Stanton City Council
February 11, 2025

Successor
Agency
to the Stanton
Redevelopment NOCPSC
Agency PrivatePrivate-Purpose Purpose
Trust Fund Trust Fund Total
ADDITIONS:

Taxes 4,775,148 $ - $ 4,775,148 $
Investment income 125 - 125
Total additionas 4,775,273 - 4,775,273
DEDUCTIONS:

Contractual services 46,905 - 46,905
Public safety - 346,149 346,149
Interest and fiscal charges 2,362,547 - 2,362,547
Total deductions 2,409,452 346,149 2,755,601
CHANGE IN NET POSITION (346,149) 2,365,821 2,019,672
Net position (deficit), beginning of year (40,531,574) 346,149 (40,185,425) Net position (deficit), end of year (38,165,753) $ - $ (38,165,753) $ For the year ended June 30, 2024

CITY OF STANTON
Combining Statement of Changes in Net Position
All Private-Purpose Trust Funds
154

ATTACHMENT A

155

STATISTICAL SECTION (UNAUDITED)

ATTACHMENT A

156
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ATTACHMENT A

Contents Page
Financial Trends - These schedules contain information to help the reader to understand how the City's financial performance and well-being have changed over time. 1 Net Position by Component 158
2 Changes in Net Position 160
3 Fund Balances of Governmental Funds 164
4 Changes in Fund Balances - Governmental Funds 166
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant own-source revenue.
5 Governmental Activities Tax Revenues by Source 168
6 Assessed Value and Estimated Actual Value of Taxable Property 169 7 Direct and Overlapping Property Tax Rates 170
8 Principal Property Tax Payers 172
9 Property Tax Levies and Collections 173
Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 10 Ratios of Outstanding Debt by Type 174
11 Direct and Overlapping Debt 175
12 Legal Debt Margin Information 176
13 Pledged - Revenue Coverage 178
Demographic and Economic Information - These schedules offer demographic and economic 14 Demographic and Economic Statistics 180
15 Principal Employers 181
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
16 Full-Time Equivalent Employees by Function 182
17 Operating Indicators by Functions 184
18 Capital Asset Statistics by Function 190
This section of the City of Stanton’s Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial heath. The statistical information presented herein is un-audited.

CITY OF STANTON

STATISTICAL SECTION (UNAUDITED)
June 30, 2024
indicators to help the reader understand the environment within which the City's financial activities take place.
157

ATTACHMENT A

2014-15 2015-16 2016-17 2017-18
Governmental activities:

Net investment in capital assets $ 79,209,329 $ 88,342,750 $ 87,079,003 $ 88,374,103 Restricted 20,219,98 0 19,166,303 23,062,147 27,536,678 Unrestricted 14,875,63 9 15,861,417 12,719,777 13,014,515 Total governmental activities net position 114,304,94 8 123,370,470 122,860,927 128,925,296 Business-type activities:

Net investment in capital assets 5,135,853 5,003,312 4,877,897 5,250,434 Unrestricted 2,604,62 9 3,216,884 3,666,352 3,595,542
Total business-type activities net position 8,220,19 7,740,482 6 8,544,249 8,845,976 Primary government:

Net investment in capital assets 84,345,182 93,346,062 91,956,900 93,624,537 Restricted 20,219,98 0 19,166,303 23,062,147 27,536,678 Unrestricted 17,480,26 8 19,078,301 16,386,129 16,610,057 Total primary government net position $ 122,045,430 $ 131,590,666 $ 131,405,176 $ 137,771,272 *
Source: City Finance Department
Fiscal Year
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation and/or to reflect prior period adjustments for if

CITY OF STANTON

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
158

ATTACHMENT A

2018-19 2019-20* 2020-21 2021-22 2022-23 2023-24
$ 88,077,568 $ 96,374,328 $ 92,106,906 $ 89,960,892 $ 89,705,314 $ 91,059,872 28,086,476 22,693,282 21,411,322 23,551,709 21,682,348 22,498,313 17,774,619 21,403,422 25,179,797 31,132,064 39,965,239 43,428,359 133,938,663 140,471,032 138,698,025 144,644,665 151,352,901 156,986,544 5,107,553 4,964,679 4,970,607 4,827,134 4,683,660 4,540,186 4,064,319 4,398,961 5,193,357 5,920,286 6,616,780 7,600,264 9,363,64 9,171,872 0 10,163,964 10,747,420 11,300,440 12,140,450 101,339,00 93,185,121 7 97,077,513 94,788,026 94,388,974 95,600,058 28,086,476 22,693,282 21,411,322 23,551,709 21,682,348 22,498,313 21,838,938 25,802,383 30,373,154 37,052,350 46,582,019 51,028,623 $ 143,110,535 $ 149,834,672 $ 148,861,989 $ 155,392,085 $ 162,653,341 $ 169,126,994 Fiscal Year
159

ATTACHMENT A

2014-15* 2015-16* 2016-17* 2017-18*
Expenses:

Governmental activities:

General government $ 3,468,099 3,043,005 $ 3,726,949 $ 3,135,756 $ Public safety 15,831,683 13,460,725 16,162,642 17,294,863 Community development 1,709,355 1,747,416 2,083,114 4,746,591 Health and welfare 3,476 3,512 67,305 37,250
Public works 1,762,185 1,235,617 1,598,743 1,870,833
Culture and recreation 1,162,126 1,592,769 2,030,052 1,933,953 Interest and fiscal charges - - - -
Total governmental activities expenses 21,140,872 23,879,096 25,668,805 29,019,246 Business-type activities:

Sewer 643,739 839,850 737,939 926,631
Total business-type activities expenses 839,850 643,739 737,939 926,631 Total primary government expenses 21,980,722 24,522,835 26,406,744 29,945,877 Program revenues:

Governmental activities:

Charges for services:

General government 488,128 458,286 527,561 345,485
Public safety 913,203 896,383 1,375,973 1,751,036
Community development 1,254,023 1,198,820 1,244,909 2,116,525 Public works 11,608 10,032 - 47,389
Culture and recreation 417,748 357,585 95,746 571,210
Operating grants and contributions 2,961,296 3,058,470 2,876,853 3,383,242 Capital grants and contributions 294,210 2,350,764 - 1,353,727 Total governmental activities
program revenues 6,390,728 8,279,828 6,121,042 9,568,614 Business-type activities:

Charges for services:

Sewer 1,016,363 1,075,714 935,798 1,052,745
Total business-type activities
program revenues 1,075,714 1,016,363 935,798 1,052,745
Total primary government
program revenues 7,466,442 9,296,191 7,056,840 10,621,359 Note:
*
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation and/or to reflect prior period adjustments for correction of errors.

Fiscal Year

CITY OF STANTON

CHANGES IN NET POSITION-EXPENSES AND PROGRAM REVENUES

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
160

ATTACHMENT A

2018-19* 2019-20* 2020-21* 2021-22* 2022-23 2023-24
$ 3,739,756 1,666,776 $ 4,848,332 $ $ 3,144,556 $ 4,558,241 $ 4,888,922 21,730,025 18,712,309 21,046,456 18,643,242 21,009,218 22,334,226 1,235,126 3,000,334 3,696,528 2,574,453 5,882,403 3,308,043 16,795 - - - - -
1,299,051 2,404,139 4,652,371 2,697,686 6,552,867 6,101,529 1,181,246 2,120,218 2,301,778 2,441,047 2,558,081 2,584,395 - 24,223 25,823 12,943 11,020 10,938
27,129,019 30,000,979 36,571,288 29,513,927 40,571,830 39,228,053 1,152,003 1,436,274 1,531,447 839,808 516,366 607,912
1,152,003 1,436,274 1,531,447 839,808 516,366 607,912
28,281,022 31,437,253 38,102,735 30,353,735 41,088,196 39,835,965 487,870 359,865 85,717 627,458 548,950 516,451
1,754,200 1,899,756 2,088,690 908,006 763,622 929,868
3,283,119 3,908,877 5,107,540 1,772,601 2,358,143 2,431,232 48,076 59,849 68,258 2,486,467 2,769,957 2,946,125
550,144 1,428,477 1,565,463 141,312 216,125 199,478
3,586,655 4,655,790 5,697,844 4,991,957 12,919,661 6,482,509 - 3,423,482 35,081 1,060,782 879,739 1,668,675
9,710,064 15,736,096 14,648,593 11,988,583 20,456,197 15,174,338 1,267,440 1,305,410 2,235,352 1,312,065 1,089,667 1,191,757 1,267,440 1,305,410 2,235,352 1,312,065 1,089,667 1,191,757 10,977,504 17,041,506 16,883,945 13,300,648 21,545,864 16,366,095 Fiscal Year
161

ATTACHMENT A

2014-15* 2015-16* 2016-17* 2017-18*
Net revenues (expenses)
Governmental activities (14,750,144) (15,599,268) (19,547,763) (19,450,632) Business activities 235,864 372,624 197,859 126,114
Total net revenues (expenses) (14,514,280) (15,226,644) (19,349,904) (19,324,518) General revenues and other
changes in net position:

Governmental activities:

Taxes:

Property taxes $ 5,314,329 $ 5,507,417 $ 5,435,415 $ 6,071,733 Sales taxes 4,012,917 4,169,215 4,152,378 4,204,519
Transactions and use taxes 792,300 3,591,594 4,105,593 4,122,756 Transient occupancy taxes 375,876 437,676 512,550 514,102 Franchise taxes 964,450 1,011,630 992,798 1,088,226
Utility users taxes 2,177,807 2,015,948 1,980,854 1,986,236 Cannabis taxes - - - -
Other taxes 413,999 487,593 461,745 524,570
Investment earnings (loss), unrestricted 132,205 227,705 119,772 135,059 Miscellaneous 725,215 714,613 1,277,115 649,678
Gain on sale of capital assets 475,282 - - 6,000,100
Transfers in - - - -
Extraordinary item (1) - 6,501,399 - -
Special item (2) (3,393,141) - - -
Total governmental activities 11,991,239 24,664,790 19,038,220 25,296,979 Business-type activities:

Taxes:

Property taxes 90,532 90,282 99,852 124,950
Investment earnings (loss) 16,558 10,430 26,342 50,663
Miscellaneous - - - -
Transfers out - - - -
Total business-type activities 100,712 107,090 126,194 175,613 Total primary government 12,091,951 24,771,880 19,164,414 25,472,592 Changes in net position
Governmental activities (2,758,905) 9,065,522 (509,543) 5,846,347 Business-type activities 336,576 479,714 324,053 301,727 Total primary government $ (2,422,329) $ 9,545,236 $ (185,490) $ 6,148,074 Notes:

Source: City Finance Department

CITY OF STANTON

CHANGES IN NET POSITION-GENERAL REVENUES

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(1) FY 15/16 extraordinary gain relates to payment of bond proceeds to the City from the Successor Agency for building Stanton Central Park.
(2) FY 18/19 special item relates to reinstatement of a General Fund loan to the Successor Agency; FY 14/15 special item relates to write-down of land held for resale by Housing Authority to net realizable value. * Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation and/or to reflect prior period adjustments for correction of errors.

Fiscal Year
162

ATTACHMENT A

2018-19* 2019-20* 2020-21* 2021-22* 2022-23* 2023-24
(17,418,955) (14,264,883) (21,922,695) (17,525,344) (20,115,633) (24,053,715) 115,437 (130,864) 703,905 472,257 573,301 583,845
(17,303,518) (14,395,747) (21,218,790) (17,053,087) (19,542,332) (23,469,870) $ 6,433,535 $ 6,816,387 $ 7,561,831 $ 8,512,488 $ 8,964,390 $ 9,526,865 4,327,842 4,278,141 4,682,029 5,414,556 5,321,610 5,616,291 4,057,037 4,537,734 4,991,100 5,993,735 6,958,521 6,295,790 483,233 512,492 569,293 660,504 671,096 617,090
1,026,619 1,055,791 1,105,276 1,180,487 1,251,495 1,305,537 1,850,880 1,791,516 1,990,690 2,122,661 2,504,823 2,479,282 - - - - 15,586 1,131,502
433,541 364,751 345,315 45,717 40,258 48,277
1,325,735 1,167,877 959,781 (956,855) 878,675 2,277,972 413,900 272,563 95,045 49,013 80,785 78,075
- - - 430,902 12,693 9,495
- - 81,616 18,776 332,010 301,183
- - - - - -
2,080,000 - - - - -
22,432,322 20,797,252 22,381,976 23,471,984 27,031,942 29,687,359 131,641 147,159 165,692 188,097 194,785 227,069
78,818 167,573 12,343 (58,122) 116,944 327,691
- 7,900 - - - 2,588
- - (81,616) (18,776) (332,010) (301,183)
322,632 210,459 96,419 111,199 (20,281) 256,165
22,642,781 21,119,884 22,478,395 23,583,183 27,011,661 29,943,524 5,013,367 6,532,369 459,281 5,946,640 6,916,309 5,633,644 325,896 191,768 800,324 583,456 553,020 840,010
$ 5,339,263 $ 6,724,137 $ 1,259,605 $ 6,530,096 $ 7,469,329 $ 6,473,654 Fiscal Year
163

ATTACHMENT A

2014-15* 2015-16* 2016-17* 2017-18*
General Fund:

Nonspendable 6,730,051 $ 5,398,081 $ 3,992,852 $ 1,387,690 $ Restricted - - 3,065,186 3,501,556
Committed 4,317,883 4,677,019 11,150,000 12,022,695
Assigned - 7,200 - -
Unassigned 9,391,105 11,811,587 4,566,919 5,895,617
Total General Fund $ 20,439,039 $ 21,893,887 $ 22,774,957 $ 22,807,558 All other governmental funds:

Nonspendable $ - -$ -$ -$
Restricted 20,232,644 $ 19,166,303 19,996,961 24,035,122 Assigned 756,521 790,528 682,470 908,996
Unassigned (526,651) (790,292) (303,957) (27,464)
Total all other governmental funds 20,462,514 $ $ 19,166,539 $ 20,375,474 $ 24,916,654 Note:
*
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation and/or to reflect prior period adjustments for correction of errors.

Fiscal Year

CITY OF STANTON

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
164

ATTACHMENT A

2018-19* 2019-20 2020-21 2021-22 2022-23 2023-24
$ 1,806,958 $ 146,069 $ 2,488,780 $ 2,634,436 $ 2,265,236 $ 1,742,586 3,735,741 - - - - -
13,261,735 10,074,410 8,661,735 9,856,296 10,105,796 10,124,754 - 123,935 356,687 169,585 6,304,522 4,642,971
3,509,177 10,277,670 12,691,577 15,826,042 19,848,555 25,167,157 $ 22,313,611 $ 20,622,084 $ 24,198,779 $ 28,486,359 $ 38,524,109 $ 41,677,468 $ - -$ -$ -$ $ - $ 130,388
24,350,735 22,636,555 21,212,537 23,491,748 21,360,270 22,315,073 1,117,693 320,739 278,929 244,243 181,951 -
(29,247) (41,723) - (61,410) (257,858) (470,517)
$ 25,439,181 $ 22,915,571 $ 21,491,466 $ 23,674,581 $ 21,284,363 $ 21,974,944 Fiscal Year
165

ATTACHMENT A

2014-15* 2015-16* 2016-17* 2017-18*
Revenues:

Taxes and assessments 14,730,740 $ 17,838,271 $ 18,697,469 $ 19,821,063 $ Licenses and permits 417,780 357,381 321,935 664,964
Intergovernmental 1,916,432 4,844,423 2,772,489 2,691,518 Charges for services* 2,349,520 2,361,663 2,190,769 3,182,541 Fines and forfeitures 292,505 296,607 360,662 460,794
Interest income (loss) 195,526 227,707 119,771 116,130
Rental income 706,265 619,977 605,377 589,631
Gain on sale of land held for resale - - - 6,000,100
Miscellaneous 17,955 71,754 684,711 70,083
Contribution from Successor Agency - - - -
Total Revenues 20,626,723 26,617,783 25,753,183 33,596,824 Expenditures:

Current:

General government 2,615,927 2,900,169 2,879,492 2,535,059 Public safety 13,176,004 15,453,062 15,597,673 16,894,400 Community development 1,424,634 1,368,795 1,518,145 4,346,128 Public works 1,548,644 951,650 1,175,017 1,570,486
Culture and recreation 948,585 1,331,178 1,606,326 1,760,921 Health and welfare 3,476 3,512 67,305 37,250
Capital outlay 1,131,626 10,951,943 819,220 1,878,799
Debt Service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 20,848,896 32,960,309 23,663,178 29,023,043 Excess (Deficiency) of Revenues
Over (Under Expenditures (222,173) (6,342,526) 2,090,005 4,573,781 Other financing sources (Uses):

Proceeds from long-term debt - - - -
Proceeds from lease - - - -
Sale of capital assets - - - -
Transfers in 624,942 599,348 633,550 828,000
Transfers out (824,942) (599,348) (633,550) (828,000)
Total other financing sources (uses) (200,000) - - -
Net change in fund balance before
special/extraordinary item (422,173) (6,342,526) 2,090,005 4,573,781 Special/Extraordinary items (1) (2,082,812) 6,501,399 - - Net change in fund balances $ (2,504,985) $ 158,873 $ 2,090,005 $ 4,573,781 Debt service as a percentage of
noncapital expenditures 0% 0% 0% 0%
Notes:
*
(1) Reinstatement of advance to Successor Agency
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation and/or to reflect prior period adjustments for ti f
Fiscal Year

CITY OF STANTON

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
166

ATTACHMENT A

2018-19* 2019-20* 2020-21 2021-22 2022-23 2023-24
$ 21,167,374 20,541,371 $ 23,160,509 $ 25,471,470 $ 26,543,385 $ 27,901,881 $ 1,132,116 714,474 2,091,517 1,037,171 1,294,055 959,428 3,462,782 1,815,443 3,992,601 4,811,604 12,841,895 6,272,049 4,444,656 3,438,846 5,015,265 3,737,992 3,208,712 3,623,541 411,644 410,443 524,705 468,222 383,517 489,223
1,565,134 2,026,619 151,183 (516,680) 1,128,316 2,801,292 637,676 624,406 579,024 700,487 836,268 764,901
- - - - - -
286,946 211,217 96,605 101,787 228,445 150,730
- 3,377,369 - - - -
29,858,548 36,409,968 35,611,409 35,812,053 46,464,593 42,963,045 2,605,958 2,706,193 4,367,607 3,715,597 4,022,179 4,377,155 22,350,545 18,023,261 20,682,528 18,732,182 20,724,414 22,047,240 1,855,646 2,303,811 3,168,880 2,838,526 2,386,778 2,826,962 1,714,628 1,477,485 1,835,882 1,738,520 3,548,144 3,704,862 1,646,637 1,603,432 1,721,498 2,458,165 1,859,448 1,968,821 16,795 - - - - -
1,719,759 11,829,522 882,099 489,773 6,389,015 4,570,660 - 55,754 1,069,246 - - 5,511
- 14,906 35,140 12,943 11,020 10,937
31,909,968 38,014,364 33,762,880 29,985,706 38,940,998 39,512,148 (2,051,420) (1,604,396) 1,848,529 5,826,347 7,523,595 3,450,897 - 1,125,000 - - - -
- - - - - 91,860
- - 210,100 756,902 - -
757,400 604,623 1,985,777 2,336,767 4,220,436 4,798,835 (757,400) (4,340,364) (1,904,161) (2,449,321) (3,888,426) (4,497,652) - (2,610,741) 291,716 644,348 332,010 393,043
(2,051,420) (4,215,137) 2,140,245 6,470,695 7,855,605 3,843,940 2,080,000 - - - - -
$ 28,580 $ (4,215,137) $ 2,140,245 $ 6,470,695 $ 7,855,605 $ 3,843,940 0% 0.2% 3.3% 0.0% 0.0% 0.0%
Fiscal Year
167

ATTACHMENT A

Fiscal Year Taxable Incremental Total
Ended SBE Assessed Assessed Direct Tax
June 30 Secured Unsecured Nonunitary Value (1) Secured Unsecured Value Rate 2015 2,214,413 $ 83,904$ $ 2,299,001 684 $ $ 2,179,143 $ 83,691 $ 2,262,834 0.13703% 2016 2,350,787 81,734 684 2,433,205 2,309,529 82,056 2,391,585 0.13701% 2017 2,479,654 85,974 684 2,566,312 1,569,439 20,147 1,589,586 0.13698% 2018 2,602,487 75,735 684 2,678,906 1,677,650 1,684,896 7,246 0.13695% 2019 2,747,552 85,798 1,255 2,834,605 1,816,986 17,805 1,834,791 0.13994% 2020 2,921,963 91,619 1,255 3,014,837 1,988,330 23,148 2,011,478 0.13991% 2021 3,094,828 90,155 109,371 3,294,354 2,266,923 29,439 2,296,362 0.14007% 2022 3,330,318 166,399 130,955 3,627,672 2,522,570 105,282 2,627,852 0.14002% 2023 3,611,586 95,824 134,405 3,841,815 2,799,849 32,313 2,832,162 0.14013% 2024 3,886,096 111,113 132,705 4,129,914 3,068,721 46,305 3,115,026 0.14039% Notes:
(1) City amounts include the Redevelopment Agency assessed values. (2) The State of California dissolved Redevelopment Agencies effective January 31, 2012.

Sources: Orange County Auditor-Controller
HdL, Coren & Cone

CITY OF STANTON
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 the property may be increased by an inflation factor (limited to a maximum of 2%). With few exceptions, property is only reassessed at the time 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.

City Redevelopment Agency (2)
(AMOUNTS EXPRESSED IN THOUSANDS)

LAST TEN FISCAL YEARS

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 168

ATTACHMENT A

This page intentionally left blank.
169

ATTACHMENT A

2014-15 2015-16 2016-17
Basic Levy (1) 1.00000 1.00000 1.00000
Overlapping Rates (2):

Anaheim Union High School District 0.02412 0.04948 0.04259 Coast Community College District 0.03015 0.03092 0.03116 Garden Grove Unified School District 0.04148 0.04656 0.04487 Magnolia Elementary School District 0.02497 0.02349 0.02552 Metropolitan Water District 0.00350 0.00350 0.00350
North Orange County
Community College District 0.01758 0.03043 0.02885
Savanna School District 0.05443 0.05501 0.05948
Total Direct and Overlapping Tax Rates 1.19623 1.23939 1.23597 City's Share of 1% Levy Per Prop 13 (3) 0.10940 0.10940 0.10940 Redevelopment Rate (4) 0.00000 0.00000 0.00000
Total Direct Rate (5) 0.13703 0.13701 0.13698
Notes:

Source: HdL, Coren & Cone
(1) In 1978, the voters of the State of California passed Proposition 13, which limited property taxes to a total maximum rate of 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides within.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) The City's share of the 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's levy has been subtracted where known.
(4) The Redevelopment Rate is based on the largest RDA tax rate area and only includes rates(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only in incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14, the Total Direct Rate no longer includes revenues derived from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to City/Agency in the same proportions as general fund revenue.

Fiscal Year .

CITY OF STANTON

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(RATE PER $100 OF ASSESSED VALUE)
170

ATTACHMENT A

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.02211 0.04244 0.03968 0.03971 0.03804 0.03016 0.03164

0.03145 0.03052 0.03100 0.03181 0.03119 0.03102 0.02850

0.07454 0.06848 0.06922 0.06956 0.07408 0.06329 0.06719

0.02849 0.02859 0.02722 0.02714 0.02619 0.02634 0.02279

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.02927 0.02829 0.02409 0.03198 0.02877 0.02778 0.01715

0.06115 0.06086 0.06132 0.06481 0.07355 0.04731 0.05574

1.25051 1.26268 1.25603 1.26851 1.27532 1.22940 1.22651

0.13645 0.13645 0.13645 0.13645 0.13645 0.13645 0.13645

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.13695 0.13994 0.13991 0.14007 0.14002 0.14013 0.14039 Fiscal Year
171

ATTACHMENT A

Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Stanton Energy Reliability Center LLC 131,200,000 $ 1 3.18% - $ - - Continental Gardens LP 75,001,587 2 1.82% 16,607,861 6 0.72% CR&R, Inc. 64,200,944 3 1.55% 45,255,108 1 1.97%
City of St Anthony 49,518,573 4 1.20% - - -
Briarwood Square LP 47,237,927 5 1.14% 28,601,487 2 1.24% Fernwood Western LLC 33,292,800 6 0.81% - - -
Arrowhead Apartment Investments LLC 32,181,261 7 0.78% 27,312,502 3 1.19% Dunbar Stanton LLC 23,460,000 8 0.57% - - -
Garden Terrace MHC LLC 22,295,741 9 0.54% - - -
Stanton Capital LP 21,049,843 10 0.51% - - -
Icon Owner Pool 1 LA Business Parks LLC - - - - - -
Kurt Raymer Shuman Trust - - - - - -
CP Briarwood LLC - - - - - -
Shapell Socal Rental Properties LLC - - - 22,999,146 4 1.00% Walton CWCA Hoover 52 LLC - - - 17,879,806 5 0.78%
Faircrest, Inc. - - - 12,897,712 9 0.56%
Gilbert R Shuman Trust Plaza on the Blvd - - - 13,839,576 7 0.60% Mideb Nominees, Inc. - - - 13,046,204 8 0.57%
G6 Hospitality Property - - - 11,961,637 10 0.52%
Total Top 10 Taxpayers $ 499,438,676 12.09% 210,401,039 $ 9.15% Note:

Source: HdL, Coren & Cone
Excludes government and tax-exempt property owners. Changes in name or ownership of property are not considered for purposes of this schedule.

CITY OF STANTON

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
Assessed Valuation
2023-24 2014-15
Assessed Valuation
172

ATTACHMENT A

Fiscal Total Collected Percent
Year Tax Levy Amount of Levy (1)
2014 $ 1,014,799 $ 1,014,799 100%
2015 1,028,726 1,028,726 100%
2016 1,039,132 1,039,132 100%
2017 1,040,976 1,040,976 100%
2018 1,061,452 1,061,452 100%
2019 1,070,983 1,070,983 100%
2020 1,075,724 1,075,724 100%
2021 1,079,894 1,079,894 100%
2022 1,079,628 1,079,628 100%
2023 1,092,184 1,092,184 100%
2024 1,097,178 1,097,178 100%
Note:

Source: Orange County Auditor-Controller
(1) Beginning with FY 1994-95, the City of Stanton elected the Teeter Plan for property tax distribution in which the City receives the entire secured levy in the current fiscal year, whether paid or not, and the County retains the penalties and interest on delinquent taxes.

CITY OF STANTON

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
173

ATTACHMENT A

Tax Total % of
Fiscal Allocation Primary Personal Per
Year Bonds (1) Leases Government Income (2) Capita (2)
2014-15 $ - -$ $ 0.00% - $ -
2015-16 - - 0.00% - -
2016-17 - - 0.00% - -
2017-18 - - 0.00% - -
2018-19 - - 0.00% - -
2019-20 1,069,246 - 1,069,246 0.13% 27
2020-21 - - 0.00% - -
2021-22 - - 0.00% - -
2022-23 - - 0.00% - -
2023-24 - 86,350 0.00% - -
Notes:

Source: City Finance Department
(1) The Stanton Redevelopment Agency was dissolved on February 1, 2012. As a result, the tax allocation bonds are not debt of the primary government. (2) Refer to the Schedule of Demographic and Economic Statistics for personal income and population data.

LAST TEN FISCAL YEARS

RATIOS OF OUTSTANDING DEBT BY TYPE

CITY OF STANTON
174

ATTACHMENT A

2023-24 Assessed Valuation $4,134,515,511
Total Debt City's Share of
6/30/24 % Applicable (1) Debt 6/30/24
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District $ 18,210,000 0.106% $ 19,303 Coast Community College District 886,956,084 0.543% 4,816,172 North Orange County Joint Community College District 291,560,678 1.832% 5,341,392 Anaheim Union High School District 229,078,955 3.479% 7,969,657 Garden Grove Unified School District 517,805,000 5.937% 30,742,083 Magnolia School District 17,868,305 17.422% 3,113,016
Savanna School District 36,986,206 33.942% 12,553,858
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 64,555,481
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $440,385,000 0.537% $ 2,364,867 Orange County Board of Education General Fund Obligations 10,030,000 0.537% 53,861 Coast Community College District General Fund Obligations 1,075,000 0.543% 5,837 Coast Community College District Pension Obligation Bonds 925,000 0.543% 5,023 Anaheim Union High School District Certificates of Participation 28,320,000 3.479% 985,253 Magnolia School District General Fund Obligations 11,874,403 17.422% 2,068,758 North Orange County Regional Occupation Program
Certificates of Participation 7,350,000 1.250% 91,875
City of Stanton - 100% -
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 5,575,474 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) $48,110,000 100.000% 48,110,000 TOTAL DIRECT DEBT $ -
TOTAL OVERLAPPING DEBT 118,240,955
COMBINED TOTAL DEBT $ 118,240,955 (2)
Notes:

Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.56%
Total Direct Debt 0.00%
Total Combined Debt 2.86%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,155,026,495):

Total Overlapping Tax Increment Debt 1.54%
Source: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded lease obligations.

Qualified Zone Academy Bonds are included based on principal due at maturity.

CITY OF STANTON

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
YEAR ENDED JUNE 30, 2024
175

ATTACHMENT A

2014-15 2015-16 2016-17 2017-18
Assessed valuation $ 2,299,000,205 $ 2,433,204,888 $ 2,566,311,820 $ 2,678,905,775 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 574,750,051 608,301,222 641,577,955 669,726,444 Debt limit percentage 15% 15% 15% 15%
Debt limit 86,212,508 91,245,183 96,236,693 100,458,967 Total net debt applicable to limit - - - -
Legal debt margin $ 86,212,508 $ 91,245,183 $ 96,236,693 $ 100,458,967 Total net debt applicable to
limit as percentage of debt limit 0% 0% 0% 0%
Sources: City Finance Department
HdL Coren & Cone
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments.

CITY OF STANTON

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year
176

ATTACHMENT A

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 2,834,604,233 $ 3,014,836,696 $ 3,294,354,368 $ 3,627,670,751 $ 3,841,815,515 $ 4,129,913,981 25% 25% 25% 25% 25% 25%
708,651,058 753,709,174 823,588,592 906,917,688 960,453,879 1,032,478,495 15% 15% 15% 15% 15% 15%
106,297,659 113,056,376 123,538,289 136,037,653 144,068,082 154,871,774 - - - - - -
$ 106,297,659 $ 113,056,376 $ 123,538,289 $ 136,037,653 $ 144,068,082 $ 154,871,774 0% 0% 0% 0% 0% 0%
Fiscal Year
177

ATTACHMENT A

Fiscal Tax
Year Increment Principal Interest Principal Interest Principal Interest Principal Interest 2014-15 -$ -$ -$ -$ -$ -$ -$ -$ -$
2015-16 - - - - - - - - -
2016-17 - - - - - - - - -
2017-18 - - - - - - - - -
2018-19 - - - - - - - - -
2019-20 - - - - - - - - -
2020-21 - - - - - - - - -
2021-22 - - - - - - - - -
2022-23 - - - - - - - - -
2023-24 - - - - - - - - -
Note:

Source: City Finance Department

CITY OF STANTON

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
(1) The liabilities for these outstanding bonds were transferred to the Successor Agency to the Stanton Redevelopment Agency on February 1, 2012, and are no longer debt of the primary government.

Tax Allocation Bonds,
2011 Series A
Debt Service (1)
Tax Allocation Bonds, Tax Allocation Bonds, Tax Allocation Bonds, Debt Service (1) Debt Service (1)
2005 Series B
Debt Service (1)
2005 Series A 2010 Series A
178

ATTACHMENT A

Principal Interest Principal Interest Principal Interest Principal Interest Coverage -$ -$ -$ -$ -$ -$ -$ -$ 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
Tax Allocation Bonds, Tax Allocation Bonds,
2016 Series A
Debt Service (1) Debt Service (1)
Tax Allocation Bonds,
2011 Series B
Tax Allocation Bonds,
2016 Series B 2020 Series A
Debt Service (1) Debt Service (1)
179

ATTACHMENT A

Total
Median Personal Per Capita
Calendar Median Housing Income Personal Unemployment
Year Population Age Price (in thousands) Income Rate
2014 38,954 33.7 383,000 $ $ 757,616 $ 19,449 7.2%
2015 39,751 34.3 430,000 725,662 18,255 5.9%
2016 39,611 33.5 412,500 729,707 18,422 5.3%
2017 39,470 34.4 450,000 747,172 18,930 4.1%
2018 39,307 34.5 432,000 781,143 19,873 3.2%
2019 39,077 34.5 445,000 825,807 21,133 3.1%
2020 39,573 34.9 470,000 900,452 22,754 10.7%
2021 39,275 35.7 550,000 1,017,211 25,899 7.1%
2022 39,084 36.0 665,000 1,143,896 29,267 3.2%
2023 40,297 37.4 660,000 1,276,369 31,674 3.6%
Source: HdL Coren & Coren

CITY OF STANTON

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
180

ATTACHMENT A

% of Total % of Total
City City
Employer Employees Rank Employment Employees Rank Employment Rowntree Gardens (formerly Quaker Gardens) 324 1 1.80% 312 1 n/a ORCO Block Co. 180 2 1.00% - - n/a
Home Depot 151 3 0.84% 144 5 n/a
Great Scott Tree Service, Inc. 146 4 0.81% - - n/a
Super King Market 140 5 0.78% - - n/a
CR&R, Inc. 122 6 0.68% 190 4 n/a
Walmart Market #4134 119 7 0.66% 90 9 n/a
Raising Cane's Chicken Fingers Restaurant 111 8 0.62% - - n/a Custom Pipe & Fabrication Inc. 108 9 0.60% 120 7 n/a
All Metals Processing of Orange County, LLC 103 10 0.57% 132 6 n/a Sam's Club - - - 200 2 n/a
USS Cal Builders - - - 200 3 n/a
Adventure City - - - 100 8 n/a
Food 4 Less - - - 68 10 n/a
Total Top 10 Employers 1,504 8.36% 1,388 n/a
Total City Labor Force 18,000 n/a
Notes:
n/a - Information is not av available.

Excludes employers not required to obtain a City business license (i.e. government agencies).

Sources: City business license database
Fiscal Year 2014-15 Annual Comprehensive Financial Report Employment Development Department (for City Labor Force data) 2023-24 2014-15

CITY OF STANTON

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
181

ATTACHMENT A

Department 2014-15 2015-16 2016-17 2017-18
Administration 4.00 4.00 4.50 4.50
Community Development (1) 7.50 8.50 8.50 9.00
Community Services 3.00 6.00 6.00 6.00
Finance 4.00 5.00 5.13 5.25
Public Safety (1) 0.00 0.00 0.00 0.50
Public Works 6.50 6.00 6.38 6.75
Total 25.00 29.50 30.51 32.00
Note:

Source: City Finance Department
(1) Code Enforcement and Parking Control were transferred to the Public Safety Department in Fiscal Year 2018-19.

Fiscal Year

CITY OF STANTON

FULL-TIME EQUIVALENT CITY EMPLOYEES BY DEPARTMENT

LAST TEN FISCAL YEARS
182

ATTACHMENT A

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

4.50 4.50 5.50 6.50 6.50 5.98

6.00 6.00 6.50 8.50 10.00 8.00

16.00 16.00 17.00 17.00 17.00 16.58

6.75 6.75 6.00 7.00 7.50 7.44

8.00 9.00 9.50 11.00 11.50 11.94

8.75 8.75 9.50 10.50 10.50 11.21

50.00 51.00 54.00 60.50 63.00 61.15
Fiscal Year
183

ATTACHMENT A

2014-15 2015-16 2016-17 2017-18
City Council
Public Meetings held 39 35 37 36
Ordinances adopted 7 13 14 12
Resolutions adopted 47 46 41 48
City Attorney
Ordinances prepared 7 13 15 12
Resolutions prepared 47 46 41 48
Contracts prepared 75 86 88 90
City Clerk
Public Meetings held 39 35 37 36
Ordinances processed
and published 7 13 14 12
Resolutions processed
and published 47 46 41 48
Public Records Requests processed 301 300 278 280
Contracts Processed 75 86 88 90
City Manager
City Council meetings attended 39 35 36 35
Finance
Cash Receipts processed 7,572 8,961 10,260 6,854
Warrants processed 2,333 2,490 2,559 2,462
Journal entries processed 296 247 281 234
Business licenses processed 1,974 2,197 2,946 3,304
Police Services
Cases assigned to
general crime investigators 1,421 835 1,582 964
Directed enforcement
shifts deployed each week 3555
Average response time
in minutes to emergency
life threatening calls 4:03 3:50 4:03 4:05
Shifts of traffic enforcement
in high accident and
residential areas per week 1444
Schools receiving school
programs 2 1 n/a n/a
Note:
n/a - Information not available
Source: Various City Departments

CITY OF STANTON
Department
Fiscal Year

LAST TEN FISCAL YEARS

OPERATING INDICATORS BY FUNCTION
184

ATTACHMENT A

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
34 37 55 38 25 24
8 14 8 10 9 11
39 60 45 54 30 33
8 14 8 10 9 11
39 60 45 54 30 33
84 90 94 98 115 72
34 37 55 38 25 24
8 14 8 10 9 11
39 60 45 54 30 33
159 170 180 182 195 292
84 90 94 98 115 72
34 37 55 37 24 24
5,512 5,690 4,109 4,102 3,940 4,480
2,405 2,182 2,057 1,809 2,076 1,935
287 344 1,493 694 662 1,865
3,126 2,649 2,577 2,481 2,388 2,695
737 856 1,068 1,138 1,127 958
555555
4:21 3:50 4:17 4:14 4:17 4:29
444444
n/a n/a n/a 2 2 n/a
Fiscal Year
185

ATTACHMENT A

2014-15 2015-16 2016-17
Fire Protection
Paramedic calls responded to 2,540 2,659 2,192
Fire calls responded to 41 54 37
Other calls responded to 532 699 1042
Fire inspections made 505 602 524
Students receiving fire
safety education programs 175 490 370
Adults receiving fire
safety education programs 75 220 240
Plan checks completed 48 51 72
Planning
Administrative permits 574
Preliminary plan review 3 3 2
Entitlements 13 29 29
Environmental 13 26 29
Home Occupation permits 17 50 21
Land divisions 1 5 4
Landscape plan checks 0 4 -
Sign permits 48 23 26
Plan Checks (Over-the-Counter) 74 68 70
Building
Building plan reviews 108 101 101
Building permits 314 264 254
Electrical permits 229 233 214
Mechanical permits 132 120 112
Plumbing permits 134 150 124
Inspections for compliance 0 0 0
Parking Control
Citations 6,361 6,843 8,039
Vehicles towed 220 299 440
Engineering
Value of capital projects initiated $11M $1M $1M
Engineering plan checks 17 7 7
Permits issued 95 132 132
Value of competitive grants obtained $0.1M $0.3M $0.3M
Capital projects administered 7 3 3
Public Facilities
Service requests 232 87 277
Unscheduled repairs 171 68 92
Source: Various City Departments

CITY OF STANTON
Department

LAST TEN FISCAL YEARS

OPERATING INDICATORS BY FUNCTION (CONTINUED)
Fiscal Year
186

ATTACHMENT A

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2,627 2,794 6,307 3,323 3,724 3,887 3,929
42 55 222 182 196 194 185
611 494 647 205 206 255 224
612 674 15 0 514 581 529
200 250 4 61 3 3 1,900
456 250 4 132 10 0 1,900
83 87 n/a 224 187 219 113
7 6 5 3 413 36
6153616
32 18 35 17 13 18 33
21 1211002
117 11 26 27 10 31 30
6365113
3633394
32 25 27 8 19 17 14
147 93 103 112 109 0 58
138 94 82 121 672 875 852
368 358 450 535 495 477 455
242 239 307 398 151 45 40
145 156 219 223 50 41 37
194 174 275 253 52 46 44
0000000
8,049 7,937 5,765 9,073 8,269 7,649 10,039
574 451 347 179 236 173 101
$2.6M $3.0M $3.2M $1.47M $9.38M $3.55M $6.98M
10 815 41044
135 204 102 100 165 234 179
$0.2M $0 $0 $0 $8.13M $576K $626K
7 7 8 710 15 20
504 475 682 1,134 1,586 1,353 1,773
73 64 173 146 78 67 106
Fiscal Year
187

ATTACHMENT A

2014-15 2015-16 2016-17 2017-18
Buildings/Grounds Maintenance
No. of service requests 112 57 64 64
HVAC service calls 7 4 3 3
Parks Maintenance
Service requests 112 61 72 226
Unscheduled repairs 8 25 17 32
Street Maintenance
Potholes repaired 15 10 43 14
Service requests 815 201 227 702
Tonnage of asphalt placed 8 6 6 6
Storm drain inlets cleaned 183 183 183 183
Service calls for drainage issues 2 1 3 3
Community Services
Senior clients served 2,425 2,450 2,600 3,600
Commission meetings 11 10 9 9
Recreation Programs 210 220 250 133
Info & referral inquires answered 2,210 2,230 2,500 2,051 Sports facility usage (revenue) $1,500 $3,120 $13,760 $15,080 Source: Various City Departments
Department

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
Fiscal Year
188

ATTACHMENT A

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
120 189 1,134 1,586 1,336 1,310
13 17 8 11 15 20

229 478 2,298 1,723 1,568 1,528
68 83 103 67 57 216
35 66 87 79 130 63
698 872 2,830 1,720 1,460 1,233
3 2.5 3 3 3 3
183 183 183 183 183 183
5 16 8 4 8 14
4,000 8,271 15,613 15,882 12,887 10,044
977 889
115 318 134 154 543 883
2,216 1,945 1,097 1,156 1,330 1,616
$12,600 $12,417 $23,141 $21,540 $26,910 $29,798
Fiscal Year
189

ATTACHMENT A

2014-15 2015-16 2016-17 2017-18
Public Works
Streets (miles) 44 44 44 44
Alleys (square feet) 326,000 326,000 326,000 326,000
Curbs and gutters
(linear feet) 439,736 441,200 441,200 441,200
Sidewalks (square feet) 2,339,372 2,341,000 2,341,000 2,341,000 Streetlights 1,295 1,295 1,295 1,295
Traffic signals 15 16 16 16
Storm drain system
(linear feet) 26,889 26,889 26,889 26,889
Parks and Recreation
Parks 8 9 9 9
Community Center 2 3 3 3
Sewer
Sewer lines (miles) 40 40.5 40.5 40.5
Source: City Finance Department
Function
Fiscal Year

CITY OF STANTON

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
190

ATTACHMENT A

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
44 44 44.1 44.1 44.1 44.1
324,185 324,185 324,185 324,185 324,185 324,185
441,200 441,445 441,445 441,445 441,445 441,445
2,341,000 2,343,100 2,343,100 2,343,100 2,343,100 2,343,100 1,295 1,295 1,295 1,295 1,295 1,295
16 16 16 16 16 16
26,889 26,889 26,889 26,889 26,889 26,889
999999
333333

40.5 40.5 40.5 40.5 40.5 40.5
Fiscal Year
191

ATTACHMENT A

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192

ATTACHMENT A

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

ATTACHMENT B

Click here to return to the agenda.

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

ATTACHMENT B

STANTON HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 13
STATEMENT OF ACTIVITIES 14

FUND FINANCIAL STATEMENTS
BALANCE SHEET – GENERAL FUND 16
RECONCILIATION OF THE BALANCE SHEET – GENERAL

FUND TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 17

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – GENERAL FUND 18

RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE –

GENERAL FUND TO THE GOVERNMENT-WIDE STATEMENT
OF ACTIVITIES 19
NOTES TO BASIC FINANCIAL STATEMENTS 21

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

CALPERS MISCELLANEOUS PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY 38
SCHEDULE OF CONTRIBUTIONS 40
BUDGETARY COMPARISON SCHEDULE 42
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 43

ATTACHMENT B

1 Board of Directors
City of Stanton, California
Stanton, California
INDEPENDENT AUDITORS’ REPORT
Opinions
We have audited the accompanying financial statements of the governmental activities and major fund Stanton Housing Authority, a component unit of the City of Stanton, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Stanton Housing Authority’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 and major fund Stanton Housing Authority, as of June 30, 2024, and the respective changes in financial position 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 Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Stanton Housing Authority, 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.

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 Stanton Housing Authority’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.

Auditor’s 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 auditor’s 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 generally accepted 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.
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com

ATTACHMENT B

2 Board of Directors
City of Stanton, California
In performing an audit in accordance with generally accepted 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 the Stanton Housing Authority’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 the Stanton Housing Authority’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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability and the schedules of contributions for the CalPERS miscellaneous plan, and the budgetary comparison schedule for the Stanton Housing Authority, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, 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 auditing standards generally accepted in the United States of America, 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2024, on our consideration of the Stanton Housing Authority’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 of Stanton’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 the Stanton Housing Authority’s internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
December 17, 2024
Gruber and Lopez, Inc.

ATTACHMENT B

3 MANAGEMENT’S DISCUSSION AND ANALYSIS

ATTACHMENT B

4 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Stanton Housing Authority (Housing Authority), we offer readers of the Housing Authority’s financial statements this narrative overview and analysis of the financial activities of the Housing Authority for the fiscal year ended June 30, 2024. Please read it in conjunction with the accompanying transmittal letter at the front of this report, and the basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the Housing Authority exceeded their liabilities and deferred inflows of resources on June 30, 2024, by $30.5 million. This amount is referred to as the net position of the Housing Authority. Of this amount, $10.2 million is restricted net position and may be used for the Housing Authority’s affordable housing programs.
 During fiscal year 2023-24, the Housing Authority’s overall net position decreased by $815,153 million, primarily due to relocation payments and other operating expenses associated with the Housing Authority’s Tina/Pacific housing project.

OVERVIEW OF THE FINANCIAL STATEMENTS
Management’s discussion and analysis is intended to serve as an introduction to the Housing Authority’s basic financial statements. The Housing Authority’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also consists of required supplementary information in addition to the basic financial statements.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Housing Authority’s finances, in a manner similar to a private-sector business. There are two government-wide financial statements:
the Statement of Net Position and the Statement of Activities. They present information for the government as a whole and present a longer-term view of the Housing Authority’s finances. These two statements help to answer the question: “Is the Housing Authority as a whole better off or worse off as a result of this year’s activities?”
The Statement of Net Position presents information on all of the Housing Authority’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 financial position of the Housing Authority is improving or deteriorating.

The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying events giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected rent and earned but unused vacation leave).

ATTACHMENT B

5 The governmental activities of the Housing Authority are primarily funded by rental income from the Housing Authority’s Tina Pacific properties include the following functions: general government, community development, public safety, and public works.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Housing Authority, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Housing Authority’s activities are reported in the General Fund.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances on spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Notes to Basic Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Housing Authority’s budgetary policies and supplementary information on the Housing Authority’s defined benefit plans.

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Housing Authority, assets and deferred outflows exceeded liabilities by $30.5 million as of June 30, 2024. In comparison, total net position was $31.3 million as of June 30, 2023.

The largest portion of the Housing Authority’s net position at June 30, 2024, ($20.3 million or

66.6% of total net position), reflects its investment in capital assets (e.g., land and buildings). The Housing Authority’s capital assets are currently used for affordable housing programs, primarily the Tina Pacific affordable housing project.

ATTACHMENT B

6 The remaining $10.2 million is restricted net position, representing resources that are subject to external restrictions or enabling legislation on how they may be used. The Housing Authority’s restricted net position is restricted for low- and moderate-income housing programs.

A summary of the government-wide Statement of Net Position follows:
2024 2023 % Change
Current and other assets $ 10,514,677 $ 10,947,651 -4.0% Capital assets 20,289,219 20,558,771 -1.3%
Total assets 30,803,896 31,506,422 -2.2%
Deferred outflows of resources 109,893 89,121 23.3%
Long-term liabilities 276,707 207,186 33.6%
Other liabilities 160,185 91,151 75.7%
Total liabilities 436,892 298,337 46.4%
Deferred inflows of resources 11,601 16,757 -30.8%
Net position:
20,289,219 20,558,771 -1.3%
Restricted 10,721,678 10,176,077 -5.1%
Total net position 30,465,296 $ 31,280,449 $ -2.6%
Investment in capital assets

ATTACHMENT B

7 A summary of the government-wide Statement of Activities follows:

During the current fiscal year, the Housing Authority’s net position decreased by $815,153, primarily due to relocation payments and other operating expenses associated with the Housing Authority’s Tina/Pacific housing project.
2024 2023 % Change
Revenues:

Program Revenue:

Charges for services $ 623,076 $ 671,330 -7.2%
General revenues:

Investment earnings (loss) 511,471 265,277 -92.8%
Miscellaneous - 213 -100.0%
Total revenues 1,134,547 936,820 21.1%
Expenses:

General government 408,479 195,476 109.0%
Community development 1,375,087 3,725,154 -63.1%
Public safety 166,134 85,868 48.3%
Total expenses 1,949,700 4,006,498 -51.3%
Change in Net Position (815,153) (3,069,678) -73.4%
Net position, beginning of year 31,280,449 34,350,127 -8.9% Net position, end of year 30,465,296 $ $ 31,280,449 -2.6%

ATTACHMENT B

8 The governmental activities revenues during fiscal year 2023-24 were $1.1 million, which was an increase of $197,727, or 21.1%, from fiscal year 2022-23.

Charges for services decreased by $48,254, or 7.2% from the previous fiscal year due to a) additional rental income received during the previous fiscal year due to Quality Management Group (QMG), the Housing Authority’s property management company, actively collecting past due rent amounts with California’s statewide moratorium on evictions ending in June 2022 and b) vacant units as tenants have accepted the Housing Authority’s offer for relocation assistance and vacated their rental units.

Investment earnings increased by $246,194, or 92.8%, in fiscal year 2023-24, due to the change in fair value in the Housing Authority’s investment portfolio and increased interest earned from the Housing Authority’s portfolio. The City of Stanton’s investment portfolio (which the Housing Authority pooled some of its cash and investments in) increased in unrealized gains due to improved fair value rates of over $800,000 during fiscal year 2023-24. In addition, the average yield of the California Local Agency Investment Fund (LAIF) was 3.93% in fiscal year 2023-24, compared to 2.17% in fiscal year 2022-23.

ATTACHMENT B

9 The cost of all governmental activities during fiscal year 2023-24 was $1.9 million, a reduction of $2.1 million, or 51.3% from fiscal year 2022-23.

General government expenses increased by $213,003, or 109.0%, primarily due to increased legal costs associated with the Tina/Pacific affordable housing project.

Community development expenses decreased by $2.3 million, or 63.1%, primarily due to a $2.5 million affordable housing grant provided to JHC-Beach3LLC in fiscal year 2022-23 to acquire and rehabilitate the property that was formerly occupied by Riviera Motel located at 11892 Beach Boulevard in Stanton. The rehabilitated property is now a 21-unit affordable residential rental complex operating as permanent supportive housing for individuals making less than or equal to 30% Area Median Income.

Public safety expenses increased by $80,266, or 48.3% from the previous year, primarily due to the Housing Authority’s increased share of operating costs for the North Orange County Service

ATTACHMENT B

10 Planning Area Navigation Centers. The Housing Authority’s share of operating costs increased from $50,000 in fiscal year 2022-23 to $119,000 in fiscal year 2023-24.

FINANCIAL ANALYSIS OF THE GENERAL FUND
As noted earlier, the Housing Authority uses fund accounting to ensure compliance with financerelated legal requirements. The focus of the Housing Authority’s General Fund is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the Housing Authority’s financing requirements.

As of June 30, 2024, the General Fund reported a total fund balance of $10.4 million, which represents a decrease of $502,008, or 4.6%, from the previous fiscal year, primarily due to increases in legal and other operating expenditures associated with the Housing Authority’s Tina/Pacific housing project and the increased contribution to the North Orange County Service Planning Area to fund operating costs for their navigation centers.

CAPITAL ASSETS
Total capital assets decreased by $269,552 or 1.3% from the previous fiscal year due to depreciation expense. Additional information on the Housing Authority’s capital assets can be found in Note 3 in the Notes to the Basic Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Housing Authority maintains a conservative approach to budgeting revenues and expenditures. Management takes an active role in monitoring the application of the budget during the fiscal year to apply any necessary changes to projected revenues as well as appropriated expenditures. The Fiscal Year 2024-25 Adopted Budget includes a reduction in revenues of

22.16% to conservatively anticipate investment interest rates will lower next year and a reduction in expenditures of 77.11% due to one-time expenditures incurred during fiscal year 2023-24. The fiscal year 2023-24 budget was balanced after using $540,575 in fund balance.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Housing Authority’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to:

Michelle Bannigan, Finance Director, City of Stanton, 7800 Katella Avenue, Stanton, California 90680.
2024 2023
%
Change
Land $ 15,243,865 $ 15,243,865 0.0%
Buildings and improvements 5,045,354 5,314,906 -5.1%
Totals $ 20,289,219 $ 20,558,771 -1.3%

ATTACHMENT B

11 This page intentionally left blank.

ATTACHMENT B

12 GOVERNMENT-WIDE FINANCIAL STATEMENTS

ATTACHMENT B

Governmental
Activities

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Cash and investments (Note 2) $ 9,425,998
Receivables 110,679
Notes and loans receivable (Note 4) 978,000
Capital assets (Note 3):

Non-depreciable 15,243,865
Depreciable, net 5,045,354
Total assets 30,803,896
Deferred pension related items (Note 5) 109,893
Total deferred outflows of resources 109,893

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Accounts payable 146,241
Deposits payable 12,900
Unearned revenue 1,044
Long-term liabilities:

Net pension liability (Note 5) 276,707
Total liabilities 436,892
Deferred pension related items (Note 5) 11,601
Total deferred inflows of resources 11,601

NET POSITION
Net investment in capital assets 20,289,219
Restricted for:

Low and moderate income housing 10,176,077
Total net position $ 30,465,296

STANTON HOUSING AUTHORITY
Statement of Net Position
June 30, 2024
See accompanying notes to the basic financial statements. 13 ATTACHMENT B

Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital Governmental
Charges for Grants and Grants and Activities
Expenses Services Contributions Contributions Total
Governmental activities:

General government 408,479 $ - $ - $ $ (408,479) - $
Public safety 166,134 - - - (166,134)
Community development 623,076 1,375,087 - - (752,011)
Total governmental activities 1,949,700 $ 623,076 $ - $ - $ (1,326,624) General revenues:

Investment earnings 511,471
Total general revenues and transfers 511,471
Change in net position (815,153)
Net position - beginning of year 31,280,449
Net position - end of year $ 30,465,296
Program Revenues
Functions/Programs

STANTON HOUSING AUTHORITY
Statement of Activities
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 14 ATTACHMENT B

15 FUND FINANCIAL STATEMENTS

ATTACHMENT B

Cash and investments $ 9,425,998
Receivables:

Accounts 5,310
Interest 105,369
Notes and loans receivable 978,000
Total assets $ 10,514,677

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 146,241
Deposits payable 12,900
Unearned revenues 1,044
Total liabilities 160,185
Fund Balances:

Nonspendable 978,000
Restricted for Low and Moderate-Income Housing 9,376,492 Total fund balances 10,354,492
Total liabilities and fund balances $ 10,514,677
ASSETS

STANTON HOUSING AUTHORITY
June 30, 2024
Balance Sheet - General Fund
See accompanying notes to the basic financial statements. 16 ATTACHMENT B

Total Fund Balances - Total Governmental Funds $ 10,354,492 Capital assets 23,330,435
Accumulated depreciation (3,041,216)
Total capital assets 20,289,219
Deferred Outflows of Resources - Pension Related 109,893 Deferred Inflows of Resources - Pension Related (11,601) Net Pension Liability (276,707)
Net position of governmental activities $ 30,465,296
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Pension-related debt applicable to the Authority's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities.

STANTON HOUSING AUTHORITY
Reconciliation of the Balance Sheet - General Fund
to the Government-wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

See accompanying notes to the basic financial statements. 17 ATTACHMENT B

REVENUES:

Investment income 511,471 $
Rental income 623,076
Total revenues 1,134,547
EXPENDITURES:

Current:

General government 397,881
Public safety 161,823
Community development 1,076,851
Total expenditures 1,636,555
NET CHANGE IN FUND BALANCE (502,008)
Fund balances, beginning of year 10,856,500
Fund balances, end of year $ 10,354,492
Statement of Revenues, Expenditures, and Changes in Fund Balance -

STANTON HOUSING AUTHORITY
General Fund
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 18 ATTACHMENT B

Net Change in Fund Balances - Total Governmental Funds $ (502,008) Depreciation expenses (269,552)
(43,593)
Change in net position of governmental activities $ (815,153) Pension expense reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability and related change in pension amounts for deferred outflows of resources and deferred inflows of resources.

STANTON HOUSING AUTHORITY
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund to the Governmental-wide Statement of Activities For the Year Ended June 30, 2024
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlays exceed depreciation and retirements in the current period.

Governmental activities in the Statement of Activities were reported differently because:

See accompanying notes to the basic financial statements. 19 ATTACHMENT B

20 NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
21 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Stanton Housing Authority (the Authority), have been prepared in accordance with accounting principles generally accepted in the United States of America (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 more significant Authority accounting policies are described below.

A. Description of Reporting Entity
The Authority was formed on March 22, 2011, by City of Stanton Council to facilitate the retention and use of transferred properties from the former Stanton Redevelopment Agency consistent with the redevelopment plan and for the purposes of ongoing maintenance of completed development projects. The Authority is an integral part of the reporting entity of the City. The funds of the Authority have been included within the scope of the basic financial statements of the City because City Council exercises oversight responsibility over the operations of the Authority and has a financial benefit/burden relationship.

B. Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. The statement of activities presents the change in net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
22 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Financial Statement Presentation (Continued)
Government-Wide Financial Statements (Continued)
The types of transactions reported as program revenues for the Authority can be reported in three categories:

1. Charges for services

2. Operating grants and contributions

3. Capital grants and contributions
Charges for services include rental income for the Tina Way and Pacific Avenue properties received from lessees who use and directly benefit from the goods, services or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function.

The Authority’s capital grants and contributions consist of bond proceeds received from the Stanton Successor Agency that were utilized to facilitate the capital projects for which those bonds were issued. Investment earnings and miscellaneous revenues are properly not included among program revenues and are reported instead as general revenues.

Amounts to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenses. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. The Authority has no long-term debt.

Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenue, expenditures, and changes in fund balance for the Authority. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Noncurrent portions of long-term receivables due to the governmental fund are reported on its balance sheets in spite of its spending measurement focus. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, this statement is said to present a summary of sources and uses of available spendable resources during a period.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
23 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Financial Statement Presentation (Continued)
Governmental Fund Financial Statements (Continued)
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 in the current period. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisition of capital leases are reported as other financing sources.

Rental income and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expendituredriven grants are recognized as revenue when the qualifying expenditures have been incurred and all eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue (within 60 days of yearend). Amounts owed to the Authority, which are not available, are recorded as receivables and deferred inflows of resources. All other revenue items are considered to be measurable and available only when cash is received by the government.

C. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that time. The Authority has the following items that qualify for reporting in this category:
 Deferred outflow related to pensions equal to employer contributions made after the measurement date of the net pension liability.
 Deferred outflow from pensions resulting from differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plan.
 Deferred outflow related to pensions resulting from the net differences between projected and actual earnings on plan investments. These amounts are amortized over five years.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
24 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The Authority has the following items that qualify for reporting in this category:
 Deferred inflow related to pensions for changes in assumptions and changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

D. Net Position Flow Assumptions
Sometimes the Authority will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the Authority’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied.

E. Assets, Liabilities, and Net Position or Equity
Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool (in relation to the amortized cost of that portfolio). Changes in fair value that occur during a fiscal year are recognized as investment income for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity or sale of investments.

Cash and investments are pooled with other City funds for investment purposes, with interest being allocated monthly to all funds legally requiring allocation and to other various funds at the direction of management based on the month-end pooled funds’ cash and investment balances. Interest income for cash and investments excluded from pooled cash is credited directly to the related fund. Investment policies applicable to the Authority’s funds are those of the City and are included in the notes to the City’s basic financial statements.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
25 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Liabilities, and Net Position or Equity (Continued) Capital Assets
Capital assets, which include land, are reported in the government-wide financial statements. Acquired assets are recorded at historical cost or estimated historical cost.

Donated assets are valued at the acquisition value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add value to the assets or materially extend the life are not capitalized. Capital assets are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year with the exception of land, structures and improvements, and infrastructure, which have a threshold of $50,000. Depreciation is charged to operations using the straight-line method of depreciation over the estimated useful lives of the assets as follows:

Buildings 20-50 Years
Net Position
In the government-wide financial statements, net position is classified in the following applicable categories:

Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. The Authority has no debt related to capital assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of net investment in capital assets or restricted net position.

Fund Balance
The fund balance reported on the fund statements is classified in the following applicable categories:

Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
26 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Liabilities, and Net Position or Equity (Continued) Fund Balance (Continued)
Committed – This classification includes amounts for which the use of such amounts is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The Authority Council is considered the highest authority for the Authority, and the adoption of a formal resolution prior to the end of the fiscal year is required to establish a fund balance commitment. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of resolution) to remove or revise the limitation. The Authority has no committed fund balance.

Assigned – This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed.

Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Authority Board has authorized the Finance Director for that purpose. The Finance Director determines the assigned amount based on encumbrances and any future budget deficits. The Authority has no assigned fund balance.

Unassigned – This classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

Spending Policy
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances are available, the Authority’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
27 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority’s California Public Employees’ Retirement System (CalPERS) plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

G. Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the statement of net position date and reported amounts of revenues and expenses during the reporting period.

Estimates are used to determine the net pension liability and corresponding deferred outflows of resources and deferred inflows of resources, and certain liabilities. Actual results may differ from those estimates.

NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2024, were classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 9,425,998
Cash and investments as of June 30, 2024, consists of the following:

Deposits With Financial Institutions $ 40,532
Equity in City of Stanton Pooled Cash and Investments 56,638 Local Agency Investment Fund (LAIF) 9,328,828
Total Cash and Investments $ 9,425,998

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
28 NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Equity in the Cash and Investment Pool of the City of Stanton The Authority has no separate bank accounts or investments other than LAIF and its equity in the cash and investment pool managed by the City. The Authority is a voluntary participant in the City’s pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the Council of the City of Stanton. The Authority has not adopted an investment policy separate from that of the City. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value.

Investments Authorized by the City of Stanton’s Investment Policy The table below identifies investment types that are authorized for the City of Stanton by the California Government Code and the City’s investment policy. The City’s Investment Policy is reviewed and adopted by the City Council each year. Regarding allowable investment types, the investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53600.5 of the California Government Code. Investment vehicles not specifically mentioned in the City’s investment policy are not authorized unless the policy is amended by the City Council or is approved as part of the provisions of the bond indentures. Investments are limited to the following:

Maximum Maximum
Investment Types Authorized by State Law Maximum Percentage Investment in or the City’s Investment Policy Maturity* of Portfolio One Issuer United States Treasury Notes 5 Years 100% None
United States Government-Sponsored
Agency Securities - noncallable 5 Years 100% 25%
United States Government Sponsored
Agency Securities -callable
5 Years 20% 25%
Local Agency Securities 5 Years 100% 5%
Collateralized Time Deposits (Nonnegotiable
Certificates of Deposit) 5 Years 20% None
Banker’s Acceptances 180 Days 40% 5%
Commercial Paper 270 Days 25% 5%
Medium-Term Corporate Notes 5 Years 30% 5%
Negotiable Certificates of Deposit 5 Years 30% 5%
Money Market Mutual Funds N/A 20% None
Asset-Backed and Mortgage-Backed Securities 5 Years 20% 5% Supranational 5 Years 30% 10%
Local Government Investment Pools N/A 100% None
Certificate of Deposit Placement Service (CDARS) 5 Years 30% None *Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

N/A - Not Applicable

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
29 NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Authority manages its exposure to interest rate risk 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.

The Authority’s investment in both LAIF and the City’s investment pool are available upon demand.

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. None of the Authority’s investments are rated.

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 Authority’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 following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Any deposits in excess of depository insurance limits at the end of the year are collateralized by securities held at the depository financial institution’s trust department.

Investment in State Investment Pool
The Authority is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
30 NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The Authority categorizes its fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted price of similar assets in active markets, and Level 3 inputs are significant unobservable inputs. The Authority’s investment in LAIF and the City investment pool are not subject to the fair value hierarchy.

NOTE 3 CAPITAL ASSETS
A summary of changes in the capital assets activity for the year ended June 30, 2024, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $15,243,865 $ - $ - $15,243,865
Total non-depreciable 15,243,865 - - 15,243,865
Depreciable:

Buildings and improvements 8,086,570 - - 8,086,570
Less accumulated
depreciation for:

Buildings and improvements (2,771,664) (269,552) - (3,041,216)

Total depreciable
capital assets, net 5,314,906 (269,552) - 5,045,354
Total capital assets, net $20,558,771 $ (269,552) $ - $20,289,219 Depreciation expense of $269,552 was charged to the community development program.

NOTE 4 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2024, was as follows:

Stanton Accessible Apartments Construction $ 406,680
Housing Rehabilitation 978,000
Allowance for Doubtful Accounts (406,680)
Total $ 978,000
In November 2004, the former Redevelopment Agency entered into a Residual Receipts Promissory Note with Stanton Accessible Apartments Construction. Under the terms of the agreement, the former Redevelopment Agency loaned $258,261 to Stanton Accessible Apartments Construction. The note commenced on May 5, 2005, and bears interest at 3% per year. The note was transferred to the Housing Authority on February 1, 2012. The total amount outstanding, including accrued interest at June 30, 2023, was $406,680, with an allowance for the forgivable amount of $406,680.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
31 NOTE 4 NOTES AND LOANS RECEIVABLE (CONTINUED)
The Housing Rehabilitation Loan Program offers loans of up to $50,000 for newer homes and up to $75,000 for pre-1960 homes to low- and moderate-income households. The purpose of the program is to assist Stanton’s homeowners with addressing code violations and eliminating blighted, unsafe, unsanitary, and deteriorating living conditions. The loans are interest free with deferred payments until the property is sold, refinanced, or a change in title occurs. The loans were transferred to the Housing Authority on February 1, 2012. The total amount outstanding at June 30, 2023, was $978,000.

NOTE 5 RETIREMENT PLANS
A. General Information about the Pension Plans
Plan Descriptions
The Authority participates in the City’s Pension Plans. All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plans, which are cost-sharing multiple-employer defined benefit pension plans administered by CalPERS. Benefit provisions under the plans are established by state statute and Authority resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services.

PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job related.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
32 NOTE 5 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

The plans’ provisions and benefits in effect at the measurement date ended June 30, 2023, are summarized as follows:

Miscellaneous
Tier I Tier II Tier III - PEPRA
On or Prior to After On or After
Hire Date August 27, 2011 August 27, 2011 January 1, 2013 Benefit Formula 2%@55 2%@60 2%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 67 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible
Compensation 1.426% to 2.418% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 7.000% 7.000% 6.750% Required Employer Contribution Rates
Normal Cost Rate 12.470% 10.100% 7.470%
Payment of Unfunded Liability $ 18,993 $ 0 $ 0
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law 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 CalPERS’s 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 Authority is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Authority 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 contributions requirements are classified as plan member contributions. The Authority’s portion of the pension contributions for the year ended June 30, 2024 was $33,127.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
33 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the Authority reported net pension liabilities for its proportionate shares of the net pension liability of each plan as follows:

Miscellaneous
Proportionate
Share of
Net Pension
Liability
$ 276,707
The Authority’s net pension liability for each plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 2023, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The Authority’s proportionate share of the net pension liability was based on a projection of the Authority’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The Authority’s proportionate share of the net pension liability for each plan as of the measurement date ended June 30, 2022 and 2023, was as follows:

Miscellaneous
Proportion - June 30, 2022 2.95000%
Proportion - June 30, 2023 3.67000%
Change - Increase (Decrease) 0.72000%
For the year ended June 30, 2024, the Authority recognized pension expense of $43,813. At June 30, 2024, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 33,127

$ -
Change in proportion 1,080 (4,129)
Change in assumptions 16,706 -
Difference in actual contributions vs.
proportionate share of contributions

43 (5,279)
Difference between expected and
actual experience

14,136

(2,193)
Differences between projected and
actual earnings on plan investments

44,801

-

Total $ 109,893 $ (11,601)

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
34 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows of resources related to contributions subsequent to the measurement date reported as $33,127 will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

Miscellaneous
2025 $ 17,423
2026 12,308
2027 34,149
2028 1,285
$ 65,165
Actuarial Assumptions
The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.50%
Salary Increase (1)
Mortality Rate Table (2)
Post-Retirement Benefit Increase
(1) Varies by entry age and service.
(3)
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
(3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
35 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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, CalPERS took into account longterm market return expectations, as well as the expected pension fund cash flows.

Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

The expected real rates of return by asset class are as follows:

Assumed
Asset Real
Asset Class Allocation Return (a) (b)
Global Equity-Cap-weighted 30.00% 4.54%
Global Equity-Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 27.00%
Mortgage-Backed Securities 5.00% 50.00%
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% -59.00%
Total 100.00%
(a) An expected inflation of 2.3% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
36 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Authority’s proportionate share of the net pension liability for each plan, calculated using the discount rate for each plan, as well as what the Authority’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 414,622
Current Discount Rate 6.90%
Net Pension Liability $ 276,707
1% Increase 7.90%
Net Pension Liability (Asset) $ 163,192
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s
separately issued CalPERS financial reports.
fiduciary net position is available in the
C. Payable to the Pension Plans
At June 30, 2024, the Authority had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

NOTE 6 SUBSEQUENT EVENTS
Management has evaluated subsequent events through December 17, 2024 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the Authority.

ATTACHMENT B

37 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

ATTACHMENT B

Fiscal year ended June 30 2024 2023 2022 2021 2020
Measurement period June 30 2023 2022 2021 2020 2019
Proportion of the net pension liability 3.67% 2.95% 2.95% 5.44% 3.39% Proportionate share of the net pension
liability $ 276,707 $ 207,186 $ 102,756 $ 328,093 $ 188,943 Covered payroll $ 115,479 $ 105,085 $ 171,105 $ 92,886 $ 86,249 Proportionate Share of the net pension
liability as percentage of covered payroll 239.62% 197.16% 60.05% 353.22% 219.07% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 72.86% 73.21% 85.91% 74.82% 76.17% Notes to schedule:

Benefit changes:

There were no changes in benefits.

Changes in assumptions:

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

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

The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan.

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:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

Effective with the June 20, 2022 valuation date (2023 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%

STANTON HOUSING AUTHORITY
Schedule of Proportionate Share of the Net Pension Liability Year Ended June 30, 2024
Last 10 Fiscal Years
38 ATTACHMENT B

Fiscal year ended June 30 2019 2018 2017 2016 2015
Measurement period June 30 2018 2017 2016 2015 2014
Proportion of the net pension liability 3.39% 3.39% 3.39% 3.39% 3.39% Proportionate share of the net pension
liability $ 171,503 $ 174,231 $ 148,691 $ 110,824 $ 123,495 Covered payroll $ 89,653 $ 74,185 $ 71,092 $ 66,722 $ 63,893 Proportionate Share of the net pension
liability as percentage of covered payroll 191.30% 234.86% 209.15% 166.10% 193.28% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 75.26% 73.31% 74.06% 82.31% 80.06%

STANTON HOUSING AUTHORITY
Schedule of Proportionate Share of the Net Pension Liability Last 10 Fiscal Years (Continued)
Year Ended June 30, 2024
39 ATTACHMENT B

Fiscal year ended June 30 2024 2023 2022 2021 2020
Contractually required contribution (actuarially determined) $ 24,876 33,127 $ 21,831 $ 37,811 $ 20,389 $ Contributions in relation to the actuarially
determined contributions (33,127) (24,876) (21,831) (37,811) (20,389) Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 115,479 $ 115,479 $ 105,085 $ 171,105 $ 92,886 $ Contributions as a percentage of covered payroll 28.69% 21.54% 20.77% 22.10% 21.95% Notes to schedule:

Valuation date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.500% 2.500% 2.500% 2.625%
Salary increases 2.75% (2) 2.75% (2) (2) (2) (2)
Investment rate of return 6.90% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (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 exception of 52 for Miscellaneous 2% @ 62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

Year Ended June 30, 2024

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years
40 ATTACHMENT B

Fiscal year ended June 30 2019 2018 2017 2016 2015
Contractually required contribution (actuarially determined) 15,914 $ 13,655 $ 11,105 $ 9,765 $ 25,263 $ Contributions in relation to the actuarially
determined contributions (15,914) (13,655) (11,105) (9,765) (25,263) Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 86,249 $ 89,653 $ 74,185 $ 71,092 $ 66,722 $ Contributions as a percentage of covered payroll 18.45% 15.23% 14.97% 13.74% 37.86% Notes to schedule:

Valuation date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Market
Method
Inflation 2.750% 2.750% 2.750% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
Year Ended June 30, 2024

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years (Continued)
41 ATTACHMENT B

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income 25,000 $ 275,000 $ 511,471 $ 236,471 $ Rental income 620,000 650,000 623,076 (26,924)
Total revenues 645,000 925,000 1,134,547 209,547

EXPENDITURES
Current:

General government 311,590 461,450 397,881 63,569
Public safety 156,035 180,035 161,823 18,212
Community development 753,085 4,864,580 1,076,851 3,787,729 Total expenditures 1,220,710 5,506,065 1,636,555 3,869,510 Net change in fund balance $ (4,581,065) (575,710) $ (502,008) (3,659,963) $ Fund balance, beginning of year 10,856,500
Fund balance, end of year 10,354,492 $

STANTON HOUSING AUTHORITY
Budgetary Comparison Schedule
For the Year Ended June 30, 2024
42 ATTACHMENT B

STANTON HOUSING AUTHORITY
43 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
NOTE 1 BUDGET AND BUDGETARY ACCOUNTING
The Authority adopts an annual budget prepared on the modified accrual basis. The Executive Director is required, under Municipal Code Section 2.08.050, to prepare and submit to the Board of Directors the annual budget of the Authority and administer it after adoption. Legally, expenditures may not exceed total appropriations at the fund level. The Executive Director is authorized to transfer budgeted amounts within the accounts of any fund; however, any revisions between funds must be approved by the Board of Directors.

Prior year appropriations lapse, unless they are encumbered at year-end, and reappropriated through the formal budget process.

The budgetary information shown for revenues and expenditures represent the original adopted budget adjusted for any changes made by the Board of Directors or Executive Director.

ATTACHMENT B

City of Stanton
Single Audit Report on Schedule of Expenditures of Federal Awards June 30, 2024

ATTACHMENT C

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CITY OF STANTON
Single Audit Report on Schedule of Expenditures of Federal Award Programs June 30, 2024

TABLE OF CONTENTS
Page
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 1
Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs 8
Summary Schedule of Prior Audit Findings 9

ATTACHMENT C

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
1 Honorable Mayor and City Council
City of Stanton
Stanton, California
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Stanton, California (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City of Stanton’s basic financial statements, and have issued our report thereon dated December 22, 2024.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Stanton’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Stanton’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Stanton’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

ATTACHMENT C

2 Honorable Mayor and City Council
City of Stanton
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Stanton’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
December 22, 2024
Gruber and Lopez, Inc.

ATTACHMENT C

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
3 Honorable Mayor and City Council
City of Stanton
Stanton, California
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON

INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Stanton CA’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of Stanton CA’s major federal programs for the year ended June 30, 2024. City of Stanton CA’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, City of Stanton CA complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of City of Stanton CA and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of City of Stanton CA’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Stanton CA’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Stanton CA’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ATTACHMENT C

4 Honorable Mayor and City Council
City of Stanton
Page Two
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Stanton CA’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City of Stanton CA’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of City of Stanton CA’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City of Stanton CA’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

ATTACHMENT C

5 Honorable Mayor and City Council
City of Stanton
Page Three
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Stanton CA, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City of Stanton CA’s basic financial statements. We issued our report thereon dated December 22, 2024, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
December 22, 2024
Gruber and Lopez, Inc.

ATTACHMENT C

Federal Program Federal Amount
Federal Grantor/ Assistance Identification Award Provided to Pass-through Grantor/Program Listing Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Passed through the OC Community Resources Department of the County of Orange:

Community Development Block Grant 14.218 21-23-0034-PFI 149,676 $ - Community Development Block Grant 14.218 Program income 22,391 - Total U.S. Department of Housing and Urban Development 172,067 - U.S. Department of Justice
Direct assistance:

Congressionally Recommended Awards 16.753 GRANT13651473 1,655,755 1,650,140 Total U.S. Department of Justice * 1,650,140 1,655,755
U.S. Department of Treasury
Passed through the State of California-OES:

Coronavirus State and Local Recovery Funds 21.027 FPXRE3JFQTH8 114,498 - Total U.S. Department of Treasury * - 114,498
U.S. Department of Health and Human Services
Passed through the SSA Department of the
County of Orange:

Promoting Safe and Stable Families 93.556 FMK1120 60,000 - Temporary Assistance for Needy Families 93.558 FMK1120 38,748 Stephanie Tubbs Jones Child Welfare Services Program 93.645 FMK1120 6,493 Communit-Based Child Abuse Prevention Grants 93.590 FMK1120 20,794 Total U.S. Department of Health and Human Services 126,035 - Total Federal Awards $ 2,068,355 1,650,140
*Denotes major federal program.

CITY OF STANTON
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
6 See accompanying notes to schedule of expenditures of federal awards.

ATTACHMENT C

7 CITY OF STANTON
Notes to the Schedule of Expenditures of Federal Awards June 30, 2024
(1) Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards
The financial reporting entity, as defined by Governmental Accounting Standard Board (GASB), consists of the primary government, which is the City of Stanton, California (City), entities for which the primary government is financially accountable, and other entities for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The City Council acts as the governing body and is able to impose its will on the following entities by establishing financial accountability:
 Housing Authority of City of Stanton
(a) Scope of Presentation
The accompanying schedule presents only the expenditures incurred by the City of Stanton (City) that are reimbursable under federal programs of federal agencies providing financial assistance. For purposes of this schedule, financial assistance includes both federal financial assistance received directly from a federal agency and expended, as well as federal funds received indirectly by City of Stanton from a nonfederal agency and expended. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenses in excess of the maximum federal reimbursement authorized or the portion of program expenses that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.
(b) Basis of Accounting
Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual basis of accounting for governmental funds. The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Office of Management and Budget Uniform Grant Guidance).
(c) De Minimus Indirect Cost Rate
The City elected to use the 10% de minimus indirect cost rate for the year ended June 30, 2024, however, no indirect cost rates were charged to any federal programs. (d) Subrecipients
The following payments were made to subrecipients for the year ended June 30, 2024:

Assistance Listing #16.753
Hope Center of Orange County $1,036,330

ATTACHMENT C

8 CITY OF STANTON
Schedule of Findings and Questioned Costs
Year ended June 30, 2024
Summary of Auditors’ Results
A) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS

1. An unmodified report was issued by the auditors on the financial statements of the auditee.

2. There were no material weaknesses in internal control nor were there any significant deficiencies.

3. There were no instances of noncompliance or other matters that were required to be reported under Government Auditing Standards.
(B) Findings and Questioned Costs for Federal Awards as Defined in 2 CFR 200.515(d)

4. There were no material weaknesses or significant deficiencies in internal control over federal major programs of the auditee.

5. An unmodified report was issued by the auditors on compliance for federal major programs.

6. The audit disclosed no audit findings of federal awards required by the auditors to be reported under 2 CFR 200.515(d)

7. The major federal program of the auditee was Assistance Listing #16.753 U.S. Department of Justice – Congressionally Recommended Awards.

8. The dollar threshold used to distinguish Type A and Type B programs was $750,000 under 2 CFR 200.518 (b) (1).

9. The auditee was not considered a low risk auditee as defined by 2 CFR 200.518 for the year ended June 30, 2024 for purposes of determining major programs.

ATTACHMENT C

9 CITY OF STANTON
Summary Schedule of Prior Year (June 30, 2023) Audit Findings Year ended June 30, 2024
There were no findings noted for fiscal year June 30, 2023.

ATTACHMENT C

CITY OF STANTON
Stanton, California
Report on Communication
With Those Charged with Governance
June 30, 2024

ATTACHMENT D

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CITY OF STANTON
Stanton, California
Report On Communication
With Those Charged With Governance
June 30, 2024
INDEX
PAGE
REPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3 EXHIBIT A - GENERAL RECOMMENDATIONS 4 - 5

ATTACHMENT D

1 438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
City of Stanton
Stanton, California
To the Honorable Mayor and City Council:

We have audited the financial statements of the government activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Stanton, California (City) for the year ended June 30, 2024, and have issued our report thereon dated December 22, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the engagement contract dated June 11, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practice
Management is responsible for the selection and use of appropriate accounting policies.

The significant accounting policies used by the City are described in Note 1 to the financial statements. The City adopted Statement on Governmental Accounting Standards (GASB) Statement No. 100- Accounting Changes and Error Corrections. The adoption of the GASB No. 100 did not significantly impact the City. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of capitalizing certain infrastructure assets that prolong its’ useful life (as opposed to classifying as routine maintenance expense) and depreciation expense on capital assets. We have evaluated the key factors and assumptions used to estimate the capitalization of infrastructure assets and useful lives on depreciation expense in determining that they are reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net pension liability and net OPEB liability and their allocation to various funds. We have evaluated the key factors and assumptions used to estimate the net pension liability and its allocation to various funds of the City in determining that they are reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the present value of lease payable and right-to-use lease asset.

ATTACHMENT D

2 City of Stanton
Honorable Mayor and City Council
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:
 The disclosure of Contingencies in Note 15 to the financial statements concerning potential claims against the City for possible disallowed costs or noncompliance with certain grantor restrictions. As of the date of this letter, Management is not aware of any disallowed costs or noncompliance with grantor restrictions.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We noted no significant adjustments as a result of audit procedures. We were not aware of any significant uncorrected misstatements.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 22, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.

To our knowledge, there were no such consultations.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Stanton’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

ATTACHMENT D

3 City of Stanton
Honorable Mayor and City Council
Other Matters
We applied certain limited procedures to City of Stanton, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

Restriction on Use
This report is intended solely for the information and use of the City Council and management, and is not intended to be and should not be used by anyone other than these specified parties.

GRUBER AND LOPEZ, INC.

Newport Beach, California
December 22, 2024 Gruber and Lopez, Inc.

ATTACHMENT D

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
Honorable Mayor and City Council
City of Stanton
Stanton, California
Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets
We have performed the procedures enumerated below on the appropriations limit calculation worksheets of the City of Stanton, California (City) for the year ended June 30, 2024. The City’s management is responsible for the appropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures performed are appropriate for the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of California Cities as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

ATTACHMENT E

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City Council
City of Stanton, California
Page Two

2. We recalculated the mathematical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants.

We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on meeting the requirements of the Constitution and Guidelines. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

Gruber and Lopez, Inc.

Newport Beach, California
December 22, 2024
Gruber and Lopez, Inc.

ATTACHMENT E

1 CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: February 11, 2025
SUBJECT: CONSIDERATION OF AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF STANTON AND STANTON 2.0

LLC RELATED TO THE PAYMENT OF PUBLIC BENEFITS AND
DEVELOPMENT IMPACT FEES FOR THE “CLOUD HOUSE”
DEVELOPMENT AT 12331-12435 BEACH BOULEVARD
REPORT IN BRIEF:

The City Council is asked to consider the proposed Ordinance and recommended amendment to the Cloud House Development Agreement. The Development Agreement between the City and Developer allows the parties to agree to an alternative payment schedule for the required public benefits and development impact fees. The Planning Commission reviewed the proposed Ordinance and amendment before voting to adopt Resolution No. 2573 recommending approval of the proposed Ordinance and amendment.

RECOMMENDED ACTION:

1. City Council conduct the public hearing and first reading of Ordinance No. 1160, entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON

AMENDING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY
OF STANTON AND STANTON 2.0 LLC FOR CERTAIN REAL
PROPERTY LOCATED AT 12331-12435 BEACH BOULEVARD AND

MAKING A DETERMINATION THAT THE PROJECT IS EXEMPT UNDER CEQA”; and

2. Declare that the project is exempt per the California Environmental Quality Act (CEQA) under section 15061(b)(3) which applies to projects that will not have a significant impact on the environment; and

3. Set February 25, 2025, as the date for second reading for adoption of Ordinance No. 1160.

Item: 10A
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2 BACKGROUND:

Stanton 2.0 LLC, the developer (“Developer”) of the Cloud House residential apartment project at 12331-12345 Beach Boulevard, requested that the City of Stanton provide them with an alternative schedule to pay public benefits and development impact fees associated with the Cloud House project. The developer expressed that over the past few years, the developer and its project experienced significant financial burden due to the global pandemic and its lingering effects, including supply chain disruptions, manpower issues, increasing construction costs, and the rapid rise of interest rates. The Development Agreement between the City and Developer allows the parties to agree to an alternative payment schedule.

The Development Agreement requires the following: that the Developer pay to the City a total of $963,000 in community facilities fees, $50,000 in beautification/enhancement fees, and $336,729 in development impact fees. Each of these fees was to be paid with the issuance of a certificate of occupancy for the project. The public benefits and development impact fees total $1,349,729, not including staff and legal costs that have accrued in processing the project.

The Developer and the City are agreeable to an alternative fee payment schedule for the public benefit and development impact fees as follows:
• The term of the alternative payment schedule would begin on the issuance of the final certificate of occupancy (approximately March 2025); • Upon the issuance of the final certificate of occupancy, the balance would accrue at two percent (2%) simple interest, annually, until paid in full for a term of five years. The total interest over the five-year term will be $69,734.56, resulting in a total payment amount of $1,419,463.56. However, monthly payments would not be required to be paid until one year after the final certificate of occupancy is issued, or approximately March 2026;
• The full amount must be paid within five years of the issuance of the certificate of occupancy;
• There would be no penalty for an early payment, and if there was a late payment, then there would be a 10-day grace period, followed by a late fee of 10 percent of the required and outstanding monthly payment.

The Planning Commission held a public hearing at their regularly scheduled meeting of February 5, 2025 to consider the proposed Ordinance. After closing the public hearing and deliberation, the Planning Commission voted to adopt Resolution No. 2573 recommending approval of the proposed Ordinance and first amendment to the Cloud House Development Agreement.
3 ANALYSIS/JUSTIFICATION:

Stanton Municipal Code (“SMC”) section 20.510.060 requires that a development agreement must be amended using the same procedure for entering into the agreement. Therefore, to amend the Cloud House Development Agreement, the Planning Commission is required to review the ordinance and make a recommendation to Council. In order to recommend approval, the Commission must consider the findings set forth in SMC section 20.510.050(D): (1) the development agreement provides benefits to the City; (2) the development agreement is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan, any applicable Specific Plan, and this Zoning Code; and (3) the development agreement complies with the requirements of Government Code Sections 65864 through 65869.5.

The proposed amendment has no effect on the previously-approved Cloud House development or entitlements. Therefore, all previous findings still apply. This amendment is an administrative change that ensures that the City receives a reasonable return on benefits that it is owed and that the benefits will be paid within a reasonable time. Thus, the proposed amendment is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan, any applicable Specific Plan, and the City’s Zoning Code. Therefore, staff recommends that the findings of SMC section 20.510.050(D) can be satisfied.

FISCAL IMPACT:

The proposed amendment to the Cloud House Development Agreement will satisfy the developers’ requirement to pay for the public benefit fees and development impact fees required of the development. The Cloud House developer shall pay the City for the time and cost associated with drafting the DA amendment and its presentation to the Planning Commission and City Council.

ENVIRONMENTAL IMPACT:

The proposed project was determined to be Categorically Exempt from CEQA, per California Environmental Quality Act (CEQA) Guidelines, under Section 15061 (b)(3) which applies to projects that will not have a significant impact on the environment. 4 LEGAL REVIEW:

The proposed Ordinance and Amendment to the Cloud House Development Agreement have been reviewed by the City Attorney’s Office.

STRATEGIC PLAN OBJECTIVE ADDRESSED:

Obj. No. 2: Promote a strong local economy.

PUBLIC NOTIFICATION:

Notice of Public Hearing was published in the Orange County Register on February 1, 2025. The notice was also posted at three public locations and made public through the agenda-posting process.

Prepared by: Crystal Landavazo, Community and Economic Development Director Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENTS:

A. Draft Ordinance No. 1160
• Exhibit “A” to Ordinance: First Amendment to Cloud House Development Agreement
B. Planning Commission Resolution No. 2573
ORDINANCE NO. 1160

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON AMENDING

THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF STANTON AND STANTON 2.0 LLC FOR CERTAIN REAL PROPERTY LOCATED AT 12331-12435

BEACH BOULEVARD WITHIN THE CITY OF STANTON PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864 ET SEQ. AND MAKING CEQA FINDINGS IN

CONNECTION THEREWITH
WHEREAS, in November 2020, Chris Segesman representing Bonanni Development, (“Owner”) filed applications for a Site Plan and Design Review SPDR-807, Planned Development Permit PDP 20-04, and Development Agreement DA 20-03, for the development of a 3.75-acre site (“Project Site”), located at 12331-12435 Beach Boulevard (APN: 131-361-14, 131-361-10, and 131-361-03, consolidated by LLA 20-01; Instrument No. 2021000209655) for a new 321 multi-family residential unit development and associated improvements (“Project” or “Cloud House Development”); and WHEREAS, the Owner proposed to develop the Project Site located in the City, more particularly described in Exhibit “A” to Ordinance No. 1105 and incorporated herein by this reference (“Property”) for the Project; and
WHEREAS, pursuant to California Government Code section 65864 et seq., the City is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein; and
WHEREAS, on September 22, 2020, the City of Stanton (“City”) entered into the Development Agreement No. 20-03 with Owner (Instrument No. 2022000194588, incorporated herein by this reference (“Cloud House Agreement”), and adopted Ordinance No. 1105; and
WHEREAS, the Development Agreement was assigned to Stanton 2.0 LLC (“Developer”) in or around May 2022; and
WHEREAS, the Cloud House Development Agreement requires the Cloud House Developer to pay the City development impact fees and certain public impact fees concurrently with the issuance of the certificate of occupancy for the Cloud House Development; and
WHEREAS, over the past few years, the Developer and its Cloud House project experienced significant financial burden due to the global pandemic and its lingering effects, including supply chain disruptions, manpower issues, uncontrollable constructions costs, and the rapid rise of interest rates; and WHEREAS, the Development Agreement between the City and Developer allows the parties to agree to an alternative payment schedule; and Attachment: A
Click here to return to the agenda.

WHEREAS, the City and Developer wish to enter into an alternative payment schedule for the public benefits and development impact fees required by the Cloud House Development Agreement in acknowledgement of the financial difficulties of the Project and to ensure that the City receives a reasonable rate of return on the outstanding balance to ensure its financial security; and
WHEREAS, the City Council has found that this amendment to the Cloud House Agreement is consistent with the City's General Plan; and WHEREAS, the City Council has determined that by entering into the amendment to the Cloud House Development Agreement, the City will ensure that the City public benefits fees and development impact fees are timely paid to assist with the orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan. Additionally, the amendment to the Cloud House Development Agreement will ensure the City receives financial security through collection of all outstanding fees from Developer with reasonable interest; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into this amendment to the Cloud House Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and
WHEREAS, pursuant to Stanton Municipal Code Section 20.510.060, a development agreement may be amended using the same procedure for entering into the agreement and therefore, the Planning Commission is responsible for making a recommendation to the City Council regarding adopting this Ordinance; and WHEREAS, on February 5, 2025, the Planning Commission of the City of Stanton conducted a duly noticed public hearing concerning the request to approve the amendment to the Cloud House Development Agreement, at which hearing members of the public were afforded an opportunity to comment upon the amendment to the Cloud House Development Agreement. At the conclusion of the hearing, the Planning Commission recommended that the City Council adopt proposed Ordinance No. 1160; and
WHEREAS, on February 11, 2025, the City Council of the City of Stanton conducted a duly noticed public hearing concerning the request to approve the amendment to the Cloud House Development, at which hearing members of the public were afforded an opportunity to comment upon the amendment to the Development Agreement; and WHEREAS, on February 25, 2025, the City Council of the City of Stanton held a second reading of proposed Ordinance 1160 and voted to approve the amendment to the Cloud House Development; and
WHEREAS, the terms and conditions of the amendment to the Cloud House Development Agreement have undergone review by the City Council at a publicly noticed hearing and have been found to be fair, just, and reasonable, and consistent with the General Plan; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:

SECTION 1: The above recitals are incorporated herein and made a part hereof.

SECTION 2: The City Council finds that the amendment to the Cloud House Development Agreement does not, in any way, affect the previously approved Project, and involves only matters related to administrative activities such as the collection of outstanding fees and issuance of certificates of occupancy. Therefore, the City Council finds that the adoption of the amendment is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 5060(c)(2), 5061(b)(3), and 15378(b)(5). Additionally, the City Council previous found that the Project was categorically exempt from environmental review pursuant to State CEQA Guidelines, section 15332. The City Council further found that none of the exceptions to the exemptions outlined in State CEQA Guidelines, section 15300.2 applied to the Project SECTION 3: Pursuant to Government Code Section 65867.5(b) and Stanton Municipal Code Sections 20.510.050(D) & 20.510.060, and based on the entire record before the City Council, the City Council hereby makes the following findings:

1. Public Benefit: The amendment to the Cloud House Development Agreement provides benefit to the City because it ensures that the City will have the ability to collect the outstanding City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement through this contract amendment. The City ensures a financial benefit and security for the improvement of public facilities throughout the City because the outstanding public benefit and impact fee amounts will be assessed interest until the balance is paid in full.

2. General Plan, Specific Plan, and Zoning Code Consistency: The amendment to the Cloud House Agreement does not make any changes to the previously approved Project. The amendment solely focuses on ensuring that the City recovers all City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement. The amendment ensures financial security for the City and further opportunities for the improvement of public facilities throughout the City, which is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan and any applicable Specific Plan, and this Zoning Code.

3. Compliance with Development Agreement Statute. The amendment to the Cloud House Development Agreement complies with the requirements of Government Code Sections 65864 through 65869.5 because the amendment does not alter any previously approved provision of the Project. The Cloud House Development Agreement still provides assurance to the applicant for the development of the Project, while the City will ensure the collection of the City Facilities Fees, Beautification Fees, and Development Impact Fees owed under the Cloud House Development Agreement.

SECTION 4: Pursuant to Stanton Municipal Code Section 20.510.060, a development agreement may be amended using the same procedure for entering into the agreement and therefore, the City Council is the approving body for adopting this Ordinance.

SECTION 5: The City Council hereby approves and adopts the Amendment to the Cloud House Development Agreement attached hereto as Exhibit "A", entitled, "First Amendment to Development Agreement between the City of Stanton and Stanton 2.0 LLC".

SECTION 6: The documents related to this Ordinance are on file and available for public review at Stanton City Hall, 7800 Katella Ave., Stanton, California 90680. The City Clerk is the custodian of these documents.

SECTION 7: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 8: This Ordinance shall be effective thirty days after its adoption. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted as required by law. Pursuant to Government Code Section 65868.5, within 10 days following the entering into of the amendment to the Development Agreement, as evidenced by full execution thereof, the City Clerk shall record with the Orange County Recorder a copy of the amendment to the Development Agreement.

SECTION 9: The City Council hereby directs staff to prepare and file a Notice of Exemption with the Orange County Clerk within five (5) working days of the approval of the Ordinance.

PASSED, APPROVED, AND ADOPTED this 25th day of February 2025.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS .

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, do hereby certify that the foregoing Ordinance No. 1160 was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 11th day of February 2025, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 25th day of February 2025, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
_____________________________

CITY CLERK, CITY OF STANTON
EXHIBIT “A”
FIRST AMENDMENT TO THE CITY OF STANTON AND STANTON 2.0 LLC

DEVELOPMENT AGREEMENT

RECORDED AT REQUEST OF
AND WHEN RECORDED RETURN TO:

City of Stanton
7800 Katella Ave.,
Stanton, California 90680
Attn: City Manager
Fee Exempt - Gov’t Code §6103
(Space above for Recorder’s Use)
First Amendment to the
Development Agreement Between
the City of Stanton and Stanton 2.0 LLC
This First Amendment is entered into by and between the City of Stanton, a California municipal corporation (“City”), and Stanton 2.0 LLC, a California limited liability company (“Owner”) on February 25, 2025, 2025 (“First Amendment”). The City and Owner are sometimes referred to in this First Amendment as “Party” and “Parties.” Recitals
A. In November 2020, Chris Segesman representing Bonanni Development, (“Owner”) filed applications for a Site Plan and Design Review SPDR-807, Planned Development Permit PDP 20-04, and Development Agreement DA 20-03, for the development of a 3.75-acre site (“Project Site”), located at 12331-12435 Beach Boulevard (APN: 131-361-14, 131-361-10, and 131-361-03, consolidated by LLA 20-01; Instrument No. 2021000209655) for a new 321 multi-family residential unit development and associated improvements (“Project” or “Cloud House Development”).

B. The Owner proposed to develop the Project Site located in the City, more particularly described in Exhibit “A” to Ordinance No. 1105 and incorporated herein by this reference (“Property”) for the Project.

C. Pursuant to California Government Code section 65864 et seq., the City is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein.

D. On September 22, 2020, the City of Stanton (“City”) entered into the Development Agreement No. 20-03 with Owner (Instrument No. 2022000194588, incorporated herein by this reference (“Cloud House Agreement”), and adopted Ordinance No. 1105. The Development Agreement was assigned to Stanton 2.0 LLC (“Developer”) in or around May 2022.

E. The Cloud House Development Agreement requires the Cloud House Developer to pay the City development impact fees and certain public impact fees Exhibit: A
Click here to return to the agenda.
concurrently with the issuance of the certificate of occupancy for the Cloud House Development.

F. Over the past few years, the Developer and its Cloud House project experienced significant financial burden due to the global pandemic and its lingering effects, including supply chain disruptions, manpower issues, uncontrollable constructions costs, and the rapid rise of interest rates.

G. The City and Developer wish to enter into an alternative payment schedule for the public benefits and development impact fees required by the Cloud House Development Agreement in acknowledgement of the financial difficulties of the Project and to ensure that the City receives a reasonable rate of return on the outstanding balance to ensure its financial security.

A. Pursuant to Stanton Municipal Code Section 20.510.060, a development agreement may be amended using the same procedure for entering into the agreement.

This process and procedure has been satisfied.

Terms
The Parties agree to the following terms:

1. Recitals. The recitals included at the beginning of this First Amendment are true and correct and are made a part of this First Amendment

2. Amendment. Section 4.2, “Public Benefits,” of the Cloud House Development Agreement is hereby amended in its entirety and restated to read as follows (deletions in strikethrough, and added language double underlined):
“4.2 Public Benefits. In addition to complying with the Project conditions of approval which are designed to mitigate the significant environmental impacts of the Project, Owner has committed by this Agreement to contribute to CITY the following "Public Benefits."

4.2.1 OWNER shall pay a fee in the amount of three thousand dollars ($3,000) (the “City Facilities Fee”) for each Unit constructed as part of the Project The City Facilities Fee shall be due in accordance with the schedule provided in Subsection

4.3.4concurrently with the issuance of the certificate of occupancy for the Project, unless a different schedule is mutually agreed upon by CITY and OWNER.

4.2.2 OWNER shall also pay a fee in the amount of fifty thousand dollars ($50,000) (the “City Beautification/Enhancements Fee”). The City Beautification/Enhancements Fee shall be due in accordance with the schedule provided in Subsection 4.3.4concurrently with the issuance of the certificate of occupancy for the Project, unless a different schedule is mutually agreed upon by CITY and OWNER, and may be used by CITY in its sole discretion for beautification and enhancement projects anywhere within the City, including without limitation landscaping projects.”

3. Amendment. Section 4.3, “Development Impact Fees,” of the Cloud House Development Agreement is hereby amended in its entirety and restated to read as follows (deletions in strikethrough, and added language double underlined):
“4.3 Development Impact Fees.

4.3.1 Amount of Fee. OWNER shall pay all Development Impact Fees in effect on the Effective Date. As of the Effective Date, the Development Impact Fees are one thousand forty-nine dollars ($1,049) per Unit built in the Project.

4.3.2 Reserved. Time of Payment. The fees required pursuant to Subsection 4.3.1 shall be due and paid to CITY concurrently with the issuance of the certificate of occupancy for the Project.

4.3.3 Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of OWNER or any other owner of the Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of the Term of this Agreement. Following the expiration, cancellation or termination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of the Development Impact Fees set forth in Exhibit “D”, or any combination thereof.”

4.3.4 Time of Payment for Public Benefits and Development Impact fees.

The fees required pursuant to Subsections 4.2.1, 4.2.2, and 4.3.1 shall begin to be due and payable to CITY twelve (12) months following the issuance of the certificate of occupancy for the Project (“Payment Start Date”) and shall be fully paid by OWNER to CITY within sixty (60) months following the issuance of the certificate of occupancy for the Project. By way of example, only, if the certificate of occupancy was issued by CITY on April 1, 2025, then the Payment Start Date would begin on April 1, 2026, and the Total Fees Amount, with interest, shall be fully paid by OWNER to CITY by April 1, 2030. The total amount of fees owed pursuant to Subsections 4.2.1, 4.2.2, and 4.3.1 equal One Million, Three Hundred Forty Nine Thousand, Seven Hundred and Twenty Nine Dollars ($1,349,729) (the “Total Fees Amount”).

Upon the CITY’s issuance of the certificate of occupancy, the Total Fees Amount shall immediately begin accruing interest at the rate of Two Percent (2%) simple interest, annually, for a term of five years, until the Total Fees Amount and interest is paid in full.

The total interest to be paid over the five year term is Sixty Nine Thousand Seven Hundred Thirty Four Dollars and Fifty Six Cents ($69,734.56), resulting in a total payment amount (including interest) of $1,419,463.56. A payment schedule reflecting the payments and interest is attached hereto and incorporated herein as Attachment “1”.

4. OWNER’s obligation to pay the Total Fees Amount shall not begin until one (1) year after the issuance of certificate of occupancy. Thereafter, OWNER’s payments shall be made in equal, monthly installments via check made payable to “City of Stanton” by the first day of each month. If OWNER is late on any monthly payment, a late fee in the amount of Ten Percent (10%) of the outstanding monthly balance shall be assessed against OWNER on the tenth (10th) day that OWNER is late. A payment shall be considered late if it is not received by the City on the tenth (10th) from when it was due. If a monthly payment is still late after Ten (10) Days, then that shall constitute a breach of the Agreement.” Remaining Terms. All terms, conditions, and other provisions of the Cloud House Development Agreement, including all exhibits, not affected by this First Amendment shall remain in full force and effect.

5. Conflicts. If there is any conflict between the terms of this First Amendment or other Development Approvals and the changes in this First Amendment, the provisions in this First Amendment shall govern.

6. Multiple Counterparts. This First Amendment may be executed in one or more counterparts, each of which is deemed an original, but all of which together constitute one and the same instrument.

7. Severability. If any provision of this First Amendment, or any other document referred to by this First Amendment is, for any reason, held to be invalid, illegal, or unenforceable, then to the maximum extent permitted by law, such invalidity, illegality, or unenforceability has no effect on any other provision of this First Amendment.

8. Cumulative Remedies. All rights and remedies of a Party are cumulative of each other. The exercise of a right or remedy may not prejudice or impair the concurrent exercise of another right or remedy.

9. Representation by Counsel; Equal Construction. In executing this First Amendment, each Party has been represented by and consulted with counsel of its own choosing. Each Party has carefully read and fully understands this First Amendment in its entirety. The meaning, intent and legal effect of this Memorandum have been fully explained to each Party by its respective legal counsel. Each Party represents that it is competent to execute this First Amendment and that it has executed this First Amendment free from coercion, duress, or undue influence. Each of the Parties has participated in the review and revision of this First Amendment and, therefore, neither Party shall be considered the drafting Party for purposes of resolving any alleged ambiguities in this First Amendment.

The Parties have caused this First Amendment to be duly executed effective as of the Effective Date first written above.
[Signatures on following page]

SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CITY OF STANTON AND STANTON 2.0 LLC
STANTON 2.0 LLC,
a California limited liability company
By:

Its:

Date:
and
By:

Its:

Date:

CITY OF STANTON,
a California municipal corporation
By: ____________________________
Hannah Shin-Heydorn
City Manager
Date: ____________________________
Attest:

By: ____________________________
Patricia A. Vazquez
City Clerk, MMC
Date: ___________________________
Approved as to form:

By: ____________________________
Best, Best & Krieger LLP
City Attorney
Date: ____________________________
Attachment 1
Payment Schedule
$1,349,729.00 Original Amount
2% Simple Interest Rate
5 Year Term
Total Payments: $1,419,463.56
Total Interest: $69,734.56
48 Monthly Payments of $ 29,572.15
D
D
D
PLANNING COMMISSION RESOLUTION NO. 2573

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF STANTON RECOMMENDING THE CITY
COUNCIL ADOPT ORDINANCE NO. 1160 AMENDING THE

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
STANTON AND STANTON 2.0 LLC FOR CERTAIN REAL
PROPERTY LOCATED AT 12331-12435 BEACH

BOULEVARD WITHIN THE CITY OF STANTON
WHEREAS, in November 2020, Chris Segesman representing Bonanni Development, ("Owner") filed applications for a Site Plan and Design Review SPDR-807, Planned Development Permit PDP 20-04, and Development Agreement DA 20-03, for the development of a 3.75-acre site ("Project Site"), located at 12331-12435 Beach Boulevard (APN: 131-361-14, 131-361-10, and 131-361-03, consolidated by LLA 20-01; Instrument No. 2021000209655) for a new 321 multi-family residential unit development and associated improvements ("Project" or "Cloud House Development"); and WHEREAS, the Owner proposed to develop the Project Site located in the City, more particularly described in Exhibit "A" to Ordinance No. 1105 and incorporated herein by this reference ("Property") for the Project; and
WHEREAS, pursuant to California Government Code section 65864 et seq., the City is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein; and
WHEREAS, on September 22, 2020, the City of Stanton ("City") entered into the Development Agreement No. 20-03 with Owner (Instrument No. 2022000194588), incorporated herein by this reference ("Cloud House Agreement"), and adopted Ordinance No. 1105; and
WHEREAS, the Development Agreement was assigned to Stanton 2.0 LLC ("Developer") in or around May 2022; and
WHEREAS, the Cloud House Agreement requires the Cloud House Developer to pay the City development impact fees and certain public impact fees concurrently with the issuance of the certificate of occupancy for the Cloud House Development; and WHEREAS, over the past few years, the Developer and its Cloud House project experienced significant financial burden due to the global pandemic and its lingering effects, including supply chain disruptions, manpower issues, uncontrollable constructions costs, and the rapid rise of interest rates; and WHEREAS, the Development Agreement between the City and Developer allows the parties to agree to an alternative payment schedule; and Attachment: B
Click here to return to the agenda.

WHEREAS, the City and Developer wish to enter into an alternative payment schedule for the public benefits and development impact fees required by the Cloud House Development Agreement in acknowledgement of the financial difficulties of the Project and to ensure that the City receives a reasonable rate of return on the outstanding balance to ensure its financial security; and
WHEREAS, the Planning Commission has found that this amendment to the Cloud House Agreement is consistent with the City's General Plan; and WHEREAS, the Planning Commission has determined that by entering into the amendment to the Cloud House Development Agreement, the City will ensure that the City public benefits fees and development impact fees are timely paid to assist with the orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan. Additionally, the amendment to the Cloud House Development Agreement will ensure the City receives financial security through collection of all outstanding fees from Developer with reasonable interest; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into this amendment to the Cloud House Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and
D
WHEREAS, pursuant to Stanton Municipal Code Section 20.510.060, a development o agreement may be amended using the same procedure for entering into the agreement and therefore, the Planning Commission is responsible for making a recommendation to the City Council regarding adopting this Ordinance; and WHEREAS, on February 5, 2025, the Planning Commission of the City of Stanton conducted a duly noticed public hearing concerning the request to approve the amendment to the Cloud House Development Agreement, at which hearing members of the public were afforded an opportunity to comment upon the amendment to the Cloud House Development Agreement.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
STANTON RESOLVES AS FOLLOWS:

SECTION 1. That the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. The Planning Commission finds that the amendment to the Cloud House Development Agreement does not, in any way, affect the previously approved Project, and involves only matters related to administrative activities such as the collection of outstanding fees and issuance of certificates of occupancy. Therefore, the Planning Commission finds that the adoption of the amendment is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines sections 5060(c)(2), 5061 (b)(3), and 15378(b)(5). Additionally, the City Council previously o Resolution No. 2573
February 5, 2025
Page2
D
D
D
found that the Project was categorically exempt from environmental review pursuant to State CEQA Guidelines, section 15332. The City Council further found that none of the exceptions to the exemptions outlined in State CEQA Guidelines, section 15300.2 applied to the Project
SECTION 3. That this Resolution and its findings are based upon the entire record, including but is not limited to, such things as the staff report, the testimony by staff and the public, and other materials and evidence submitted or provided to the Planning Commission prior to or during the meeting.

SECTION 4. Pursuant to Government Code Section 65867.5(b) and Stanton Municipal Code Sections 20.510.050(D) & 20.510.060, and based on the entire record before the Planning Commission, the Planning Commission hereby makes the following findings:
. ,.
, \ ' -
:t<" , • ..,,�Jti:ubltc;;Benefib':,'fJ,he.,amendment to the Cloud House Development Agreement provides benefit to the City because it ensures that the City will have the ability to collect the outstanding City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement through this contract amendment. The City ensures a financial benefit and security for the improvement of public facilities throughout the City because the outstanding public benefit and impact fee amounts will be assessed interest until the balance is paid ·in full., -· -- ;- .... � •

2. General Plan. Specific Plan. and . Zoning Code Consistency: The amendment to the Cloud House Agreement does not make any changes to the previously approved Project. The amendment solely focuses on ensuring that the City recovers all City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement. The amendment ensures financial security for the City and further opportunities for the improvement of public facilities throughout the City, which is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan and any applicable Specific Plan, and this Zoning Code.

3. Compliance with Development Agreement Statute. The amendment to the Cloud House Development Agreement complies with the requirements of Government Code Sections 65864 through 65869.5 because the amendment does not alter any previously approved provision of the Project. The Cloud House Development Agreement still provides assurance to the applicant for the development of the Project, while the City will ensure the collection of the City Facilities Fees, Beautification Fees, and Development Impact Fees owed under the Cloud House Development Agreement.

SECTION 5: The Planning Commission hereby recommends that the City Council approve and adopt Ordinance No. 1160, attached hereto as Exhibit "A." SECTION 6. This Resolution shall become effective upon its adoption.

Resolution No. 2573
February 5, 2025

PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning Commission on the 5th day of February 2025 by the following vote:

AYES: Adams Ash Frazier Tran
NAYS: �N!Qo!l!ne2-_________________ _ ABSENT: �NQ!onrueL _________________ _ ABSTAIN: �N!.Qo.runeL _________________ _
ATTEST:
ecretary

CITY OF STANTON
�� Ad(),e �
Thomas Adams
Planning Commission Chairperson
Resolution No. 2573
February 5, 2025

0 0
0 0 EXHIBIT "A"
PROPOSED ORDINANCE NO. 1160
0 0
ORDINANCE NO. 1160

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON AMENDING

THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF STANTON AND STANTON 2. 0 LLC FOR CERTAIN REAL PROPERTY LOCATED AT 12331-2435

BEACH BOULEVARD WITHIN THE CITY OF STANTON PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864 ET SEQ. AND MAKING CEQA FINDINGS IN

CONNECTION THEREWITH
WHEREAS, in November 2020, Chris Segesman representing Bonanni Development, Owner") filed applications for a Site Plan and Design Review SPDR- 807, Planned Development Permit PDP 20- 04, and Development Agreement DA 20- 03, for the development of a 3. 75 -acre site ("Project Site"), located at 12331-2435 Beach Boulevard APN: 131- 361- 14, 131- 361- 10, and 131- 361- 03, consolidated by LLA 20- 01; Instrument No. 2021000209655) for a new 321 multi -family residential unit development and associated improvements (" Project" or "Cloud House Development"); and WHEREAS, the Owner proposed to develop the Project Site Located in the City, more particularly described in Exhibit "A" to Ordinance No. 1105 and incorporated herein by this reference (" Property") for the Project; and
WHEREAS, pursuant to California Government Code section 65864 et seq., the City is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein; and
WHEREAS, on September 22, 2020, the City of Stanton (" City") entered into the Development Agreement No. 20- 03 with Owner ( Instrument No. 2022000194588, incorporated herein by this reference (" Cloud House Agreement"), and adopted Ordinance No. 1105; and
WHEREAS, the Development Agreement was assigned to Stanton 2. 0 LLC ("Developer") in or around May 2022; and
WHEREAS, the Cloud House Development Agreement requires the Cloud House Developer to pay the City development impact fees and certain public impact fees concurrently with the issuance of the certificate of occupancy for the Cloud House Development; and
WHEREAS, over the past few years, the Developer and its Cloud House project experienced significant financial burden due to the global pandemic and its lingering effects, including supply chain disruptions, manpower issues, uncontrollable constructions costs, and the rapid rise of interest rates; and WHEREAS, the Development Agreement between the City and Developer allows the parties to agree to an alternative payment schedule; and WHEREAS, the City and Developer wish to enter into an alternative payment schedule ORDINANCE NO. 1160

for the public benefits and development impact fees required by the Cloud House Development Agreement in acknowledgement of the financial difficulties of the Project and to ensure that the City receives a reasonable rate of return on the outstanding balance to ensure its financial security; and
WHEREAS, the City Council has found that this amendment to the Cloud House Agreement is consistent with the City' s
General Plan; and
WHEREAS, the City Council has determined that by entering into the amendment to the Cloud House Development Agreement, the City will ensure that the City public benefits fees and development impact fees are timely paid to assist with the orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan. Additionally, the amendment to the Cloud House Development Agreement will ensure the City receives financial security through collection of all outstanding fees from Developer with reasonable interest; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into this amendment to the Cloud House Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and
WHEREAS, pursuant to Stanton Municipal Code Section 20. 510. 060, a development agreement may be amended using the same procedure for entering into the agreement and therefore, the Planning Commission is responsible for making a recommendation to the City Council regarding adopting this Ordinance; and WHEREAS, on February 5, 2025, the Planning Commission of the City of Stanton conducted a duly noticed public hearing concerning the request to approve the amendment to the Cloud House Development Agreement, at which hearing members of the public were afforded an opportunity to comment upon the amendment to the Cloud House Development Agreement. At the conclusion of the hearing, the Planning Commission recommended that the City Council adopt proposed Ordinance No. 1160; and
WHEREAS, on February 11, 2025, the City Council of the City of Stanton conducted a duly noticed public hearing concerning the request to approve the amendment to the Cloud House Development, at which hearing members of the public were afforded an opportunity to comment upon the amendment to the Development Agreement; and WHEREAS, on February 25, 2025, the City Council of the City of Stanton held a second reading of proposed Ordinance 1160 and voted to approve the amendment to the Cloud House Development; and
WHEREAS, the terms and conditions of the amendment to the Cloud House Development Agreement have undergone review by the City Council at a publicly noticed ORDINANCE NO. 1160

hearing and have been found to be fair, just, and reasonable, and consistent with the General Plan; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:

SECTION 1: The above recitals are .incorporated herein and made a part hereof.

SECTION 2: The City Council finds that the amendment to the Cloud House Development Agreement does not, in any way, affect the previously approved Project, and involves only matters related to administrative activities such as the collection of outstanding fees and issuance of certificates of occupancy. Therefore, the City Council finds that the adoption of the amendment is exempt from the requirements of the California Environmental Quality Act (" CEQA") pursuant to State CEQA Guidelines sections 5060( c)( 2), 5061( b)( 3), and 15378( b)( 5). Additionally, the City Council previous found that the Project was categorically exempt from environmental review pursuant to State CEQA Guidelines, section 15332. The City Council further found that none of the exceptions to the exemptions outlined in State CEQA Guidelines, section 15300. 2 applied to the Project
SECTION 3. Pursuant to Government Code Section 65867. 5(b) and Stanton Municipal Code Sections 20. 510. 050( D) & 20. 510. 060, and based on the entire record before the City Council, the City Council hereby makes the following f€ndings:

1. Public Benefit: The amendment to the Cloud House Development Agreement provides benefit to the City because it ensures that the City will have the ability to collect the outstanding City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement through this contract amendment. The City ensures a financial benefit and security for the improvement of public facilities throughout the City because the outstanding public benefit and impact fee amounts will be assessed interest until the balance is paid in full.

2. General Plan, Specific Plan, and Zoning Code Consistency: The amendment to the Cloud House Agreement does not make any changes to the previously approved Project. The amendment solely focuses on ensuring that the City recovers all City Facilities Fees, Beautification Fees, and Development Impact Fees associated with the Cloud House Development Agreement. The amendment ensures financial security for the City and further opportunities for the improvement of public facilities throughout the City, which is consistent with the purpose, intent,. goals, policies, programs, and land use designations of the General Plan and any applicable Specific Plan, and this Zoning Code.

3. Compliance with Development Agreement Statute. The amendment to the Cloud House Development Agreement complies with the requirements of Government Code Sections 65864 through 65869. 5because the amendment does not alter any ORDINANCE NO. 1160

previously approved provision of the Project. The Cloud House Development Agreement still provides assurance to the applicant for the development of the Project, while the City will ensure the collection of the City Facilities Fees, Beautification Fees, and Development Impact Fees owed under the Cloud House Development Agreement.

SECTION 4: Pursuant to Stanton Municipal Code Section 20. 510. 060, a development agreement may be amended using the same procedure for entering into the agreement and therefore, the City Council is the approving body for adopting this Ordinance.

SECTION 5: The City Council hereby approves and adopts the Amendment to the Cloud House Development Agreement attached hereto as Exhibit " A", entitled, " First Amendment to Development Agreement between the City of Stanton and Stanton 2. 0 LLC".

SECTION 6: The documents related to this Ordinance are on file and available for public review at Stanton City Hall, 7800 Katella Ave., Stanton, California 90680. The City Clerk is the custodian of these documents.

SECTION 7: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be -invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 8: This Ordinance shall be effective thirty days after its adoption. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted as required by law. Pursuant to Government Code Section 65868. 5, within 10 days following the, entering into of the amendment to the Development Agreement, as evidenced by full execution thereof, the City Clerk shall record with the Orange County Recorder a copy of the amendment to the Development Agreement.

SECTION 9: The City Council hereby . directs staff to prepare and file a Notice of Exemption with the Orange County Clerk within five (5) working days of the approval of the Ordinance.

ORDINANCE NO. 1160

RECORDED AT REQUEST OF
AND WHEN RECORDED RETURN TO:

City of Stanton.
7800 katella Ave.,
Stanton, California 90680
Attn: City Manager
Fee Exempt - Gov' tCode -§6103
Space. above. for Recorder' sUse)
First Amendment to the
Development Agreement Between
the City of Stanton and Stanton 2. 0 LLC
This First Amendment Is entered into by and between the City of Stanton, a California municipal corporation (" City"), and Stanton 2. 0 LLC, a California limited liability company Owner") on February 25, 2025, 2025 (" First Amendment"). The City and Owner are sometimes referred to in this First Amendment as " Party" and "Parties." Recitals
A. In November 2020, Chris Segesrnan representing Bonannl Development, Owner") filed applications for a Site Plan and Design Review SPDR- 807, Planned Development Permit PDP 20- 04, and Development Agreement DA 20- 03, for the development of a 3. 76 -acre site ("Project Site"), located at 12331-2435 Beach Boulevard APN: 131- 422- 20) for a new 321 multifamily residential unit development and associated improvements ('`Project" or " Cloud House Development").

R. The Owner proposed to develop the Project Site Located in the City, more particularly described in Exhibit "A" to Ordinance No. 1105 and incorporated herein by this reference ("Property") for the Project.

C. Pursuant to California Government Code section 65864 et seq., the City is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein.

D. On September 22, 2020, the City of Stanton (" City") entered into the Development Agreement No. 20- 03 with Owner ( instrument No. 2022000104588, incorporated herein by this reference (" Cloud House Agreement"), and adopted Ordinance No. 1105. The Development Agreement was assigned to Stanton 2M LLC Developer") in or around May 2022.

E. The Cloud House Development Agreement requires the Cloud House Developer to pay the City deveioprnent impact fees and certain public impact fees PAGE 17
concurrently with the issuance of the certificate of occupancy for the Cloud House Development.

F. Over the past few years, the Developer and its Cloud House project experienced significant financial burden due to the global pandemic and Its lingering effects, including supply chain disruptions, manpower issues, uncontrollable constructions costs, and the rapid rise of interest rate.

G. The City and Developer wish to enter into an alternative payment schedule for the public benefits and development impact fees required by the Cloud I-iouse Development Agreement in acknowledgement of the financial difficulties of the: Project and to ensure that the City receives a reasonable rate ofreturn on the outstanding balance to ensure its financial security.

A. Pursuant to Stanton Municipal Code Section 20. 510. 060, a development agreement may be amended using the same procedure for entering into the agreement.

This process and procedure has been satisfied.

Tq rips
The Parties agree to the following terms:

1. Recitals. The recitals included at the beginning of this First Amendment are true and correct and are made a part of this First Amendment

2. Amendment. Section 4. 2, "Public Benefits,° of the Cloud • House Development Agreement is -hereby amended in its entirety and restated to read as follows deletions in stril hrough, and added language double underlined):

4. 2 Public Benefits. In addition to complying with the Project conditions of approval which are designed to mitigate the, significant environmental impacts of the Project, Owner has committed by this Agreement to contribute to CITY the following " Public Benefits."

4. 2. 1 OWNER shall pay a fee in the amount of three thousand dollars 3, 000) (the " City Facilities Fee") for each Unit constructed as part of the Project The City Facilities Fee shall be due in accordance._ withthe schedule provided in . ubse. r

4. 3. 4concurrently with the issuance of the certificate of occu- pancy for the Project in: css a different schedule is rnutu- any agreed upon by CITY and OWNER.

4. 2. OWNER shall also pay a fee in the amount of fifty thousand dollars 50: 000) (the " City Beautification/ Enhancements Fee"). The City" Beautification/ Enhancements. Fee shall be due in accordance with the scheduleprovided. in. Subsectim 4. 3.c currently with the issuance of the certificate of occupancy- ferthe Projoet, unless a different schedule is mutually agreed• -upon by CITY and OWNER, and may be used by CITY in its sole discretion for beautification and enhancement projects anywhere within. the City, including without limitation landscaping projects." PAGE 18

3. Amendment. Section 4. 3, "Development -Impact Fees," of the Cloud House Development Agreement is hereby amended. in its entirety and restated to read as follows deletions in strikethrough, and added language double underlined):

4. 3 Development Impact Fees.
4, 3. 1 Amount of Fee. OWNER shall pay all Development Impact Fees in effect on the Effective, Date, As of the Effective Date, the Development Impact Fees are one thousand forty- nine dollars ($1, 049) per Unit built Irn the Project.

4. 3, 2 Reserved.. Time. of Payment. The fees required pursuant to Subsection 4. 3. 1 shall be due and paid to CITY concurrently currently with tho issuance of the certificate of occupancy for the Project.

4. 3,Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of OWNER or any other owner of the -Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of the Term of this Agreement. Following the expiration, cancellation or terrnination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of the Development impact Fees set forth in Exhibit "D", or any combination thereof." 4x3, Time of Payment for Public Benefits and .Development Impact fees, The -fees required pursuant to Subsections 4, 2, 1, 4, 2., and 4.. 3. 1 shall begin to be due and payab e to C TY ttwelye ..(12). months following_ the issuance of the certificate of oceu ancx for the Pro: eet ("Payrne Start .Date") and shall be fully paid.. by_ OWNER to CITY within siktylgOi months following_ tle Essuance_ of_ ihece ifl a e f occ aany far the Project. S wa o exa ie 1 i the oe if a cc
on April_'., 2025, then the Payment Start pate wou d begin on Apri 1, 2026, and the Total f_eeL Amour with interest, shall be fully paid by OWNER to CITY by A it 1 2 0. The total amount of fees owed pursuant to Subsections 4, 2.1, 4. 2., and 4. 3. 1 equa One i T'reh .H n o ` ne a oltars
1, 349, 729) (the "Total Fees Amount").

Upon the OITY' sissuance pf the certificate of occupancy, the Total Fees Amount siia I immediately begin accruing interest at the rate of Two Percent (2%) simple interest, m f fiv . ears until he T tal Fees. Amount a i in full.

The tonal interest to be paid over the five year term is Sixty Nine Thousand . Seven Hundred Thirty Four Do tars and Fifty Six Gents ( 369,-' 734.. b6. resultlng in je lTpayment amount nei din interest) of $ 1. 419, 63. 5_ IA payment schedule reflecting t'he payments_ and interest is attached hereto and incorporated herein as ktachrnent'""',

4. OWNE. R' sobti ation to a the Tota. ! of b in until one 1) year after the issuance of certifcate of occupancy. Thereafter, OWNER' spayments shall be made in equal, monthly. installments via check made payab e to "City of Stanton" by the first day of each month. If OWNER Is late on any monthly payment a ataigejn PAGE 19
the amount of Ter) Percent ( 10%) of the outstanding monthly balance sha I . be assessecj against OWNER en the tenth (' 0th) day that OWNER is ate. A payment shall be cons dersd late if it isnet repeiyed. bythe, city on the tenth (' 10th) frorrr when ,t was b_133213thkp Y11Lr Js tiff late after 'Ten Q) pays, then that shall constitute a the Agreement," Remaining Terms. All terms, conditions, and other provisions of the Cloud House Development Agreement, including all exhibits, not affected by this First Amendment shall remain in full force and effect.
due. If

5. Conflicts. lfthere is any conflict between the terms of this First Amendment or other Development Approvals and the changes in this First Amendment, the provisions in this First Amendment shall govern.

6. Multiple Counterparts. This First Amendment may •be executed in one or more counterparts, each of which is deemed an original, but all of which together constitute one and the same instrument.

7. Severability, if any provision . of this First Amendment, or any other document referred to by this First Amendment is, for any reason, held to be invalid, illegal, or unenforceable, thenfto the maximum extent perrn itted by law, such invalidity, illegality, or unenforceability has no effect on any ether provision of this First Amendment.

8. Cumulative Remedies. All rights and remedies of a Party are .cumulative of each other. The exercise of a right or remedy may not prejudice or impair the concurrent exercise of another right or remedy.

9. Representation b ounsel, Ecual Construction. In executing this First Amendment, each Party has been represented by and consulted with counsel of its own choosing. Each Party has carefully read and fullyunderstands this First Amendment in its entirety. The meaning, intent and legal effect of this Memorandum have been fully explained. to each Party by its respective legal counsel, Each Party represents that it is competent to execute this First Amendment and that it has executed this First Amendment free from coercion, duress, or undue influence. Each of the Parties has participated in the review and revision of this First Amendment and, therefore, neither Party shall be considered the drafting Party for purposes of resolving any alleged ambiguities in this First Amendment.

The Parties have caused this First Amendment to be duly executed effective as of the Effective Date first written above.

Signatures on following page]
PAGE 20

SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CITY OF STANTON AND STANTON 2. 0 LLC
STANTON 2. 0 LLC,
a California limited liability company
By:

Its:

Date:
and
By:

Its:

Cate:

CITY OF STANTON,
a California municipal corporation
By:

Hannah Shin- Heydorn
City Manager
Date: _
Attest:

By:

Patricia A. Vazquez
City Clerk, MMC
Date:

Approved as to form:

By:

Date:

Best, Best & Krieger LLP
City Attorney
PAGE 21
Attachment 1
Payment Schedule
1, 349, 729. 00 Original Amount
2% Simple Interest Rate
5 Year Term •
Total Payments: $ 1, 419,63. 56
Total Interest $69, 734. 56
48 Monthly Payments of $ 29, 572. 15
PAGE 22

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: February 11, 2025
SUBJECT: CONSIDERATION OF ORDINANCE NO. 1158 AMENDING CHAPTER

5.04 OF TITLE 5 OF THE STANTON MUNICIPAL CODE RELATING TO

BUSINESS LICENSES AND REGULATIONS
REPORT IN BRIEF:

On November 28, 2023, the City of Stanton entered into an agreement with Hinderliter, De Llamas and Associates (HDL) for Business License Tax Administration Services and a Business License Tax Ordinance and Fee Study. As part of the Business License Tax Ordinance portion of the agreement, staff worked with HDL and reviewed Chapter 5.04, “Business Licenses and Regulations,” of the City’s Municipal Code and prepared the proposed Ordinance with updates. The City Council will consider approving the first reading of the proposed Ordinance.

RECOMMENDED ACTION:

1. City Council conduct a public hearing; and

2. Find that the ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Sections 15378(a) (the ordinance is not a “project” and has no potential for resulting in physical change to the environment, directly or indirectly) and 15061(b)(3) (there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment) (14 Cal. Code Regs.); and

3. Introduce Ordinance No. 1158, entitled:
“AN ORDINANCE NO. 1158 AMENDING CHAPTER 5.04 OF TITLE 5 OF

THE STANTON MUNICIPAL CODE RELATING TO BUSINESS

LICENSES AND REGULATIONS AND FINDING THE ORDINANCE TO

BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT PURSUANT TO SECTIONS 15378(a) AND 15061(b)(3) OF THE STATE CEQA GUIDELINES”; and

4. Set said ordinance for second reading and adoption at the February 25, 2025, regularly scheduled City Council meeting.

Item: 10B
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BACKGROUND:

The primary goal of the update to the Business Licenses and Regulations Ordinance was to conform with State law, integrate best practices, and to improve the organization to improve the efficiency of enforcement.

The initial review was provided by HDL’s legal consultant who recommended various language changes and additions. Staff then reviewed the changes and additions and discussed whether the update was providing clarity to the code and efficiency in enforcing regulation.

This collaborative effort has resulted in amendments and new additions to the City’s Municipal Code including, but not limited to, code enforcement, health and safety, and other updates tailored to fit the community’s evolving needs. These updates to the Municipal Code are presented to the City Council in one comprehensive omnibus ordinance.

ANALYSIS/JUSTIFICATION:

While the original ordinance was in review, staff identified several areas in the code that could be reorganized to better enforce the current business license regulations. The three major changes were to separate regulatory language from the collection of taxes, to consolidate exemptions into one section, and change some of the language for ease of comprehension.

To separate the regulation language from the tax collection language, the City’s legal team identified the various areas that identified specific regulatory requirements, consolidated it and created section Chapter 5.06 Regulations. It was also recommended that the City refer to the business license as a “tax receipt” so there is a clear separation between taxes collected and an issued license.

Current State and local law provide for exemptions for certain business types and/ or activities such as not for profit businesses. The proposed ordinance has combined all exemptions into one section, 5.04.060. Exemption from license requirement. This will aid the public and staff in identifying and applying exemptions provided by current law.

Some of the historical language was difficult or too rigid to administer. An example was in section 5.04.350 Penalty for nonpayment of annual license. The original language spoke to penalties being assessed 30 days after the due date and every 30 days thereafter. Assessing penalties monthly is more practical and standard practice. Another example is in section 5.04.450 Professional, semiprofessional-connected business where the code identifies specific professions. Language was added to allow the Director of Finance to make a determination of what is considered a professional business for new professions that may not be listed.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ENVIRONMENTAL IMPACT:

In accordance with the requirements of California Environmental Quality Act (“CEQA”), the project is exempt pursuant to Sections 15378(a) and 15061(b)(3) of the State CEQA Guidelines (Title 14 of the California Code of Regulations).

LEGAL REVIEW:

The City Attorney reviewed the attached Ordinance.

PUBLIC NOTIFICATION:

Public notice was made through the regular agenda process. In addition, on January 16, 2025, the Office of the City Clerk posted a public notice to notify the public that reports are available for public inspection. The notice was posted at the following locations:

Stanton City Hall, Stanton Community Services Center (Family Resource Center), United States Post Office (Stanton), and online at www.StantonCA.gov (City of Stanton Website).

STRATEGIC PLAN OBJECTIVE:

Obj. No. 4: Ensure fiscal stability and efficiency in governance.

Prepared by: Amy Massey, Accounting Manager
Reviewed by: Michelle Bannigan, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. Proposed Ordinance No. 1158
ORDINANCE NO. 1158

ORDINANCE NO. 1158

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING CHAPTER 5.04 AND ADDING CHAPTER 5.06 AND CHAPTER 5.72 OF TITLE 5 OF THE STANTON MUNICIPAL CODE, RELATING TO BUSINESS LICENSES

AND REGULATIONS
WHEREAS, the City of Stanton (“City”) is authorized under its police powers to ensure that all businesses operating in the City comply with all local, state and federal laws at all times during the business licensing process; and
WHEREAS, the City’s Municipal Code includes comprehensive regulations on commencing, conducting, carrying on, or engaging in any business in the City, including the requirement of a business license generally; and
WHEREAS, the City Council desires to amend certain provisions of its comprehensive business license provisions for added clarity; and
WHEREAS, specifically, the City Council desires to comprehensively amend Chapter

5.04 of Title 5, “Business Licenses and Regulations,” of the Stanton Municipal Code to provide a separate section each for the tax collection and the regulatory requirements; and
WHEREAS, the City Council further desires to consolidate all references to Exemptions in to once section; and
WHEREAS, the City Council desires to provide for the regulation of junk dealers and collectors operating within the City by creating a new Chapter 5.72 of Title 5, “Business Licenses and Regulations,” of the Stanton Municipal Code; and WHEREAS, on February 11, 2025, the City Council considered the staff report, recommendations by staff and the City Attorney, and public comment regarding amendments to Chapter 5.04 of Title 5 of the Stanton Municipal Code relating to business licenses and regulations; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDAIN AS FOLLOWS:

SECTION 1: The City Council finds that the ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Sections 15378(a) (the ordinance is not a “project” and has no potential for resulting in physical change to the environment, directly or indirectly) and 15061(b)(3) (there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment) (14 Cal. Code Regs.).

Attachment: A
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ORDINANCE NO. 1158

SECTION 2: Chapter 5.04 of Title 5 of the Stanton Municipal Code, entitled, “Licenses,” of Title 5 of the Stanton Municipal Code is hereby deleted in its entirety and restated to read in its entirety as follows:
“Chapter 5.04. Tax Receipts
§ 5.04.010. Tax Receipt required.

A. It is unlawful for any person, either for him or herself or for any other person, to commence, conduct, carry on, or engage in any business in this chapter specified, in the city without first having procured a tax receipt from the city so to do, or without complying with any and all regulations of such business contained in this chapter; and the carrying on of any business without first having procured a tax receipt from the city so to do, or without complying with any and all regulations of this chapter, constitutes a separate violation of this chapter for each and every day that such business is carried on or conducted.

B. When any person, by the use of signs, circulars, cards, telephone directories, social media, online marketing, or newspapers, advertises, holds out, or represents that he or she is commencing, conducting, carrying on, or engaging in business in the city, or when any person holds an active tax receipt or permit issued by a governmental agency indicating that he or she is commencing, conducting, carrying on, or engaging in business in the city, such facts shall be considered prima facie evidence that such person is commencing, conducting, carrying on, or engaging in business in the city.
§ 5.04.020. Branch establishments.

Separate tax receipts must be obtained for each branch establishment or location of the business engaged in, and such tax receipt shall authorize the recipient to engage only in the business activity thereby at the location or in the manner designated in such tax receipt; provided, that warehouses and distributing plants not opened to the public used in connection with and incidental to a business tax receipt shall not be deemed to be a separate place of business or branch established.
§ 5.04.030. Concessions.

Every person who operates any business, whether upon a cost, rental or commission basis, as a concession or upon rented floor space in or upon the premises of any person who received a tax receipt under any provision of this chapter shall be required to pay the tax and obtain a separate and independent tax receipt pursuant to the appropriate provisions of this chapter and shall be subject to all the provisions of this chapter.

ORDINANCE NO. 1158

§ 5.04.040. Unlawful business.

The payment of a business tax and its acceptance by the city and the issuance of a tax receipt to any person shall not entitle the holder thereof to conduct any business in or on any building or premises designated in such tax receipt in the event that such building or premises is situated in a locality in which the conduct of such business is in violation of any law or ordinance, nor to conduct any business for which a permit is required as a prerequisite to the conduct of such business, nor to conduct any illegal or unlawful business.
§ 5.04.050. Tax receipt – a receipt.

The Business Tax Receipts issued under the authority of Chapter 5 of this Code are Receipts of payment of the business taxes levied on the privilege of carrying on or engaging in a business, profession or occupation under the City's taxing power. The Business Tax Receipts are not regulatory tax receipts issued under the City's police power. Provisions of a regulatory nature contained in Chapter 5 of this Code are placed in Chapter 5 as a matter of convenience only. Although a separate regulatory Business Tax Receipt is not issued, such provisions are imposed as conditions of an additional regulatory tax receipt imposed under the City's police power to regulate businesses, occupations, professions, trades, or callings in order to protect the public health, morals, safety and welfare.
§ 5.04.060. Exemption from license requirement.

A. The following are not required to pay a tax receipt:

1. Businesses, trades, callings, professions, exhibitions, or vocations exempt from municipal business licensing requirements by virtue of the Constitution and laws of the State or the United States;

2. Businesses, trades, callings, professions or vocations whose contact with the City is merely incidental to their business. “Incidental contact” includes, but is not limited to:
a. Traveling through the City limits on business without conducting a business transaction within the City,
b. Delivering packages or goods to an address located within the City where the remainder of the transaction occurred either outside of the City, or by mail, telephone or Internet,
c. Occasional meetings within the City between a client and a service provider whose office is located outside the City, and where the services are primarily rendered to the client from a location outside the City, d. The services of any doctor, lawyer, architect, or other professional person not having a fixed place of business within the City, who is called upon to come to the City to render service.

ORDINANCE NO. 1158

3. “Incidental contact” does not include the following:
a. Significant advertising or solicitation of business conducted within the City, b. Significant negotiation and execution of contracts, agreements, invoices, purchase orders and similar documents at a location within the City evidencing the sale of goods or services,
c. Delivering packages or goods to an address located within the City where other parts of the transaction also occur within the City (e.g., negotiation of sales price, signing of contract, exchange of goods for money, etc.).

4. Exemption from payment of tax. Although required to obtain a tax receipt, no license tax shall be required for the following:
a. Businesses, trades, callings, professions, exhibitions, or vocations exempt from municipal license taxes by virtue of the Constitution and laws of the State or the United States;
b. Any institution or organization which is conducted, managed, or carried on wholly for charitable purposes and from which profit is not derived, either directly or indirectly, by any individual; provided, however, the applicant shall furnish conclusive proof to the License Collector that such is the case; c. Any enterprise or entertainment when the receipts derived therefrom are to be appropriated to any church or school or to any religious, benevolent, or charitable purpose within the City;
d. Any person honorably discharged from the armed forces of the United States who peddles, hawks, or vends any goods permitted by law and exempt from license taxes by virtue of the laws of the State and who exhibits his or her authenticated papers; provided, however, no more than one license shall be issued to such applicant during any one year; e. Any person peddling, exclusively, fruit, vegetables, or other products raised upon his or her lands; provided, however, such person shall furnish conclusive proof to the License Collector that such products were raised by him or her on his or her lands before the issuance of a tax-exempt license, and such person shall carry the license with him or her; f. Any person engaged in citrus growing or other horticultural or agricultural pursuits, including persons engaged exclusively in the business of caring for, spraying, fumigating, fertilizing, or hauling such horticultural or agricultural products or engaged in other gainful occupation serving citrus growers, other horticulturists, and farmers, except packinghouses; and g. Any person who only commences, conducts, carries on, or engages in business within the territorial limits of the city with the city of Stanton, exclusively.

B. Tax exempt licenses. Licenses issued pursuant to the provisions of this section shall be issued in the same form and manner as other licenses but shall bear the words “Tax Exempt License” over the signature of the License Collector.

ORDINANCE NO. 1158

C. Any person claiming an exemption pursuant to this section shall file a sworn statement with the director of finance stating the facts upon which exemption is claimed, and in the absence of such substantiating statement, such person shall be liable for the payment of a tax receipt.

D. Regulatory provisions applicable. The provisions of this section shall not exempt any person from complying with the regulatory measures and provisions of this chapter, except the payment of the license taxes required. § 5.04.070. Compliance with ordinances.

Nothing contained within the provisions of this Chapter shall exempt any person from complying with other ordinances of the city.
§ 5.04.080. Application prerequisite—Form.

A. Before a tax receipt is issued to any person, he or she shall make written application therefor to the city upon a form to be provided by the city.

B. As part of the application, the applicant shall, at a minimum, sign a statement that if issued a tax receipt, the applicant shall accept responsibility for the conduct of all its employees, contractors, agents, and representatives.

C. Submission of an application for a tax receipt does not authorize the operation of a business. The city will not consider an application until it is deemed complete with all the information that the city may require to evaluate the application. § 5.04.090. Appeals of business tax decisions.

A. Any person aggrieved by any decision of the License Collector concerning the amount of such tax receipt taxes may appeal to the City Manager by filing a notice of appeal with the City Manager and providing reasons to support the appeal. The City Manager shall thereupon fix a time and place for hearing such appeal. The City Manager shall give notice to such person of the time and place of the hearing by serving it personally or by depositing it in the United States Post Office in Stanton, California, postage prepaid, addressed to such person at his last known address.

The City Manager shall have the authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter.

B. An applicant may appeal the denial of a business tax receipt from the City Manager to a hearing officer by filing with the city clerk a notice of appeal within fifteen days from the date the notice of denial was issued. The appeal shall set forth the reasons why the notice of denial should be overturned and shall also be filed with any applicable appeal fee, as adopted via council resolution. Upon receiving the appeal request, a hearing officer shall be selected using the criteria in Chapter 1.12. The ORDINANCE NO. 1158

hearing officer shall set a time and place for hearing the appeal and notify the applicant and city. At the de novo appeal hearing, the city and the applicant, business owner, or business operator may each provide testimony and evidence relating to why the appeal should be affirmed or denied. Within seven days of the conclusion of the hearing or any continued hearing, the hearing officer shall render a decision affirming or denying the business license denial, based on whether substantial evidence demonstrates that the grounds set forth in Section 5.04.206 have been met. The applicant, business owner, or business operator shall be given written notice of the hearing officer's decision by registered mail, and the notice shall state with specificity the reasons for the hearing officer's decision.

C. The action of the hearing officer shall be final and appealable to the Superior Court of the state of California pursuant to Code of Civil Procedure Section 1094.5. § 5.04.100. Statement for issuance of first tax receipt.

Every applicant for a first tax receipt shall furnish to the city a written statement containing such information as the city may require determining the classification of the applicant and any other information required by the City.
§ 5.04.110. Statement for issuance of renewal tax receipt.

The applicant for the renewal of a tax receipt shall furnish to the city a written statement containing such information as the city may require to determine the amount of the business tax to be paid by the applicant.
§ 5.04.120. Effect of statement.

No such statement shall be conclusive upon the city, nor prevent recovery of any tax properly due.
§ 5.04.130. Failure to make statement.

If any person required to make such statement shall fail to do so, such person shall be required to pay a tax at the maximum rate prescribed in this chapter for the business carried on by such person.
(Prior code § 5.04.240)
§ 5.04.140. Duty to issue tax receipt.

Upon compliance with this chapter and payment of the required business tax , it shall be the duty of the director of finance to issue a tax receipt and to state upon the face of each receipt the following:

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A. The name of the person to whom the same is issued;
B. The kind of business;
C. The location of such business;
D. The date of expiration.
(Prior code § 5.04.250)
§ 5.04.150. Effect of mistake by city.

No mistake by the city in stating the amount of a business tax shall prevent the collection by the city of the amount properly due.
(Prior code § 5.04.260)
§ 5.04.160. Unpaid taxes as bar to further business activity.

No tax receipt for any succeeding, current or unexpired tax period shall be issued to any person who, at the time of application, is indebted to the city for any unpaid taxes. (Prior code § 5.04.270)
§ 5.04.170. Duplicate tax receipt—Fee.

Upon payment of a fee of five dollars, a tax receipt recipient whose tax receipt has been lost or destroyed shall be issued a new receipt.
(Prior code § 5.04.280)
§ 5.04.180. Transfer of tax receipt.

No tax receipt shall be transferred or assigned except that a tax receipt recipient may make a change in the fictitious business name.
(Prior code § 5.04.290)
§ 5.04.190. Time, place, medium of payment.

All business tax shall be paid in advance in lawful money of the United States at the office of the director of finance.
(Prior code § 5.04.300)
§ 5.04.200. Tax receipt period.

Except as otherwise provided in this chapter, all tax receipts required under this chapter shall be for terms and shall be due and payable as follows:

A. The term of annual tax receipts shall be one year, beginning January 1st of each year;
B. All taxes shall be due and payable on the first day of the term for which the tax is required.

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C. On July 1st of each calendar year the tax for the balance of the year for a new tax receipt shall be reduced by one-half.
(Prior code § 5.04.310)
§ 5.04.210. Posting and exhibiting tax receipt.

All tax receipts must be kept and posted in the following manner:

A. Any tax receipt recipient transacting and carrying on business at a fixed place of business in the city shall keep the tax receipt posted in a conspicuous place upon the premises where such business is carried on;
B. Any tax receipt recipient transacting and carrying on business but not operating at a fixed place of business in the city shall keep the tax receipt upon his person at all times while transacting and carrying on such business. § 5.04.220. Duty to enforce and investigate.

The director of finance, his or her deputies, the fire chief or designee, and all police officers of the city are appointed business tax receipt inspectors. They may investigate all places of business and all persons engaged in or carrying on any business in the city.

They shall enforce this chapter.
§ 5.04.230. Entry to inspect—Exhibition of tax receipt.

The director of finance, his or her deputies, the fire chief or designee and police officers may enter free of charge at any time any place of business for which a tax receipt is required and demand the exhibition of such tax receipt by any person in charge of such place of business; and if such person shall then and there fail to exhibit such tax receipt upon demand, then the person carrying on or engaging in such business shall be in violation of this chapter.
§ 5.04.240. Penalty for nonpayment of annual tax receipt.

A. Every annual business tax which is not paid by the last day of the month in which it is due shall be considered delinquent, and the director of finance shall impose an additional penalty of ten percent of the tax on the first day of the following month after the due date thereof. In the event the tax is not paid by the end of the following month, a like penalty of ten percent of the tax shall be added on the first day of each month thereafter until such tax and accumulated penalty shall be paid; provided, however, that the amount of such total penalty to be added shall not exceed fifty percent of the amount of the tax due.

B. Additionally, the City may recover the costs of enforcement, including but not limited to, third party collection costs in addition to the tax and penalty owed.

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§ 5.04.250. Information to be confidential.

It is unlawful for the License Collector or any person having an administrative duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, that nothing in this section shall be construed to prevent:

A. The disclosure to, or the examination of records and equipment by, another City official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter, or collecting taxes imposed under this chapter;
B. The disclosure of information to, or the examination of records by, Federal or State officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena; C. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any tax receipt tax liability of the particular taxpayers to the City;
D. The disclosure, after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that the License Collector may refuse to make any disclosure referred to in this subsection when in their opinion the public interest would suffer thereby;
E. The disclosure of the names and addresses of persons to whom tax receipts have been issued, and the general type or nature of their business; F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the City Council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of tax receipt taxes, or submits an offer of compromise with regard to a claim asserted against him by the City for tax receipt taxes, or when acting upon any other matter;
G. The disclosure of general statistics regarding taxes collected or business done in the City; and
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H. Any disclosure that is required by law.
§ 5.04.260. Statement filing and record keeping.

A. No statements submitted by the applicant shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable under this chapter.

Such statement and each of the several items therein contained shall be subject to audit and verification by the License Collector, their deputies, or authorized employees or representatives of the City, who are authorized to examine, audit, and inspect such books and records of any tax receipt or applicant for tax receipt, as may be necessary in their judgment to verify or ascertain the amount of tax receipt due.

B. All persons subject to the provisions of this chapter shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for examination by the License Collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the License Collector to examine such records at reasonable times and places.
§ 5.04.270. Tax receipt a debt due city.

Business tax and penalties are a debt to the city. Any person carrying on any business without having procured a tax receipt from the city is subject to action in the name of the city in any court of competent jurisdiction.
§ 5.04.280. Conviction for violation not waiver of tax receipt.

Conviction for violation of this chapter shall not excuse payment of any business tax. § 5.04.290. Duty to issue complaints.

City employees directed to enforce this chapter shall cause complaints to be issued against violators.
§ 5.04.300. Refunds.

A. On the order of the city council, any tax receipt or penalties, or portion thereof, may be refunded if there is a legitimate cause for a refund. Ordinarily, the legitimate cause will be that the taxpayer Paid an amount over the amount due.

B. Whenever a person desires a refund, it shall be a precondition to receiving a refund that a claim in writing be submitted, stating, under penalty of perjury, the specific grounds upon which the claim is founded. The claim shall be filed with the business ORDINANCE NO. 1158

tax administrator or the city clerk and shall be filed within one year of the date of payment. The claim shall be on forms furnished by either the tax administrator or the city clerk.
§ 5.04.310. Manufacturing, wholesaling.

Every person conducting, managing or carrying on a business at wholesale, and every person engaged in conducting, managing or carrying on a manufacturing business not otherwise specifically referenced by any other provision of this chapter shall pay an annual tax of twenty-eight dollars and four dollars for each employee. § 5.04.320. Retail sales and other businesses not specifically referenced.

Every person conducting, managing or carrying on any retail business or conducting, managing or carrying on the business of selling goods, wares and merchandise or any article or thing of value at retail and not otherwise specifically referenced by this chapter and every person conducting, managing or carrying on any business that is not specifically referenced by this chapter, shall pay an annual tax of twenty-eight dollars and four dollars for each employee.
§ 5.04.330. Determination of business classifications.

The determination of the class of business in which an applicant for a business tax receipt is deemed to be engaged shall be a ministerial task of the License Collector. § 5.04.340. Professional, semiprofessional- connected business.

Every person conducting, managing or carrying on any business, without regard to allocation of space within an enclosed building, enumerated in this section, or any combination thereof, shall pay an annual tax of twenty-eight dollars and four dollars for each employee. This section does not require a tax receipt from employees of other persons conducting, managing or carrying on any such business.

Abstractor of titles Designer
Accountant Draftsman
Advertising counsel Drugless practitioner
Agricultural advisor/counselor Electrical engineer
Appraiser Electrologist
Aquarian Employment agency
Architect or bureau
Assayer Geologist
Attorney at Law Herbalist
Auditor Insurance adjuster
Bail bond broker Interior decorator
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If a professional or semiprofessional business is not listed, above, then the Director will make a similar use determination. For purposes of this chapter, "Professional services" means any professional services, as that term is ordinarily and commonly used and understood, wherein individuals are engaged in the business of offering to the public professional or semiprofessional services for compensation, and not specifically covered under any other part, chapter or section of this chapter, and shall include those professions generally requiring governmental certification or a professional degree. § 5.04.350. Rental units.

A. For the business of renting three or more apartments, houses or other rental units designed or primarily used for permanent or indefinite living purposes, the tax shall be ten dollars per year, and for each additional unit in excess of three, five dollars per unit.

B. For the business of renting three or more rental rooms, such as motel, hotel, retirement or any similar type of business, the tax shall be twenty-eight dollars per year, and for each additional unit in excess of three, two dollars per unit.

C. For the exclusive business of renting commercial unit for private storage, the tax shall be twenty-eight dollars per year, and for each additional unit in excess of three, two dollars per unit.

Certified public accountant Investment counselor
Chemical engineer Landscape architect
Chemist Lapidary
Chiropodist Mechanical engineer
Civil engineer Mortician
Claims adjuster Naturopath
Construction engineer Oculist
Consulting engineer Optician
Dealer in stocks, bonds or securities Optometrist
Dental laboratory Oral surgeon
Dentist Physician
Physician and surgeon Travel bureau
Real estate broker Tree removing
Sanitation engineer Tree surgery
Surgeon Tree trimming
Surveyor Veterinarian
Taxidermist
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§ 5.04.360. Commercial and industrial properties.

Every person, firm or corporation managing commercial or industrial properties shall pay a tax of twenty-eight dollars annually. This section shall include vacant lots for storage purposes.
§ 5.04.370. Amount of tax receipt to be paid on fixed basis.

Annual taxes for the businesses named in the following sections are fixed as set forth in Chapter 5.04.
§ 5.04.380. Advertising structures.

A. Bus Stop Benches. All bus stop benches, with or without an advertising message stated thereon, shall be subject to a tax of twelve dollars per year.

B. Other. Other outdoor advertising structures, including billboards, shall be subject to a tax of fifty dollars per year for two or less structures and twenty-five dollars per year for each such structure in excess of two.

C. Exemptions. The provisions of this section shall not require a tax from any person maintaining a regular place of business within the city and advertising his or her own merchandise by a sign or billboard located on or attached to his or her own building; and no tax shall be required under this section from the owners of real estate in advertising their property for sale or lease by means of billboards located upon the property advertised for sale or lease.
§ 5.04.390. Amusements and amusement devices.

A. Amusement Machine or Game Machine. For every machine, including the renting, leasing or maintaining thereof, the tax shall be forty dollars per year. "Amusement machine" or "game machine" includes any sport or pastime played or operated with cards, dice, balls, checkers, counters, quoits, beans, spindles, tables, wheels or any other device, contrivance or apparatus, or any combination thereof, when machine or games are operated by inserting therein a coin or coins, slugs or replicas of coins.

1. Jukeboxes. For jukeboxes the tax shall be twenty dollars per year.

2. Bowling Alleys. For bowling alleys, the tax shall be twenty-eight dollars, plus ten dollars per alley, per year provided that the required taxes for amusement and game machines shall also be paid.

3. Pool or Billiard Centers.[1] Pool or billiard centers not having coin-operated tables shall pay a tax of twenty-eight dollars plus ten dollars per table, per year where no other business activity is carried on; provided further, that said centers shall also pay the required tax set forth in this section for any amusement or game machines.

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[1] Additional provisions on pool and billiard halls are found in Chapter 5.20 of this code.

B. Amusement Arcade. For amusement arcades, the tax shall be one hundred dollars per year, or fraction thereof. "Amusement arcade" is a building or part of a building open to the public that contains five or more coin- or token-operated pinball machines, video games, rides, shows or similar player-operated entertainment facilities and devices.

C. Carnival. For carnivals the tax shall be one hundred dollars per day, and an additional tax of ten dollars per day for each of the first five separate shows, attractions or exhibitions carried on by such carnival. "Carnival" is any group of attractions, such as ball games, dice games, whips, Ferris wheels or other riding devices, dancing shows, minstrels or any other like entertainment or game for which a charge is made for playing or participating therein.

D. Casual Entertainment. For casual entertainment the tax shall be fifty dollars per day for each burlesque show, revue or fashion show participated in by one or more employees, guests, customers or any other person or persons.

E. Circus. For circuses the tax shall be one hundred dollars per day, and an additional tax of ten dollars for every side show, provided that the maximum tax receipt for such side shows shall be one hundred dollars per day.

F. Circus Procession or Parade. For a circus procession or parade the tax shall be one hundred dollars per day, where such circus is conducted outside the city.

G. Live Entertainment Permit. For a live entertainment permit approved under variance or conditional use permit, the tax shall be one hundred fifty dollars per year.

H. Music or Sound Vehicles. For music or sound vehicles, the tax shall be five dollars per day.

I. Rides and Similar Concessions. For rides and similar concessions, the tax shall be ten dollars per day except that any ride or concession with a fixed place of business in the city for a period of one hundred twenty days or more shall pay one hundred fifty dollars per year.

J. Shows and Exhibitions. For shows and exhibitions the tax shall be twenty-eight dollars per day plus four dollars per day for each person working with such show or exhibition, including side shows, mystery, illusion, street, telescope, animal, bird, minstrel.

K. Miniature Golf Courses. For each miniature golf course, the tax shall be one hundred fifty dollars per year.

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§ 5.04.400. Auctions.

Auctions shall pay twenty-eight dollars per day, or one hundred fifty dollars per year. § 5.04.410. Baths and/or massage parlors.

For every person conducting, managing or carrying on the business of giving steam baths, massage, electric light baths, show baths, electric tub baths, sponge baths, or operating any public bath which maintains in connection therewith a steam room, plunge, bath or sleeping accommodations, the tax shall be one hundred fifty dollars per year. § 5.04.420. Barbershops and beauty parlors.

Barbershops and beauty parlors shall pay twenty-eight dollars per year for the first chair or station and four dollars per year for each additional chair or station. § 5.04.430. Barber schools and beauty schools.

Barber schools and beauty schools shall pay one hundred fifty dollars per year. § 5.04.440. Boxing and wrestling exhibitions.

Boxing and wrestling exhibitions shall pay fifty dollars per day. § 5.04.450. Boats, buses, campers, automobiles, mobile homes, motorcycles, trailers, trucks, equipment and similar items.

Every person, firm or corporation regularly engaged in the rental or sale of new or used automobiles, boats, buses, campers, motorcycles, mobile homes, trailers, trucks, equipment and similar items shall pay an annual tax of one hundred dollars. § 5.04.460. Buses, taxicabs and ambulances.

A. Bus, ambulance and taxicab companies shall pay one hundred dollars per year plus five dollars for each vehicle used within the city.

B. A certificate of insurance, with the city named as an additional insured, shall be filed with the city with each application for a business tax receipt. The policy shall provide for comprehensive auto general liability insurance with a combined single limit of one million dollars.
§ 5.04.470. Billposting, signposting, directional signs.

Every person, firm or corporation carrying on the business of signposting, billposting or installing guide or directional signs, but not including sign painting, shall pay an annual tax of one hundred dollars.

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§ 5.04.480. Contractors and subcontractors.

A. The term "contractor," "subcontractor," and "specialty contractor" are defined as they are used in the California Contractor's License Law.

B. Every person, firm or corporation conducting, managing, or carrying on the business of constructing, repairing, or adding to any house, buildings, or structures, as a general contractor, or who is licensed by the state as a general contractor, shall pay a tax of sixty dollars per year.

C. Every person, firm or corporation conducting, managing, or carrying on the business of electric wiring contractor, engaged in the business of installing electric wires and electric lighting or heating fixtures, or constituting a master electrician within the meaning of the electric code of the city, shall pay a tax of forty dollars per year.

D. Every person, firm or corporation conducting, managing, or carrying on the business of plumbing, lathing or plastering, cement, concrete, or brick work, as a contractor shall pay a tax of forty dollars per year.

E. Every person, firm or corporation conducting, managing, or carrying on any other line of contract business not mentioned herein, including all subcontractors, and specialty contractors shall pay a tax of forty dollars per year. § 5.04.490. Child-care centers, nursery schools, preschools.

If not exempt under state law, child-care centers, nursery schools and preschools shall pay twenty-eight dollars per year, plus four dollars for each child. § 5.04.500. Dancehall and occasional dance.

For dancehalls and occasional dances, the tax shall be:

A. Public dancing, one hundred fifty dollars per year;
B. Occasional dance, ten dollars per day.
§ 5.04.510. Dancing school or academy, etc.

Dancing, art, craft, skill or other such schools or academies shall pay twenty-eight dollars per year, plus four dollars for each student. The tax under this section shall not exceed three hundred dollars per year.
§ 5.04.520. Detective agencies and merchant police.

A. Every person engaged in, managing, operating or carrying on the business of private investigation for hire or reward or of supplying information as to the ORDINANCE NO. 1158

personal character, actions or identity, business or occupation of any person shall pay a tax of one hundred dollars per year.

B. Every person engaged in, managing, operating or carrying on the business of private policing or guarding of private places of business or recreation, shall pay a tax of one hundred fifty dollars per year.

C. Applications for permits shall state such facts as may be required by the council to show the good character, competency and integrity of the applicant and shall set forth the name, age and business address and residence of the applicant, if a natural person; or if a corporation, its name, date and place of incorporation, address of its principal place of business, and the names and addresses of its principal officers; or, if a partnership, association or unincorporated company, the names and addresses of the partners or of the persons comprising the association or company.
§ 5.04.530. Entertainment.

Concerts, lectures, motion pictures, or theatrical performances, or any similar type of entertainment not otherwise specifically referenced under this chapter where an admission fee is charged shall pay twenty-eight dollars per year plus fifteen cents per seat per year.
§ 5.04.540. Fire sales, bankrupt sales, closeout sales.

Fire sales, bankrupt sales, and closeout sales shall pay one hundred dollars per year, or fraction thereof.
§ 5.04.550. Handbills, samples, distribution of.

Every person, firm or corporation distributing samples or handbills shall pay an annual tax of forty dollars; provided, that this section shall not apply to any person, employee, agent or representative of any person who already has a city tax receipt as provided elsewhere in this chapter.
§ 5.04.560. Itinerant merchants.

A. Itinerant merchants shall pay ten dollars per day.

B. "Itinerant merchant" includes all persons, both principal and agent, who engage in a temporary or transient business in the city selling goods, wares or merchandise with the intention of continuing said business in the city for a period of not more than one hundred twenty days, and who, for the purpose of carrying on such business, hire, lease or occupy any room, building or structure for the exhibition or sale of such goods, wares or merchandise.

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C. The provisions of this section shall not apply to commercial travelers, or selling agents, selling their goods to dealers, whether selling for present or future delivery, by sample or otherwise.
§ 5.04.570. Convalescent homes and rest homes.

Convalescent homes and rest homes shall pay an annual tax of one hundred dollars, plus two dollars for each bed.
§ 5.04.580. Junk dealer or collector.

A. For junk dealers, the tax shall be two hundred dollars per year, or fraction thereof.

B. "Junk dealer," as used in this Section, shall have the same definition as provided in Chapter 5.72.
§ 5.04.590. Mobile home parks.

Mobile home parks shall pay twenty-eight dollars plus two dollars per space per year.

Notwithstanding the foregoing, business taxes under this section shall not exceed the sum of seven hundred fifty dollars per year for any mobile home park. § 5.04.600. Peddler.

A. Peddlers selling at retail or wholesale, shall pay ten dollars per day.

B. "Peddler" is a person not having a fixed place of business in the city who travels from place to place, or has a stand upon any public street, alley or other public place, doorway of any room or building, unenclosed or vacant lot, who sells or offers for sale any goods, wares or merchandise in his or her possession. § 5.04.610. Newspapers.

For each daily, weekly, semi-weekly or monthly newspaper printed, published or circulated in the city, the annual tax shall be forty dollars. § 5.04.620. Photographers—Transient.

A. Transient photographers shall pay one hundred fifty dollars for a period of one year or any portion thereof.

B. "Transient photographer" is every person who photographs, solicits or takes orders for photographic work, and has no fixed place of business within the city. This section excludes persons engaged only in taking school pictured with the sanction of school authorities.

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§ 5.04.630. Pawnbrokers.

Every person carrying on the business of pawnbroker shall pay an annual tax of three hundred dollars. For the purpose of this section, the term "pawnbroker" includes every person conducting, managing or carrying on the business of loaning money either for him or herself or for any other person, upon any personal property, personal security or purchasing personal property, and reselling or agreeing to resell such property to the vendor or other assignee at prices previously agreed upon. Nothing in this section shall apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of the state or of the United States. § 5.04.640. Tool sharpener.
"Tool sharpener" is every person who travels from house to house or place to place for the purpose of grinding or sharpening scissors, knives, cutlery or mechanical tools, and has no fixed place of business within the city. The tax for a tool sharpener shall be as follows:

A. When operating on foot, ten dollars per year, or fraction thereof; B. When operating by any motor vehicle, twelve dollars per year or fraction thereof. § 5.04.650. Private postal delivery.

Every person, firm or corporation engaged in private postal service shall pay an annual tax of one hundred dollars per year plus four dollars per employee. § 5.04.660. Vehicle wheel tax.

A. Foods. Every person engaged in, managing, conducting or carrying on the business of selling at retail or to the ultimate consumer, or to persons, firms or corporations not regularly engaged in or carrying on such lines of business, from trucks, or other vehicles, meals, game, poultry, fish, honey, cheese, coffee, pickles, fruits, vegetables, groceries, bread, crackers, cake, pies, bakery goods, ice cream, frozen malts, frozen confections, or other products not specified in any other section of this chapter, and operating from other than a fixed place of business in the business or industrial zone, and which business is not upon the tax rolls of the city, shall pay forty dollars per year.

B. Milk Route From Outlying Source. Every person engaged in, managing, conducting or carrying on the business of selling or delivery at retail or to the ultimate consumer, or to any person, firm or corporation not regularly engaged in or carrying on such line of business, milk, cream or dairy products, and operating from other than a fixed place of business in the business or industrial zone and which business is not upon the tax rolls of the city, shall pay forty dollars per year.

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C. Laundries, Dry Cleaning. Every person engaged in, operating, managing, or conducting a laundry, or cleaning, sponging, pressing or dry cleaning business from other than a fixed place of business within the city, and who carries on or engages in the business of collecting laundry or soliciting orders for laundry business in the city, or cleaning, sponging, pressing, or dry cleaning, shall pay the sum of forty dollars per year.
§ 5.04.670. Coin-operated machines.

A. Vending Machines Owned and Operated by Vendors. Every person, firm or corporation whose business is limited exclusively to renting, leasing or operating coin-operated vending machines shall pay an annual tax based on prior year's gross receipts of business conducted within the city.

B. Coin-Operated Laundry Equipment Owned and Operated by Vendors. Every person, firm or corporation whose business is limited exclusively to renting, leasing or operating coin-operated laundry equipment shall pay an annual tax based on prior year's gross receipts of business conducted within the city.

C. Rates. The gross receipts rates for businesses subject to the provisions of subsections A and B of this section shall be as follows:

D. Postage Machines. Every person, firm or corporation conducting the business of selling postage stamps by a coin operated machine, shall pay an annual tax of five dollars per machine.

E. Laundry Machines Not Owned and Operated by Vendors. Every person, firm or corporation conducting a business utilizing coin-operated washers, dryers, dry cleaning machines, soap dispensers, bleach dispensers and other similar devices, shall pay an annual tax of twenty-eight dollars plus two dollars per machine.

F. Other Machines. Every person, firm or corporation conducting a business of operating any coin-operated machine not specifically subject to tax by the provisions of subsections A through E of this section shall pay an annual tax for each machine as follows:
$ 28.00 $ 1 to $ 10,000

40.00 10,001 to 15,000

60.00 15,001 to 25,000

85.00 25,001 to 50,000
125.00 50,001 to 75,000
175.00 75,001 to 100,000
Maximum tax $750.00 Plus 15¢ for each additional $1,000 ORDINANCE NO. 1158

Machines requiring the insertion of less than five cents $2.00 Machines requiring the insertion of five cents to nine cents $5.00 Machines requiring the insertion of ten cents or more $10.00 § 5.04.680. Fortunetelling, hypnotism, etc.

Every person who carries on the practice of or who professes to practice the profession or art of palmistry, phrenology, card reading, fortunetelling, hypnotism or mediumship, psychic reading, or other similar professions or arts, and who demands or receives any fee or donation, or collects money for such practice, exercise or exhibition of his art therein, or who gives an exhibition thereof at any place in the city shall pay five dollars per day.
§ 5.04.690. Tip sheets.

Every person who by any means engages in the business or practice of disseminating, distribution, passing out, giving away, handing out, selling, offering for sale, or soliciting for the sale of any sheet, dodger, handbill, circular letter, booklet, or any other printed, typewritten, mimeographed or written matter of any kind pertaining to any horse race, choice of horse or horses, recommending any horse or horses, or giving or conveying any information about any horse race or contest of endurance or speed between horses or beasts, whether at a fixed place of business within the city, or otherwise, shall pay an annual tax of one hundred dollars. The number of persons allowed to distribute such material under any one tax receipt shall not exceed two persons during any day. § 5.04.700. Technical or trade schools.

Technical or trade schools shall pay a tax of one hundred fifty dollars per year. § 5.04.710. Public utilities.

Any public utility operating in the city under a franchise from the city, or applicable therein, and who makes franchise payments thereunder, is subject to the provisions of this chapter only to the extent it engages in retail merchandising not covered by the franchise in the city.
§ 5.04.720. Business tax—No regular place of business.

Any person engaged in business in the city, without having a fixed and established place of business within the city, shall pay forty dollars per year, or any fraction thereof. § 5.04.730. Penalty for violation.

A. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter.

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B. Any person violating any provision hereof shall be charged in accordance with Section 1.04.085 of this code and upon conviction shall be punished in accordance therewith.
§ 5.04.740. Administrative Rules.

The Finance Director of the City may make such rules and regulations as are not inconsistent with the provisions of this Chapter of the Municipal Code as are necessary or desirable to aid in the enforcement and administration of the provisions of said Chapter.

When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business tax imposed by this Chapter cannot be enforced without there being an apportionment according to the amount of business done within the City, or in the State, as the case may be, the Finance Director may make such rules and regulations for the apportionment of the taxes as are necessary or desirable to overcome the constitutional objections. Such rules, regulations, and apportionment thereunder shall be approved by the City Attorney prior to becoming effective.
§ 5.04.750. Severability.

If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The city council of this city declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional.”
SECTION 3: A new Chapter 5.06, entitled “Regulations,” is hereby added to Title 5 of the Stanton Municipal Code, to read in its entirety as follows:
“Chapter 5.06 Regulations
§ 5.06.010 Permits or licenses required.

A. No license shall be issued when the provisions of this chapter or of some other ordinance of the city require a permit to be obtained as a prerequisite to engaging in or conducting such business, until such permit is first applied for and obtained.

Any license issued in violation of the provisions of this section shall be void.

B. No person, association, or organization shall conduct, manage, or carry on such entertainment, concert, exhibition, lecture, or dance, without first obtaining a permit from the council.

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C. It is unlawful for any person, firm, or corporation to engage in, conduct, manage or carry on any of the following businesses, practices, professions, or occupations within the city without first having obtained a license from the council. The activities and businesses for which a permit from the council is required are those designated in Section 5.04.080, Sections 5.04.310 through 5.04.340, subsections B through J of Section 5.05.390, Section 5.04.400, and Sections 5.04.410,

5.04.440, 5.04.460, 5.04.500, 5.04.520, 5.04.530, 5.04.540, 5.04.620, and

5.04.630.
§ 5.06.020 Verification of past conduct.

Every person who seeks a business license from the city pursuant to this chapter shall be required to file a verified statement with the city, signed under penalty of perjury, that:

A. The person or the business entity has not been convicted in a court of competent jurisdiction of any crime or misdemeanor or felony offense which directly relates to the operation or conduct of a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application; and B. The person or the business entity has not had revoked any business license or any establishment, owner, or operator license or permit for a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application.
§ 5.06.030 Grounds for denial, suspension, or revocation.

A. The city shall have grounds to deny the issuance of a business license or suspend or revoke an existing business license when:

1. The building, structure, premises, or the equipment used to conduct the business activity fails to comply with all applicable health, zoning, fire, building and safety laws of the state or city;

2. The business or any of the business activities or operations is prohibited by any local or state law, statute, rule or regulation, or the business is prohibited in the particular location or zone by any law, statute, rule, or regulation;

3. The applicant has made any false, misleading or fraudulent statement of material fact in the application for the business license or in any report or statement required to be filed with the city;

4. The applicant has failed to verify past conduct, as provided in subsections A and B of Section 5.06.020, or has made any false statement related to such verification;

5. The applicant, his or her business entity, or the business's owner, operator, or manager has been convicted in a court of competent jurisdiction of any crime or misdemeanor or felony offense which directly relates to the operation or ORDINANCE NO. 1158

conduct of a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application; or

6. The applicant, his or her business entity, or the business's owner, operator, or manager has had revoked any business license or any establishment, owner, or operator license or similar permit for a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application.

B. The city shall also have grounds to suspend or revoke a business license when:

1. The applicant, his or her business entity, or the business's owner, operator, or manager has been convicted in a court of competent jurisdiction of any crime or misdemeanor or felony offense which directly relates to the operation or conduct of the business for which the business license was granted by the city;

2. At least two verified police reports of a disturbance of the peace, disorderly conduct, or similar violations, or citations or arrests have been made regarding the business within the immediately preceding twelve-month period;

3. The applicant, his or her business entity, or the business's owner, operator, or manager is found to have committed a crime involving moral turpitude which is substantially related to the business activity for which the license was issued.

For purposes of this criteria, a verified complaint(s), code enforcement report(s), police report(s), or other similar evidence may be used as support that a crime was committed; or

4. Any employee, contractor, agent, or representative is found to have committed a crime involving moral turpitude at the business premises that is substantially related to the business activity for which the license was issued. For purposes of this criteria, a verified complaint(s), code enforcement report(s), police report(s), or other similar evidence may be used as support that a crime was committed.

C. For purposes of this chapter, a "nolo contendere" plea shall be deemed a conviction.

D. The city, in its sole and absolute discretion, shall have the authority to determine whether a suspension or revocation is appropriate, in the interest of the public health, welfare, and safety.
§ 5.06.040 Appeals from denial of business license.

A. An applicant may appeal the denial of a business license to a hearing officer by filing with the city clerk a notice of appeal within fifteen days from the date the notice of denial was issued. The appeal shall set forth the reasons why the notice of denial should be overturned and shall also be filed with any applicable appeal fee, as adopted via council resolution. Upon receiving the appeal request, a ORDINANCE NO. 1158

hearing officer shall be selected using the criteria in Chapter 1.12. The hearing officer shall set a time and place for hearing the appeal and notify the applicant and city. At the de novo appeal hearing, the city and the applicant, business owner, or business operator may each provide testimony and evidence relating to why the appeal should be affirmed or denied. Within seven days of the conclusion of the hearing or any continued hearing, the hearing officer shall render a decision affirming or denying the business license denial, based on whether substantial evidence demonstrates that the grounds set forth in Section 5.06.030 have been met. The applicant, business owner, or business operator shall be given written notice of the hearing officer's decision by registered mail, and the notice shall state with specificity the reasons for the hearing officer's decision.

B. The action of the hearing officer shall be final and appealable to the Superior Court of the state of California pursuant to Code of Civil Procedure Section 1094.5. § 5.06.050 Canvassers and solicitors.

A. "Canvasser" or "solicitor" means any person not having an established place of business in the city, who for him or herself or as agent for another goes from place to place, and from house to house, in the city soliciting or procuring the sale or other disposition of any merchandise or services or for the purpose of obtaining information of any nature whether for the purpose of selling merchandise or services or otherwise, and whether or not any moneys are advanced; or who for him or herself, or as agent for another, by telephone or by any other means of communication solicits the retail sale of any goods, wares, merchandise, services or other things of value for future delivery, not otherwise licensed under the provisions of this chapter and not having a regularly established place of business within the city.

B. It is unlawful for any canvasser or solicitor to go from place to place or from house to house or to solicit by telephone or other means of communication for the purpose of soliciting or procuring the sale or the disposition of any merchandise, or for the purpose of obtaining information of any nature, whether for the purpose of selling merchandise or services or not, and whether or not any money is advanced on any such orders or sales, without first having procured a written permit from the chief of police authorizing the same.

To obtain such permit, each canvasser or solicitor, as defined in this section, shall appear personally before the chief of police and file a written application for such permit, giving the name and address of the applicant and such other information as the chief of police shall require. No permit shall be issued by the chief of police to any person who cannot show by written instrument or other evidence satisfactory to the chief of police that such person so applying for a permit under this section is a bona fide canvasser or solicitor as defined in this section.

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C. Persons engaging in the following activities do not need a permit and are exempt from the requirements of this Section:

1. Those seeking to obtain contributions or to sell any goods, articles or services of any kind for the support or benefit of any charitable, religious or political purpose; or on behalf of any non-profit association, organization, corporation or project;

2. Those seeking to influence the personal belief of the occupant of any residence or business in regard to any political or religious matter;

3. Those seeking to obtain, from an occupant of any residence or business, an indication of the occupant's belief in regard to any political or religious matter;

4. Those seeking to obtain donations made incidental to canvassing door-to-door on behalf of any charitable, religious or political purpose; or on behalf of any non-profit association, organization, corporation or project;

5. Those who engage in solicitation solely as an incident to the conduct of any regular retail route licensed by the city.

D. Except by permission of the city council, no person shall solicit other than during daylight hours. The term "daylight hours" is defined as a period from one-half hour before sunup to one-half hour after sunset.

E. Any person, firm or corporation either employing or contracting with one or more persons, to solicit the retail sale of any goods, wares, merchandise, service or other things of value and not otherwise licensed by the city and not having a regularly established place of business within the city may obtain a principal solicitor's license on payment of a business tax of one hundred fifty dollars annually, plus four dollars for each solicitor.

The director of finance shall not issue such license until the applicant has filed with the city a list of all solicitors employed by the applicant or with whom the applicant has contracted and has signed an agreement to notify the city in writing within five days following any change in solicitors.

F. Each applicant, before a license is issued to him or her, shall furnish the city with his or her sales tax number and a written agreement to report on his or her sales tax return the amount of receipts from sales in the city and from sales for use in the city.

G. Every solicitor who is not operating under a principal solicitor's license shall pay a business tax of seventy-five dollars per year.
§ 5.06.060. Business license revocation procedure.

A. If the city manager or designee determines that there are grounds to revoke a business license, as provided under Section 5.06.030, the city manager or designee may provide a notice of revocation to the business owner or operator.

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The notice shall state the reasons why the business license is being considered for revocation, and a hearing officer shall be selected using the criteria in Chapter 1.12 to determine whether the business license should be revoked. Within forty-five days of a hearing officer being selected, the hearing officer shall provide the city and business owner or operator a notice of hearing before the hearing officer, providing the date and time of the revocation hearing. The notice of hearing shall be provided to the business owner or operator at least seven days before the hearing. At the de novo revocation hearing, the city and the business owner or operator may each present evidence supporting why the business license should or should not be revoked. The hearing officer shall consider the evidence and decide whether to revoke the business license. The hearing officer shall not revoke the business license if substantial evidence demonstrates that the criteria in Section 5.06.030 has not been met. The hearing officer may revoke the business license if substantial evidence demonstrates that the criteria in Section 5.06.030 has been met. Within ten days of the hearing or continued hearing, the hearing officer shall provide a notice of decision to the city and the business owner or operator. The action of the hearing officer shall be final and appealable to the Superior Court of the state of California pursuant to Code of Civil Procedure Section 1094.5.

B. The city's remedies, as provided in this section, are in addition to any other legal, civil, or administrative remedies provided under this code.” SECTION 4: A new Chapter 5.72, entitled “Junk Dealers or Collectors,” is hereby added to Title 5 of the Stanton Municipal Code, to read in its entirety as follows:
“Chapter 5.72 Junk Dealers or Collectors.
§ 5.72.010 Purpose.

It is the purpose and intent of this chapter for the city council to exercise its police powers, derived from Section 7 of Article XI of the California Constitution and state law, to promote the health, safety, and general welfare of the residents and businesses of the city of Stanton by regulating junk dealers and collectors operating within the city’s jurisdiction. § 5.72.020 Definitions.

For purpose of this chapter, the following definitions apply:

A. “Fixed or established place of business” means and includes any place in the City actually occupied continually by a person engaged in the business of a junk dealer where the books and records of such person are kept, and at which a large share of the business of such person is transacted.

B. “Junk” means any scrap metals, glass, papers, cans, cordage, disbanded or inoperative motor vehicles, or any other waste or discarded materials commonly known as junk, which may be treated or prepared so as to be used again in some ORDINANCE NO. 1158

other form, or for a purpose other than that for which it was originally made.

C. “Junk collector” means and includes any person carrying on, managing, or employed in the business of going from house to house, or from place to place in the City, collecting or buying junk in small quantities.

D. “Junk dealer” means and includes any person having a fixed place of business within the City and engaged in the business of buying, selling, or otherwise dealing in junk, either at wholesale or retail.

E. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
§ 5.72.030 Permit required.

A. No person shall engage in, manage, conduct, or carry on the business of a junk dealer without a permit, in a form provided by the city. A fee, in an amount as established in Chapter 5.04, must be paid prior to issuance of such permit.

B. Nontransferable. No permit authorized by this chapter shall be transferable to, or used by, a person not named in the permit. All permits issued pursuant to this chapter expire one year from the date of issuance.
§ 5.72.040 Prohibition.

A. Prohibited activity. Junk collection is expressly prohibited in all zones. No person shall carry on, manage, or be employed as a junk collector anywhere within the City, nor will the City issue any permit or license for such activity.

B. Exceptions. This section shall not apply to the collection of junk from place to place, where such activity is connected to the valid operation of an authorized junk dealer or other business with a fixed place of business in or out of the City. § 5.72.050 Operating requirements.

A. No person shall carry on the business of junk dealer within the City between the hours of seven p.m. and eight a.m. the following day.

B. No person shall carry on the business of junk dealer in a manner that will result in litter on public or private property.

C. No junk dealer shall alter, clean, repair, paint, change the appearance of or sell or otherwise dispose of any goods or other things within seven (7) days after the purchase or receipt of them. No junk shall alter, clean, repair, paint or change the appearance of or sell or otherwise dispose of any goods or other things that are salable for or fit for use for the purpose for which originally made or intended, within ORDINANCE NO. 1158

twenty-one (21) days after the purchase or receipt of them. This provision does not apply to goods or things purchased from any dealer or tradesman who is duly licensed to operate such business in the City.

D. Every junk dealer shall keep all such goods or other things accessible to the inspection of the Chief of Police or any Police Officer in the pursuit of official duties.

Every junk dealer, on the demand of the Chief of Police or Police Officer, shall display and exhibit such goods or other things to the Chief of Police or Police Officer.
§ 5.72.060 Suspension, revocation, and nonrenewal.

A. The Community and Economic Development Director may suspend, revoke, or refuse to renew a permit authorized by this chapter in the event a permittee fails to comply with the requirements of this chapter or any other provision of the city’s municipal code.

B. Appeals. Any person aggrieved by any decision to suspend, revoke, or refuse to renew a permit may appeal to the City Manager by filing a notice of appeal with the City Manager and providing reasons to support the appeal. The City Manager shall thereupon fix a time and place for hearing such appeal. The City Manager shall give notice to such person of the time and place of the hearing by serving it personally or by depositing it in the United States Post Office in Stanton, California, postage prepaid, addressed to such person at his last known address. The City Manager shall have the authority to determine all questions raised on such appeal.”
SECTION 5: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 6: The City Clerk shall certify to the passage of this ordinance by the City Council and cause it to be posted in three (3) conspicuous places in the City of Stanton, and it shall take effect on the thirty-first (31st) day after it is approved by the Mayor.

PASSED, APPROVED, AND ADOPTED this 25th day of February, 2025.

DAVID J. SHAWVER, MAYOR
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