes to Schedule:
Valuation Date
Methods and Assumptions Used
to Determine
CITY OF PLACENTIA
SCHEDULE OF CITY'S PENSION CONTRIBUTIONS -
SAFETY PLAN
LAST TEN FISCAL YEARS
2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 $ 689,865 $ 1,236,862 $ 1,095,286 $ 1,015,425 $ 2,561,365 $ 2,519,683 $ 2,108,590 $ 3,034,432 $ 2,753,462 $ 2,568,441 (689,865) (1,236,862) (1,095,286) (1,015,425) (30,597,527) (2,519,683) (2,108,590) (3,034,432) (2,753,462) (2,568,441) $ $ - $ - $ - $ (28,036,162) $ - $ - $ $ - $ -
$ 7,151,590 $ 6,360,119 $ 5,760,486 $ 5,428,571 $ 5,414,606 $ 4,822,533 $ 4,385,233 $ 4,383,655 $ 4,193,517 $ 4,142,921
9.65% 19.45% 19.01% 18.71% 565.09% 52.25% 48.08% 69.22% 65.66% 62.00% 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1.00) (1.00) (1.00) (1.00) -1 (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.30% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) Investment Rate of Return 6.9% (3) 6.9% (3) 6.9% (3) 7.150% (3) 7.150% (3) 7.150% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62** (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted BR the CaIPERS Board. (98)
CITY OF PLACENTIA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
LAST SEVEN FISCAL YEARS
Measurement Period, Year Ending: 1 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total OPEB Liability:
Service Cost $ 304,795 $ 296,493 $ 491,712 $ 532,568 $ 359,454 $ 542,976 $ 569,606 Interest 746,786 639,487 536,526 691,435 919,735 1,092,405 1,032,870 Changes of Benefit Terms - - - - - -
Differences Between Expected and Actual Experience (684,035) (5,302) (2,064,492) (4,989,665) - (2,606,242) Changes of Assumptions (95,294) (2,319,626) (4,427,399) (1,506,167) 4,699,117 332,593 (1,089,486) Benefit Payments, Including Refunds of Member
Contributions (1,172,231) (1,093,319) (1,132,073) (1,143,510) (1,142,314) (1,112,888) (1,107,000) Net change in Total OPEB Liability (899,979) (2,482,267) (6,595,726) (6,415,339) 4,835,992 (1,751,156) (594,010) Total OPEB Liability - Beginning 15,832,494 18,314,761 24,910,487 31,325,826 26,489,834 28,240,990 28,835,000 Total OPEB Liability - Ending (a) $ 14,932,515 $ 15,832,494 $ 18,314,761 $ 24,910,487 $ 31,325,826 $ 26,489,834 $ 28,240,990 OPEB Fiduciary Net Position:
Contributions -Employer $ 1,172,231 $ 2,800,144 $ 1,132,073 $ 1,146,160 $ 1,146,160 $ 1,142,314 $ 1,112,888 Net Investment Income 168,079 132,778 - - -
Benefit Payments, Including Refunds of Member
Contributions (1,172,231) (1,093,319) (1,132,073) (1,146,160) (1,146,160) (1,142,314) (1,112,888) Administrative Expense (6,146) (6,426) - -
Net Change in Plan Fiduciary Net Position 161,933 1,833,177 - - - Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net OPEB Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability
1,833,177 - -
1,995,110 1,833,177 - -
$ 12,937,405 $ 13,999,317 $ 18,314,761 $ 24,910,487 $ 31,325,826 $ 26,489,834 $ 28,240,990
13.36% 11.58% 0.00% 0.00% 0.00% 0.00% 0.00%
Covered -Employee Payroll $ 24,117,472 $ 18,881,076 $ 17,448,843 $ 13,993,405 $ 12,286,189 $ 11,810,189 $ 11,466,203 Plan Net OPEB Liability as a Percentage of Covered
Payroll 54% 74% 105% 178% 255% 224% 239%
Notes to Schedule:
For the June 30, 2024, measurement date, the discount rate was increased from 4.80% to 5.60% and the genral inflation rate as increase from 2.30% to 2.40% For the June 30, 2023, measurement date, the discount rate was updated based on the municipal bond rate as of the measurement date. 1 Historical information is only presented for measurement periods after GASB 75 implementation. (99)
Fiscal Year 1
Actuarially Determined Contribution
Contributions in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Notes to Schedule:
Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method
Amortization Method/Period
Inflation
Salary Increases
Payroll Growth
Discount Rate
Mortality, Retirement, Disability, and Termination
Mortality Improvement
Medical Trend
CITY OF PLACENTIA
SCHEDULE OF CITY'S OPEB CONTRIBUTIONS
LAST SEVEN FISCAL YEARS
2024-25 2023-24 2022-23
$ 1,262,494 $ 1,193,153 $ 1,327,789
(561,168) (1,172,231) (2,800,144)
$ 701,326 $ 20,922 $ (1,472,3551
$ 25,736,680 $ 24,117,472 $ 18,881,076
2.18% 4.86% 14.83%
2021-22
$ 1,132,073
(1,132,073)
$ 17,448,843
6.49%
6/30/2024 6/30/2022 6/30/2022 6/30/2021
2020-21 2019-20 2018-19 2017-18
$ 1,146,160 $ 1,142,314 $ 1,112,888 $ 1,107,000
(1,146,160) (1,142,314) (1,112,888) (1,107,000)
$ - $ - $ - $ -
$ 13,993,405 $ 12,286,189 $ 11,810,189 $ 11,466,203
8.19% 9.30% 9.42% 9.65%
Entry Age Normal
Level Percentage of Payroll
2.40% Annually
Aggregate 2.80% Annually, Merit - CaIPERS 2019 Experience Study
2.80%
5.60% (Bond Buyer 20 -Bond Index)
CaIPERS 2019 experience study
Mortality projected fully generational with Scale MP -2021 Non -Medicare — 8.20% for 2025, decreasing to an ultimate rate of 5.00% in 2031 Medicare — 7.30% for 2025, decreasing to an ultimate rate of 4.50% in 2030 1 Historical information is only presented for measurement periods after GASB 75 implementation. (100)
6/30/2020
6/30/2019
6/30/2017
6/30/2017
SUPPLEMENTARY INFORMATION
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CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
DEBT SERVICE FUND (MAJOR FUND)
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ $ - $ 239,536 $ 239,536
Total Revenues - 239,536 239,536
EXPENDITURES
Debt Service:
General Government
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
2,500
2,330,000
2,330,300
4,662,800
REVENUE OVER (UNDER) EXPENDITURES (4,662,800)
2,500 2,500
2,330,000 2,330,000
2,330,300 2,360,573 (30,273)
4,662,800 4,693,073 (30,273)
(4,662,800) (4,453,537) 209,263
OTHER FINANCING SOURCES
Transfers In 4,657,704 4,657,704 4,483,922 (173,782)
Transfers Out - (3,367,020) (3,367,020)
Total Other Financing Sources 4,657,704 1,290,684 1,116,902 (173,782) NET CHANGE IN FUND BALANCE $ (5,096) $ (3,372,116) (3,336,635) $ 35,481 Fund Balance - Beginning of Year 8,013,519
FUND BALANCE - END OF YEAR $ 4,676,884
(101)
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(102)
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NONMAJOR GOVERNMENTAL FUNDS
Miscellaneous Grants Special Revenue Fund — to account for federal, state, county, or other grants received which are not otherwise separately accounted for in other funds.
Park Development Special Revenue Fund — to account for in lieu fees charged to developers on a per unit basis for park development and rehabilitation.
Street Lighting Special Revenue Fund — to account for funds received from special assessments on property owners to provide street lighting in areas of the City not covered by the County lighting district.
Measure M Special Revenue Fund — to account for funds received by the City as a result of the voter - approved ballot measure in 1990 and extended by voter approval in 2006 to increase sales tax by'/2% in Orange County to fund transportation projects.
Storm Drain Construction Special Revenue Fund — to account for funds restricted by state law to be spent on storm drain construction, which are received from acreage fees placed on developers at the time of development. The City is divided into eight storm drain areas and funds can be expended only within the area in which funds are collected.
Thoroughfare Construction Special Revenue Fund — to account for funds restricted by City ordinance to be spent for traffic signal, bridge, and culvert construction, which are received from acreage fees placed on developers at the time of development.
Asset Seizure Special Revenue Fund — to account for monies seized from criminal activities. Revenues are restricted for use in law enforcement.
Traffic Offender Special Revenue Fund — to account for revenue generated from driving under the influence (DUI) administrative impound fees that are restricted to be spent on traffic enforcement activities, including, but not limited to, personnel, training, and equipment costs.
Supplemental Law Enforcement Special Revenue Fund — to account for the receipts and expenditures of funds resulting from the Citizen's Option for Public Safety (COPS) program, a state funded program, which are restricted for front line municipal police services.
Air Quality Special Revenue Fund — to account for the City's portion of motor vehicle registration fees collected pursuant to AB2766 passed during the 1990 state legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources, such as cars, trucks, and buses.
Landscape Maintenance District 92-1 Special Revenue Fund — to account for benefit assessments levied under the Landscaping and Lighting Act of 1972, restricted for maintenance, operation, and administration of landscape improvements in certain areas of the City.
Housing and Community Development Special Revenue Fund — to account for U.S. Housing and Community Development Department grants requiring segregated fund accounting, such as the Community Development Block Grant program.
(103)
143
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Gasoline Tax Special Revenue Fund — to account for receipts and expenditures of money apportioned under Streets and Highways Code Sections 2103, 2105, 2106, 2107, and 2107.5 of the state of California. These funds are earmarked for maintenance, rehabilitation, or improvement of public streets.
Sewer Construction Special Revenue Fund — to account for funds restricted by state law to be spent on sewer construction, which are received from acreage fees placed on developers at the time of development.
PEG Special Revenue Fund — to account for a portion of funds received from cable television franchise fees that are restricted for use for Public, Educational, and Governmental (PEG) access channels and related programming.
Affordable Housing in Lieu Fund — to account for the receipt and expenditure of developer fees restricted for affordable housing purposes.
SB1 Gas Tax Fund — to account for the receipts and expenditures of Road Maintenance and Rehabilitation Account (RMRA) funds resulting from the Road Repair and Accountability Act of 2017 (SB 1). Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges, and other transit related improvements.
North Orange County Public Safety Grant Fund — to account for the receipts and expenditures of the North Orange County Public Safety Task Force (NOC) grant funds to the City. Funds are restricted to be used for law enforcement activities, including, but not limited to, pertaining to violence prevention, intervention, and suppression activities.
Community Based Transitional Housing Grant Fund — to account for the receipts and expenditures of the Community -Based Transitional Housing Program Grant awarded by the state of California Department of Finance. Funds are restricted to be used to provide transitional support housing that provides treatment and reentry programming to individuals who will benefit from those services.
TOD Impact Fee Special Revenue Fund — to account for the receipts and expenditures of new development impact on the City's sewer collection system in the City's Transit -Oriented Development Zone (TOD). Funds are restricted within the TOD project area, including, but not limited to acquisition, financing, construction, and reconstruction of sanitary or sewer facilities and infrastructure in the TOD.
General Plan Update Fee Fund — to account for the accumulation of General Plan update fees that are charged on building permits. Expenditures are restricted to update the City General Plan or other specific plans.
Technology Impact Fee Fund — to account for the accumulation of technology fees charged on building permits. Expenditures are restricted for the acquisition and construction of technology improvements. (104)
144
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Housing Successor Fund — to account for the residual balance of the former low- and moderate -income housing fund of the former Placentia Redevelopment Agency, and revenues and expenditures related to such housing projects and programs.
Orangethorpe Corridor Fund — to account for financing and construction of all rail projects within the boundaries of the City.
Cal Recycle Grant Fund — to account for the receipts and expenditures related to the funding received from CalRecycle grants related to recycling and material diversion programs.
Enhanced Infrastructure Financing District (EIFD) — to account for revenue and expenditures for the EIFD established with the County of Orange. The purpose of the EIFD is to finance public capital facilities or other specified projects of community -wide significance that provide benefits to the district or the surrounding community.
Fire Impact Fee Fund — to account for revenues and expenditures associated with new development within Placentia for fire protection -related services. The purpose of the fire impact fee is to fund the cost of fire protection and emergency response facilities, apparatus, and equipment attributable to new residential and nonresidential development in the City. The fire impact fee will ensure that new development will not burden existing development with the cost of expanded facilities, apparatus, and equipment required to accommodate growth as it occurs within the City.
Animal Shelter Impact Fee Fund — to account for the revenues and expenditures associated with the cost of animal shelter facilities for new residential development in the City. The animal shelter impact fee will ensure that new development will not burden existing development with the cost of expanded animal shelter facilities required to accommodate growth as it occurs within the City.
Opioid Settlement Fund — to account for the distribution of monies received from the California Opioid Settlement Funds. Expenditures are restricted for opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services.
City Capital Projects Fund — to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of major capital facilities within the boundaries of the City.
Gas Tax Debt Service Fund — to account for the receipt and expenditure of gas tax revenues pledged for the payment of debt service on debt payable from Gas Tax proceeds. (105)
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CITY OF PLACENTIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure ASSETS
Cash and Investments $ 31,957 $ 21,518 $ 16,855 $ 366,574 $ 530 $ 5,055 $ 1,427,374 Receivables:
Accounts 753 124,744 7,443
Grants 639,999
Accrued Interest
Loans and Notes
Leases
Due from Other Funds
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 671,956 $ 21,518 $ 17,608 $ 491,318 $ 530 $ 5,055 $ 1,434,817
LIABILITIES
Accounts Payable $ 511,390 $ - $ 17,608 $ 606,226 $ $ - $ - Accrued Liabilities - - - -
Deposits Payable - - - -
Retentions Payable - 59,343 - -
Due to Other Funds 186,753 - - - -
Unearned Revenue 30,000 - -
Total Liabilities 728,143 17,608 665,569
DEFERRED INFLOWS OF RESOURCES
Leases - -
Unavailable Revenues 639,999 - -
Total Deferred Inflows of Resources 639,999 -
FUND BALANCES
Restricted 21,518 - - 530 5,055 1,434,817
Unassigned (Deficit) (696,186) - - (174,251) - -
Total Fund Balances (696,186) 21,518 - (174,251) 530 5,055 1,434,817 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 671,956 $ 21,518 $ 17,608 $ 491,318 $ 530 $ 5,055 $ 1,434,817 (106)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction ASSETS
Cash and Investments $ 4,874 $ 247,298 $ 383,943 $ - $ - $ $ Receivables:
Accounts 1,126 - 2,507 85,772 125,525 800
Grants - - - - -
Accrued Interest
Loans and Notes - - - - -
Leases - - - - -
Due from Other Funds
Land Held for Resale - - - - -
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 6,000 $ 247,298 $ 383,943 $ 2,507 $ 85,772 $ 125,525 $ 800
LIABILITIES
Accounts Payable $ - $ $ 1,500 $ 51,585 $ 740 $ $ -
Accrued Liabilities - - 6,394 5,506 -
Deposits Payable - -
Retentions Payable - -
Due to Other Funds - - 11,720 646,457 22,891 124,149
Unearned Revenue - -
Total Liabilities - 1,500 69,699 652,703 22,891 124,149
DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources
FUND BALANCES
Restricted 6,000 247,298 382,443 - - -
Unassigned (Deficit) - - - (67,192) (566,931) 102,634 (123,349) Total Fund Balances 6,000 247,298 382,443 (67,192) (566,931) 102,634 (123,349) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 6,000 $ 247,298 $ 383,943 $ 2,507 $ 85,772 $ 125,525 $ 800 (107)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
PEG
ASSETS
Affordable
Housing
In -Lieu
Special Revenue Funds
SB1 Gas Tax
Community Based
NOC Public Transitional TOD
Safety Grant Housing Grant Impact Fee
Cash and Investments $ 105,671 $ 404 $ 1,376,974 $ 345,048 $ 75 $ 1,172,356 Receivables:
Accounts 15,358 251,150 - -
Grants - - - -
Accrued Interest
Loans and Notes - - - - 38,050
Leases - - - -
Due from Other Funds
Land Held for Resale - - - -
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 121,029 $ 404 $ 1,628,124 $ 345,048 $
75 $ 1,210,406
LIABILITIES
Accounts Payable $ 4,152 $ $ 1,082,967 $ - $ - $ 6,138
Accrued Liabilities - - 1,322 75
Deposits Payable - - - -
Retentions Payable 80,334 - - 72,847
Due to Other Funds - - - -
Unearned Revenue - - - 48,460 -
Total Liabilities 4,152 1,163,301 49,782 75 78,985
DEFERRED INFLOWS OF RESOURCES
Leases
Unavailable Revenues
Total Deferred Inflows of Resources
FUND BALANCES
Restricted
Unassigned (Deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
- - - 38,050
- - - - 38,050
116,877 404 464,823 295,266 - 1,093,371
116,877 404 464,823 295,266 1,093,371
$ 121,029 $ 404 $ 1,628,124 $ 345,048 $ 75 $ 1,210,406
(108)
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle Update Fee Impact Fee Successor Corridor Grant
ASSETS
EIFD
Fire
Impact Fee
Cash and Investments $ 1,430,051 $ 593,275 $ 544,110 $ 168 $ 102,998 $ 294,190 $ 67,253 Receivables:
Accounts - 833 - - -
Grants - - - - -
Accrued Interest 32 -
Loans and Notes - 527,916 - - 16,433
Leases - 7,039 - - -
Due from Other Funds
Land Held for Resale - 1,036,761 - - -
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$ 1,430,051 $ 593,275 $ 2,116,691 $
168 $
102,998 $
294,190 $ 83,686
LIABILITIES
Accounts Payable $ 15,234 $ 12,419 $ - $ - $ 5,961 $ 7,145 $ 54 Accrued Liabilities - - - 780 -
Deposits Payable 168
Retentions Payable - - - - -
Due to Other Funds - - - - -
Unearned Revenue - - - 13,248 -
Total Liabilities 15,234 12,419 168 19,989 7,145 54
DEFERRED INFLOWS OF RESOURCES
Leases - 6,827 - - -
Unavailable Revenues - - - 16,433
Total Deferred Inflows of Resources - 6,827 - - 16,433
FUND BALANCES
Restricted 1,414,817 580,856 2,109,864 - 83,009 287,045 67,199 Unassigned (Deficit) - - - - -
Total Fund Balances 1,414,817 580,856 2,109,864 83,009 287,045 67,199 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 1,430,051 $ 593,275 $ 2,116,691 $
(109)
168 $ 102,998 $ 294,190 $ 83,686
CITY OF PLACENTIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue Funds
Animal
Shelter Opioid
Impact Fee Settlement
ASSETS
Capital Debt
Projects Fund Service Fund
City Capital
Projects
Gas Tax
Total Other
Governmental
Funds
Cash and Investments $ 1,435 $ 177,230 $ - $ 87,394 $ 8,804,610 Receivables:
Accounts - 340,903 - 956,914
Grants - - - 639,999
Accrued Interest - - 32
Loans and Notes 16,433 - - 598,832
Leases - - - 7,039
Due from Other Funds - -
Land Held for Resale - - - 1,036,761
Total Assets $ 17,868 $ 518,133 $ - $ 87,394 $ 12,044,187
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ - $ $ 11,410 $ - $ 2,334,529
Accrued Liabilities - 90 26,388 - 40,555
Deposits Payable 125,000 125,168
Retentions Payable - 500 - 213,024
Due to Other Funds - 147,733 - 1,139,703
Unearned Revenue - 91,708
Total Liabilities - 90 311,031 - 3,944,687
DEFERRED INFLOWS OF RESOURCES
Leases - - - 6,827
Unavailable Revenues 16,433 318,319 - 1,029,234
Total Deferred Inflows of Resources 16,433 318,319 - 1,036,061
FUND BALANCES
Restricted 1,435 199,724 87,394 8,899,745
Unassigned (Deficit) - - (311,031) - (1,836,306)
Total Fund Balances 1,435 199,724 (311,031) 87,394 7,063,439 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 17,868 $ 518,133 $ - $ 87,394 $ 12,044,187 (110)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Miscellaneous Park Street Storm Drain Thoroughfare
Grants Development Lighting Measure M Construction Construction Asset Seizure
REVENUES
Intergovernmental $ 550,188 $ $ $ 1,197,086 $ $ $ -
Fines and Forfeitures - - - - 98,084
Investment Earnings - 615 18,006 - 176 39,964
Charges for Services 131,759 - -
Lease Revenue - - - - -
Miscellaneous - - - - -
Total Revenues 550,188 615 131,759 1,215,092 176 138,048
EXPENDITURES
Current:
General Government - -
Public Safety 7,959 - - - 29,000
Public Works - 201,614 - - -
Community Development 39,500 - 136,025
Community Services 7,843 - - - -
Capital Outlay 722,868 - 1,284,349 - 6,453
Debt Service:
Principal Retirement - - 460,400 - -
Interest and Fiscal Charges - - 25,848 - -
Total Expenditures 778,170 201,614 1,906,622 35,453
REVENUES OVER (UNDER) EXPENDITURES (227,982) 615 (69,855) (691,530) - 176 102,595
OTHER FINANCING SOURCES (USES)
Transfers In 69,855
Transfers Out - - - - -
Total Other Financing Sources (Uses) - 69,855 - - -
NET CHANGES IN FUND BALANCES (227,982) 615 (691,530) 176 102,595 Fund Balance - Beginning of Year (468,204) 20,903 517,279 530 4,879 1,332,222 FUND BALANCES - END OF YEAR $ (696,186) $ 21,518 $ - $ (174,251) $ 530 $ 5,055 $ 1,434,817
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Supplemental Landscape Housing and
Traffic Law Maintenance Community Sewer
Offender Enforcement Air Quality District 92-1 Development Gasoline Tax Construction
REVENUES
Intergovernmental $ $ 194,663 $ 94,099 $ $ 85,772 $ 1,475,514 $ Fines and Forfeitures - - - -
Investment Earnings 176 10,276 9,925 - - 14,492
Charges for Services - - 459,865
Lease Revenue - -
Miscellaneous -
Total Revenues 176 204,939 104,024 459,865 85,772 1,490,006
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
34,147
34,147
470,330 -
- 141,543
470,330 141,543
966,314
966,314
REVENUES OVER (UNDER) EXPENDITURES 176 204,939 69,877 (10,465) (55,771) 523,692
OTHER FINANCING SOURCES (USES)
Transfers In -
Transfers Out - (194,663) - - (404,317) -
Total Other Financing Sources (Uses) - (194,663) - - (404,317) NET CHANGES IN FUND BALANCES 176 10,276 69,877 (10,465) (55,771) 119,375 Fund Balance - Beginning of Year 5,824 237,022 312,566 (56,727) (511,160) (16,741) (123,349) FUND BALANCES - END OF YEAR $ 6,000 $ 247,298 $ 382,443 $ (67,192) $ (566,931) $ 102,634 $ (123,349) (112)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
PEG
Special Revenue Funds
Affordable Community Based
Housing NOC Public Transitional TOD
In -Lieu SB1 Gas Tax Safety Grant Housing Grant Impact Fee
REVENUES
Intergovernmental $ $ - $ 1,425,201 $ 239,000 $ $
Fines and Forfeitures - - - -
Investment Earnings 2,635 28,809 7,290 - 43,125
Charges for Services 64,119 - - 1,137
Lease Revenue - - - -
Miscellaneous - - - -
Total Revenues 66,754 1,454,010 246,290 44,262
EXPENDITURES
Current:
General Government 38,694 -
Public Safety - - 23,744
Public Works - - - - 303
Community Development -
Community Services - - - -
Capital Outlay - 1,607,056 - - 294,980
Debt Service:
Principal Retirement
Interest and Fiscal Charges - - -
Total Expenditures 38,694 1,607,056 23,744 295,283
REVENUES OVER (UNDER) EXPENDITURES 28,060 (153,046) 222,546 - (251,021)
OTHER FINANCING SOURCES (USES)
Transfers In - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
NET CHANGES IN FUND BALANCES 28,060 (153,046) 222,546 (251,021) Fund Balance - Beginning of Year 88,817 404 617,869 72,720 - 1,344,392 FUND BALANCES - END OF YEAR $ 116,877 $ 404 $ 464,823 $ 295,266 $ - $ 1,093,371 (113)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Special Revenue Funds
General Plan Technology Housing Orangethorpe Cal Recycle Fire Update Fee Impact Fee Successor Corridor Grant EIFD Impact Fee
REVENUES
Intergovernmental $ 150,000 $ $ $ $ $ 233,999 $
Fines and Forfeitures - - - - -
Investment Earnings 38,295 16,425 15,459 - 3,777 3,338 1,317 Charges for Services 267,413 161,479 - 44,912
Lease Revenue - 7,113 - - -
Miscellaneous - - - - -
Total Revenues 455,708 177,904 22,572 3,777 237,337 46,229
EXPENDITURES
Current:
General Government - 6,752 -
Public Safety - 175,098 - 55,493 54
Public Works - - - - -
Community Development
Community Services -
Capital Outlay 204,609 - - - 41,257 -
Debt Service:
Principal Retirement - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 204,609 175,098 55,493 48,009 54
REVENUES OVER (UNDER) EXPENDITURES 251,099 2,806 22,572 - (51,716) 189,328 46,175
OTHER FINANCING SOURCES (USES)
Transfers In -
Transfers Out - - - - -
Total Other Financing Sources (Uses) - - - - -
NET CHANGES IN FUND BALANCES 251,099 2,806 22,572 (51,716) 189,328 46,175 Fund Balance - Beginning of Year 1,163,718 578,050 2,087,292 - 134,725 97,717 21,024 FUND BALANCES - END OF YEAR $ 1,414,817 $ 580,856 $ 2,109,864 $ - $ 83,009 $ 287,045 $ 67,199 (114)
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
REVENUES
Intergovernmental
Fines and Forfeitures
Investment Earnings
Charges for Services
Lease Revenue
Miscellaneous
Total Revenues
Special Revenue Funds
Capital Debt
Projects Fund Service Fund
Animal
Shelter Opioid City Capital
Impact Fee Settlement Projects
Gas Tax
Total Other
Governmental
Funds
$ $ 203,583 $ $ $ 5,849,105
- - - 98,084
- 4,831 4,743 - 263,674
1,435 - 1,132,119
- - - 7,113
- 158,336 - 158,336
1,435 208,414 163,079 7,508,431
EXPENDITURES
Current:
General Government 45,446
Public Safety - 10,557 - - 301,905
Public Works - - - 1,638,561
Community Development 596 351,811
Community Services - - - 7,843
Capital Outlay - 297,345 - 4,458,917
Debt Service:
Principal Retirement - 368,000 828,400
Interest and Fiscal Charges - 36,317 62,165
Total Expenditures 10,557 297,941 404,317 7,695,048
REVENUES OVER (UNDER) EXPENDITURES 1,435 197,857 (134,862) (404,317) (186,617)
OTHER FINANCING SOURCES (USES)
Transfers In 404,317 474,172
Transfers Out - - - (598,980)
Total Other Financing Sources (Uses) - - 404,317 (124,808) NET CHANGES IN FUND BALANCES 1,435 197,857 (134,862) (311,425) Fund Balance - Beginning of Year - 1,867 (176,169) 87,394 7,374,864 FUND BALANCES - END OF YEAR $ 1,435 $ 199,724 $ (311,031) $ 87,394 $ 7,063,439 (115)
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Intergovernmental
Budgeted Amounts
Original Final
$ 941,801 $ 3,408,389 $
EXPENDITURES
Current:
Public Safety -
Community Development
Community Services -
Capital Outlay 941,801
Total Expenditures 941,801
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$
(116)
74,845
60,000
2,932,764
3,067,609
$ 340,780
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
550,188 $ (2,858,201)
7,959 66,886
39,500 (39,500)
7,843 52,157
722,868 2,209,896
778,170 2,289,439
(227,982) $ (568,762)
(468,204)
$ (696,186)
156
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
STREET LIGHTING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 136,244 $ 136,244 $ 131,759 $ (4,485)
EXPENDITURES
Current:
Public Works 280,000 280,000 201,614 78,386
REVENUE OVER (UNDER) EXPENDITURES (143,756) (143,756) (69,855) 73,901
OTHER FINANCING SOURCES
Transfers In 143,756 143,756 69,855 (73,901)
Total Other Financing Sources 143,756 143,756 69,855 (73,901) NET CHANGE IN FUND BALANCE $ - $ - $
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $
(117)
157
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,300,538 $ 1,300,538 $ 1,197,086 $ (103,452) Investment Earnings 18,006 18,006
Total Revenues 1,300,538 1,300,538 1,215,092 (85,446)
EXPENDITURES
Current:
Community Development 76,200 205,421 136,025 69,396
Capital Outlay 1,203,000 1,238,710 1,284,349 (45,639)
Debt Service:
Principal Retirement 404,317 404,317 460,400 (56,083)
Interest and Fiscal Charges - - 25,848 (25,848)
Total Expenditures 1,683,517 1,848,448 1,906,622 (58,174) NET CHANGE IN FUND BALANCE $ (382,979) $ (547,910) (691,530) $ (143,620) Fund Balance - Beginning of Year 517,279
FUND BALANCE - END OF YEAR $ (174,251)
(118)
158
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
THOROUGHFARE CONSTRUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 176 $ 176
EXPENDITURES
Capital Outlay
4,172 4,172
NET CHANGE IN FUND BALANCE $ - $ (4,172) 176 $ 4,348
Fund Balance - Beginning of Year 4,879
FUND BALANCE - END OF YEAR $ 5,055
(119)
159
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and Forfeitures $ - $ - $ 98,084 $ 98,084
Investment Earnings - - 39,964 39,964
Total Revenues 138,048 138,048
EXPENDITURES
Current:
Public Safety 228,444 191,444 29,000 162,444
Capital Outlay - 35,000 6,453 28,547
Total Expenditures 228,444 226,444 35,453 190,991
NET CHANGE IN FUND BALANCE $ (228,444) $ (226,444) 102,595 $ 329,039 Fund Balance - Beginning of Year 1,332,222
FUND BALANCE - END OF YEAR $ 1,434,817
(120)
160
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 181,000 $ 191,000 $ 194,663 $ 3,663 Investment Earnings - - 10,276 10,276
Total Revenues 181,000 191,000 204,939 13,939
OTHER FINANCING SOURCES (USES)
Transfers Out (181,000) (191,000) (194,663) (3,663)
NET CHANGE IN FUND BALANCE $ - $ 10,276 $ 10,276
Fund Balance - Beginning of Year 237,022
FUND BALANCE - END OF YEAR $ 247,298
(121)
161
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
AIR QUALITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 65,900 $ 65,900 $ 94,099 $ 28,199
Investment Earnings - - 9,925 9,925
Total Revenues 65,900 65,900 104,024 38,124
EXPENDITURES
Community Development 19,100 51,405 34,147 17,258
Capital Outlay 60,000 313,333 313,333
Total Expenditures 79,100 364,738 34,147 330,591
NET CHANGE IN FUND BALANCE $ (13,200) $ (298,838) 69,877 $ 368,715 Fund Balance - Beginning of Year 312,566
FUND BALANCE - END OF YEAR $ 382,443
(122)
162
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT 92-1 SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 457,992 $ 457,992 $ 459,865 $ 1,873
EXPENDITURES
Current:
Public Works 440,000 559,400 470,330 89,070
NET CHANGE IN FUND BALANCE $ 17,992 $ (101,408) (10,465) $ 90,943 Fund Balance - Beginning of Year (56,727)
FUND BALANCE - END OF YEAR $ (67,192)
(123)
163
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 322,998 $
EXPENDITURES
Current:
Community Development
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
351,934 $ 85,772 $ (266,162)
322,998 322,998
$ - $ 28,936
(124)
141,543 181,455
(55,771) $ (84,707)
(511,160)
$ (566,931)
164
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GASOLINE TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,455,676 $ 1,455,676 $ 1,475,514 $ 19,838 Investment Earnings 14,492 14,492
Total Revenues 1,455,676 1,455,676 1,490,006 34,330
EXPENDITURES
Current:
Public Works 974,558 974,558 966,314 8,244
REVENUE OVER (UNDER) EXPENDITURES 481,118 481,118 523,692 42,574
OTHER FINANCING SOURCES (USES)
Transfers Out (407,750) (407,750) (404,317) 3,433
NET CHANGE IN FUND BALANCE $ 73,368 $ 73,368 119,375 $ 46,007 Fund Balance - Beginning of Year (16,741)
FUND BALANCE - END OF YEAR $ 102,634
(125)
165
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
PEG REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 2,635 $ 2,635
Charges for Services 100,000 100,000 64,119 (35,881)
Total Revenues 100,000 100,000 66,754 (33,246)
EXPENDITURES
Current:
General Government 103,000 103,000 38,694 64,306
NET CHANGE IN FUND BALANCE $ (3,000) $ (3,000) 28,060 31,060 Fund Balance - Beginning of Year 88,817
FUND BALANCE - END OF YEAR $ 116,877
(126)
166
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
SB1 RMRA GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,343,778 $ 1,343,778 $ 1,425,201 $ 81,423 Investment Earnings - - 28,809 28,809
Total Revenues 1,343,778 1,343,778 1,454,010 110,232
EXPENDITURES
Capital Outlay 1,597,000 1,872,397 1,607,056 265,341
NET CHANGE IN FUND BALANCE $ (253,222) $ (528,619) (153,046) $ 375,573 Fund Balance - Beginning of Year 617,869
FUND BALANCE - END OF YEAR $ 464,823
(127)
167
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
NORTH ORANGE COUNTY (NOC) PUBLIC SAFETY GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ 239,000 $ 239,000 $
Investment Earnings - - 7,290 7,290
Total Revenues 239,000 246,290 7,290
EXPENDITURES
Current:
Public Safety 99,000 338,000 23,744 314,256
NET CHANGE IN FUND BALANCE $ (99,000) $ (99,000) 222,546 $ 321,546 Fund Balance - Beginning of Year 72,720
FUND BALANCE - END OF YEAR $ 295,266
(128)
168
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
TOD IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 43,125 $ 43,125
Charges for Services - - 1,137 1,137
Total Revenues 44,262 44,262
EXPENDITURES
Current:
Public Works - - 303 (303)
Capital Outlay 185,300 627,636 294,980 332,656
Total Expenditures 185,300 627,636 295,283 332,353
NET CHANGE IN FUND BALANCE $ (185,300) $ (627,636) (251,021) $ 376,615 Fund Balance - Beginning of Year 1,344,392
FUND BALANCE - END OF YEAR $ 1,093,371
(129)
169
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GENERAL PLAN UPDATE FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ - $ 150,000 $ 150,000
Investment Earnings - - 38,295 38,295
Charges for Services 267,413 267,413
Total Revenues - - 455,708 455,708
EXPENDITURES
Current:
Capital Outlay 325,000 652,012 204,609 447,403
NET CHANGE IN FUND BALANCE $ (325,000) $ (652,012) 251,099 $ 903,111 Fund Balance - Beginning of Year 1,163,718
FUND BALANCE - END OF YEAR $ 1,414,817
(130)
170
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
TECHNOLOGY IMPACT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Earnings $ - $ - $ 16,425 $ 16,425
Charges for Services - - 161,479 161,479
Total Revenues 177,904 177,904
EXPENDITURES
Current:
Public Safety 289,034 289,034 175,098 113,936
Capital Outlay - 71,385 - 71,385
Total Expenditures 289,034 360,419 175,098 185,321
NET CHANGE IN FUND BALANCE $ (289,034) $ (360,419) 2,806 $ 363,225 Fund Balance - Beginning of Year 578,050
FUND BALANCE - END OF YEAR $ 580,856
(131)
171
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
CAL RECYCLE GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 144,054 $ 144,054 $ $ (144,054)
Investment Earnings - - 3,777 3,777
Total Revenues 144,054 144,054 3,777 (140,277)
EXPENDITURES
Current:
Public Safety 131,693 131,693 55,493 76,200
NET CHANGE IN FUND BALANCE $ 12,361 $ 12,361 (51,716) $ (64,077) Fund Balance - Beginning of Year 134,725
FUND BALANCE - END OF YEAR $ 83,009
(132)
172
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
EFID SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 70,000 $ 70,000 $ 233,999 $ 163,999 Investment Earnings - - 3,338 3,338
Total Revenues 70,000 70,000 237,337 167,337
EXPENDITURES
Current:
General Government
Capital Outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
10,000
10,000,000
10,010,000
10,000
10,000,000
10,010,000
$ (9,940,000) $ (9,940,000)
(133)
6,752
41,257
48,009
3,248
9,958,743
9,961,991
189,328 $ 10,129,328
97,717
$ 287,045
173
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FIRE IMPACT FEE FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Investment Earnings
Charges for Services
Total Revenues
$
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
- $ - $ 1,317 $ 1,317
- 21,902 44,912 23,010
21,902 46,229 24,327
EXPENDITURES
Current:
Public Safety 6,000 6,000 54 5,946
NET CHANGE IN FUND BALANCE $ (6,000) $ 15,902 46,175 $ 30,273 Fund Balance - Beginning of Year 21,024
FUND BALANCE - END OF YEAR $ 67,199
(134)
174
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
ANIMAL SHELTER IMPACT FEE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ $ 491 $ 1,435 $ 944
NET CHANGE IN FUND BALANCE $ - $ 491 1,435 $ 944
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $ 1,435
(135)
175
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
OPIOID SETTLEMENT FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Intergovernmental
Investment Earnings
Total Revenues
$
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
- $ 174,387 $ 203,583 $ 29,196
- - 4,831 4,831
174,387 208,414 34,027
EXPENDITURES
Current:
Public Safety - - 10,557 (10,557)
NET CHANGE IN FUND BALANCE $ - $ 174,387 197,857 $ 23,470 Fund Balance - Beginning of Year 1,867
FUND BALANCE - END OF YEAR $ 199,724
(136)
176
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
CITY CAPTAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
REVENUES
Intergovernmental
Investment Earnings
Miscellaneous
Total Revenues
$
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
- $ 4,075,929 $ - $ (4,075,929)
4,743 4,743
- 770,662 158,336 (612,326)
- 4,846,591 163,079 (4,683,512)
EXPENDITURES
Current:
Community Development 456,000 453,300 596 452,704
Capital Outlay - 3,259,665 297,345 2,962,320
Total Expenditures 456,000 3,712,965 297,941 3,415,024
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
$ (456,000) $ 1,133,626
(137)
(134,862) $ (1,268,488)
(176,169)
$ (311,031)
177
CITY OF PLACENTIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
GAS TAX DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
EXPENDITURES
Debt Service:
Principal Retirement 368,000 368,000 368,000
Interest and Fiscal Charges 36,317 (36,317)
Total Expenditures 368,000 368,000 404,317 (36,317)
REVENUE OVER (UNDER) EXPENDITURES (368,000) (368,000) (404,317) (36,317)
OTHER FINANCING SOURCES (USES)
Transfers In 407,750 407,750 404,317 (3,433)
Total Other Financing Sources (Uses) 407,750 407,750 404,317 (3,433) NET CHANGE IN FUND BALANCE $ 39,750 $ 39,750 $ (39,750) Fund Balance - Beginning of Year 87,394
FUND BALANCE - END OF YEAR $ 87,394
(138)
178
CITY OF PLACENTIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
ASSETS
Current Assets:
Cash and Investments
Total Current Assets
Noncurrent Assets:
Capital Assets, Net of Accumulated Depreciation
Total Assets
Risk Health and Equipment
Management Welfare Replacement
Total
$ 2,321,446 $ 47,012 $ 131,966 $ 2,500,424
2,321,446 47,012 131,966 2,500,424
2,321,446 47,012
105,198 105,198
237,164 2,605,622
LIABILITIES
Current Liabilities:
Accounts Payable 31,742 12,764 44,506
Accrued Liabilities 12,545 289 12,834
Accrued Claims and Judgments - Due Within One Year 1,800,460 - 1,800,460 Total Current Liabilities 1,844,747 13,053 1,857,800
Noncurrent Liabilities:
Accrued Claims and Judgments Due in More
Than One Year 5,401,379 - 5,401,379
Total Noncurrent Liabilities 5,401,379 - 5,401,379
Total Liabilities 7,246,126 13,053 7,259,179
NET POSITION
Investment In Capital Assets - - 105,198 105,198
Unrestricted (4,924,680) 33,959 131,966 (4,758,755)
Total Net Position $ (4,924,680) $ 33,959 $ 237,164 $ (4,653,557) (139)
179
CITY OF PLACENTIA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
OPERATING REVENUES
Reimbursements
Sales and Service Charges
Other Revenues
Total Operating Revenues
OPERATING EXPENSES
Administration
Reinsurance Premiums
Claims
Medical and Dental Premiums
Liability Insurance Premiums
Depreciation Expense
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING INCOME (LOSS)
Gain on Disposal of Capital Assets
CHANGES IN NET POSITION
Net Position - Beginning of Year
NET POSITION - END OF YEAR
Governmental Activities
Health and Equipment
Welfare Replacement
Risk
Management
$ 534,239 $ 909,664 $
2,807,977 630,881
3,342,216 1,540,545
175,802
4,255,759
2,290,200
6,721,761
(3,379,545)
(3,379,545)
(1,545,135)
$ (4,924,680)
(140)
452,688 7,658
203,798
883,797
4,684
- 3,829
1,544,967 11,487
(4,422) (11,487)
(4,422)
38,381
$ 33,959 $
42,619
31,132
206,032
237,164
Total
$ 1,443,903
3,438,858
4,882,761
636,148
203,798
4,255,759
883,797
2,294,884
3,829
8,278,215
(3,395,454)
42,619
(3,352,835)
(1,300,722)
$ (4,653,557)
180
CITY OF PLACENTIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
Risk Health and Equipment
Management Welfare Replacement
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 3,342,811 $ 1,540,545 $ 31,524 $ 4,914,880 Cash Paid to Suppliers for Goods and Services 878,193 (1,532,598) (7,658) (662,063) Cash Paid for Insurance Claims (4,255,759) - - (4,255,759) Net Cash Provided (Used) by Operating Activities (34,755) 7,947 23,866 (2,942)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds From Sale of Capital Assets
Net Cash Provided by Capital And Related
Financing Activities
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION
Beginning of Year
End of Year
- - 31,133 31,133
- - 31,133 31,133
(34,755) 7,947 54,999 28,191
2,356,201 39,065 76,967 2,472,233
$ 2,321,446 $ 47,012 $ 131,966 $ 2,500,424
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income $ (3,379,545) $ (4,422) $ (11,487) $ (3,395,454) Adjustments to Reconcile Operating Income
to Net Cash Provided (Used) by Operating Activities:
Depreciation - - 3,829 3,829
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivables 595 - 31,524 32,119 (Increase) Decrease in Prepaids - 1,309 1,309
Increase (Decrease) in Accounts Payable (32,760) 11,062 (21,698) Increase (Decrease) in Accrued Liabilities (3,968) (2) (3,970) Increase (Decrease) in Claims Payable 3,380,923 - 3,380,923 Net Cash Provided (Used) by Operating Activities $ (34,755) $ 7,947 $ 23,866 $ (2,942) (141)
181
FIDUCIARY FUNDS
CUSTODIAL FUNDS
Community Facilities District Fund — to account for the Community Facilities District No. 89-1 (East Placentia). This fund accounts for the service of $25,000,000 of Community Facilities District No. 89-1 (East Placentia) Special Tax Bonds issued to finance the construction of street and drainage infrastructure improvements and to fund development of a 13 -acre park/recreation sports complex to benefit properties within the District.
Public Safety CFD 2014-01 Fund — to account for revenues and expenditures to provide public safety services associated with new development within Placentia including, but not limited to, police protection, fire protection, and ambulance and paramedic services. The services would be partially paid for through the levy of a Special Tax on real property.
TOD District CFD Fund — to account for the Community Facilities District 2018-1 (Transit Oriented District) providing a special tax to pay for certain public facilities within such community facilities district, to levy such special tax, and to provide non -General Fund and sustainable funding source to pay for the ongoing maintenance and repairs of the public streetscape improvements constructed within the Transit Oriented District.
(142)
182
CITY OF PLACENTIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDS
JUNE 30, 2025
Custodial Funds
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD Total
ASSETS
Cash and Investments $ 52,204 $ 483,661 $ 137,738 $ 673,603 Miscellaneous Receivables - 726 726
Total Assets 52,204 484,387 137,738 674,329
LIABILITIES
Accounts Payable - 1,491
Accrued Liabilities 14
Total Liabilities - 1,505
NET POSITION (DEFICIT)
Restricted for Individuals, Organizations,
and Other Governments
52,204 482,882
105
105
1,596
14 1,610
137,633 672,719
Total Net Position (Deficit) $ 52,204 $ 482,882 $ 137,633 $ 672,719 (143)
183
CITY OF PLACENTIA
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
Custodial Funds
Community
Facilities Public Safety TOD District
District CFD 2014-01 CFD
Total
ADDITIONS
Charges for Services $ - $ 202,949 $ 95,542 $ 298,491
Investment Earnings 1,493 11,857 2,284 15,634
Total Additions 1,493 214,806 97,826 314,125
DEDUCTIONS
Administrative Expenses - 2,461 12,155 14,616
Contributions to City 42,281 42,281
Total Deductions - 44,742 12,155 56,897
CHANGE IN NET POSITION 1,493 170,064 85,671 257,228
Net Position - Beginning of Year 50,711 312,818 51,962 415,491 NET POSITION - END OF YEAR $ 52,204 $ 482,882 $ 137,633 $ 672,719 (144)
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185
STATISTICAL SECTION
186
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187
CITY OF PLACENTIA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
This part of the City of Placentia's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents: Page
Financial Trends — These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
145
Revenue Capacity — These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 151 Debt Capacity— These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information — These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.
Operating Information — These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs. (146)
155
158
161
188
CITY OF PLACENTIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:
Net Investment in Capital Assets $ 66,799 $ 67,960 $ 67,915 $ 72,176 $ 81,106 $ 86,061 $ 86,045 $103,757 $ 114,777 $ 118,813 Restricted 7,681 6,199 5,819 6,090 7,732 21,456 20,175 18,361 21,767 20,962 Unrestricted (30,490) (32,780) (52,089) (50,858) (53,352) (68,263) (23,396) (43,543) (62,344) (66,583) Total Governmental Activities Net Position $ 43.990 $ 41.379 $ 21.645 $ 27.408 $ 35.486 $ 39.254 $ 82.824 $ 78.575 $ 74.200 $ 73.192 Business -Type Activities:
Net Investment in Capital Assets $ 10,765 $ 10,303 $ 9,778 $ 9,275 $ 8,748 $ 8,221 $ 7,694 $ 7,166 $ 12,471 $ 11,836 Unrestricted 845 1,066 (1,514) (2,055) (2,682) 361 1,842 1,245 1,895 3,638 Total Business -Type Activities Net Position $ 11.610 $ 11.369 $ 8.264 $ 7.220 $ 6.066 $ 8.582 $ 9.536 $ 8.411 $ 14.366 $ 15.474 Primary Government:
Net Investment in Capital Assets $ 78,263 $ 77,693 $ 81,451 $ 89,854 $ 94,282 $ 93,739 $ 110,923 $ 127,248 $ 127,248 $ 130,649 Restricted 6,199 5,819 6,090 7,732 21,456 20,175 18,361 21,767 21,767 20,962 Unrestricted (31,714) (53,603) (52,913) (56,034) (67,902) (21,554) (42,298) (60,449) (60,449) (62,945) Total Primary Government Net Position $ 52.748 $ 29.909 $ 34.628 $ 41.552 $ 47.836 $ 92.360 $ 86.986 $ 88.566 $ 88.566 $ 88.666 Source: City of Placentia, Finance Department
(147)
CITY OF PLACENTIA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PROGRAM REVENUE
Governmental Activities:
Charges for Services:
General Government $ 1,956 $ 2,136 $ 2,206 $ 2,356 $ 2,651 $ 2,754 $ 2,812 $ 3,215 $ 3,298 $ 3,106 Public Safety 1,340 1,092 1,078 742 771 567 928 877 913 1,147 Public Works 679 597 670 1,100 776 917 877 811 856 987
Community Development 1,211 1,074 1,251 1,011 1,670 2,014 1,598 1,700 1,509 2,580 Community Services 221 194 314 213 145 148 253 337 497 397 Operating Grants 4,744 4,637 4,575 7,709 9,588 6,103 6,499 15,643 9,937 7,575 Capital Grants and Contributions 145 465 4,528 1,117 2,994 8,027 1,850 5,025 1,938 4,765 Total Governmental Activities Program
Revenues 10,296 10,195 14,622 14,248 18,595 20,530 14,817 27,608 18,948 20,557 Business -Type Activities:
Charges for Services:
Refuse 2,890 2,958 3,039 3,148 3,252 3,688 3,732 4,283 4,813 5,241 Sewer Maintenance 688 722 760 722 723 783 791 1,448 1,511 1,688 Total Business -Type Activities Program
Revenues 3,578 3,680 3,799 3,870 3,975 4,471 4,523 5,731 6,324 6,929 Total Primary Government Program
Revenues
13,874 13,875 18,421 18,118 22,570 25,001 19,340 33,339 25,272 27,486
EXPENSES
Governmental Activities:
General Government 5,343 10,579 10,046 9,346 11,654 12,850 9,242 19,220 17,490 18,873 Public Safety 18,556 19,188 18,114 20,547 26,139 26,045 (5,341) 39,863 27,471 28,181 Public Works 7,445 7,246 4,328 2,465 4,926 9,846 3,159 11,632 10,729 13,857 Community Development 1,373 1,904 1,068 1,502 1,640 2,893 1,554 2,425 2,563 2,988 Community Services 1,263 1,318 1,690 4,401 1,757 2,580 1,685 3,755 4,254 4,655 Interest on Long -Term Debt 837 783 717 588 475 765 2,591 2,372 2,960 2,605 Total Governmental Activities 34,817 41,018 35,963 38,849 46,591 54,979 12,890 79,267 65,467 71,159 Business -Type Activities:
Refuse 2,555 2,571 3,034 3,164 3,127 3,287 3,421 4,341 4,888 4,920 Sewer Maintenance 1,418 954 1,943 1,593 1,836 (1,365) 150 2,533 1,467 1,005 Total Business -Type Activities 3,973 3,525 4,977 4,757 4,963 1,922 3,571 6,874 6,355 5,925 Total Primary Government Expenses 38,790 44,543 40,940 43,606 51,554 56,901 16,461 86,141 71,822 77,084
NET REVENUE (EXPENSE)
Governmental Activities (30,823) (21,341) (24,601) (27,996) (34,449) 1,927 (51,659) (46,519) (46,519) (50,602) Business -Type Activities 155 1,178) (887) (988) 2,549 952 1,143) �31) (31) 1,004 Total Primary Government Net Expense (30,668) (22,519) (25,488) (28,984) (31,900) 2,879 (52,802) (46, 50) (46,550) (49,598) (148)
CITY OF PLACENTIA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
GENERAL REVENUE AND OTHER
CHANGES IN NET POSITION
Governmental Activities:
Taxes:
Property $ 13,259 $ 13,972 $ 14,560 $ 15,478 $ 15,981 $ 16,752 $ 17,191 $ 18,809 $ 20,761 $21,951 Sales and Use 6,848 7,020 6,948 8,184 13,141 15,113 17,248 17,530 16,870 17,005 Utility Users 2,750 2,637 2,545 2,461 2,362 2,503 2,689 3,200 3,048 3,235 Franchise 2,332 2,244 2,270 2,340 2,358 2,466 2,651 2,870 3,076 3,164 Other 1,258 1,365 1,316 1,267 1,047 1,022 1,842 2,091 2,146 2,095 Miscellaneous 35 41 125 136 447 280 256 2,544 282 461
Investment Income 34 31 72 227 312 13 (297) 378 1,901 1,683 Other - - - 215 - -
Special Item - - - -
Contribution from successor Agency - - 19 -
Contribution from Custodial Fund - 30 -
Extraordinary Item (1,035) - - -
Transfers 646 402 251 268 192 39 - (5,940)
Total Government Activities 26,127 27,712 28,087 30,361 36,074 38,218 41,580 47,422 42,144 49,594 Business -Type Activities:
Investment Income 7 7 24 34 27 4 2 19 45 104
Special Item - - - - -
Other --
Transfers(646)
75 ( ( ) ( ( ) ( (564) (395) (227) (158) (165) (35) 2 19 5,985 104 Total Business -Type Activities
Total Primary Government 25,563 27,317 27,860 30,203 35,909 38,183 41,582 47,441 48,129 49,698
CHANGE IN NET POSITION
Governmental Activities 6,371 3,486 2,365 1,625 40,145 (10,079) 903 (4,375) (4,375) (1,008) Business -Type Activities (1,573) (1,114) (1,146) 2,384 917 (1,141) (12) 5,954 5,954 1,108 Total Primary Government
Source: City of Placentia, Finance Department
$ 4.798 $ 2,372 $ 1.219 $ 4.009 $ 41,062 $ (11,220) $ 891 $ 1.579 $ 1.579 $ 100 (149)
CITY OF PLACENTIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund:
Nonspendable $ 3,881 $ 3,354 $ 4,955 $ 4,706 $ 3,734 $ 3,347 $ 2,522 $ 1,454 $ 896 $ 472 Restricted 1,030 1,024 1,019 571 555 556 2 805 1,644 1,334 Committed 3,600 3,600 3,400 4,528 5,811 6,434 13,856 4,535 1,037 1,997 Assigned 286 40 - - - - - - 1,396
Unassigned 72 56 (1,346) 543 3,866 9,894 7,205 19,919 14,795 9,078 Total General Fund $ 8,869 $ 8,074 $ 8,028 $ 10,348 $ 13,966 $ 20,231 $ 23,585 $ 26,713 $ 18,372 $ 14.277 All Other Governmental Funds:
Nonspendable $ - $ - $ - $ - $ - $ 10 $ 6 $ 5 $ 3 $ 3
Restricted 6,651 5,175 4,800 5,518 7,177 20,900 20,173 17,555 19,117 18,729 Unrestricted - (368) (531) (1,045) (1,552) (1,406) (2,754) (2,577) (3,981) (4,017) Total All Other Governmental Funds $ 6.651 $ 4.807 $ 4.269 $ 4.473 $ 5.625 $ 19.504 $ 17.425 $ 14.983 $ 15.139 $ 14.715 Source: City of Placentia, Finance Department
(150)
CITY OF PLACENTIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESS IN THOUSANDS)
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
REVENUES
Property Tax $ 13,259 $ 13,972 $ 14,551 $ 15,478 $ 15,981 $ 16,752 $ 17,191 $ 18,809 $ 20,761 $21,717 Sales Tax 7,257 7,020 6,948 10,646 13,141 15,113 17,248 17,530 16,870 17,005 Other Tax 6,318 6,222 6,043 3,548 5,708 5,993 7,182 8,090 8,216 8,494 Intergovernmental 2,998 3,572 6,487 7,530 8,459 6,700 6,498 16,569 9,704 9,870 Licenses and Permits 1,733 1,572 1,702 1,922 2,454 2,828 2,440 2,644 2,536 3,203 Fines and Forfeitures 1,154 1,297 592 613 819 314 503 1,777 639 863 Investment Income 34 32 69 228 307 13 (297) 377 1,900 1,683 Charges for Services 2,216 1,743 2,197 2,003 4,056 9,334 2,267 2,387 2,446 2,736 Other 2,108 1892 2/151 2,289 2327 2,536 3\581 5,783 3/374 5,348 Total Revenues 37,077 37,22 40,740 44,257 53,252 59,583 56,613 73,966 66,446 70,919
EXPENDITURES
Current:
General Government 6,571 10,450 8,109 7,889 8,389 10,995 12,105 15,771 15,493 16,634 Public Safety 17,880 18,436 19,156 18,718 23,442 16,938 17,476 19,139 21,034 23,908 Public Works 4,824 5,050 5,951 6,078 5,938 5,049 5,262 6,005 6,734 6,813 Community Development 952 1,858 1,291 1,171 1,693 2,245 2,007 2,165 2,448 2,247 Community Services 1,191 1,292 1,526 4,405 1,793 1,547 2,305 2,623 3,441 3,296 Capital Outlay 1,262 2,340 2,971 1,047 11,534 6,178 22,104 29,242 14,920 Debt Service:
Principal 1,333 1,654 1,855 2,105 1,177 1,904 3,135 4,760 5,014 5,470 Interest 837 783 717 587 475 765 489 2,356 2,785 2,623
Debt Issuance Costs - - - - - - 182 - - -
Total Expenditures 34,850 41,863 41,576 42,000 54,441 45,621 42,961 74,923 86,191 75,911
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 2,227 (4,541) (836) 2,257 (1,189) 13,962 13,652 (957) (19,745) (4,992)
OTHER FINANCING SOURCES (USES)
Transfers In 7,000 8,010 4,778 1,515 1,882 2,849 4,034 6,938 11,010 8,520 Transfers Out (6,354) (7,607) (4,527) (1,247) (1,690) (2,811) (4,034) (6,938) (11,010) (8,520) Issuance of Debt 251 - - 5,766 57,583 2,189 1,643 11,207 475 Other - - - (51 441) (2,069) - 352 -
Total Other Financing Sources (Uses) 897 403 251 268 5,958 6,180 120 1,643 11,559 475 EXTRAORDINARY ITEMS - 1,500
NET CHANGE IN FUND BALANCES
Ratio of Total Debt Service Expenditures to
Total Noncapital Expenditures
Source: City of Placentia, Finance Department
$ 3.124 $ (2.638) $ (585) $ 2.525 $ 4.769 $ 20.142 $ 13.772 $ 686 $ (8.186) $ (4.5171
6.49% 6.91% 6.57% 7.14% 7.04% 4.00% 7.26% 15.57% 15.87% 15.30% (151)
Property
Fiscal Year Taxes
2016 $ 13,259,241
2017 13,971,691
2018 14,551,076
2019 15,477,587
2020 15,980,879
2021 16,752,112
2022 17,191,426
2023 18,738,855
2024 20,706,482
2025 21,717,144
Sales
and
Use Taxes
$ 7,257,004
7,019,906
6,948,279
10,646,101
13,140,914
15,112,657
17,247,980
17,530,357
16,869,472
17,005,105
CITY OF PLACENTIA
REVENUES BY SOURCE - GENERAL FUND
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Licenses
Other and
Taxes Permits
$ 3,550,183 $ 1,733,049
3,578,424 1,571,584
6,042,998 1,701,878
3,547,567 1,922,689
5,708,333 2,453,827
5,993,621 2,827,761
7,182,055 2,440,102
8,160,127 2,643,941
8,271,106 2,535,885
8,493,994 3,202,633
Fines,
Forfeitures,
and Penalties
$ 542,253 $
587,005
562,390
438,581
418,752
290,534
503,302
457,065
548,960
764,685
Use of
Money and
Property
Investment
Earnings*
$ 24,157
3,645
31,161
164,724
170,567
(28,258)
(323,152)
67,366
1,175, 860
1,070,564
* Investment Earnings and Rents previously reported as Use of Money and Property Leases previously reported as Other Revenues.
Source: City of Placentia, Annual Comprehensive Financial Reports (152)
Inter- Charges
Leases Governmental for Current Other
and Rents* Revenue Services Revenues Totals
$ 670,631 $ 466,271 $ 1,091,250 $ 1,053,220 $ 29,647,259 1,199,161 297,831 863,387 629,737 29,722,371
1,255,240 252,963 1,284,507 708,662 33,339,154
1,230,532 353,354 1,070,821 944,874 35,796,830
1,211,622 701,864 885,206 885,076 41,557,040
1,079,979 9,743 879,298 490,006 43,407,453
1,422,831 952,389 1,263,215 785,684 48,665,832
1,572,445 8,640,895 1,364,054 1,385,763 60,560,868
1,677,641 2,717,309 1,441,304 1,125,980 57,069,999
1,579,509 533,191 1,604,224 706,522 56,677,571
CITY OF PLACENTIA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
City
Taxable
Public Assessed Direct
Fiscal Year Secured Utility Unsecured Value Rate
2016 $ 5,706,871 292 $ 169,843 $ 5,877,006 0.1644
2017 5,948,117 292 186,698 6,135,107 0.1644
2018 6,259,165 292 183,716 6,443,173 0.1644
2019 6,564,402 544 210,294 6,775,240 0.1644
2020 6,862,623 544 189,948 7,053,115 0.1644
2021 7,160,394 544 191,112 7,352,050 0.1644
2022 7,373,165 544 187,422 7,561,131 0.1644
2023 7,915,501 738 213,554 8,129,793 0.1644
2024 8,744,760 738 234,484 8,979,982 0.1644
2025 9,223,877 738 268,368 9,492,983 0.1644
Note:
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re -assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: County of Orange
(153)
195
Placentia City
Placentia City Street Lighting Reorg.
Direct City Rate
Overlapping Rates:
OC Water District - Water Reserve
OC Vector Control
OC Transportation Authority
Orange County Water District
OC Harbor Beaches & Parks
OC Department of Education
Orange County Flood Control
OC Sanitation District #2 Operating
Placentia Library District
Orange County General Fund
North OC Comm. College General Fund
Education Revenue Augmentation Fund
Placentia Yorba Linda Unified Gen. Fund
Total Overlapping Rate
Metropolitan Water District
Placentia Yorba Linda Unified
N. Orange County Community College
Total Rate
Note:
CITY OF PLACENTIA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340 0.1340
0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304 0.0304
0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644 0.1644
0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011 0.0011
0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026
0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080
0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144 0.0144
0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171
0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186 0.0186
0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309 0.0309
0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376 0.0376
0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579 0.0579
0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655 0.0655
0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876 0.1876
0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943 0.3943
0.8356 0.8356 0.8356 0.8356 0.8356 0.8356 0.8357 0.8356 0.8357 0.8357
0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0070
0.0567 0.0548 0.0553 0.0526 0.0485 0.0603 0.0485 0.0464 0.0424 0.0341
0.0304 0.0289 0.0293 0.0283 0.0241 0.0320 0.0288 0.0278 0.0172 0.0174
1.0906 1.0871 1.0881 1.0844 1.0761 1.0958 1.0809 1.0777 1.0632 1.0586 In 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within.
Source: HdL Coren Cone
(154)
Taxpayer
310 S Jefferson Street Ground Owner LP
MG Herald Apartments LLC
Jefferson Centerpoint LLC
Placentia 422
Gelt Cherry Street Fee Owner LLC
Villa Angelina Apartment Fund LTD
GRI Village Center LLC
HP Bradford Terrace LLC
NMC Placentia LLC
Sedona-Placentia Owner LLC
Total
Source: HdL Coren Cone
CITY OF PLACENTIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT AND NINE YEARS AGO
(AMOUNTS EXPRESS IN THOUSANDS)
2025
Percent of
Total City
Taxable Estimated Taxable
Assessed Total Assessed
Value Tax Value
$184,130 $ 1,841 1.94 %
137,144 1,371 1.44
71,687 717 .76
64,434 644 .68
63,150 632 .67
61,292 613 .65
60,588 606 .64
45,778 458 .48
42,265 423 .45
42,076 421 .44
$ 772,544 $ 7,725 8.14 %
Taxpayer
Placentia Place Apartments LLC
Placentia 422
Villa Angellina Apartment Fund LTD
Villa Tierra Apartments LLC
Placentia -Linda Hospital Inc.
Arlon Graphics LLC
Ora Bradford Court 127 LLC
Reef Imperial Rose Inc.
Donahue Schriber Realty Group
Ronald and Martha Beltran
(155)
Total
Taxable
Assessed
Value
2016
Percent of
Total City
Estimated Taxable
Total Assessed
Tax Value
$82,759 $ 828 1.41 %
54,590 546 .93
52,229 522 .89
35,839 358 .61
35,650 357 .61
34,769 348 .59
27,429 274 .47
27,232 272 .46
26,522 265 .45
26,213 262 .45
$ 403,232 $ 4,032 6.86 %
CITY OF PLACENTIA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the Collections
Taxes Levied Fiscal Year of Levy in Total Collections to Date for the Percent Subsequent Percent
Fiscal Year Fiscal Year Amount of Levy Years Amount of Levy 2016 $ 12,742,715 $ 13,529,800 106.18% N/A N/A N/A
2017 12,831,914 12,865,221 100.26 N/A N/A N/A
2018 13,471,679 13,421,607 99.63 N/A N/A N/A
2019 14,144,498 14,244,954 100.71 N/A N/A N/A
2020 14,623,234 14,675,128 100.35 N/A N/A N/A
2021 15,211,067 15,384,500 101.14 N/A N/A N/A
2022 15,734,335 15,777,022 100.27 N/A N/A N/A
2023 17,044,617 16,794,264 98.53 N/A N/A N/A
2024 18,351,232 18,092,765 98.59 N/A N/A N/A
2025 19,347,943 19,065,082 98.54 N/A N/A N/A
Note:
The amounts presented include City property taxes, In -Lieu Vehicle License Fees, and "triple flip" property tax revenue in lieu of sales tax. 2016 includes final payment of "triple flip" property tax revenue.
Source: County of Orange Auditor -Controller
(156)
198
CITY OF PLACENTIA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESS IN THOUSANDS, EXCEPT PER CAPITA)
Business -Type
Governmental Activities Activities
Tax Allocation Certificates Leases & Total Percent of Percent of Bonds Loans of Subscriptions Loans Primary Assessed Per Personal Fiscal Year and Notes Payable Participation Payable Payable Government Valuation Capita Income 2016 $ 3,063 $ 218 $ 8,697 $ $ $ 11,978 .217 230 .78
2017 2,242 162 8,237 - - 10,641 .181 204 .68
2018 1,226 1,325 7,737 - - 10,288 .168 197 .64
2019 - 1,144 7,680 8,824 .137 167 .51
2020 - 6,154 7,095 - - 13,249 .196 253 .73
2021 58,266 5,587 2,845 - - 66,698 .946 1,295 3.51
2022 55,970 8,657 - 651 65,278 .888 1,276 3.33
2023 53,755 7,549 - 2,838 - 64,142 .789 1,222 3.04
2024 60,710 5,566 - 4,411 - 70,687 .787 1,353 3.05
2025 57,670 4,285 454 3,444 65,853 .694 1,270 2.73
Source: City of Placentia, Finance Department
(157)
CITY OF PLACENTIA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
JUNE 30, 2025
2023-24 Assessed Valuation (in thousands):
Successor Agency Incremental Valuation (in thousands):
Adjusted Assessed Valuation (in thousands):
Direct Debt:
Placentia Capital Lease (Radio)
Placentia Fire Lease #1
Placentia Fire Lease #2
Placentia Melrose Easement
Placentia Capital Lease (Electric Vehicles)
Placentia OCTA Advance
Placentia Fire UAL Loan Payoff
Placentia Motorola Equipment
Placentia 2022 Lease Agreement
Placentia 2021 Installment Sale Agreement
Placentia PFA 2020A Lease Revenue Bonds
Placentia PFA 2023A Lease Revenue Bonds
Total Direct Debt
Overlapping Tax and Assessment Debt:
Placentia -Yorba Linda Unified 2002, 2008, 2012 Bond
Metropolitan Water District
N. OC Community College 2002, 2014 Bond
Orange County General Fund Obligations
Orange County Board of Education COP
North Orange County Regional Occupation Program COP
Placentia-Yorba Linda Unified School District COP
Total Overlapping Debt
Total Direct and Overlapping Debt
$ 10,179,722
690,084
$ 9,489,638
Total Debt
June 30, 2025
$ 204,512
1,756,379
920,267
157,266
66,483
254,583
1,100,683
887,280
1,940,000
46,340,000
9,050,000
% Applicable
(1)
100.00 %
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
City's Share
of Debt
June 30, 2025
$ 204,512
1,756,379
920,267
157,266
66,483
254,583
1,100,683
887,280
1,940,000
46,340,000
9,050,000
62,677,453
$189,367,472 23.228 % $ 43,986,276
17,155,000 .233 39,971
275,134,676 5.252 14,450,073
429, 065, 000 1.171 5,024,351
9,120, 000 1.171 106,795
6,880,000 5.401 371,589
75,175,000 23.228 17,461,649
81,440,704
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
Ratios of Direct vs. Overlapping Debt:
Direct Debt
Overlapping Debt
Total Debt
Ratios of Debt to Assessed Valuation:
Direct Debt
Overlapping Debt
Total Debt
Source: HdL, Coren Cone
43.49 56.51
100.00 %
.66 %
.86
1.52 %
(158)
$ 144,118,157
200
CITY OF PLACENTIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Legal Debt Margin Calculation for the Current Year:
Assessed Value
Debt Limit (3.75% of Assessed Value)
Debt Applicable to Limit
Legal Debt Margin - Current Year
Note:
$ 9,721,473,416
364,555,253
$ 364,555,253
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentage
Year Limit to Limit Margin of Limit
2016 $ 220,387,742 $ - $ 220,387,742
2017 230,066,512 - 230,066,512
2018 248, 734, 552 230, 066, 512
2019 261,192,507 - 248,734,552
2020 271,595,021 - 271,595,021
2021 283,280,448 283,280,448
2022 291,210, 596 291,210, 596
2023 312,538,330 - 312,538,330
2024 344,780,034 344,780,034
2025 364,555,253 364,555,253
-%
The City charter includes a debt limit of 15%; however, at the time the charter was established, only 25% of the market value was used. For the purpose of determining the debt limit, the City is following the intent of the charter and reducing the debt limit to 3.75% of assessed valuation.
Source: City of Placentia, Finance Department
(159)
201
CITY OF PLACENTIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
(PERSONAL INCOME IN THOUSANDS, EXCEPT PER CAPITA)
Per Capita
Calendar City Personal Personal Unemployment
Year Population Income Income Rate
2015 52,263 $ 1,567,115 $ 29,985 5.1
2016 52,268 1,614,628 30,891 4.5
2017 52,755 1,716,075 32,529 3.5
2018 52,333 1,805,719 34,504 3.0
2019 51,494 1,899,759 36,892 2.9
2020 51,173 1,959,175 38,285 8.7
2021 51,204 2,024,718 39,542 5.8
2022 52,507 2,109,099 40,167 3.2
2023 52,226 2,319,890 44,420 3.6
2024 53,982 2,413,284 44,705 4.0
Sources: City Population - State Department of Finance
Unemployment Date - California Employment Development Department HdL, Coren Cone
(160)
202
CITY OF PLACENTIA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(AMOUNTS EXPRESS IN THOUSANDS)
Calendar Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Apparel Stores $ - $ - $ - $ - $ - $ - $ 21,114 $21,854 $23,060 $24,984 General Merchandise 6,635 6,759 7,178 7,440 7,649 8,208 7,907 7,535 4,620 3,581 Food Stores 18,529 17,919 17,102 17,530 18,363 20,539 19,152 20,029 20,552 20,924 Eating and Drinking Places 79,730 84,676 85,373 83,083 87,912 77,897 101,361 105,185 106,523 107,629 Building Materials 38,156 55,996 60,664 68,803 74,767 69,616 89,608 98,051 101,532 126,433 Auto Dealers and Supplies 105,341 107,146 104,963 82,789 72,781 71,301 99,240 118,317 116,350 110,930 Service Stations 70,961 62,495 68,101 74,924 73,200 49,981 72,505 95,585 86,634 78,270 Other Retail Stores 60,419 70,775 74,578 75,597 76,411 65,702 62,668 64,773 44,736 51,656 All Other Outlets 255,719 240,166 234,501 245,115 268,067 269,831 278,458 292,479 272,051 271,263 Total $ 635.490 $ 645.932 $ 652.460 $ 655.281 $ 679.150 $ 633.075 $ 752.013 $ 823,808 $ 776.058 $ 795.670 Note:
Due to confidentiality issues, the names of the ten largest revenue payers are not available.
The categories presented are intended to provide alternative information regarding the sources of the City's sales tax revenue.
The category "Apparel Stores" was added in the FY21/22 ACFR Source: State of California Board of Equalization and The HdL Companies (161)
Department
CITY OF PLACENTIA
BUDGETED FULL-TIME EMPLOYEES BY DEPARTMENT
LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City Clerk 2.00 2.00 2.00 - 2.00 2.00 2.00 2.00 - -
City Administrator - - - - - - 5.00 5.00
Administrative Services (formerly Administration) 7.00 7.00 11.50 9.50 10.50 25.45 26.45 29.65 32.00 32.00 Finance 7.00 7.00 8.00 8.00 8.00 9.00 9.00 9.00 9.00 9.00 Development Services 4.00 4.75 6.50 8.50 8.50 8.55 9.55 11.35 12.00 12.00 Police 69.50 74.50 80.00 76.00 84.00 71.00 72.00 75.00 76.00 75.00 Fire and Life Safety - 25.00 27.00 28.00 30.00 30.00
Public Works 19.00 20.25 20.75 20.00 22.00 22.00 26.00 28.00 30.00 29.00 Community Services 6.00 6.50 7.25 7.00 7.00 7.00 8.00 9.00 10.00 11.00 Total
Note:
99.00 105.00 114.50
In FY23/24 the category "City Administrator" was added and "Administration" was renamed "Administrative Services" As of FY23/24, "City Clerk" staff will be included in "Administrative Services" Source: City of Placentia, Finance Department
(162)
122.00 136.00 170.00 180.00 192.00 204.00 203.00
Function/Program
CITY OF PLACENTIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:
Physical Arrests 1,373 1,250 1,381 1,282 1,053 1,257 1,400 1,380 1,360 1,478 Parking Citations 12,729 13,161 2,359 7,398 4,646 3,742 2,974 7,585 9,755 15,833 Traffic Citations 2,060 1,824 2,659 7,707 1,601 1,162 509 818 1,944 1,857 Community Development:
Building Permits 1,472 1,268 1,347 1,263 1,407 1,346 1,425 1,461 1,509 1,612 Building and Zoning Inspections 133 128 87 92 126 181 128 435 127 165 Public Works:
Feet of Sewer Main Cleaned 401,280 249,134 385,510 318,118 396,000 372,246 372,246 372,246 295,421 262,633 Streetsweeping Miles 21,684 21,684 7,955 7,955 8,772 8,772 8,772 8,772 8,772 6,624 Traffic Signals Maintained 57 57 61 61 63 63 63 63 63 63 Culture and Recreation:
Recreation Classes
Source: City of Placentia, Finance Department
747 727 645 610 577 387 421 477 637 611
(163)
Function/Program
CITY OF PLACENTIA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public Safety:
Police Stations 1 1 1 1 1 1 1 1 1 1
Sworn Officers 46 46 51 51 46 51 46 48 51 47
Patrol Vehicles 26 26 32 32 33 16 16 17 17 17
Fire Stations 2 2 2 2 2 2 2 2 2 2
Highways and Streets:
Miles of Streets 107 107 107 132 132 132 133 133 133 134 Street Trees 9,214 9,214 9,139 7,175 7,077 6,929 6,688 6,915 6,863 6,883 Traffic Signals 229 229 230 230 230 230 230 230 230 230 Street Lights 3,656 3,656 3,660 3,660 3,656 3,656 3,656 3,915 3,656 3,656 Sewer:
Miles of Sanitary Sewers 76 76 76 76 84 84 84 84 84 84
Storm Drains 506 506 506 506 506 506 531 531 531 531
Culture and Recreation:
Parks 16 16 16 16 15 15 15 15 15 15
Area of Parks (Acres) 72.9 72.9 72.9 100.9 60.9 60.9 60.9 60.9 60.9 74.2 Community Buildings 7 7 7 7 7 7 7 7 7 7
Community Centers 3 3 3 3 3 3 3 3 3 3
Senior Centers 1 1 1 1 1 1 1 1 1 1
Baseball Diamonds 7 7 7 7 7 7 7 7 7 7
Basketball Courts 8 8 8 8 7 7 7 7 7 7
Soccer Fields 1 1 1 1 1 1 1 1 1 1
Pools 2 2 2 2 2 2 2 2 2 2
Gymnasiums 1 1 1 1 1 1 1 1 1 1
Tennis Courts - - - - 1 1 1
Pickleball Courts - - - 4 4 4
Handball Courts - 6 6
Note:
In FY20/21, the Fleet Manager provided the number of patrol vehicles as 16. The police department could not recreate the previously reported number of 33. When taking into account all police department vehicles, the number was 45. Therefore, only the actual patrol vehicles were reported starting in FY20/21.
In FY23/24 the handball courts were added to the list. They are not new to the city, but new to the list.
Source: City of Placentia, Finance Department
(164)
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Audit Scope
Audit Process
Audit Opinions and Results
Governance Communications
Upcoming GASB Standards
c3vbi
210
0 Audit Scope
Report on the
City's financial
statements
©2024 CliftonLarsonAllen LLP
Required
governance
communications
letter
Report on internal
control over
financial reporting
and on compliance
and other matters
Report on
compliance for each
major federal
program, report on
internal control over
compliance, and
report on the
schedule of
expenditures of
federal awards
sc3vbi
211
Audit Process
Override of internal
controls
Financial Close and
Reporting
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RISK-BASED APPROACH
Revenue recognition
Significant estimates
212
AUDIT OPINIONS
�T.
Financial statements
Unmodified opinions
zdera. awards
Unmodified opinion on
compliance
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•
t —
AUDIT RESULTS
Financial statement
One material weakness identified
— Financial Close and Reporting
No significant deficiencies
identified
Federal awards
Not Required in FY 25
5 213
Governance Communications
Overall
Accounting policy change — GASB 101
No unusual transactions identified
Received management representation
letter dated June 12, 2026
Difficulties
Delayed due to ERP implementation
No disagreements
No consultations with other
accountants identified
Most Sensitive Estimates
OPEB liability and related deferred
outflows/inflows of resources (Note 9)
Claims payable (Note 10)
Other
Uncorrected misstatements - Immaterial - 2
Corrected misstatements - Material - 10;
Immaterial - 11
Material weakness in internal control over
financial reporting— Financial close and
reporting
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©2024 CliftonLarsonAllen LLP
Governance Communications
NEW ACCOUNTING CHANGES
What changed
Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences
Effective for reporting periods beginning after December 15, 2023
New requirements
Updated the recognition and measurement guidance for
compensated absences to include leave that is more likely than not to be used or otherwise paid or settled.
Impact
Compensated absences that are more likely than not to be used, yet will not otherwise be paid or settled, are include in the compensated absences liability.
215
0 Governance Communications
Uncorrected misstatements:
Interest receivable on Veterans Village promissory notes has not been recorded. As a result, interest receivable and an offsetting deferred inflow of resources—unavailable revenue are both understated by $132,367. (City Wide Developer Impact Fund and Housing Successor Special Revenue Fund) Adjustment to beginning net position of $546,912 for implementation of GASB Statement 101, Compensated Absences (Government -Wide, Refuse Fund, and Sewer).
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0 Governance Communications
Material corrected misstatements:
Charges for services totaling approximately $2,808,000 which should have been recorded to the Risk Management Internal Service Fund were improperly recorded to the City Capital Projects Fund.
Due to a separating of year end claims payable balances into departments, a duplicate entry to record year end claims payable balances were posted to the general ledger, resulting in an overstatement of claims liability of approximately $2,880,000.
Journal entries required to record lease receivable activity for the year were not recorded, resulting in an overstatement of deferred outflows of approximately $805,000, an overstatement of lease receivables of approximately $571,000, and an understatement of lease income of approximately $234,000.
©2024 CliftonLarsonAllen LLP
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9 217
0 Governance Communications
Material corrected misstatements:
Accounts payable and capital outlay were understated by approximately $529,000 for contractor work that was completed during May and June 2025.
An overstatement of revenue and an understatement of unearned revenue of approximately $625,000 in the Placentia Regional Navigation Center Fund, due to a prebilling for the following fiscal year being recorded as revenue in the current fiscal year.
An overstatement of revenue and an understatement of unavailable revenue of approximately $1,218,000, and an overstatement of unavailable revenue of approximately $625,000 in the Placentia Regional Navigation Center Fund, due to related cash receipts during the year and cash receipts after the period of availability.
©2024 CliftonLarsonAllen LLP
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10 218
0 Governance Communications
Material corrected misstatements:
Fiduciary fund property tax additions were understated and unearned revenue overstated by approximately $564,000, due to not recognizing revenue that had been received an earned in the fiscal year.
City capital project fund accounts receivable and unavailable revenue overstatement of approximately $196,000, for amounts that were determined to not be collectable.
Due to/from balances, totaling approximately $862,000 were adjusted to properly clear the balances through pooled cash.
An understatement of receivables of approximately $647,000 an understatement of unavailable revenue of approximately $251,000, and an understatement of revenue of approximately $396,000 for receipts received after year end that were not properly accrued for.
©2024 CliftonLarsonAllen LLP
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11 219
Upcoming GASB Standards
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�T.
GASB 103 Financial
Reporting Module
Effective date
June 30, 2026
©2025 CliftonLarsonAllen LLP
CLA can help by
assisting with or
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disclosure updates
Impacts financial statement presentation
Updated disclosure guidance for:
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• Budgetary comparison information
221
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GASB 104 —Disclosure of Certain
Capital Assets
Likely effective date
June 30, 2026
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Will clarify how
capital assets are
disclosed in financials:
CLA can help by
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disclosure updates
• Capital assets held for sale
and related pledged debt
• Leased assets
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GASB Implementation Guide 2025-1
Effective date
June 30, 2026, except
for Question 4.16,
which is effective
immediately
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GASB 105 Subsequent Events
0 Effective date
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