Agenda — Stanton City Council, January 27, 2026 (part 1 of 2)

TO THE MEMBERS OF THE CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY FOR THE CITY OF STANTON AND TO THE CITY CLERK / SECRETARY:

NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council / Successor Agency / Housing Authority for the City of Stanton is hereby called by the Mayor / Chairman, to be held on January 27, 2026, commencing at 5:30 p.m. at 7800 Katella Avenue, Stanton, CA 90680 (Council Chambers).

The Agenda for the Special Meeting is attached to this Notice and Call.

Dated: January 22, 2026
s/ Patricia A. Vazquez, City Clerk / Secretary

IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE OFFICE OF THE CITY CLERK AT (714) 890-4245.

NOTIFICATION PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING.

PUBLIC ACCESS IN-PERSON AND VIA TELECONFERENCE
(Electronically / Telephonically)
Attendance by the members of the public may view the meeting live in one of the following ways:
• Attend in person - City Council Chambers: 7800 Katella Avenue, California 90680. • Via Teleconference (electronically / telephonically) - Zoom:

In order to join the meeting via telephone please follow the steps below:

1. Dial the following phone number +1 (669) 444-9171 (US).

2. Dial in the following Meeting ID: 845 2878 0625 to be connected to the meeting.

In order to join the meeting via electronic device please utilize the Zoom URL link below:
• https://us02web.zoom.us/j/84528780625?pwd=kMyEtwVcsndZFIkYaaPvseeu35XqBf.1

ANY MEMBER OF THE PUBLIC WISHING TO PROVIDE PUBLIC COMMENT FOR ANY ITEM ON THE AGENDA MAY DO SO AS FOLLOWS:
• Attend in person and complete and submit a request to speak card to the City Clerk. • E-Mail your comments to [email protected] with the subject line “PUBLIC COMMENT ITEM #” (insert the item number relevant to your comment). Comments received no later than 5:00 p.m. before the scheduled meeting will be compiled, provided to the City Council, and made available to the public before the start of the meeting. Staff will not read e-mailed comments at the meeting. However, the official record will include all e-mailed comments received until the close of the meeting.

Should you have any questions related to participation in the City Council Meeting, please contact the City Clerk’s Office at (714) 890-4245 or via e-mail at [email protected].

NOTICE AND CALL

CITY COUNCIL

SUCCESSOR AGENCY

HOUSING AUTHORITY

SPECIAL MEETING
Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 1 of 8 ends

In order to join the meeting via telephone please follow the steps below:

1. Dial the following phone number +1 (669) 444-9171 (US).

2. Dial in the following Meeting ID: 845 2878 0625 to be connected to the meeting.

In order to join the meeting via electronic device please utilize the Zoom URL link below:
• https://us02web.zoom.us/j/84528780625?pwd=kMyEtwVcsndZFIkYaaPvseeu35XqBf.1

However, the official record will include all e-mailed comments received until the close of the meeting.

Should you have any questions related to participation in the City Council Meeting, please contact the City Clerk’s Office at (714) 890-4245 or via e-mail at [email protected].

AGENDA

SPECIAL AND JOINT REGULAR MEETING

CITY COUNCIL

SUCCESSOR AGENCY

HOUSING AUTHORITY
TUESDAY, JANUARY 27, 2026
CLOSED SESSION - 5:30 P.M.

JOINT REGULAR SESSION - 6:30 P.M.

STANTON CITY HALL, 7800 KATELLA AVENUE, STANTON, CA
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (714) 890-4245 or via e-mail at [email protected]. Notification prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 2 of 8 ends

The City Council agenda and supporting documentation is made available for public review and inspection during normal business hours in the Office of the City Clerk, 7800 Katella Avenue, Stanton California 90680 immediately following distribution of the agenda packet to a majority of the City Council. Packet delivery typically takes place on Thursday afternoons prior to the regularly scheduled meeting on Tuesday. The agenda packet is also available for review and inspection on the city’s website at www.StantonCA.gov.

The City Council is required to comply with the Levine Act (Government Code § 84308). The purpose of the Levine Act is to prevent public officials from being influenced by campaign contributions from parties and other financially interested persons appearing before them and to prevent officials from using their position of authority to unduly influence applicants to make contributions to campaigns. The Levine Act only applies to certain matters brought to the City Council, including permits, licenses, some contracts, and other entitlements for use. While these matters are pending and for 12 months after a decision has been made, a Council Member may not accept, solicit, or direct campaign contributions of more than $500 from parties/participants who have a financial interest in the proceedings, or their respective agents. In addition, a Council Member who has received such a contribution may be required to disclose the contribution and recuse themselves from consideration of an agenda item. This summary of the Levine Act does not constitute legal advice. Council members who need to recuse themselves from an agenda item may provide notice at any time during the Council meeting before consideration of the item. Under certain circumstances, contributions may be returned by the public official in order to participate in a decision or otherwise cure a potential violation.

1. CLOSED SESSION(5:30 PM)

2. ROLL CALL Council / Agency / Authority Member Barrios Council / Agency / Authority Member Torres
Council / Agency / Authority Member Warren
Mayor Pro Tem / Vice Chairman Taylor
Mayor / Chairman Shawver

3. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Closed Session may convene to consider matters of purchase / sale of real property (G.C. §54956.8), pending litigation (G.C. §54956.9(a)), potential litigation (G.C. §54956.9(b)) or personnel items (G.C. §54957.6). Records not available for public inspection.

4. CLOSED SESSION
4A. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) Number of Potential Cases: 2
Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 3 of 8 ends

5. CALL TO ORDER STANTON CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY JOINT REGULAR MEETING (6:30 PM)

6. ROLL CALL Council / Agency / Authority Member Barrios Council / Agency / Authority Member Torres
Council / Agency / Authority Member Warren
Mayor Pro Tem / Vice Chairman Taylor
Mayor / Chairman Shawver

7. PLEDGE OF ALLEGIANCE

8. SPECIAL PRESENTATIONS AND AWARDS
Townsend Public Affairs State and Federal Legislative report and update.

9. CONSENT CALENDAR
All items on the Consent Calendar may be acted on simultaneously, unless a Council/Board Member requests separate discussion and/or action.

CONSENT CALENDAR
9A. MOTION TO APPROVE THE READING BY TITLE OF ALL ORDINANCES AND RESOLUTIONS. SAID ORDINANCES AND RESOLUTIONS THAT APPEAR ON THE

PUBLIC AGENDA SHALL BE READ BY TITLE ONLY AND FURTHER READING WAIVED
RECOMMENDED ACTION:

City Council/Agency Board/Authority Board waive reading of Ordinances and Resolutions.
9B. APPROVAL OF WARRANTS
City Council approve demand warrants dated December 19, 2025 – January 9, 2026, in the amount of $2,313,302.03.
9C. APPROVAL OF MINUTES
City Council/Successor Agency/Housing Authority approve Minutes of Special and Joint Regular Meeting – January 13, 2026.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 4 of 8 ends

9D. CONTINUANCE OF THE PROCLAMATION OF THE EXISTENCE OF A LOCAL

EMERGENCY CAUSED BY HOMELESSNESS CRISIS
At its meeting of November 26, 2024, the City Council adopted a resolution proclaiming the existence of a local emergency. Based on the continuing impacts of homelessness on public health and safety within the City of Stanton, the City Council’s proclamation of the existence of a local emergency will continue until further notice.

RECOMMENDED ACTION:

1. City Council declare that the proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA Receive and file; and

2. Receive and file the report.
9E. ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024-25 AND

RELATED AUDIT REPORTS
Each year the City issues an Annual Comprehensive Financial Report (ACFR), which summarizes the financial activity of a local government for a given fiscal year in accordance with financial statement presentation requirements prescribed by government accounting standards (Attachment A). The ACFR is accompanied by an opinion from the City’s audit firm. The audit firm’s opinion on the City’s 2024-25 ACFR is a clean opinion, with no exceptions, modifications, or qualifications. (The audit firm also issued a separate report for the Housing Authority’s 2024-25 audited financial statements.) The single audit report on Attachment C was required for the Fiscal Year 2024-25 audit because the City spent more than $750,000 on federal grant funds. No findings or questioned costs are identified in this report. In addition, the City’s auditors issue other reports in relation to the City’s audit. These reports are provided in Attachments D and E.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Receive and file the Annual Comprehensive Financial Report (ACFR), and related audit reports.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 5 of 8 ends

9F. FIRST AMENDMENT TO AGREEMENT FOR THE STANTON FAMILY RESOURCE

CENTER UNDER THE COUNTY OF ORANGE FAMILIES AND COMMUNITIES

TOGETHER (FACT) PROGRAM
The City Council will consider approving the First Amendment to the Agreement for Family Resource Center Services to allow the County of Orange to add two additional Family Resource Centers to the Families and Communities Together platform. The amendment updates aggregate funding authority and administrative provisions and does not change the service delivery model or budget allocation for the Stanton Family Resource Center.

RECOMMENDED ACTION:

1. City Council declare that this item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3); and

2. Approve the First Amendment to the Agreement for Family Resource Center Services with the County of Orange Social Services Agency; and

3. Authorize the City Manager to bind the City of Stanton in an amended agreement with the County of Orange Social Services Agency to provide Family Resource Center services.

END OF CONSENT CALENDAR

10. PUBLIC HEARINGS None.

11. UNFINISHED BUSINESS
11A. PRESENTATION ON UNFUNDED ACCRUED LIABILITY (UAL)
Staff will provide a presentation on the City’s and OCFA’s UAL.

RECOMMENDED ACTION:

2. Receive and file.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 6 of 8 ends

12. NEW BUSINESS
12A. CITY COUNCIL CONSIDERATION FOR APPOINTMENT TO FILL ONE (1) VACANCY

ON THE STANTON PUBLIC SAFETY COMMITTEE FOR TERMS COINCIDING WITH

THE CITY COUNCIL ELECTION
Consideration for appointment to fill one (1) vacancy on the Stanton Public Safety Committee. There is currently one (1) vacancy within the Stanton Public Safety Committee due to an unexpected vacancy, with a term expiring in November 2026.

The Mayor/Council Member holding the seat number corresponding to the numbered seat on the Committee shall be responsible for the appointment of one Committee Member, with majority approval of the City Council. The terms of office shall coincide with the term of office of the Mayor or Council Member who made the appointment.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Conduct an interview with each applicant; and

3. Make appointment to fill seat #2-Shawver on the Stanton Public Safety Committee.

13. ORAL COMMUNICATIONS - PUBLIC
At this time members of the public may address the City Council/Successor Agency/Stanton Housing Authority regarding any items within the subject matter jurisdiction of the City Council/Successor Agency/Stanton Housing Authority, provided that NO action may be taken on non-agenda items.
• Members of the public wishing to address the Council/Agency/Authority during Oral Communications-Public or on a particular item are requested to fill out a REQUEST TO SPEAK form and submit it to the City Clerk. Request to speak forms must be turned in prior to Oral Communications-Public.
• When the Mayor/Chairman calls you to the microphone, please state your Name, slowly and clearly, for the record. A speaker’s comments shall be limited to a three (3) minute aggregate time period on Oral Communications and Agenda Items. Speakers are then to return to their seats and no further comments will be permitted. • Remarks from those seated or standing in the back of chambers will not be permitted.

All those wishing to speak including Council/Agency/Authority and Staff need to be recognized by the Mayor/Chairman before speaking.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 7 of 8 ends

14. WRITTEN COMMUNICATIONS None.

15. MAYOR/CHAIRMAN COUNCIL/AGENCY/AUTHORITY INITIATED BUSINESS 15A. COMMITTEE REPORTS/ COUNCIL/AGENCY/AUTHORITY ANNOUNCEMENTS At this time Council/Agency/Authority Members may report on items not specifically described on the agenda which are of interest to the community provided no discussion or action may be taken except to provide staff direction to report back or to place the item on a future agenda.
15B. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE MEETING At this time Council/Agency/Authority Members may place an item on a future agenda. 15C. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE STUDY

SESSION
At this time Council/Agency/Authority Members may place an item on a future study session agenda.

Currently Scheduled: None.
15D. CITY COUNCIL INITIATED ITEM — DISCUSSION REGARDING CODIFICATION OF

CITY FLAG
At the January 13, 2026, City Council meeting, Council Member Warren requested that this item be agendized for discussion. Council Member Warren is requesting to discuss codification of the City’s new flag and creation of historical references of the design and incorporation of the City’s new flag.

RECOMMENDED ACTION:

City Council provide direction to staff.

Stanton City Council Agenda Prepared by the Office of the City Clerk January 27, 2026

Page 8 of 8 ends

16. ITEMS FROM CITY ATTORNEY/AGENCY COUNSEL/AUTHORITY COUNSEL

17. ITEMS FROM CITY MANAGER/EXECUTIVE DIRECTOR
17A. ORANGE COUNTY SHERIFF’S DEPARTMENT
At this time the Orange County Sheriff’s Department will provide the City Council with an update on their current operations.

18. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, the foregoing agenda was posted at the Post Office, Stanton Community Services Center and City Hall, not less than 72 hours prior to the meeting. Dated this 22nd day of January, 2026. s/ Patricia A. Vazquez, City Clerk/Secretary
December 19, 2025 - January 9, 2026
Payments to Vendors:

Electronic Draft Payments EFT (1) 1,605,283.68
Bank Drafts Payments 235,881.89 Check Payments 139861-139884 317,421.71 Total Payments to Vendors $ 2,158,587.28
Direct Deposit Payments (3):

Payroll dated December 31, 2025 154,714.75
Total Direct Deposit Payments $ 154,714.75
TOTAL PAYMENTS 2,313,302.03 $
Notes:
1 ACHs are electronic payments processed via a file exported from the City's Finance system and uploaded to the City's bank account. The City's Finance system designates these payment transactions as "EFT". 2 EFT Bank Drafts are auto-payments scheduled by the vendor as a monthly draft from the City's bank account mainly setup for utility payments. A specific transaction number is not assigned 3 Represents the total net payroll paid through direct deposit on pay date.

Demands listed on the attachedregisters are accurate and fundsare available for payment thereof. conform to the City of Stanton Annual

CITY OF STANTON

WARRANT REGISTER
EFT - Bank Drafts (2)
Demands listed on the attached registers
Finance Director
Budget as approved by the City Council.

City Manager Accounting Manager
Item: 9B
Click here to return to the agenda.

Check Date Bill Payment Type Check Number Check Amount Vendor Bill Number Bill Memo Total Bill Amount (Sum) BD_EDD_121925 $8,961.83 EDD 12/13/2025 PPE 12/13/2025 EDD $8,961.83BD_IRS_121925 $28,304.72 INTERNAL REVENUE SERVICE 12/13/2025 PPE 12/13/2025 IRS $28,304.72BD_SCG_121925 $166.80 SOCAL GAS 82007-120925 Gas service for City Hall for Nov 2025 $166.80 BD_CALPERS_1222$31,509.53 CA ST PERS 103 PPE 12/13/2025 PPE 12/13/2025 CalPERS Retirement $31,509.53 BD_MIS_122225 $1,660.00 MISSIONSQUARE PPE 12/13/2025 PPE 12/13/2025 MissionSquare $1,660.00 72455-120825 Electricity for 8100 Pacific for Nov 2025 $3,070.5211235-120928 Electricity for 10350 Fern for Nov 2025 $396.65 69352-120225 Water services for 11822 Santa Paula for Nov 25 $312.47 26211-120225 Water services for Village Center & Beach for Nov 25 $165.28 40657-120225 Water services for 8181 Chapman for Nov 25 $185.21 86346-120225 Water service for HYD #2947 @ 8100 Pacific for Nov 25 $929.71 63566-120325 Water services for 10350 Fern for Nov 2025 $526.76 46996-120325 Water Svc/Housing Authority/NOV-2025 $290.84 14128-120325 Water service for 8180 Cerritos Irr for Nov 2025 $159.45 79865-120325 Water services for 8100 Pacific FP for Nov 2025 $71.36 26970-120325 Water Svc/Housing Authority/NOV-2025 $244.26 98865-120325 Water services for 8100 Pacific Irr for Nov 2025 $127.64 45970-120325 Water Svc/Housing Authority/NOV-2025 $250.09 17960-120325 Water Svc/Housing Authority/NOV-2025 $238.45 73992-120325 Water Svc/Housing Authority/NOV-2025 $261.73 72239-120325 Water Svc/Housing Authority/NOV-2025 $331.61 97284-120325 Water Svc/Housing Authority/NOV-2025 $354.93 79851-120525 Water services for 11732 Stanton Irr for Nov 2025 $146.36 75841-120425 Water services for 10894 Date Irr for Nov 2025 $223.53 68159-120425 Water services for 10972 Rose Irr for Nov 2025 $310.52 39851-120525 Water services for 11521 Stanton Irr for Nov 2025 $157.46 93128-120425 Water services for 0953 Date Irr for Nov 2025 $316.36 04128-120425 Water services for 10952 Cedar Irr for Nov 2025 $304.70 09159-120525 Water services for 10971 Chestnut Irr for Nov 2025 $295.83 91646-120425 Water services for Pacific Betw Court & Fern - Nov 2025 $474.33 26129-120425 Water services for 11401 Court Irr for Nov 2025 $290.28 03668-121925 Electricity for 7635 Chapman and 7699 Chapmen for 11/19/25-12/ $96.88 93632-121925 Electricity for 11820 Santa Paula for 11/19/25-12/18/25 $35.1926873-121025 Water service for 7910 Katella Irr for Nov 2025 $151.9109414-121025 Water services for 10660 Western FP for Nov 2025 $57.4646873-121025 Water service for 11151 Beach Irr for Nov 2025 $153.6357873-121025 Water service for 12372 Beach Irr for Nov 2025 $120.3625873-121025 Water service for 10181 Beach Irr for Nov 2025 $146.3659873-121025 Water service for 10686 Beach Irr for Nov 2025 $146.3665873-121025 Water service for 7730 Katella Irr for Nov 2025 $306.9250973-121025 Water services for 8741 Lola Irr for Nov 2025 $1,472.8260472-121025 Water services for 10660 Western for Nov 2025 $590.8035873-121025 Water service for 10231 Beach Irr for Nov 2025 $151.9163873-121025 Water service for 7139 Katella Irr for Nov 2025 $301.3927873-121025 Water service for 12776 Beach Irr for Nov 2025 $146.3669873-121025 Water service for 10560 Beach Irr for Nov 2025 $146.3675873-121025 Water service for 7800 Katella FP for Nov 2025 $54.7428426-121025 Water services for 10660 Western Irr for Nov 2025 $2,248.5034873-121025 Water service for 7544 Katella Irr for Nov 2025 $290.28 12/31/2025 BD BD_SCE_123125 $132.07 SOUTHERN CALIFORNIA EDISON12/30/2025 BD BD_GSW_123025 $2,519.37 GOLDEN STATE WATER COMPANY12/26/2025 BD BD_GSW_122625 $2,857.12 GOLDEN STATE WATER COMPANY Warrant Report Detail
City of Stanton
December 19, 2025-January 9, 2026
12/24/2025 BD BD_GSW_122425 $1,592.67 GOLDEN STATE WATER COMPANY12/19/2025 BD12/22/2025 BD BD_SCE_122225 $3,467.17 SOUTHERN CALIFORNIA EDISON
1/2/2026 BD BD_GSW_010226 $12,516.32 GOLDEN STATE WATER COMPANY 47873-121025 Water service for 12640 Beach Irr for Nov 2025 $99.89 68873-121025 Water service for 11894 Beach Irr for Nov 2025 $146.36 88873-121025 Water service for 11632 Beach Irr for Nov 2025 $163.00 85873-121025 Water services for 7800 Katella for Nov 2025 $988.04 36873-121025 Water service for 11161 Beach Irr for Nov 2025 $962.74 18873-121025 Water service for 8312 Briarwoos Irr for Nov 2025 $551.77 49873-121025 Water service for 10832 Beach Irr for Nov 2025 $94.34 30107-121025 Water service for 11100 Cedar FP for Nov 2025 $38.12 88279-121025 Water service for 11100 Cedar for Nov 2025 $602.46 78873-121025 Water service for 11746 Beach Irr for Nov 2025 $163.00 98873-121025 Water service for 11432 Beach Irr for Nov 2025 $60.01 95873-121025 Water service for 7800 Katella Irr for Nov 2025 $1,712.6856873-121025 Water service for 11251 Beach Irr for Nov 2025 $146.36 93873-121025 Water service for 7322 Katella Irr for Nov 2025 $301.39 1/5/2026 CK 139861 $36,000.00 TOYOTA OF HUNTINGTON BEACH 2025TAC1 Purchase two 2025 Toyota Tacoma pickup trucks $36,000.00 10719-122325 Electricity for 7951 Ruthanne for Dec 2025 $31.41 78802-122325 Electricity for City Hall and FRC for Dec/Nov 2025 $5,363.3549235-122325 Electricity for 11100 Cedar for Dec 2025 $2,634.39 00000040/1 $1,506.37 PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA PPE 12/27/2025 PPE 12/27/2025 PARS $1,506.3700000040/2 $2,503.80 BENEFIT COORDINATORS CORPORATION B0LGMZ January 2026 Delta Dental $2,503.8000000040/3 $556.54 VISION SERVICE PLAN - (CA) 824274602 January 2026 VSP $556.54 00000040/4 $4,276.74 BENEFIT COORDINATORS CORPORATION 18078 January 2026 Life Ins. $4,276.74BD_EDD_010726 $9,317.37 EDD 12/27/2025 PPE 12/27/2025 EDD $9,317.37BD_IRS_010726 $28,850.89 INTERNAL REVENUE SERVICE 12/27/2025 PPE 12/27/2025 IRS $28,850.89BD_SCE_010726 $88.53 SOUTHERN CALIFORNIA EDISON 58156-122625 Electricity for 10671 Western for Dec 2025 $88.53139862 $114,252.98 AC PROS, INC 1R HVAC Pay App 1 $114,252.98 24451629 Telecom service for Cerritos and Knott for Nov 2025 $32.59 24451317 Telecom service for Cerritos and Dale for Nov 2025 $32.59 24417941 Telecom service for Cerritos and Magnolia for Nov 2025 $32.51 24549836 Calnet services for Cerritos Intercon for 11/20/25-12/19/25 $186.32 24561380 Calnet services for Cerritos/Magnolia for Dec 2025 $31.88 BSASRF FEE - 4/1/25-6/30/25 California Building Standards Commission - 4/1/25-6/30/25 $551.70BSASRF FEE - 7/1/25-9/30/25 California Building Standards Commission - 7/1/25-9/30/25 $177.30 139865 $5,700.00 CT&T CONCRETE PAVING, INC CT6949 Sidewalk Replacement $5,700.00139866 $79.87 FRONTIER 21308-120125 Frame relay for December 2025 $79.87 139867 $1,419.75 G2 CONSTRUCTION, INC 260105-2 Retention Release for Task Code 2026-401 $1,419.75 19474 Sewer Roach Control $11,200.0019475 Sewer Roach Control $644.00 139869 $132.12 GOLDENWEST LAWNMOWERS 454136 Sprayer for weed abatement in alleys $132.12 139870 $1,250.00 HAN SOL YOO 12/22/2025 Tuition Reimbursement/Han Sol Yoo $1,250.00 SIN057074 Contract and Audit Services Sales Tax Q2 FY 2026 $1,453.61SIN057293 Contract Services - Transactions Tax Q2 FY 2026 $300.00STA1FOG12510 FOG Program Services for October 2025 $505.00 STA1MS412510 NPDES Program Services for October 2025 $7,936.25STA1OS12510 Orco WQMP Reviews 10/1-10/31/25 $719.75OC Sanitation District - NovembeOrange County Sanitation District Fees - November 2025 $7,226.17 OC Sanitation District - October Orange County Sanitation District Fees - October 2025 $1,998.33 139874 $6,388.82 ORACLE AMERICA, INC. 102288070 Implementation of Oracle NSG-44.25 hours 11/24/25-12/19/25 $6,388.82139875 $8,000.00 PBK ARCHITECTS INC 14 Design services for Norm Ross for Decemebr 2025 $8,000.00139876 $62,974.09 PSOMAS 229491 Orangewood Complete Streets $62,974.09 265597 2 "No Thru Traffic" Signs $154.94265598 16 "No U turn" sign and 8 "Must Turn " signs $1,511.95 139878 $550.00 SECURITAS TECHNOLOGY CORPORATION 6005473532 Repairs to fire System at City Yard $550.00139879 $33,062.50 SEQUEL CONTRACTORS INC Retention 2025-107 Retention Release for Task Code 2025-107 $33,062.50139880 $5,176.38 THE GRAND FOOD & BEVERAGE E93748 City of Stanton 12/11/2025 Lunch Catering $5,176.38139881 $191.00 TRULY NOLEN OF AMERICA INC 712144422 Pest Control for December 2025 $191.00139882 $1,074.37 VERNE'S PLUMBING 12469867 Remove clog from Community Center restroom $1,074.37 2025-207754-00 Graffiti supplies $46.532025-212137-00 Graffiti supplies $96.57 1/6/2026 BD BD_SCE_010626 $8,029.15 SOUTHERN CALIFORNIA EDISON 139863139868
1/8/2026
139872139873139877139883
$9,161.00 JOHN L. HUNTER & ASSOCIATES, INC.$9,224.50 OC SANITATION DISTRICT$1,666.89 S.C. SIGNS & SUPPLIES LLC 1/7/2026 EFT
$11,844.00 GOLDEN BELL PRODUCTS
139871
CKBD
$143.10 VISTA PAINT CORP$315.89 AT&T
139864 $729.00 CALIFORNIA BUILDING STANDARDS COMMISSION $1,753.61 HINDERLITER DELLAMAS & ASSOCIATES
139884 $6,331.84 FASTSIGNS 2349-3351 City Seal and Logo for Council Chambers $6,331.84 BD_AFL_010826 $562.70 AFLAC-FLEX ONE 279637 December 2025 AFLAC $562.70 BD_CALPERS_0108$63,269.12 CA ST PERS-HEALTH BENEFIT Jan-26 January 2026 CalPERS Health Ins. $63,269.12 BD_CALPERS_0108$30,416.53 CA ST PERS 103 PPE 12/27/2025 PPE 12/27/2025 CalPERS Retirement $30,416.53BD_MIS_010826 $1,660.00 MISSIONSQUARE PPE 12/27/2025 PPE 12/27/2025 MissionSquare $1,660.0000000041/1 $72,095.50 A2Z CONSTRUCT INC 4 Construction for Community/Senior Center (November) $72,095.5000000041/2 $642.40 ABSOLUTE SECURITY INTERNATIONAL INC 2020113555 December Security Services - Banquet Hall $642.40 00000041/3 $3,837.60 ALL CITY MANAGEMENT SVCS, INC. 105817 Crossing Guard services for 12/07/25-12/20/25 $3,837.6000000041/4 $1,744.58 ATHENS ADMINISTRATORS Request 39 Request 39 Replenishment Request $1,744.58 1048492 Svcs. Rendered 11/2025 (Inv. 1048492) $3,560.001048490 Svcs. Rendered 11/2025 (Inv. 1048490) $952.001048487 Svcs. Rendered 11/2025 (Inv. 1048487) $17,084.001048491 Svcs. Rendered 11/2025 (Inv. 1048491) $680.001048494 Svcs. Rendered 11/2025 (Inv. 1048494) $26,209.441048495 Svcs. Rendered 11/2025 (Inv. 1048495) $204.001048493 Svcs. Rendered 11/2025 (Inv. 1048493) $680.00 00000041/6 $3,207.00 C J CONCRETE CONSTRUCTION INC Retention Retention Release for Task Code 2026-103 $3,207.0000000041/7 $23,290.22 CLAIMS CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 1/6/2026 1/6/2026 Trust Account Replenishment $23,290.22 SH 73114 SH 73114 (AFIS - Nov. '25) $1,207.00
SH 73206 SH 73206 (OCSD Contract Svcs. Jan. 26) $1,348,088.68 00000041/9 $350.00 FLOCK SAFETY INV-75674 Flock Camera Replacement/#04 $350.0000000041/10 $85,500.00 INTEGRATED DEMOLITION AND REMEDIATION INC 2025-113AD Demolition and Abatement of 8870 Tina and 8891 Pacific $85,500.00 2891552 Tina Pacific Relocation Services/NOV-2025 $2,879.302689465 Tina-Pacific Relocation Services/OCT-2025 $3,394.03772061 Fencing for Magnolia & Tina Way for 11/09/25-12/6/25 $603.27768756 Fencing for 8970 Pacific for 10/17/25-11/13/25 $231.21 Grand Total $2,158,587.28
$6,273.33 INTERWEST CONSULTING GROUP, INC
00000041/12 $834.48 SO CAL INDUSTRIES
$49,369.44 BEST BEST & KRIEGER LLP
00000041/8 $1,349,295.68 COUNTY OF ORANGE TREASURER- TAX COLLECTOR 1/9/2026 EFT
BD
00000041/500000041/11
DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 1 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

MINUTES OF THE CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY OF THE CITY OF STANTON MEETING JANUARY 13, 2026

SPECIAL CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY MEETING (5:30 PM)

JOINT REGULAR CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY MEETING (6:30 PM)

1. CALL TO ORDER / CLOSED SESSION
The City Council / Successor Agency / Housing Authority meeting was called to order at 5:32 p.m. by Mayor / Chairman Shawver.

2. ROLL CALL

Present: Council/Agency/Authority Member Barrios, Council/Agency/Authority Member Torres, Council/Agency/Authority Member Warren, Mayor Pro Tem/Vice Chairman Taylor, and Mayor/Chairman Shawver.

Absent: None.

Excused: None.

3. PUBLIC COMMENT ON CLOSED SESSION ITEMS None.

4. CLOSED SESSION
The members of the City Council / Successor Agency / Housing Authority of the City of Stanton proceeded to closed session at 5:33 p.m. for discussion regarding:
4A. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1
4B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Pursuant to Government Code Section 54956.8)
Property: 11241 Beach Boulevard, Stanton, CA (APN 131-091-23) Item: 9C
Click here to return to the agenda.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 2 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
Negotiating Parties: Hannah Shin-Heydorn, City Manager, City of Stanton Robert Donald Knaak and Ranel Lea Knaak Family
Trust dated March 2, 1999 (Robert Donald Knaak and
Ranel Lea Knaak), Owner
Homan Family Trust dated November 15, 1996
(Lawrence C. Homan and Carolyn M. Homan), Owner
Under Negotiation: Instruction to negotiator will concern price and terms of payment.

5. CALL TO ORDER / SUCCESSOR AGENCY / STANTON HOUSING AUTHORITY

MEETING
The City Council / Successor Agency / Housing Authority reconvened in open session at 6:36 p.m.

The City Attorney / Agency Counsel reported that the City Council / Successor Agency / Housing Authority met in closed session from 5:32 to 6:36 p.m.

The City Attorney / Agency Counsel reported that there was no reportable action.

6. ROLL CALL

Present: Council/Agency/Authority Member Barrios, Council/Agency/Authority Member Torres, Council/Agency/Authority Member Warren, Mayor Pro Tem/Vice Chairman Taylor, and Mayor/Chairman Shawver.

Absent: None.

Excused: None.

7. PLEDGE OF ALLEGIANCE
Led by Mr. DeWayne A. Normand, Stanton Planning Commissioner.

8. SPECIAL PRESENTATIONS AND AWARDS
A. Mayor Shawver and Members of the City Council presented a certificate to Miss.

Eliza Labunog recognizing and honoring Miss. Labunog on being selected by the office of Supervisor Doug Chaffee as the 2025 Fourth District Kindness Award Honoree for the City of Stanton.

B. Ms. Hannah Shin-Heydorn, City Manager, presented an update on the City’s homeless outreach activities.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 3 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

9. CONSENT CALENDAR
Mayor Shawver requested to pull Item 9E from the consent calendar for separate discussion.

Mayor Pro Tem Taylor requested to pull Item 9D from the consent calendar for separate discussion.

Motion/Second: Shawver/Taylor
Motion carried by the following vote:

AYES: 5 (Barrios, Shawver, Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: None
Motion unanimously carried:

CONSENT CALENDAR
9A. MOTION TO APPROVE THE READING BY TITLE OF ALL ORDINANCES AND RESOLUTIONS. SAID ORDINANCES AND RESOLUTIONS THAT APPEAR ON

THE PUBLIC AGENDA SHALL BE READ BY TITLE ONLY AND FURTHER

READING WAIVED
The City Council/Agency Board/Authority Board waived reading of Ordinances and Resolutions.
9B. APPROVAL OF WARRANTS
The City Council approved demand warrants dated November 29, 2025 – December 22, 2025, in the amount of $4,302,383.87.
9C. APPROVAL OF MINUTES
The City Council/Successor Agency/Housing Authority approved Minutes of Joint Regular Meeting – December 9, 2025.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 4 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
9F. CITY SPONSORSHIP REQUEST – STANTON LIONS CLUB ANNUAL CAR SHOW
Per the City’s Sponsorship Program, the Stanton Lions Club is requesting City cosponsorship of the Annual Stanton Car Show scheduled for Saturday, May 16, 2026, at Stanton Central Park. The request includes in-kind services and fee waivers associated with City marketing, facility use and operational support.

1. The City Council declared this project to be categorically exempt under the California Environmental Quality Act, Class 1, Section 15301(c); and

2. Approved the Stanton Lions Club sponsorship request for the 2026 Annual Car Show for a total in-kind value of $723.

END OF CONSENT CALENDAR
9D. MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS AS REPRESENTATIVES

TO VARIOUS BOARDS, COMMISSIONS, COMMITTEES AND AGENCIES Traditionally, Council Members have been appointed by the Mayor to serve on numerous outside committees, boards, commissions and agencies. Each appointee is responsible for representing the City and voting on behalf of the City Council. The Mayor conducts a review and selects appointees, as detailed in Attachment A, with the exception of the Orange County Fire Authority (“OCFA”) appointment, which is required to be made by City Council Resolution, the Mayor may otherwise make appointments to each committee, board, commission or agency by nomination and Minute Order confirmation. In addition, the Fair Political Practices Commission (“FPPC”) regulations require the adoption and posting of Form 806, Agency Report of Public Official Appointments, in order for individual Council Members to participate in a City Council vote that would result in him or her serving in a position that provides compensation of $250 or more in any 12-month period.

Motion/Second: Taylor/Barrios
Motion carried by the following vote:

AYES: 5 (Barrios, Shawver, Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: None
Motion unanimously carried:

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 5 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

1. The City Council finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. The City Council confirmed the Mayor’s appointments; and

3. Approved Fair Political Practices Commission Form 806 and authorized the City Clerk to post the form on the City’s website.
9E. RESOLUTIONS AMENDING THE POSITION CLASSIFICATION MANUAL AND

THE SALARY AND BENEFITS RESOLUTION
The attached Resolutions amend the Position Classification Manual and the Salary and Benefits Resolution by establishing the classification of Principal Civil Engineer and assigning its corresponding salary range.

Motion/Second: Shawver/Torres
Motion carried by the following vote:

AYES: 5 (Barrios, Shawver, Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: None
Motion unanimously carried:

1. The City Council declared that this project is exempt from the California Environmental Quality Act (“CEQA”) under Section 15378(b)(2) – continuing administrative or maintenance activities, such as purchases for supplies, personnel-related actions, general policy or procedure making; and

2. Adopted Resolution No. 2026-01 amending the Position Classification Manual, entitled:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON,

CALIFORNIA, AMENDING THE POSITION CLASSIFICATION
MANUAL”; and

3. Adopted Resolution No. 2026-02 amending the Salary and Benefits Resolution, entitled:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON,

CALIFORNIA, REGARDING EMPLOYEE BENEFITS AND SALARY
RATES FOR ALL CLASSES OF EMPLOYMENT”.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 6 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

10. PUBLIC HEARINGS None.

11. UNFINISHED BUSINESS
11A. STUDY SESSION ON RESIDENTIAL TENANTS’ AND LANDLORDS’ RIGHTS

AND RESPONSIBILITIES
Staff will be presenting a study session on tenants’ and landlords’ rights and responsibilities based upon available State informational resources.

Staff report by Ms. Hannah Shin-Heydorn, City Manager.

Motion/Second: Torres/Shawver
ROLL CALL VOTE: Council Member Barrios AYE
Council Member Torres AYE
Council Member Warren AYE
Mayor Pro Tem Taylor AYE
Mayor Shawver AYE
Motion unanimously carried:

2. Received and filed research; and

3. Directed staff to create a webpage to provide the City’s residents with links to State resources, research local enforcement options, creation of a postcard to be mailed to all multi-family residences which includes a QR code that directs scanners to the City's resource webpage via the City’s website, post to the City’s website a copy the PowerPoint presentation that was presented to the City Council, research mobile home residency laws, create a similar presentation pertaining to mobile home parks, and send via mail a copy of said PowerPoint to all mobile home park owners within the City.

12. NEW BUSINESS None.

13. ORAL COMMUNICATIONS – PUBLIC None.

14. WRITTEN COMMUNICATIONS None.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 7 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

15. MAYOR/CHAIRMAN/COUNCIL/AGENCY/AUTHORITY INITIATED BUSINESS 15A. COMMITTEE REPORTS/COUNCIL/AGENCY/AUTHORITY ANNOUNCEMENTS • Ms. Zenia Bobadilla, Community Services Director, reported on the success of the City’s annual Christmas Tree Lighting event, which was held on December 4, 2025, at City Hall.
• Ms. Zenia Bobadilla, Community Services Director, reported on the success of the City’s annual Santa Siren event, which was held on December 21, 2025. • Council Member Warren reported on the success of the City’s annual Santa Siren event, which was held on December 21, 2025, and expressed his gratitude to those who assisted in ensuring that the event was a success, with special thanks to Falck Ambulance Services.
• Mayor Shawver reported on the success of the Friends of Families Holiday Toy Distribution event, which provided around 20,000 toys, diapers, clothing, and groceries to those in attendance, which was held at Rodeo 39 on December 20, 2025.
15B. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE COUNCIL

MEETING
Council Member Warren requested to agendize for discussion codification of the City’s new flag and creation of historical references of the design and incorporation of the City’s new flag.
15C. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE STUDY

SESSION
None.
15D. CITY COUNCIL INITIATED ITEM — DISCUSSION REGARDING CITY COUNCIL

PORTRAITS
At the December 9, 2025, City Council meeting, Council Member Warren requested that this item be agendized for discussion. Council Member Warren is requesting to discuss City Council portraits and the Council’s preferences for moving forward with a different portrait style.

Presentation by Council Member Warren.

The City Council received consensus and directed staff to proceed with research and to bring this item back for City Council review at a future City Council meeting.

DRAFT
Special and Joint Regular Meeting – January 13, 2026 - Page 8 of 8

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

16. ITEMS FROM CITY ATTORNEY/AGENCY COUNSEL/AUTHORITY COUNSEL None.

17. ITEMS FROM CITY MANAGER/EXECUTIVE DIRECTOR
None.
17A. ORANGE COUNTY FIRE AUTHORITY
At this time the Orange County Fire Authority will provide the City Council with an update on their current operations.

Division Chief Matthew Schuetz provided the City Council with an update on their current operations.

18. ADJOURNMENT Motion/Second: Shawver/
Motion carried at 8:23 p.m.
________________________________

MAYOR/CHAIRMAN
ATTEST:
________________________________

CITY CLERK/SECRETARY

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: January 27, 2026
SUBJECT: CONTINUANCE OF THE PROCLAMATION OF THE EXISTENCE OF A

LOCAL EMERGENCY CAUSED BY HOMELESSNESS CRISIS
REPORT IN BRIEF:

At its meeting of November 26, 2024, the City Council adopted a resolution proclaiming the existence of a local emergency. Based on the continuing impacts of homelessness on public health and safety within the City of Stanton, the City Council’s proclamation of the existence of a local emergency will continue until further notice.

RECOMMENDED ACTION:

2. Receive and file the report.

BACKGROUND AND ANALYSIS:

The City has seen an increase in its homeless population since 2019, despite significant allocation of resources and funds to combat homelessness in the City. This increase has been coupled with an increase in health and safety concerns, such as an increase in criminal activity, open-air drug use (fentanyl in particular), open fires, obscene/lewd acts in public, increase in vectors, and public defecation; individuals sleeping, camping, and storing personal property in a manner that obstructs access to the public right-of-way; interruption in the enjoyment and access to public facilities equally by all residents; and death, illness, injury and poor living conditions for those unable to find housing. In response to public health and safety concerns, at its meeting of November 26, 2024, the City Council adopted a resolution proclaiming the existence of a local emergency caused by the homelessness crisis (Attachment A).

Item: 9D
Click here to return to the agenda.

Based on the continuing impacts of homelessness on public health and safety within the City of Stanton, and pursuant to the City’s police power, the City Council’s proclamation of the existence of a local emergency will continue until further notice. The City Council previously reviewed the proclamation at its meetings of January 14, 2025, March 11, 2025, June 10, 2025, July 8, 2025, August 26, 2025, October 14, 2025, and December 9, 2025.
• For the month of December 2025, City staff had at least 96 encounters with homeless individuals. Regarding offers of placement in shelters, out of 89 actions, 87% (77) resulted in homeless individuals declining shelter. The City continues to get numerous calls of concern and complaints from the following hotspot locations:
o Katella & Western
o Chapman & Beach
o Hollenbeck Park
o Tina Pacific
• On February 5, 2025, at approximately 12:22 a.m. there was a call for service to the Orange County Fire Authority regarding a fire at Tina Pacific. Crews responded and discovered a fire in two vacant units of a partially occupied four-plex.

Thankfully, there were no civilian or firefighter injuries. The two legitimate tenants were displaced by the fire as the four-plex was red-tagged. The four-plex was ultimately demolished.
• City staff continue to receive numerous calls regarding homeless individuals engaging in open-air drug use in front of multi-family housing units and commercial plazas.

FISCAL IMPACT:

The fiscal impact of declaring a local emergency is unknown at this time but it confers the powers required to provide an immediate, necessary response to the City’s homelessness crisis to protect all City residents and businesses.

ENVIRONMENTAL IMPACT:

The proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA. Section 15378 explicitly excludes from its definition of “project” the “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) This action would declare a continuing local emergency under the Stanton Municipal Code and continue to empower the director and assistant director of emergency services to direct the emergency organization of the City in response to the homeless crisis. This action is considered administrative because it will not result in a physical change in the environment, and therefore is not subject to CEQA.

Moreover, the action will not result in a direct or reasonably foreseeable physical change in the environment, and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

PUBLIC NOTIFICATION:

Notification and advertisement were performed as prescribed by law.

STRATEGIC GOALS:

Goal 1. Provide a safe community.

Goal 2. Promote a strong local economy.

Goal 5. Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager
Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. Staff report from November 26, 2024, entitled, “Resolution finding and declaring a local emergency caused by homelessness crisis”.

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 26, 2024
SUBJECT: RESOLUTION FINDING AND DECLARING A LOCAL EMERGENCY

CAUSED BY HOMELESSNESS CRISIS
REPORT IN BRIEF:

Declaring a local emergency under the Stanton Municipal Code and the Government Code will provide the City Manager with additional powers as Director of Emergency Services in order to take necessary steps to address the homelessness crisis.

RECOMMENDED ACTIONS:

1. City Council declare the action to not be subject to CEQA pursuant to State CEQA Guidelines, section 15378(b)(5).); and

2. Adopt proposed Resolution No. 2024-40, entitled:
“RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON,

CALIFORNIA, PROCLAIMING THE EXISTENCE OF A LOCAL

EMERGENCY CAUSED BY CONDITIONS AND THREATENED

CONDITIONS OF HOMELESSNESS WITHIN THE CITY OF STANTON,

WHICH IF NOT CORRECTED, CONSTITUTES AN IMMINENT AND

PROXIMATE THREAT TO THE SAFETY OF PERSONS AND PROPERTY
IN THE CITY”.

Attachment: A
Click here to return to the agenda.

BACKGROUND:

Like many other regions in California, the City of Stanton (“City”) has seen a rapid and troubling growth in homelessness in the City. The COVID-19 pandemic exacerbated this circumstance, which has been difficult to address given the high cost of housing and shortage of emergency, transitional, and affordable housing across the State.

The City’s Investments in Combating the Homelessness Crisis:

Independently, and in conjunction with the State’s directives to combat homelessness and address the housing crisis, the City has made significant investments in assisting its unhoused community. Additionally, the City is a member of the North Service Planning Area (“North SPA”), an organization of 14 cities in Orange County established in 2019 to combat homelessness in the region. The City’s investments include, but are not limited to the following activities, representing funding of over $15 million since 2017:
• Funding two full-time and one part-time Homeless Outreach Coordinator positions at the City, for a total cost since 2017 of just over $2 million; • Funding and welcoming three Project Homekey permanent supportive housing projects to the City, totaling 153 units, and connecting unhoused residents throughout the region to those units. The City’s contribution across the Project Homekey sites was $6 million, and was the first city in the State to open three sites in their jurisdiction;
• Funding two navigation centers in Buena Park and Placentia to provide safe and secure shelter housing as well as providing comprehensive programs and services. The City’s contribution to the centers during the first five years of operation has been approximately $660,000, and the City’s financial commitment in the next five years is estimated to be $2.5 million based on increased maintenance and operational costs;
• Funding the regional Homeless Outreach and Proactive Engagement (“HOPE”) Center of Orange County in the amount of $5 million and serving as their fiscal agent;
• Having the City Manager serve on the Board of the North SPA Collaborative; • Partnering with Illumination Foundation to expand shelter access in the region. The Illumination Foundation is an Orange County-based 501(c)(3) nonprofit dedicated to providing comprehensive services for the most vulnerable homeless population; • Providing bridge housing opportunities since 2020 at just over $150,000; • Providing transportation services; and
• Providing document retrieval assistance and funding to recover important documents, to connect homeless people with resources and employment.

Additionally, the City’s law enforcement and Public Safety staff spend a disproportionate amount of time and resources addressing the City’s homelessness crisis. This causes the City’s Public Safety staff to work overtime, increasing personnel costs to the City, and exacerbating delays in addressing other public safety matters. The City’s Public Safety Department collectively devotes one-third of their time on issues related to homelessness.

The City’s Homeless Population Increase Over Time, Despite Significant Investments Despite these significant efforts, the City’s homeless population has exponentially increased since 2019. According to the County’s 2024 Point in Time Count, the City has experienced a 138 percent increase in its unsheltered population from 2019 to 2024, and a 78 percent total increase in its homeless population (including both sheltered and unsheltered individuals). (See https://ceo.ocgov.com/sites/ceo/files/2024- 05/2024%20PIT%20Summary%20-%20FINAL%205.16.24.pdf.)
Table 1. City of Stanton Point in Time Homeless Count
2019 to 2024
In contrast, the County of Orange has experienced a much smaller 7 percent increase in its homeless population since 2019, and the North SPA has experienced a 17 percent increase in its homeless population since 2019.

Table 2. % Increase in Total Homelessness
2019 to 2024
The City’s homeless population ranks as the fifth largest homeless population within the North SPA even though, geographically, it is one of smallest cities within the area at only

3.1 square miles. Only significantly larger North SPA cities (Anaheim, Fullerton, Buena Park, and Orange) have a higher homeless count. Among all 34 Orange County cities, the City’s homeless population ranks as the 11th largest.

While the City has been able to successfully refer a small number of homeless individuals to the North SPA navigation centers in the Cities of Buena Park and Placentia, those centers are now at capacity. In 2024, the City has only been able to successfully refer 18 people to the two navigation centers for assistance. County-wide, only 1 out of every 12 homeless individuals are successfully connected to housing.

Additionally, many homeless individuals also struggle with substance use disorder and serious mental illness. These are in addition to other challenges that the City is not equipped to support without the combined forces of other political subdivisions to combat, such as Orange County Behavioral Health Services, and state and federal agencies.1 The graphic, below, gives a snapshot of just some the challenges that homeless adults in Orange County face.
1 2024 Point In Time Summary, County of Orange.

Table 3. Disabling Conditions Impacting Homeless Individuals These difficulties are exacerbated by the nationwide fentanyl crisis. According to a 2024 Orange County Sheriff’s Department report2, the leading cause of death among people experiencing homelessness is accidental, with the vast majority of accidental deaths caused by drug use with fentanyl. These numbers have increased steadily since 2018. In 2021, 7 out of 8 deaths among people experiencing homelessness in Stanton were accidental.3 From 2021 to 2022, the number of deaths among people experiencing homelessness in Stanton rose by 150 percent, from 8 reported deaths to 12.4 2 Report on 2022 Orange County Homeless Deaths, Sheriff-Coroner Homeless Death Review Committee. Orange County Sheriff’s Department. The report may be found at: https://www.ocsheriff.gov/sites/ocsd/files/2024- 04/2022%20Homeless%20Death%20Review%20Committee%20Report.pdf 3 Report on 2021 Orange County Homeless Deaths, Sheriff-Coroner Homeless Death Review Committee. Orange County Sheriff’s Department. The report may be found at: https://www.ocsheriff.gov/sites/ocsd/files/2023- 02/Homeless%20Death%20Review%20paper_FINAL.pdf
4 Report on 2022 Orange County Homeless Deaths, Sheriff-Coroner Homeless Death Review Committee. Orange County Sheriff’s Department.

The City must create multiple paths to address a complex and growing homelessness crisis. Like many California cities, Stanton has a continuing need for affordable, permanent housing, along with shelters and interim housing to be developed quickly to better transition people off the streets. The City also needs additional assistance from County, State, and federal agencies to address complex health and safety issues beyond the scope of its current staff and resources. Moreover, the City needs increased ability and resources to hire or contract critical roles, including candidates with specific expertise necessary to provide a critical response to the City’s homelessness crisis.

Declaring a local emergency would provide the City with greater flexibility, increased ability, and streamlined systems to address the City’s homelessness crisis with necessary urgency.

ANALYSIS/JUSTIFICATION:

Chapter 2.64 of the Stanton Municipal Code, “Emergency Organization and Functions,” allows the City Council to declare a local emergency on its own accord or at the request of the City Manager to provide for (1) the preparation and carrying out of plans for the protection of persons and property within the city in the event of an emergency; (2) the direction of the emergency organization; and (3) the coordination of the emergency functions of this city with all other public agencies, corporations, organizations, and affected private persons.

A “local emergency,” as defined under Section 2.64.020, means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as air pollution, fire, flood, storm, epidemic, riot, or earthquake, or other conditions which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat.

When a “local emergency” is declared by the City Council, the City Manager, as Director of Emergency Services or the City, is granted additional power and authority related to the City’s response to the local emergency. The City Manager is empowered to:
• Control and direct the effort of the emergency organization of the City for the accomplishment of addressing the local emergency;
• Direct cooperation between and coordination of services and staff of the emergency organization of the City;
• Represent the City in all dealings with public or private agencies on matters pertaining to emergencies as defined in this chapter;
• Make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided, however, such rules and regulations must be confirmed at the earliest practical time by the City Council;
• Obtain vital supplies, equipment, and such other properties found lacking and needed for the protection of life and property on behalf of the City, and, if required immediately, to commandeer the same for public use;
• Require emergency services of any city officer or employee and to command the aid of as many citizens of this community as he/she deems necessary in the execution of his/her duties; such persons shall be entitled to all privileges, benefits, and immunities as are provided by state law for registered disaster service workers;
• Requisition necessary personnel or material of any city department or agency; • Execute all existing authority as City Manager and all special power conferred upon him/her by the City Council, by resolution, ordinance, or emergency plan; • Appoint an Assistant Director of Emergency Services, who shall, under the supervision of the Director and with the assistance of emergency service chiefs, develop emergency plans and manage the emergency programs of the City; and shall have such other powers and duties as may be assigned by the Director.

Additionally, the City Disaster Council is empowered to develop and recommend for approval to the City Council emergency and mutual aid plans and agreements, and any ordinances, resolutions, rules, and regulations necessary to implement such plans and agreements. The Disaster Council is comprised of the Mayor, City Manager, Assistant Director of Emergency Services, Chiefs of Emergency Services, and others appointed by the Director with the advice and consent of the City Council.

By declaring a local emergency, the City Manager, Disaster Council, and City Council will be able to provide an immediate, necessary response to the City’s homelessness crisis to protect all City residents. The City’s normal hiring and contracting processes may be expedited, and the City will be able to immediately allocate necessary resources and personnel to take emergency action.

In accordance with California Government Code, Section 8630(c), the emergency declaration requires the City Council to review the need for continuing the local emergency at least every 60 days until the City Council terminates the local emergency.

FISCAL IMPACT:

The report details over $15 million in funding that has been allocated to address issues related to homelessness, including outreach services, since 2017. This fiscal impact reflects those categories of expenditures that are easily tracked and coded to homelessness efforts and initiatives. The true amount the City has expended over the years to address issues related to homelessness would be significantly larger if all personnel activities and efforts were meticulously allocated.

ENVIRONMENTAL IMPACT:

The proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA. Section 15378 explicitly excludes from its definition of “project” the “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) This action would declare a local emergency under the Stanton Municipal Code and empower the director and assistant director of emergency services to direct the emergency organization of the City in response to the homeless crisis. This action is considered administrative because it will not result in a physical change in the environment, and therefore is not subject to CEQA.

Any permit that may be issued will be subject to its own CEQA analysis.

PUBLIC NOTIFICATION:

Notification and advertisement were performed as prescribed by law.

STRATEGIC PLAN OBJECTIVES ADDRESSED:

Obj. No. 1: Provie a safe community.

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

Obj. No. 5: Provide a high quality of life.

Obj. No. 6: Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager
Reviewed by: James Wren, Director of Public Safety Services Reviewed by: HongDao Nguyen, City Attorney
Approved by: Hannah Shin-Heydorn, City Manager
Attachment:

A. Proposed Resolution No. 2024-40
Attachment “A”
RESOLUTION NO. 2024-40

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA,

PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY CAUSED BY

CONDITIONS AND THREATENED CONDITIONS OF HOMELESSNESS WITHIN THE

CITY OF STANTON, WHICH IF NOT CORRECTED, CONSTITUTES AN IMMINENT

AND PROXIMATE THREAT TO THE SAFETY OF PERSONS AND PROPERTY IN THE CITY

THE CITY COUNCIL OF THE CITY OF STANTON DOES HEREBY RESOLVE AS FOLLOWS:

WHEREAS, the City of Stanton “City” is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, California Government Code 8630, et seq., and Chapter 2.64 of Title 2 of the Stanton Municipal Code provide that the Stanton City Council (“City Council”) may proclaim local emergencies; and
WHEREAS, like many other regions in California, the City has seen a rapid and troubling growth in the homeless population of the City, a condition that has been difficult to address given the traditionally high cost of housing and property in the region, and the historic shortage of emergency, transitional, and affordable housing across the state; and WHEREAS, Executive Order N-1-24, signed by Governor Gavin Newsom on July 24, 2024, acknowledged the dire state of the homelessness crisis in California and ordered state agencies and departments to address encampments on state property. Moreover, the Executive Order ordered that local governments are encouraged to use all available resources and infrastructure, to take action with the urgency this crisis demands to humanely remove encampments from public spaces, prioritizing those encampments that most threaten the life, health, and safety of those in and around them; and WHEREAS, independently and in conjunction with the State’s directives to combat homelessness and address the housing crisis, the City has made significant investments in assisting its unhoused community. These investments include, but are not limited to:
creating and funding additional staff positions dedicated to homelessness outreach, funding and participating in regional outreach and navigation centers, expanding transportation services and shelter access in the region, and funding and welcoming three Project Homekey permanent supportive housing projects to the City totaling 153 units; and
WHEREAS, according to the City’s 2024 Point in Time Count, the City has experienced a 138 percent increase in its unsheltered population from 2019 to 2024, and a 78 percent total increase in its homeless population (including both sheltered and unsheltered individuals), despite the City’s significant investments in combating homelessness and assisting the unhoused community. In contrast, Orange County has experienced only a 7 percent increase in its homeless population since 2019, and surrounding cities have experienced significantly less homeless population growth; and WHEREAS, despite the City’s efforts to connect homeless individuals with regional assistance centers, the City has only been able to refer 18 people in the last 10 months to the regional Navigation Centers in Buena Park and Placentia due to overpopulation; and
WHEREAS, regional data shows that a significant percentage of unsheltered homeless individuals also suffer disproportionately from complex health issues, such as substance use disorder, serious mental illness, and physical disability, and require assistance from the City, Orange County Behavioral Health Services, and other local, state, and federal health agencies and nonprofit organizations to provide the necessary public services; and WHEREAS, the homelessness crisis confronting the City has grown both incrementally and exponentially, leading to death, illness, injury, and poor living conditions. According to the Orange County Sheriff’s Department Report of 2022 Orange County Homeless Deaths, 65 percent of deaths among people experiencing homelessness were caused by accidents, and the leading cause of accidental deaths is drug use with fentanyl. This is compared to 2019, when 46 percent of deaths among people experiencing homelessness were caused by accidents, and 2020, when 54 percent of deaths among people experiencing homelessness were caused by accidents, and 2021, when 59 percent of deaths among people experiencing homelessness were caused by accidents. Between 2021 and 2022, the number of deaths among people experiencing homelessness in Stanton has risen by 150 percent; and
WHEREAS, the displacement of the number of people living on the streets of the City today is a daily recurring emergency, constituting the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property in the City which are beyond the control of the services, personnel, equipment, and facilities of this city, and requires the combined forces of other political subdivisions to combat; and WHEREAS, notwithstanding the City’s continued commitment to addressing the homelessness crisis, including dedication of funding and investments into homelessness solutions, programs, and initiatives, an emergency declaration is necessary to mobilize resources, faster and with urgency, for the public health, welfare, and safety of all; and WHEREAS, the City’s ability to mobilize local resources, coordinate interagency response, accelerate procurement of housing units, use mutual aid, and seek assistance and potential reimbursement by the State and Federal governments will be critical to successfully responding to this homelessness crisis; and WHEREAS, during the pendency of the existence of a local emergency, the City Council shall retain its full authority to consider a variety of City ordinances to codify the measures necessary to address this homelessness crisis; and
WHEREAS, the benefits of this emergency declaration, coupled with past and future actions by the City Council to address the homelessness crisis, will help ensure that this local emergency will be of a temporary nature.

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

SECTION 1: That the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2: The City Council finds this Resolution is exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3) in that the Resolution is not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment, nor will the Resolution have the potential for causing a significant effect on the environment. Additionally, the City Council finds that the proposed Resolution is not a “project” under State CEQA Guidelines Section 15378(b)(5), which excludes the “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment,” as the Resolution is not anticipated to result in a direct or indirect physical change in the environment.

SECTION 3: Pursuant to California Government Code Section 8630 and Stanton Municipal Code sections 2.64.020 and 2.64.060(A)(1), the City Council hereby finds and proclaims the existence of a local emergency caused by conditions or threatened conditions of homelessness in Stanton, which, if not corrected, constitutes a threat to the safety of persons and property within the territorial limits of the City beyond the control of the services, personnel equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat.

SECTION 4: During the continued threatened existence and actual existence of the local emergency, the powers, functions and duties of the City Manager, as the Director of Emergency Services, the Assistant Director of Emergency Services, to be appointed by the Director, the Disaster Council of the City, and the emergency organization of the City shall be those prescribed by state law, by ordinances and resolutions of the City and approved by the City Council.

SECTION 5: The City Manager, as the Director of Emergency Services, is hereby authorized to furnish information, to enter into agreements, including, but not limited to, applications and agreements for grant funding, and to take all actions necessary to obtain emergency assistance from State and federal agencies to implement preventive measures to protect and preserve the City within the scope of the local emergency hereby declared, pursuant to the powers and duties prescribed under Chapter 2.64 of the Stanton Municipal Code. Pursuant to Section 2.64.090 of the Stanton Municipal Code, any expenditures made in connection with emergency activities, including mutual aid activities, shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property of the City.

SECTION 6: City staff are hereby directed to provide the City Council with a report of actions taken under this Resolution at the next practicable opportunity, and no less than on a monthly basis.

SECTION 7: The City shall coordinate its efforts to address this proclaimed emergency with the other local jurisdictions, the County of Orange, the State of California, and the federal government.

SECTION 8: Executive Order N-1-24, signed by Governor Gavin Newsom on July 24, 2024, acknowledged the dire state of the homelessness crisis in California and directed resources to state agencies and departments to address encampments. The City Council requests the Governor to proclaim a "state of emergency" to combat homelessness and direct resources to support the efforts of major cities in the State of California to address the problem, in furtherance and consistent with Executive Order N-1-24.

SECTION 9: This Proclamation of Emergency shall sunset on December 31, 2025, subject to being renewed. The setting of a specific time frame allows for actions to be taken to make permanent, necessary structural changes. Pursuant to California Government Code Section 8630, the City Council shall, by minute action, review the need for continuing the local emergency at least once every 60 days until it terminates the local emergency.

SECTION 10: Pursuant to Government Code section 3100, in protection of the health and safety and preservation of the lives and property of the people from emergencies which result in conditions of extreme peril to life, property and resources, all public employees are hereby declared disaster service workers subject to such disaster service activities as may be assigned to them by their superiors or by law.

SECTION 11: Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 12: Effective Date. This Resolution shall become effective immediately. The City clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED, AND ADOPTED this 26th day of November, 2024. __________________________
DAVID J. SHAWVER, MAYOR
APPROVED AS TO FORM:
_____________________________________

HONGDAO NGUYEN, CITY ATTORNEY
ATTEST:

I, Patricia A. Vazquez, City Clerk of the City of Stanton, California DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2024-40 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the Stanton City Council, held on November 26, 2024, and that the same was adopted, signed and approved by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________
PATRICIA A. VAZQUEZ, CITY CLERK

CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: January 27, 2026
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024-25 AND RELATED AUDIT REPORTS
REPORT IN BRIEF:

Each year the City issues an Annual Comprehensive Financial Report (ACFR), which summarizes the financial activity of a local government for a given fiscal year in accordance with financial statement presentation requirements prescribed by government accounting standards (Attachment A). The ACFR is accompanied by an opinion from the City’s audit firm. The audit firm’s opinion on the City’s 2024-25 ACFR is a clean opinion, with no exceptions, modifications, or qualifications. (The audit firm also issued a separate report for the Housing Authority’s 2024-25 audited financial statements.) The single audit report on Attachment C was required for the Fiscal Year 2024-25 audit because the City spent more than $750,000 on federal grant funds. No findings or questioned costs are identified in this report. In addition, the City’s auditors issue other reports in relation to the City’s audit. These reports are provided in Attachments D and E.

RECOMMENDED ACTION:

2. Receive and file the Annual Comprehensive Financial Report (ACFR), and related audit reports.

Item: 9E
Click here to return to the agenda.

ANALYSIS/JUSTIFICATION:

An ACFR is organized into three sections: the introductory section, the financial section, and the statistical section. The introductory section includes a letter of transmittal that provides an overview of the City. The financial section includes the audit opinion, management’s discussion and analysis, government-wide financial statements, notes to the financial statements, and supplementary schedules. Management’s discussion and analysis provides narrative information as well as an overview and analysis of the City’s financial statements. The statistical section provides operational and demographic statistics and ten years of selected financial data.

Government-wide Financial Statements
The government-wide financial statements that are included in the ACFR provide the reader with an opportunity to ascertain the financial status of all funds and activities of the City in a single consolidated presentation. As of June 30, 2025, the City held $185.7 million in assets (Attachment A, page 23). Those assets consisted of cash and investments, including cash held for OPEB (other post-employment benefits) ($80.8 million), capital assets ($96.4 million), and receivables and prepaid expenses ($8.5 million).

The government-wide financial statements also display the obligations of the City that represent claims against those assets. As of June 30, 2025, the City owed $15.2 million consisting of short-term obligations ($5.8 million), long-term obligations ($0.7 million), and the City’s unfunded pension liability for employee service rendered to date ($8.7 million) (Attachment A, page 23).

The government-wide financial statements also report a consolidation of all revenues and expenses of the City. On a consolidated basis, City revenues exceeded expenses by $3.6 million (Attachment A, page 25).

Fiduciary funds are funds held on behalf of other parties. These funds (North Orange County Public Safety Collaborative Fund and the Successor Agency to the Stanton Redevelopment Agency Fund) are excluded from the government-wide financial statements.

Fund Financial Statements
Local governments typically receive funding from multiple sources, some of which are restricted to specific uses and some of which are unrestricted. As a result, local governments establish separate funds to segregate the resources that are restricted for specific programs and activities. The fund financial statements that are contained in the ACFR display the financial activity of major funds in separate columns so that the reader can ascertain the revenues, expenditures, and remaining unspent fund balance of each of those major funds.

One of the City’s major funds is the General Fund. The General Fund is the primary operating fund of the City that pays for much of the City’s day-to-day operating expenditures. The General Fund (Funds 101, 102, and 801) accounts for the unrestricted resources of the City, the spending of which can be directed by City Council toward any lawful public use. (Fund 801, the City’s Developer Deposits Fund, is not included in the City’s General Fund revenue and an expenditure report is provided to the City Council monthly. The City’s auditors include this fund with the General Fund for ACFR reporting purposes in accordance with government accounting standards.) As of June 30, 2025, the General Fund’s spendable fund balance was $42.8 million. Of this amount, $2.9 million was set aside for expenditures that were budgeted in Fiscal Year 2024-25 that were delayed and will be spent in Fiscal Year 2025-26; $2 million was set aside by the City Council on June 13, 2023, to allocate to fund special projects that were formerly funded by the American Rescue Plan Act (ARPA) funding; $16.9 million represents reserves set aside by the City Council with the adoption of Resolution No. 2022-24 for certain contingencies such as: economic uncertainty, emergency equipment and maintenance, emergency disaster, and capital improvements. In addition, $.06 million was set aside for future appropriations in accordance with the provisions contained in various developer agreements. After accounting for those amounts, there was $20.9 million in the General Fund’s fund balance available for appropriation (Attachment A, page 84).

Housing Authority Audited Financial Statements (Attachment B) This report is a clean report with no findings identified. Staff transmitted this report to the City Council with staff’s December General Information issue communicated on December 18, 2025, in compliance with Senate Bill 341. The Housing Authority’s audited financial statements report that the Housing Authority’s net position (the amount that assets exceed liabilities) was $27.2 million as of June 30, 2025 (Attachment B, page 6). Most of the Housing Authority’s assets are in the form of cash and investments ($8.6 million) and capital assets (consisting of land and buildings and improvements) associated with the Tina-Pacific properties ($19.2 million). In Fiscal Year 2024-25, the Housing Authority’s expenses exceeded revenues by $3.3 million (Attachment B, page 7), primarily due to legal expenses and relocation payments (including consultant costs) associated with the Tina-Pacific properties.

Single Audit Report (Attachment C)
This report is a clean report with no findings identified. The Single Audit Act and Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires entities that expend equal to or more than $750,000 in federal expenditures in a fiscal year to have an audit performed in accordance with the Single Audit Act. (The dollar threshold increases to $1,000,000 in Fiscal Year 2025-26.) During the fiscal year ended June 30, 2025, the City spent approximately $2.2 million on federal expenditures (Attachment C, page 6). The Congressionally Recommended Award program issued by the Department of Justice was the major program the auditors reviewed during the course of this audit. The majority of the expenditures for this grant program were reimbursements made to The Hope Center of Orange County.

Other Related Audit Reports
In addition to the audit firm’s opinion on the fair presentation of the City’s financial statements, audit firms are required to provide certain related audit communications whenever they perform an audit of local government financial statements. Those related audit communications are included as Attachments D and E to this agenda report. The content of these required audit communications is described below:
• Report on Those Charged With Governance (Attachment D) – This report communicates the inherent limitations of the audit process, assumptions that underlie the financial reporting process for all local governments and identifies any material misstatements or difficulties that were detected in the performance of the audit. For Fiscal Year 2024-25, this report is a clean report with only a corrected adjustment noted during the audit process.
• Article XIIIB Limit on Appropriations (Gann Limit) (Attachment E) – This report communicates the audit firm’s testing of the City’s computation of the statutory appropriation limit (Gann Limit). No findings are identified in this report.

FISCAL IMPACT:

Not applicable.

ENVIRONMENTAL IMPACT:

This item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).

LEGAL REVIEW:

Not applicable.

PUBLIC NOTIFICATION:

Through the regular agenda posting process.

STRATEGIC GOAL:

Goal 4: Ensure fiscal stability.

Prepared by: Sharon del Rosario, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENTS:

A. Annual Comprehensive Financial Report
B. Housing Authority Financial Statements
C. Single Audit Report
D. Report on Communication With Those Charged with Governance E. Article XIIIB Limit on Appropriations (Gann Limit)
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
7800 KATELLA AVENUE, STANTON, CA 90680 | (714) 379-9222 | STANTONCA.GOV

CITY OF STANTON, CALIFORNIA
Attachment: A
Click here to return to the agenda.

CITY OF STANTON, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL STATEMENT REPORT
YEAR ENDED JUNE 30, 2025
Prepared by
Finance Department

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN

FINANCIAL REPORTING VII

ORGANIZATION CHART VIII
PRINCIPAL OFFICIALS AS OF JUNE 30, 2024 IX

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 5
BASIC FINANCIAL STATEMENTS:

GOVERNMENTAL-WIDE FINANCIAL STATEMENTS:

STATEMENT OF NET POSITION 23
STATEMENT OF ACTIVITIES 24
GOVERNMENTAL FUNDS:

BALANCE SHEET 28

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE

SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 29

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 30

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF
ACTIVITIES 31
PROPRIETARY FUNDS:

STATEMENT OF NET POSITION 34

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 35
STATEMENT OF CASH FLOWS 36
FIDUCIARY FUNDS:

STATEMENT OF FIDUCIARY NET POSITION 38
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 39
NOTES TO BASIC FINANCIAL STATEMENTS 42

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

FINANCIAL SECTION (CONTINUED)

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS MISCELLANEOUS PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 94
SCHEDULE OF CONTRIBUTIONS 96

CALPERS SAFETY PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 98
SCHEDULE OF CONTRIBUTIONS 100

OTHER POSTEMPLOYMENT BENEFIT PLAN

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET)
AND RELATED RATIOS 102

BUDGETARY COMPARISON SCHEDULE
GENERAL FUND 104
HOUSING AUTHORITY SPECIAL REVENUE FUND 105
OTHER GRANTS SPECIAL REVENUE FUND 106
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 107

SUPPLEMENTARY INFORMATION
GENERAL FUND:

DESCRIPTION OF GENERAL FUNDS 111
COMBINING BALANCE SHEET 112

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 114
OTHER GOVERNMENTAL FUNDS:

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 117
COMBINING BALANCE SHEET 120

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 124

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL:

GAS TAX SPECIAL REVENUE FUND 128
PROTECTIVE SERVICES SPECIAL REVENUE FUND 129

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

FINANCIAL SECTION (CONTINUED)

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL (CONTINUED):

SUPPLEMENTAL LAW ENFORCEMENT GRANT SPECIAL
REVENUE FUND 130

AIR QUALITY IMPROVEMENT PROGRAM SPECIAL REVENUE
FUND 131

FAMILIES AND COMMUNITIES TOGETHER (FACT) GRANT
SPECIAL REVENUE FUND 132

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
SPECIAL REVENUE FUND 133
SENIOR TRANSPORTATION SPECIAL REVENUE FUND 134
MEASURE M SPECIAL REVENUE FUND 135
PUBLIC SAFETY TASK FORCE (PSTF) SPECIAL REVENUE FUND 136 DEVELOPMENT IMPACT FEES SPECIAL REVENUE FUND 137
LIGHTING AND MEDIAN MAINTENANCE SPECIAL REVENUE FUND 138

ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA)
SPECIAL REVENUE FUND 139

STANTON CENTRAL PARK MAINTENANCE SPECIAL REVENUE
FUND 140
JAG GRANT SPECIAL REVENUE FUND 141

CERTIFIED ACCESS SPECIALIST PROGRAM (CASP) SPECIAL
REVENUE FUND 142
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 143
PARK IN LIEU FEES CAPITAL PROJECTS FUND 144
INTERNAL SERVICE FUNDS:

DESCRIPTION OF INTERNAL SERVICE FUNDS 146
COMBINING STATEMENT OF NET POSITION 147

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION 148
COMBINING STATEMENT OF CASH FLOWS 149

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION 153

FINANCIAL TRENDS
NET POSITION BY COMPONENT 154
CHANGES IN NET POSITION 156
FUND BALANCES OF GOVERNMENTAL FUNDS 160
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS 162
REVENUE CAPACITY:

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 164
DIRECT AND OVERLAPPING PROPERTY TAX RATES 165
PRINCIPAL PROPERTY TAXPAYERS 166
PROPERTY TAX LEVIES AND COLLECTIONS 169
DEBT CAPACITY:

RATIOS OF OUTSTANDING DEBT BY TYPE 170
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT 171
LEGAL DEBT MARTIN INFORMATION 172
PLEDGED-REVENUE COVERAGE 174
DEMOGRAPHIC AND ECONOMIC INFORMATION:

DEMOGRAPHIC AND ECONOMIC STATISTICS 176
PRINCIPAL EMPLOYERS 177
OPERATING INFORMATION:

FULL -TIME EQUIVALENT CITY EMPLOYEES BY FUNCTIONS 178
OPERATING INDICATORS BY FUNCTIONS 180
CAPITAL ASSET STATISTICS BY FUNCTION 186

INTRODUCTORY SECTION
This page intentionally left blank
City of Stanton
Pride. Purpose. Progress.
7800 Katella Avenue, Stanton, CA | Phone (714) 379-9222 | F ax (714) 890-1443 | StantonCA.gov December 11, 2025
To the Honorable Mayor, Members of the City Council, and Citizens of Stanton:

It is a pleasure to present the Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR) for the City of Stanton. These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards.

Responsibility for the accuracy of the data, the completeness and reliability of the presentation, including all disclosures, rests with City management.

To provide sufficient reliable information for the preparation of the City’s financial statements, City staff has established a comprehensive internal control framework designed to minimize the risk of error or misstatement and the risk of loss, theft, or misuse of City assets. Because the cost of internal controls should not exceed their benefits, the City’s internal controls have been designed to provide reasonable, rather than an absolute, assurance that the financial statements will be free from material misstatement.

The City’s financial statements have been audited by Gruber and Lopez, Inc., certified public accountants. The independent audit firm concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion (“clean opinion”) on the City’s financial statements for the fiscal year ended June 30, 2025. This means, in the auditors’ opinion, the City’s financial statements fairly present the City’s financial position in accordance with generally accepted accounting principles.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides narrative information, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of Stanton
Stanton is a general law City incorporated in 1956. It occupies a land area of 3.1 square miles and serves a population of approximately 37,962. The City is located in the northwestern portion of Orange County, approximately 23 miles southeast of the City of Los Angeles. It has easy freeway access and is within 12 miles of: Disneyland, Anaheim Stadium, Knotts Berry Farm, Huntington Beach and the John Wayne and Long Beach airports. State Highway 39, Beach Boulevard, runs through the center of the City. ii
The City is governed under the Council-Manager form of government, with a five-member City Council.

The City Council is elected on a non-partisan basis with staggered four-year terms. Elections are held in November on even-numbered years. The Mayor is elected at-large, and the four City Council members are elected by voters in their districts. The Mayor Pro Tem position is selected annually by a majority vote of the City Council members. The City Council appoints the City Manager to carry out the policies and direction of the City Council, oversee the day-to-day operations of the City, and appoint the heads of the various City departments.

The City provides a range of municipal services that includes public works, planning, zoning, building, sewer services, parks and recreation, code enforcement, and parking control. Stanton is a “contract city”, and contracts with other governmental entities, private firms, and individuals to provide some of these services. Police services are provided by the Orange County Sheriff’s Department. Fire services are provided by the Orange County Fire Authority. Water services are provided by Golden State Water Company.

The City is financially accountable for the Stanton Housing Authority (Housing Authority). Therefore, the Housing Authority’s activities are included in these financial statements. Additional information on the Housing Authority can be found in Note 1 to the basic financial statements. The former Stanton Redevelopment Agency (Redevelopment Agency) was dissolved on February 1, 2012. Upon the dissolution of the Redevelopment Agency, its assets and liabilities were transferred to the Successor Agency to the Stanton Redevelopment Agency (Successor Agency). The City is obligated to report the resources and activities of the Successor Agency in a separate private purpose trust fund, which is also included in these financial statements. All uses of the resources of the Successor Agency must be approved by an independent Oversight Board comprised of members appointed by various taxing entities, and the California Department of Finance (“DOF”). Additional information for the Successor Agency can be found in Note 14 to the basic financial statements.

The City uses an annual budget, which the City Council adopts prior to the beginning of every fiscal year, to manage its finances. The budget is organized by fund (e.g., General Fund), department (e.g., public safety), and division (e.g., law enforcement services). The City Manager can authorize appropriation transfers in the operating and capital budget within the same fund without limitation. Any revisions between funds and revisions that change a fund’s total approved appropriations must be approved by the City Council. The Successor Agency does not adopt a budget because its expenses are restricted to enforceable obligations approved by the DOF. Payments associated with these enforceable obligations are approved annually by the DOF through the submission of a Recognized Obligation Payment Schedule (ROPS), unless DOF has approved a Last and Final ROPS. The DOF approved the Successor Agency’s most recent Amended Last and Final ROPS on December 17, 2020. Therefore, the Successor Agency’s annual expenses are limited to the amounts identified on the Amended Last and Final ROPS.

State law mandates that Stanton can only raise local tax rates with voter approval. Use and regulatory fees must also follow procedures set forth in State law and must not exceed the estimated reasonable cost of providing services. Fees require approval by the City Council; and fees in excess of reasonable cost require voter approval.

Local Economy
Over the last ten years, property values and personal income levels within the City have steadily increased.

The assessed valuation of property in the City has grown 109.1% since fiscal year 2015-16 (ten years ago). iii
The City’s assessed valuation has been consistently increasing at an average rate of 7.7% annually over the last ten years. In fiscal years 2024-25 and 2025-26, the City’s assessed valuation increased 11.5% annually.

Stanton is home to approximately 3,000 businesses. Major industries include restaurants and general retail businesses. Stanton’s unemployment rate has traditionally been below State and national levels.

The three largest employers in the City are: Rowntree Gardens, Inc., ORCO Block Co. (ORCO), and Home Depot. The City’s largest employer with 314 employees, Rowntree Gardens, is a non-profit senior living community that provides a full range of services to its members, such as: memory care, assisted living, independent living, skilled nursing, therapy services, and home care. ORCO, the City’s second largest employer with 191 employees, is a family-owned business operating for over 75 years that manufactures low embodied carbon concrete products, such as concrete masonry units, pavers, slabs, and mortarless wall units. ORCO also sells high quality natural stone, porcelain, and fireplace kits. The Home Depot, the City’s third largest employer with 163 employees, is the world’s largest home improvement retailer with nearly 400,000 associates working in its more than 2,200 stores located through the United States of America and Mexico.

The City’s diverse sales tax base is comprised of a number of companies. The City’s Top 100 sales tax producers include various industries such as: fuel and service stations, restaurants, building and construction and general retail businesses. These top sales tax producers generate approximately 86.2% of the City’s total annual sales tax revenue. Additionally, in November 2014, the City’s voters approved a one-cent transaction and use tax (the Stanton 9-1-1 Public Safety and Essential City Services Protective Measure). The City’s Top 100 tax producers also generate approximately 67.9% of the City’s total annual transaction and use tax revenue.

The City’s tax base is well diversified, with total tax revenue representing 77.3% of the City’s total General Fund revenues. Property tax revenue (which includes property tax received in-lieu of motor vehicle fees) represents 36.1% of total tax revenues. Sales tax and transaction and use tax revenues represent 40.2% of total tax revenues. The remainder of the tax base (franchise taxes, transient occupancy taxes, utility user taxes, business license taxes, cannabis taxes) contributes another 23.7% of tax revenues to the General Fund. Total tax revenue increased 5.3% from fiscal year 2023-24, primarily due to increased property tax and cannabis tax revenues. Fiscal Year 2024-25 was the first full year the City received cannabis tax revenue as compared to a partial year for several of the cannabis businesses.

Other Relevant Financial Information
The City Council initially established a General Fund reserve policy in 2011 and has updated the policy annually since that time. On June 11, 2024, the City Council adopted Resolution No. 2024-22 to approve the City’s reserve policy for Fiscal Year 2024-25. The risk-based policy sets aside the following funds in the City’s General Fund to ensure the City’s continued financial stability:
 Economic uncertainty – $6,600,000 (target level is 20% of the General Fund’s operating expenditures);
 Capital improvement – $5,000,000;
 Emergency disaster contingency - $3,300,000 (target level is 10% of the General Fund’s operating expenditure);
iv
 Emergency equipment and maintenance - $150,000; and,
 Technology equipment - $150,000.

With the exception of the economic uncertainty reserve (which is included in unassigned fund balance in accordance with governmental accounting standards), these reserves are reported in the General Fund’s committed fund balance in the accompanying financial statements.

City Resolution No. 2024-22 also established the following reserves in other City Funds:
 Capital Improvement reserve set aside in the Sewer Enterprise Fund - $1,000,000;

 Vehicle Replacement reserve set aside in the Fleet Maintenance Internal Service Fund - $100,000; and,
 Pension and Other Post Employment Benefits Stabilization reserve set aside in the Employee Benefits Internal Service Fund with a target level of 50% of the City’s unfunded actuarial liability.

As of June 30, 2025, the City held $5.2 million and $922,977 in irrevocable trust accounts held by Public Agency Retirement Services (PARS) and California Employer’s Retiree Benefit Trust (CERBT), respectively.

These funds are restricted for pension and other post-employment benefit (OPEB) expenses only and are included with unrestricted net position in the Employee Benefits Internal Service Fund (to offset pension and other post-employment liabilities reported at year end). The amount held in the trust was 59.3% of the City’s unfunded actuarial liability balance for its pension plans as of June 30, 2024, GASB 68 Accounting Report issued by the California Public Employees’ Retirement System (CalPERS). As of June 30, 2025, the City’s outstanding balance for its other post-employment benefits was a surplus of $52,423, as estimated by the City’s consultant, Total Compensation Systems, Inc. Therefore, there is no OPEB liability recorded as of June 30, 2025.

Summary of Current Year Accomplishments
Major projects completed during fiscal year 2024-25 include:
 Updated the Council’s Strategic Plan;
 Hosted a community-focused State of the City event at Stanton Central Park;  Completed an update to the User Fee Study;
 Completed a comprehensive update to the City’s Business License Ordinance;  Completed a comprehensive update to the City’s Motel Ordinance;  Secured $199,000 dollars in grant funding over a three-year period to dedicate to tobacco enforcement;
v
 Secured $450,000 in grant funding for Community Center improvements;  Completed the Sewer Master Plan Update;
 Completed repair of the Santa Rosalia Bridge;
 Completed the Premier Park Renovation project;
 Welcomed 321 new units of apartment housing to the City as part of the award-winning Cloud House development project; and
 Concluded the Safe Streets Together campaign, with results including 19 undercover operations, 115 misdemeanor citations for prostitution, 289 citations for vehicle code violations, and 3 human traffickers arrested as a result of investigations.

Future Work Plan Initiatives
City work plan goals for fiscal year 2025-26 include the following:
 Focus on economic development recruitment and retention activities in partnership with a specialized consultant;
 Complete the Stanton Central Park Tennis Court Renovation Project;  Host Sports Park groundbreaking;
 Complete the Family Resource Center Improvements Project (Phase II);  Complete the Citywide Street Sign Replacement Project;  Advance the Orangewood Complete Streets Project;
 Conduct a 4th of July Social Host Ordinance pilot program;  Complete the City Rebranding project, including updating the City’s website;  Complete implementation of new Finance System ERP software;  Continue work on General Plan Update;
 Complete the Bigsby townhome project;
 Complete entitlement of ORCO townhome project; and
 Continue work on sale of Tina Pacific Neighborhood.

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Stanton
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
vii

CITY OF STANTON
Organizational Structure
as of June 30, 2025
Stanton Residents

CITY COUNCIL
David J. Shawver, Mayor
Donald Torres, Mayor Pro Tem
Victor Barrios, Council Member
Gary Taylor, Council Member
John D. Warren, Council Member

CITY MANAGER
Hannah Shin-Heydorn
Administration
Information Technology
Personnel and Risk Management
City Clerk
Patricia A. Vazquez
Administration
Council Support
Elections
Records Management
Finance
Sharon del Rosario
Administration
Accounting / Payroll
Budget & Financial Planning
Business License
Debt Service
Treasury
Public Safety
James Wren
Administration
Ambulance Services
Animal Control
Code Enforcement
Emergency Preparedness
Homeless Services
Parking Control
Public Works
Cesar Rangel, P.E.

Administration
CIP Administration
Crossing Guards
Engineering
Fleet Maintenance
Graffiti Abatement
Parks Maintenance
Public Facilities Maintenance
Sewer Maintenance
Storm Drain Maintenance
Street Lighting
Street Maintenance
Community & Economic
Development
Crystal Landavazo
Administration
Building Regulation
CDBG/Housing
Economic Development
Planning
Community
Services
Zenia Bobadilla
Administration
Public Information
Facility Rentals
FaCT Program
Recreation Programs
Senior Services
Special Events
Stanton Family Resource
Center
Fire Services (OCFA)
Chief Matt Schuetz
Administration
Fire Protection
Police Services (OCSD)
Captain Ryan Pierce
Administration
Crime Prevention
Investigations
Parking Enforcement
Patrol
Supervision
Traffic
City Attorney
HongDao Nguyen
Best Best & Krieger LLP
viii

CITY OF STANTON, CALIFORNIA

LIST OF PRINCIPAL OFFICIALS
AS OF JUNE 30, 2025
ix
City Manager ...................................................................................................... Hannah Shin-Heydorn City Clerk ................................................................................................................ Patricia A. Vazquez Community & Economic Development Director......................................................... Crystal Landavazo Community Services Director ......................................................................................... Zenia Bobadilla Finance Director/City Treasurer …………………………………………………………. Sharon del Rosario Public Safety Services Director ...................................................................................... James J. Wren Public Works Director/City Engineer ................................................................................. Cesar Rangel City Attorney (Best, Best & Krieger LLP)..................................................................... HongDao Nguyen Chief of Police Services (O.C. Sheriff Department) .......................................... Captain Charles Walters Orange County Fire Authority Division Chief ……………………………………………….… Matt Schuetz x
This page intentionally left blank

FINANCIAL SECTION
1 The Honorable Mayor and
Members of the City Council
of the City of Stanton, California
Stanton, California
INDEPENDENT AUDITORS’ REPORT
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Stanton, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Stanton, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activity, each major fund, and the aggregate remaining fund information of the City of Stanton, California, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 City of Stanton, California, 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 City of Stanton, California’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
The Honorable Mayor and
Members of the City Council
of the City of Stanton, California
2 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 City of Stanton, California’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 City of Stanton, California’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 and safety pension plans, the schedule of changes in the net other postemployment benefit (OPEB) liability (asset) and related ratios, and the budgetary comparison schedules for the General Fund and Major Special Revenue Funds, 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Stanton’s basic financial statements. The introductory section, the combining and individual fund financial statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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

The Honorable Mayor and
Members of the City Council
of the City of Stanton, California
3 Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2025, on our consideration of the City of Stanton’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 City of Stanton’s internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
December 10, 2025
4 This page intentionally left blank
5 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Stanton (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. 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 City exceeded its liabilities and deferred inflows of resources on June 30, 2025, by $172.8 million. This amount is referred to as the net position of the City. Of this amount, $55.0 million is unrestricted net position and may be used to meet the City’s ongoing obligations to citizens and creditors.
 During fiscal year 2024-25, the City’s overall net position increased by $3.6 million primarily due to an increase in program revenues, property taxes, investment earnings and cannabis tax revenue.
 The City’s total liabilities, which include net pension liability, increased by $1.5 million, or 11.3% during the fiscal year ended June 30, 2025, to a total outstanding amount of $15.2 million, primarily due to an increase of $1.6 million in the City’s accounts payable at June 30, 2025.
 As of June 30, 2025, the City’s governmental funds (the General Fund, Special Revenue, and Capital Projects funds) reported combined ending fund balances of $65.3 million. Governmental fund revenues and other financing sources exceeded expenditures, and other financing uses by $1.6 million during fiscal year 2024-25. Of the $65.3 million combined ending fund balances on June 30, 2025, $26.9 million is categorized as unassigned, $4.9 million is categorized as assigned, $10.3 million is categorized as committed, $21.1 million is categorized as restricted, and $2.0 million is categorized as non-spendable. More detailed information regarding these amounts can be found in Note 13 in the Notes to Basic Financial Statements.  The combined $32.4 million assigned and unassigned fund balance of the General Fund represented 88.1% of total General Fund revenues.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to 6 the basic financial statements. This report also consists of 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 City’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 City’s finances.

These two statements help to answer the question: “Is the City 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 City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, public works and culture and recreation. The business-type activities of the City include sewer activities.

Government-wide financial statements. The government-wide financial statements include not only the City itself (known as the primary government), but also the Stanton Housing Authority (“Housing Authority”), a legally separate entity. The Housing Authority functions for all practical purposes as an integral part of the City, and therefore is included in the accompanying financial statements as a part of the primary government as a blended component unit.

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 City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
7 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 funds 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 governmentwide 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.

The City maintains various individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the: General Fund, Housing Authority Special Revenue Fund, Other Grants Special Revenue Fund, and the Capital Project Fund, all of which are considered major funds.

Data from other governmental funds are combined into a single, aggregate presentation.

Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its governmental and proprietary funds. Annual appropriations are approved prior to the beginning of the year. A budgetary comparison schedule has been provided for each of the governmental funds for which a budget was adopted to demonstrate compliance with this budget. The definition of the General Fund for purposes of these audited financial statements is different than for budgetary purposes. For budgeting purposes, the following funds are budgeted separately from the City’s General Fund: Transaction and Use Tax Fund, PCTA Administration Fund, Public Benefit Fees Fund, Beautification Fees Fund, Neighborhood Preservation Fees Fund, Cannabis Community Benefit Fees Fund, and the Developer Deposits. However, these funds have been combined into the General Fund for these financial statements.

Individual fund data for these funds is provided in the form of combining statements in the supplementary information section of this report.

Proprietary funds. The City maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City 8 uses internal service funds to account for its workers’ compensation insurance activities, liability/risk management activities, employee benefits activities, and fleet maintenance activities.

Proprietary funds provide the same type of informational data as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer operations, which is considered to be a major fund of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section of this report.

Fiduciary funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the governmentwide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City utilizes two private-purpose trust funds to account for the assets, liabilities, and activities of the Successor Agency to the dissolved Stanton Redevelopment Agency and the North Orange County Public Safety Collaborative.

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 City’s budgetary policies and supplementary information on the City’s defined benefit plans.

The combining statements referred to earlier in connection with General Funds, other governmental funds and internal service funds are presented immediately following the required supplementary information as supplementary information. The City’s supplementary information section also presents budgetary schedules for individual governmental funds and combining statements for the fiduciary funds.

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 City, assets and deferred outflows exceeded liabilities and deferred inflows by $172.8 million as of June 30, 2025. In comparison, net position was $169.1 million as of June 30, 2024.

The largest portion of the City’s net position on June 30, 2025, ($96.3 million or 55.7% of total net position), reflects its investment in capital assets (e.g., land, infrastructure, buildings, improvements, and equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. 9 Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional $21.1 million of the City’s net position is restricted net position, representing resources that are subject to external restrictions or enabling legislation on how they may be used. The breakdown of restricted net positions by functions is as follows: 1) low- and moderate-income housing projects ($8.2 million); 2) public safety for restricted grants and fees ($0.7 million); 3) community development for restricted grants and fees ($0.3 million; 4) public works for restricted grants and fees ($8.3 million); and 5) culture and recreation for restricted grants and fees ($3.6 million).

The remaining $55.3 million is unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors. Unrestricted net position increased $4.2 million, or 8.3%, from June 30, 2024.

A summary of the government-wide Statement of Net Position follows:

At the end of the current fiscal year, the City’s overall net position increased by $3.6 million. The fiscal year 2024-25 governmental activities resulted in an increase in net position of $2.5 million. The fiscal year 2024-25 business type activities resulted in an increase in net position of $1.1 million. Additional information has been provided below for a more detailed discussion of the City’s governmental activities and business-type activities.

2025 2024 2025 2024 2025 2024 %
Current and other assets 80,321,576 $ 76,193,029 $ 8,964,373 $ 7,679,729 $ 89,285,949 $ 83,872,758 $ 6.5% Capital assets, net 91,949,621 91,146,222 4,425,897 4,540,186 96,375,518 95,686,408 0.7% Total assets 172,271,197 167,339,251 13,390,270 12,219,915 185,661,467 179,559,166 3.4% Deferred outflows of resources 4,775,843 3,526,737 - - 3,526,737 4,775,843 -26.2% Long-term liabilities 9,420,689 9,426,917 6,426 3,773 9,427,115 9,430,690 0.0% Other liabilities 5,643,355 4,175,409 155,153 75,692 5,798,508 4,251,101 36.4% Total liabilities 15,064,044 13,602,326 161,579 79,465 15,225,623 13,681,791 11.3% Deferred inflows of resources 1,205,265 1,526,224 - - 1,205,265 1,526,224 -21.0% Net position:
91,059,872 91,884,836 4,425,897 4,540,186 96,310,733 95,600,058 0.7% Restricted 21,160,239 22,498,313 - - 21,160,239 22,498,313 -5.9% Unrestricted 46,483,550 43,428,359 8,802,794 7,600,264 55,286,344 51,028,623 8.3% Total net position 159,528,625 $ 156,986,544 $ 13,228,691 $ 12,140,450 $ 172,757,316 $ 169,126,994 $ 2.1% Net investment in capital assets

CITY OF STANTON
Governmental
Activities
Business-type
Activities Totals

NET POSITION AT YEAR END
10 A summary of the government-wide Statement of Activities follows:

Governmental activities
During the current fiscal year, the City’s net position for governmental activities increased by $3.6 million from the prior fiscal year. The following table summarizes and presents governmental activities revenue by source and percentages for the fiscal year ended June 30, 2025, along with the percentage changes from the prior year:

2025 2024 2025 2024 2025 2024 % Change
Revenues:

Program Revenues:

Charges for services 7,789,601 $ 7,023,154 $ 1,338,130 $ 1,191,757 $ 9,127,731 $ 8,214,911 $ 11.1% Operating grants and contribution 6,973,207 6,482,509 - - 6,973,207 6,482,509 7.6% Capital grants and contributions 1,955,007 1,668,675 - - 1,955,007 1,668,675 17.2% General revenues:

Taxes:

Property taxes 10,177,482 9,526,865 258,915 227,069 10,436,397 9,753,934 7.0% Sales taxes 5,418,379 5,616,291 - - 5,418,379 5,616,291 -3.5% Transaction and use taxes 5,597,697 6,295,790 - - 5,597,697 6,295,790 -11.1% Transient occupancy taxes 634,609 617,090 - - 634,609 617,090 2.8% Franchise taxes 1,318,130 1,305,537 - - 1,318,130 1,305,537 1.0% Utility user taxes 2,710,974 2,479,282 - - 2,710,974 2,479,282 9.3% Cannabis taxes - 1,131,502 - - - 1,131,502 -100.0%
Other taxes 1,930,747 48,277 - - 1,930,747 48,277 3899.3% Investment earnings, unrestricted 2,755,968 2,277,972 428,416 327,691 3,184,384 2,605,663 22.2% Gain on sale of capital assets 16,960 - - - 16,960 - 0.0% Miscellaneous 62,644 87,569 - 2,588 62,644 90,157 -30.5% Total revenues 47, 44,560,513 341,405 2,025,461 1,749,105 49,366,866 46,309,618 6.6% Expenses:

General government 6,003,366 4,888,922 - - 6,003,366 4,888,922 22.8% Public safety 23,715,571 22,334,226 - - 23,715,571 22,334,226 6.2% Community development 4,833,294 3,308,043 - - 4,833,294 3,308,043 46.1% Public works 7,503,120 6,101,529 - - 7,503,120 6,101,529 23.0% Culture and recreation 2,777,840 2,584,395 - - 2,777,840 2,584,395 7.5% Interest on long-term debt - 10,938 - - - 10,938 -100.0% Sewer enterprise - - 903,353 607,912 903,353 607,912 48.6% Total expenses 44,833,191 39,228,053 903,353 607,912 45,736,544 39,835,965 14.8% Increase (decrease) in net
position before transfers 2,508,214 5,332,460 1,122,108 1,141,193 3,630,322 6,473,653 -43.9% Transfers 33,867 301,183 (33,867) - (301,183) - 0.0%
Change in Net Position 2,542,081 5,633,643 1,088,241 840,010 3,630,322 6,473,653 -43.9% Net position, beginning of year 156,986,544 151,352,901 12,140,450 11,300,440 169,126,994 162,653,341 4.0% Net position, end of year 159,528,625 $ 156,986,544 $ 13,228,691 $ 12,140,450 $ 172,757,316 $ 169,126,994 $ 2.1%

CITY OF STANTON

CHANGE IN NET POSITION
Activities
Governmental Business-type
Activities Totals
11 Revenues increased by $2.7 million, or 6.2%, from the prior year.

Charges for services increased by $766,447, or 10.9%, in fiscal year 2024-25, primarily due to an increase in building permits and revenue from the City’s biannual residential parking permit program and increased parking citation revenue.

Operating grants and contributions revenue increased by $490,698, or 7.6%, during the current fiscal year, primarily due to an increase in Cannabis Community Benefit revenue, Federal Grant funding for existing projects and funding from the North Orange County Public Safety Committee grant to fund activities related to the North Orange County Service Planning Area (North SPA). Refer to Note 7 in the Notes to Basic Financial Statements for additional information.
12 Capital grants and contributions revenue increased by $286,332, or 17.2%, during fiscal year 2024-25, primarily due to an increase in Public Benefit Fee revenue. On September 12, 2023, the City Council approved a loan for $632,350 to Bonanni Development Company III, LLC (“Bonanni”) for the repayment of public benefit fees for the VRV project which was paid off in March 2025. On February 11, 2025, Council approved a second loan for $963,000 to Bonanni for the repayment of public benefit fees for the Cloud House residential apartment project. Refer to Note 6 in the Notes to Basic Financial Statements for additional information.

Sales, transaction, and use taxes decreased $896,005, or 7.5% primarily due to the current economy experiencing a decrease in overall consumer spending resulting in lower sales and transaction and use taxes. The biggest sales sectors that decreased in sales tax revenue included Restaurants and Hotels and Fuel and Service Stations due to lower gas prices.

Property taxes increased $650,617, or 6.8%, which is consistent with the increase in the City’s assessed valuation for the current fiscal year and the increase in median housing price.

Other taxes increased by $1.0 million, or 18.1%, primarily due to an increase in cannabis tax revenue. As of July 2023, two of the City’s four cannabis retail businesses were open and generating retail sales. The other two retail businesses were operating by December 2023. FY 2024-25 represents a full year of cannabis tax revenue.

Other revenue increased by $470,031, or 19.9%, primarily due to increased unrestricted investment earnings realized during fiscal year 2024-25. The average yield on the City’s investment portfolio was 4.35% during fiscal year 2024-25 compared to an average yield of 4.23% in the prior year.

The cost of all governmental activities during fiscal year 2024-25 was $44.8 million, an increase of $5.6 million, or 14.3%, from the previous fiscal year. The following table summarizes and presents governmental activities expenses by function and percentages for the fiscal year ended June 30, 2025, along with the percentage changes from the prior year.
13 General government expenses increased by $1.1 million, or 22.8%, primarily due to a one-time settlement payment accounted for in the City Attorney division.

Public safety expenses increased by $1.4 million, or 6.2%, due to increased contracted costs for law enforcement and fire protection costs and additional costs incurred for the Safe Streets Together Campaign.

Community development expenses increased by $1.5 million, or 46.1%, primarily due to an increase in demolition expenditures and relocation assistance related to the TinaPacific properties accounted for within the Housing Authority special revenue fund.

Public works expenses increased by $1.4 million, or 23.0% primarily due to an increase in street maintenance and improvements completed in FY 2024-25.

Culture and recreation expenses increased by $193,445, or 7.5% due to an increase in part-time staffing, additional special events and the second phase of the City rebranding project during the fiscal year 2024-25 that was accounted for in the Culture and recreation division.

Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2024-25 of Total 2023-24 (Decrease)
General government 6,003,366 $ 13.4% 1,114,444 $ 22.8%
Public safety 23,715,571 52.9% 1,381,345 6.2%
Community development 4,833,294 10.8% 1,525,251 46.1%
Public works 7,503,120 16.7% 1,401,591 23.0%
Culture and recreation 2,777,840 6.1% 193,445 7.5%
Interest on long-term debt - 0.0% (10,938) -100.0%
TOTAL EXPENSES 44,833,191 $ 99.9% 5,605,138 $ 14.3%
Expenses by Function

GOVERNMENTAL ACTIVITIES
14 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure compliance with finance-related legal requirements.

Governmental funds:

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary spending as this category of fund balance represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council.

As of June 30, 2025, the City’s governmental funds (as presented in the balance sheet on page 28) reported combined fund balances of $65.3 million, an increase of $1.6 million from the prior year balance of $63.6 million. Approximately, $26.9 million (41.2%) consists of unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed or assigned to indicate that it is: 1) not in spendable form ($2.0 million), 2) legally required to be spent on specific uses or maintained intact through a federal, state, or local law or contractual obligation ($21.1 million), 3) committed for a specific purpose by City Council resolution ($10.3 million), or 4) assigned for a particular purpose ($4.9 million). Refer to Note 13 in the Notes to Basic Financial Statements for more detailed information regarding nonspendable, restricted, committed, assigned, and unassigned fund balances.

General Fund. The General Fund is the City’s chief operating fund. As of June 30, 2025, the total fund balance of the General Fund was $44.7 million, an increase of $3.0 million, or 7.1%, from the previous fiscal year. During fiscal year 2024-25, revenues increased approximately $3.5 million, or 10.3%, from the previous fiscal year, due to increased property, user tax, building permits and fees, cannabis revenues and investment earnings. General Fund expenditures were $3.7 million, or 11.9%, higher in fiscal year 2024-25 than the previous fiscal year, primarily due to the funding of contracted public safety costs and a one-time settlement payment.

The table below summarizes the various components of the General Fund’s fund balance. 2025 2024 $ Change % Change
Nonspendable 1,894,932 $ 1,742,586 $ 152,346 $ 8.7%
Committed 10,337,356 10,124,754 212,602 2.1%
Assigned 4,894,816 4,642,971 251,845 5.4%
Unassigned - contingency reserve 27,528,647 25,167,157 2,361,490 9.4% Total 44,655,751 $ 41,677,468 $ 2,978,283 $ 7.1%
15 The City’s nonspendable fund balance includes prepaid items, advances to other funds, and the noncurrent portion of outstanding notes and loans receivable. The nonspendable fund balance increased by $152,346, or 8.7%, from the previous fiscal year primarily due to a new developer loan agreement. Refer to Note 6 in the Notes to Basic Financial Statements for additional information.

The City’s committed fund balance includes reserves for: emergency equipment and maintenance ($150,000); technology equipment ($150,000); emergency disaster contingency ($3.3 million); and capital improvement ($5.0 million). In addition, $1.7 million was committed by the City Council for certain developer contributions through resolutions for beautification, neighborhood preservation, and public benefit projects. During fiscal year 2024-25, committed fund balance increased by $212,602, or 2.1%, due to an additional $100,000 committed for the emergency disaster contingency reserve and an increase in developer contributions during the current fiscal year.

Assigned fund balance of $4.9 million as of June 30, 2025, represents an increase of $251,845, or 5.4%, from the prior fiscal year, primarily due to a number of capital improvement projects completed within the year and current capital and operating encumbrances as of June 30, 2025. Refer to Note 13 for additional information regarding assigned fund balance.

The City’s unassigned fund balance increased from $25.2 million as of June 30, 2024, to $27.5 million as of June 30, 2025, an increase of $2.4 million, or 9.4%. This amount includes a $6.6 million reserve for economic uncertainty.

As a measure of the General Fund’s relative fiscal health, it is useful to calculate the General Fund reserve balance as a percentage of total General Fund operating expenditures. For the purposes of this calculation the discretionary fund balance is comprised of the following balances: committed reserves of $150,000 for emergency equipment and maintenance; $150,000 for technology equipment; $3.3 million for emergency disaster contingency; $5.0 million for capital improvements; $6.6 million for economic uncertainty fund balance and the unassigned fund balance. This amount represents 106.8% of fiscal year 2024-25 adopted budgeted General Fund operating expenditures.

The City has three other major funds: the Housing Authority Special Revenue Fund; Other Grants Special Revenue Fund, and the Capital Project Fund.

Housing Authority Special Revenue Fund. As of June 30, 2025, the Housing Authority Special Revenue Fund reported a restricted fund balance of $8.2 million, which represents a decrease of $2.2 million, or 21.1%, from the prior fiscal year. The reduction is 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.
16 Other Grants Special Revenue. As of June 30, 2025, the Other Grants Special Revenue Fund reported a deficit fund balance of $597,940 which represents a higher deficit of $163,212, or 37.5%, from the prior fiscal year. The majority of the deficit fund balance represents outstanding reimbursement from the State of California for the City’s Norm Ross Sports Park project.

Capital Project Revenue. As of June 30, 2025, the Capital Projects Fund reported a fund balance of $130,388 which represents an increase of $26,579, or 25.6%, from the prior fiscal year. Normally the Capital Projects Fund balance should be zero as this fund accounts for all capital project spending and funds provided for 100% of the capital expenditures. At June 30, 2025, the City accounted for a prepaid item related to the Stanton Community Center Improvement project that was received in the following year.

During fiscal year 2024-25, the Capital Projects Fund funded annual citywide street rehabilitation, citywide alley improvements, the Premier Park renovation, Family Resource Center improvements, the sewer master plan update, annual sewer rehabilitation, City Hall fire alarm upgrades, Stanton Community Center improvements, and the storm drain master plan projects.

Proprietary Funds:

The proprietary funds provide the same type of information found in the government-wide financial statements, but in greater detail. The City operates one business-type activity for sewer operations.

Sewer Enterprise Fund. The Sewer Enterprise Fund’s unrestricted net position at the end of fiscal year 2024-25 was $8.8 million as June 30, 2025, an increase of $1.2 million, or 15.8%, from the previous year. The Sewer Enterprise Fund’s total revenues increased by $276,356, or 15.8% from the prior fiscal year due to increased sewer connection fees collected on behalf of the Orange County Sanitation District (OC San) as a result of continued increased development activity within the City. In addition, the City experienced an increase in unrestricted investment earnings realized during fiscal year 2024-25. The Sewer Enterprise Fund’s total expenses increased by $295,441, or 48.6% during fiscal year 2024-25, when compared to the previous year. The majority of the increase represent the pass-through of sewer connection fees paid to OC San.

Internal Service Funds. As of June 30, 2025, the Internal Service Funds reported total unrestricted net position of $377,190, a reduction of $71,620 or 15.9%, from the previous year. The City’s net pension liability decreased $292,365 to $8.7 million during fiscal year 2024-25 based on the plan information provided by California Public Employees’ Retirement System (CalPERS) based on an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024 which was used to determine the fiscal year 2024-25 contributions.

GENERAL FUND BUDGETARY HIGHLIGHTS
In preparing the budget, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a 17 prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of revenues to allow for the expansion of existing programs, if required.

For the year ended June 30, 2025, the General Fund reported a net increase in fund balance of $3.0 million. Actual revenues exceeded final budgeted amounts by $2.4 million, or 7.0%. The two revenue categories where actual Fiscal Year 2024-25 revenues exceeded the budget most significantly were licenses and permits (increased by $451,875) and investment income (increased by $1.8 million). License and permits revenue was $451,875 million higher than the budget due to higher activity related to building and permit activity during the fiscal year related to new developments within the City. The City’s investment income benefitted from continued high interest rates by the federal government, which increased the interest rates the City earned on many securities in its investment portfolio, resulting in higher investment income. Expenditures were less than the final budgeted amounts by $2.6 million, or 7.3%; however, approximately $800,000 was re-appropriated to the Fiscal Year 2025-26 budget for projects that were started but were not completed during Fiscal Year 2024-25. The remainder of the budget savings were attributed to salary savings from underfilled and vacant positions; contracted law enforcement contract costs (due to vacancy credits); and savings from contracted services in the Administration, Public Works, Community Development and Community Services departments.

CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets
Total capital assets increased by $689,110, or 0.7% from the prior fiscal year. Capital assets for business-type activities decreased by $114,289 or 2.5%, from the previous fiscal year, due to the current year’s depreciation expense. Capital assets for governmental activities increased by $803,399, or 0.9%, from the previous fiscal year, primarily due to the completion of several capital projects that were capitalized and an increase in construction in progress caused by a number of capital projects in progress as of the end of Fiscal Year 2024-25.
2025 2024 2025 2024 2025 2024 Change
Land 38,406,365 $ 38,406,365 $ - $ - $ 38,406,365 $ 38,406,365 $ 0.0% Construction in progress 3,385,124 2,639,730 - 22,002 3,407,126 2,639,730 22.5% Buildings and improvements 31,696,940 - 32,882,859 - 31,696,940 - 32,882,859 3.6% Furniture and Equipment 1,170,073 - 494,499 - 1,170,073 494,499 136.6% Vehicles 136,101 - 213,721 - 136,101 - 213,721 36.3%
Sanitary plant - - 3,997,893 4,121,087 3,997,893 - 4,121,087 3.0% General plant - - 406,002 419,099 406,002 - 419,099 3.1% Right-to-use lease asset 63,120 - 80,966 - 63,120 80,966 100.0% Infrastructure 17,091,898 16,428,082 - - 17,091,898 16,428,082 4.0% Totals 91,949,621 $ 91,146,222 $ 4,425,897 $ 4,540,186 $ 96,375,518 $ 95,686,408 $ 0.7%

CAPITAL ASSETS
(Net of Depreciation)
Business-type
Activities
Governmental
Activities Totals
18 Additional information on the City’s capital assets can be found in Note 4 in the Notes to the Basic Financial Statements.

Long-Term Liabilities
As of June 30, 2025, the City had total long-term liabilities outstanding of $9.4 million.

During Fiscal Year 2024-25, total long-term liabilities only changed marginally, primarily due to the decrease of the City’s net pension liability of $292,365 that was offset by the increase in compensated absences of $101,135, the addition of the Cost share agreement with North Orange County Service Planning Area (North SPA) of $209,220 and the decrease of the lease payable related to the lease agreement for City copy machines of $21,565. Additional information on the City’s long-term liabilities can be found in Notes 7, 11 and 12 in the Notes to the Basic Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Local governments throughout the State of California are challenged with funding increasing costs of operations with constrained resources. The City 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 budget for Fiscal Year 2025-26 was projected with a modest revenue increase of 2.0% and expenditure growth of 3%. The increase in expenditures includes funding of $347,300 from the assigned fund balance designated for special projects and $196,920 from the unassigned fund balance. The General Fund budget was balanced with revenues and funding from the assigned and unassigned fund balance equal to appropriations.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’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: Sharon del Rosario, Finance Director, 7800 Katella Avenue, Stanton, California 90680.
2025 2024 2025 2024 2025 2024
%
Change
Net pension liability $ 9,022,918 8,730,553 $ - $ - $ 8,730,553 $ 9,022,918 $ -3.2% Other post-employment benefits - - - - - - 0.0%
Compensated absences 416,131 317,649 6,426 3,773 422,557 321,422 31.5% Cost share agreement 209,220 - - - 209,220 -
Lease payable 64,785 86,350 - - 64,785 86,350 -25.0%
Claims payable - - - - - - 0.0%
Totals 9,420,689 $ 9,426,917 $ 6,426 $ 3,773 $ 9,427,115 $ 9,430,690 $ 0.0%

LONG-TERM LIABILITIES
Governmental
Activities
Business-type
Activities Totals
19 BASIC FINANCIAL STATEMENTS
20 This page intentionally left blank
21 GOVERNMENT-WIDE FINANCIAL STATEMENTS
22 This page intentionally left blank
Governmental Business-Type
Activities Activity Total

ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES
Cash and investments (Note 3) 66,737,681 $ 8,895,790 $ 75,633,471 $ Restricted cash and investments
held in pension trust (Note 3) 5,177,190 - 5,177,190
Receivables 3,520,477 68,583 3,589,060
Due from other governments 1,482,956 - 1,482,956
Prepaid items 353,835 - 353,835
Notes and loans receivable (Note 6) 2,997,014 - 2,997,014 Net OPEB Asset (Note 12) 52,423 - 52,423
Capital assets: (Note 4)
Non-depreciable 41,791,489 - 41,791,489
Depreciable, net 50,158,132 4,425,897 54,584,029
Total assets 13,390,270 172,271,197 185,661,467
Deferred pension related items (Note 11) 3,186,729 - 3,186,729 Deferred OPEB related items (Note 12) 340,008 - 340,008 Total deferred outflows of resources - 3,526,737 3,526,737

LIABILITIES AND DEFERRED

INFLOWS OF RESOURCES
Accounts payable 4,491,589 155,153 4,646,742
Accrued liabilities 918,231 - 918,231
Deposits payable 11,550 - 11,550
Unearned revenue 221,985 - 221,985
Long-term liabilities:

Due within one year (Note 7) 321,392 6,426 327,818
Due within more than one year (Note 7) 368,744 - 368,744 Net pension liability (Note 11) 8,730,553 - 8,730,553
Total liabilities 161,579 15,064,044 15,225,623
Deferred Pension related items (Note 11) 887,058 - 887,058 Deferred OPEB related items (Note 12) 318,207 - 318,207 Total deferred inflows of resources - 1,205,265 1,205,265

NET POSITION
Net investment in capital assets 91,884,836 4,425,897 96,310,733 Restricted for:

OPEB Asset 52,423 - 52,423
Low and moderate income housing 8,377,308 - 8,377,308
Public safety 704,954 - 704,954
Community development 207,113 - 207,113
Public works 8,112,005 - 8,112,005
Culture and recreation 3,706,436 - 3,706,436
Unrestricted 46,483,550 8,802,794 55,286,344
Total net position $ 13,228,691 159,528,625 $ 172,757,316 $

CITY OF STANTON
Statement of Net Position
June 30, 2025
Primary Government
See accompanying notes to the basic financial statements. 23 Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities:

General government 6,003,366 $ 624,281 $ - $ - $
Public safety 23,715,571 1,097,927 2,176,436 105,372
Community development 4,833,294 2,792,521 243,372 1,042,680 Public works 7,503,120 3,067,755 3,764,191 348,828
Culture and recreation 2,777,840 207,117 789,208 458,127 Total governmental activities 44,833,191 7,789,601 6,973,207 1,955,007 Business-type activities:

Sewer enterprise 903,353 1,338,130 - -
Total 45,736,544 $ 9,127,731 $ 6,973,207 $ 1,955,007 $

CITY OF STANTON
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
Functions/Programs
See accompanying notes to the basic financial statements. 24 Governmental Business-type
Activities Activity Total
Governmental activities:

General government (5,379,085) $ - $ (5,379,085) $
Public safety (20,335,836) - (20,335,836)
Community development (754,721) - (754,721)
Public works (322,346) - (322,346)
Culture and recreation (1,323,388) - (1,323,388)
Total governmental activities (28,115,376) - (28,115,376) Business-type activities:

Sewer enterprise - 434,777 434,777
Total (28,115,376) 434,777 (27,680,599)
General revenues:

Taxes:

Property taxes 10,177,482 258,915 10,436,397
Sales taxes 5,418,379 - 5,418,379
Transactions and use taxes 5,597,697 - 5,597,697
Transient occupancy taxes 634,609 - 634,609
Franchise taxes 1,318,130 - 1,318,130
Utility user taxes 2,710,974 - 2,710,974
Cannabis taxes 1,807,869 - 1,807,869
Other taxes 122,878 - 122,878
Investment income, unrestricted 2,755,968 428,416 3,184,384 Gain on gain of sale of capital assets 16,960 - 16,960
Miscellaneous 62,644 - 62,644
Transfers (Note 5) 33,867 (33,867) -
Total general revenues and transfers 30,657,457 653,464 31,310,921 Change in net position 2,542,081 1,088,241 3,630,322
Net position - beginning of year 156,986,544 12,140,450 169,126,994 Net position - end of year 159,528,625 $ 13,228,691 $ 172,757,316 $ Functions/Programs

CITY OF STANTON
Statement of Activities (Continued)
For the Year Ended June 30, 2025
Changes in Net Position
Net (Expenses) Revenue and
See accompanying notes to the basic financial statements. 25 26
This page intentionally left blank
27 GOVERNMENTAL FUNDS
Capital
Project
Fund
Nonmajor Total
Housing Other Capital Governmental Governmental
General Authority Grants Projects Funds Funds
Cash and investments $ 43,549,150 $ 7,603,497 $ 992,296 - $ $ 12,574,382 $ 64,719,325 Receivables:

Accounts 598,548 24,768 - - 5,875 629,191
Interest 516,194 84,761 - - 47,983 648,938
Taxes 2,219,243 - - - 16,798 2,236,041
Prepaid costs 162,647 - - 130,388 30,800 323,835
Due from other funds (Note 5) 768,973 - - - - 768,973
Due from other governments 222,711 - 597,936 - 628,984 1,449,631 Notes and loans receivable 1,732,285 928,000 - - 2,997,014 336,729 Total assets $ 49,769,751 8,641,026 $ 597,936 $ 1,122,684 $ 13,641,551 $ 73,772,948 $ Liabilities:

Accounts payable 3,008,406 $ 230,692 $ 2,472$ $ 992,296 $ 216,748 $ 4,450,614 Accrued liabilities 918,231 - - - - 918,231
Deposits payable - 11,550 - - - 11,550
Due to other funds (Note 5) - 230,510 537,873 - 590 768,973 Unearned revenues 32,307 1,695 57,595 - 221,985 130,388 Total liabilities 3,958,944 474,447 597,940 992,296 347,726 6,371,353 Deferred Inflows of Resources:

Unavailable revenue 1,155,056 - 597,936 - 2,105,577 352,585 Total deferred inflows
of resources 1,155,056 - 597,936 - 2,105,577 352,585
Fund Balances (Defecits): (Note 13)
Nonspendable 1,894,932 - - 130,388 2,025,320 -
Restricted - 8,166,579 - - 12,941,240 21,107,819
Committed 10,337,356 - - - - 10,337,356
Assigned 4,894,816 - - - - 4,894,816
Unassigned 27,528,647 - (597,940) - - 26,930,707
Total fund balances 44,655,751 8,166,579 (597,940) 130,388 12,941,240 65,296,018 Total liabilities, deferred
inflows of resources
and fund balances $ 49,769,751 8,641,026 $ 597,936 $ 1,122,684 $ 13,641,551 $ 73,772,948 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES, AND

FUND BALANCES
ASSETS

CITY OF STANTON
Governmental Funds
June 30, 2025
Balance Sheet
Special Revenue Funds
See accompanying notes to the basic financial statements. 28 Total Fund Balances - Total Governmental Funds $ 65,296,018 Nondepreciable 41,791,489
Depreciable, net of Internal Service Fund of $144,958 50,013,174 Total capital assets 91,804,663
Lease payable (64,785)
Cost share agreement (209,220)
Deferred Outflows of Resources - OPEB Related 340,008
Deferred Inflows of Resources - OPEB Related (318,207)
Net OPEB Asset 52,423
522,148
2,105,577
Net position of governmental activities $ 159,528,625
Certain revenues in the governmental funds are deferred inflows of resources because they are not collected within the prescribed time period after year-end. However, these revenues are included in the government-wide statements.

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

The net OPEB liability applicable to the City'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 OPEB are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for governmental activities.

Internal service funds are used by management to charge the costs of activities involved in rendering services to departments within the City. The assets and liabilities of the internal service funds are included in the statement of net position.

Long-term liabilites are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reportedin the Statement of Net Position:

CITY OF STANTON
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

See accompanying notes to the basic financial statements. 29 Capital
Project
Fund
Nonmajor Total
Housing Other Capital Governmental Governmental
General Authority Gants Projects Funds Funds
REVENUES:

Taxes and assessments 28,643,647 $ - $ - $ - $ 926,411 $ 29,570,058 $ Licenses and permits 1,461,025 - - - - 1,461,025
Intergovernmental 432,890 - 466,985 - 5,666,599 6,566,474 Charges for services 2,850,793 - - - 826,483 3,677,276
Fines and forfeitures 690,157 - - - - 690,157
Investment income 2,219,121 434,706 3,230 - 653,671 3,310,728 Rental income 159,200 435,977 - - - 595,177
Miscellaneous 355,872 - - - 113,274 469,146
Total revenues 36,812,705 870,683 470,215 - 8,186,438 46,340,041 EXPENDITURES:

Current:

General government 5,209,700 377,065 - - 11,129 5,597,894 Public safety 21,483,894 227,516 - - 1,748,991 23,460,401 Community development 2,003,060 2,454,015 - - - 4,457,075 Public works 2,890,143 - 89,828 - 1,124,567 4,104,538
Culture and recreation 1,660,048 - - - 473,122 2,133,170 Capital outlay 301,330 - - 4,583,725 71,961 4,957,016
Debt service:

Principal retirement 17,113 - - - 17,113
Interest 3,095 - - - - 3,095
Total expenditures 33,568,383 3,058,596 89,828 4,583,725 3,429,770 44,730,302

REVENUES OVER (UNDER)
EXPENDITURES 3,244,322 (2,187,913) 380,387 (4,583,725) 4,756,668 1,609,739

OTHER FINANCING
SOURCES (USES):

Transfers in (Note 5) 722,788 - - 4,610,304 228,946 5,562,038 Transfers out (Note 5) (988,827) - (543,599) - (3,995,745) (5,528,171) Total other financing
sources (uses) - (266,039) (543,599) 4,610,304 (3,766,799) 33,867

NET CHANGE IN
FUND BALANCE (2,187,913) 2,978,283 (163,212) 26,579 989,869 1,643,606 Fund balances (deficit),
beginning of year 41,677,468 10,354,492 (434,728) 103,809 11,951,371 63,652,412 Fund balances (deficit),
end of year 44,655,751 $ 8,166,579 $ (597,940) $ 130,388 $ 12,941,240 $ 65,296,018 $ Statement of Revenues, Expenditures, and Changes in Fund Balances

CITY OF STANTON
Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
See accompanying notes to the basic financial statements. 30 Net Change in Fund Balances - Total Governmental Funds $ 1,643,606 Governmental activities in the Statement of Activities were reported differently because:

Capital asset purchases (1,629,310)
Depreciation expenses, less $79,335 of depreciation in internal service funds 2,512,043 Total capital assets 882,733
(187,655)
(58,928)
(150,954)
413,279
Change in net position of governmental activities $ 2,542,081 Certain revenues in the governmental funds are unavailable revenues because they are not collected within the prescribed time period after year-end. However, the revenues are included in the government-wide statements.

CITY OF STANTON
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2025
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.

The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position.

OPEB expenditures reported in the governmental funds includes the actuarial determined contributions. In the statement of activities, OPEB expense includes the change in the net OPEB liability (asset) and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources.

Internal service funds are used by management to charge the costs of activities involved in rendering services to departments within the City. The net income is reported with governmental activities. The assets and liabilities of the internal service funds are included in the statement of net position.

See accompanying notes to the basic financial statements. 31 32
This page intentionally left blank
33 PROPRIETARY FUNDS
Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
ASSETS
Current assets:

Cash and investments 8,895,790 $ 2,018,356 $
Restricted cash and investments held
in pension trust - 5,177,190
Receivables:

Accounts 19,507 831
Interest 31,829 5,476
Taxes 17,247 -
Prepaids - 30,000
Due from other governments - 33,325
Total current assets 8,964,373 7,265,178
Noncurrent assets:

Capital assets - net of accumulated depreciation 4,425,897 144,958 Total noncurrent assets 4,425,897 144,958
Total assets 7,410,136 13,390,270

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount from pension plan - 3,186,729
Total deferred outflows of resources - 3,186,729

LIABILITIES
Current liabilities:

Accounts payable 155,153 40,975
Compensated absences payable 6,426 303,471
Total current liabilities 161,579 344,446
Noncurrent liabilities:

Compensated absences payable - 112,660
Net pension liability - 8,730,553
Total noncurrent liabilities - 8,843,213
Total liabilities 9,187,659 161,579

DEFERRED INFLOWS OF RESOURCES
Deferred amount from pension plan - 887,058
Total deferred inflows of resources - 887,058

NET POSITION
Net investment in capital assets 4,425,897 144,958
Unrestricted 8,802,794 377,190
Total net position $ 522,148 13,228,691 $

CITY OF STANTON
Combining Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying notes to the basic financial statements. 34 Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
OPERATING REVENUES:

Charges for services 1,338,130 $ 2,722,045 $
Miscellaneous - 18,598
Total operating revenues 2,740,643 1,338,130
OPERATING EXPENSES:

Equipment maintenance and operation 272,899 103,325
Depreciation 143,498 79,335
Administrative and personnel services - 2,605,708
Insurance premiums and claims - 642,441
Contractual services 486,956 30,276
Total operating expenses 3,461,085 903,353
OPERATING INCOME (720,442) 434,777
NON-OPERATING REVENUES (EXPENSES):

Property taxes 258,915 -
Investment income 428,416 552,527
Gain on sale of capital assets - 16,960
Total non-operating revenues (expenses) 569,487 687,331 INCOME BEFORE TRANSFERS (150,955) 1,122,108
Transfers out (Note 5) (33,867) -
Total transfers - (33,867)
INCOME BEFORE CAPITAL CONTRIBUTIONS - (33,867)

CAPITAL CONTRIBUTIONS
Capital contributions from government activities - -
Change in net position (150,955) 1,088,241
Net position, beginning of year 12,140,450 673,103
Net position, end of year 13,228,691 $ 522,148 $

CITY OF STANTON
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year ended June 30, 2025
See accompanying notes to the basic financial statements. 35 Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 2,757,598 1,320,479 $
Cash paid to other suppliers of goods or services (193,438) (772,013) Cash paid to employees for salaries, wages, and benefits (484,303) (1,920,310) Net cash provided (used by) operating activities 65,275 642,738 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Cash paid to other funds - (33,867)
Cash received from property taxes 253,368 -
Net cash provided (used by) non-capital financing activities - 219,501 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (29,209) - Proceeds from sale of capital assets 16,960 -
Net cash provided (used by) capital and related financing activities 16,960 (29,209) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 555,625 443,098
Net cash provided (used by) investing activities 555,625 443,098 Net increase (decrease) in cash and cash equivalents 1,276,128 637,860 Cash and equivalents, beginning of year 7,619,662 6,557,686 Cash and equivalents, end of year 8,895,790 $ 7,195,546 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) $ (720,442) 434,777 $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 79,335 143,498
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (17,651) -
(Increase) decrease in due from other governments - 16,955 (Increase) decrease in prepaid expense - 49
(Increase) decrease in deferred outflows of resources - 1,173,346 Increase (decrease) in accounts payable 79,461 3,980
Increase (decrease) in compensated absences 2,653 98,483 Increase (decrease) in net pension liability - (292,365) Increase (decrease) in deferred inflows of resources - (294,066) Total adjustments 785,717 207,961
Net cash provided (used) by operating activities $ 65,275 642,738 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO STATEMENT OF NET POSITION
Cash and investments $ 2,018,356 8,895,790 $
Restricted cash and investments held in pension trust - 5,177,190 Total cash and cash equivalents 8,895,790 $ 7,195,546 $

CITY OF STANTON
Statement of Cash Flows
Proprietary Funds
For the Year ended June 30, 2025
See accompanying notes to the basic financial statements. 36 37

FIDUCIARY FUNDS
Successor
Agency
to the Stanton
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Current assets:

Cash and investments (Note 3) 1,376,086 $
Restricted assets:

Cash held by fiscal agent (Note 3) 3,823,618
Total assets 5,199,704

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 5,880,254
Total deferred outflow of
resources 5,880,254

LIABILITIES
Current liabilities:

Interest payable 149,507
Bonds payable - current portion (Note 14) 2,840,000
Total current liabilities 2,989,507
Long-term liabilities:

Bonds payable (Note 14) 43,809,930
Total long-term liabilities 43,809,930
Total liabilities 46,799,437
NET POSITION (Deficit)
Unrestricted (35,719,479)
Total net position $ (35,719,479)

CITY OF STANTON
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying notes to the basic financial statements. 38 Successor
Agency
to the Stanton
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS:

Taxes $ 4,775,984
Investment income 168
Total additions 4,776,152
DEDUCTIONS:

Contractual services 46,880
Interest and fiscal charges 2,282,998
Total deductions 2,329,878
CHANGE IN NET POSITION 2,446,274
Net position (deficit), beginning of year (38,165,753)
Net position (deficit), end of year (35,719,479) $

CITY OF STANTON
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
See accompanying notes to the basic financial statements. 39 40
This page intentionally left blank
41 NOTES TO BASIC FINANCIAL STATEMENTS

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
42 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Stanton, California (the City), 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 City accounting policies are described below.

A. Description of Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units.

B. Description of Reporting Entity
The City was incorporated under the general laws of the State of California and enjoys all rights and privileges pertaining to such “general law” cities.

The Housing Authority of the City of Stanton (Housing Authority), a blended component unit, was formed on March 22, 2011, to facilitate the retention and use of transferred properties from the former Redevelopment Agency consistent with the redevelopment plan and for the purposes of ongoing maintenance of completed development projects.

Although the Housing Authority is legally separate from the City, its financial operations are the responsibility of the City. In addition, the City Council has a continuing accountability for fiscal matters of the Housing Authority. Since the City Council acts as the Board of Directors and is able to impose its will on the Housing Authority, the City is considered the primary government and the Housing Authority is a component unit of the City. Additionally, since the governing bodies of the City and the Housing Authority are the same, the financial statements of the City and the component unit are blended. For presentation within the financial statements of the governmental reporting entity, the transactions between the Housing Authority and the City are reported as interfund transactions. The Housing Authority’s financial data and activity are presented as a Special Revenue Fund. The Housing Authority issues separate financial statements that can be by sending a request to City Hall at 7800 Katella Avenue, Stanton, CA 90680.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
43 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation
Government-Wide Financial Statements
While separate government-wide financial statements are presented, they are interrelated. The governmental activities column incorporates data from the governmental funds and internal service funds, while the business-type activity incorporates data from the government’s enterprise fund. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded in the government-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are charges between the government’s sewer functions and various other functions of the government.

Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund balance, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The fund financial statements provide information about the government’s funds, including its fiduciary funds and blended component units. Separate financial statements for the government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements even though excluded from the government-wide financial statements, represent private-purpose trust funds.

The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law, or contractual agreement to some other fund, are accounted for in this fund. General operating expenses not paid through other funds are paid from this fund.

Housing Authority Special Revenue Fund – To account for the accumulated resources received from the former Redevelopment Agency’s Low- and ModerateIncome Housing Special Revenue Fund, rental income, and expenses related to lowand moderate-income housing.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
44 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
Other Grants – To account for revenues and expenditures associated with projectspecific grants. The use of the revenues is restricted according to the terms of the grant agreement and/or program.

Capital Improvements – To account for financial resources segregated for the acquisition of major general City capital facilities, other than those financed by Proprietary or Special Revenue Funds.

The City reports the following major enterprise fund:

The Sewer Enterprise Fund is used to account for the operations of the City’s sewer system.

Additionally, the City reports the following fund types:

Governmental Funds
The Special Revenue Funds are used to account for the revenues derived from specific revenue sources, which are usually required by law or administrative regulation to be accounted for in separate funds.

The Capital Projects Funds are used to account for financial resources segregated for the development, construction, and improvement of City facilities.

Proprietary Funds
The Internal Service Funds are used to account for the financing of services provided by the following departments to other departments of the City on a costreimbursement basis:
• Workers’ Compensation
• Liability/Risk Management
• Employee Benefits
• Fleet Maintenance
Fiduciary Funds
The Private-Purpose Trust Funds are used to account for the activities of the Successor Agency to the Stanton Redevelopment Agency and North Orange County Public Safety Collaborative Fund.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
45 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Interfund Transactions
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/due to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between funds included in the governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between funds included in business-type activities are eliminated so that only the net amount is included in internal balances in the business-type activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In the fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in the governmental activities column are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.

D. Measurement Focus and Basis of Accounting
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.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and private-purpose trust fund financial statements. 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. Operating statements present increases (revenues) and decreases (expenses) in total 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. Revenue from property taxes is recognized in the fiscal year that the taxes are levied and collected within 60 days from the end of the fiscal year. Grants and similar items are recognized as revenues as soon as the eligibility requirements imposed by the provider have been satisfied. Unbilled receivables are recorded as revenues when services are provided.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
46 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) 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, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of available spendable resources.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Revenues are recognized as soon as they become measurable and available. 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 government 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, claims and judgments, and compensated absences 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 leases are reported as other financing sources.

Property taxes, sales tax, franchise taxes, licenses, 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).

Expenditure-driven 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 year-end). Amounts owed to the City, 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.

The City’s fiduciary funds consist of private-purpose trust funds, which are reported using the economic resources measurement focus and the accrual basis of accounting.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
47 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. New Accounting Pronouncements
For the year ended June 30, 2025, the financial statements include the adoption of GASB Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The cumulative effect of adopting this standard was not significant, hence, no restatement of beginning net position was required.

F. 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 assets that applies to a future period and will not be recognized as an outflow of resources (expense) until that time.

The City has the following items that qualify for reporting in this category:
• Deferred outflows related to pensions equal to employer contributions made after the measurement date of the net pension liability.
• Deferred outflows from OPEB resulting from differences between actual and expected experience and changes in assumptions. 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 retiree healthcare benefits through the plan.
• Deferred outflows from pensions resulting from differences between actual and expected experience 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.
• Deferred outflows related to pensions and OPEB resulting from the net differences in projected and actual earnings on investments of the pension and OPEB plans’ fiduciary net position. These amounts are amortized over five years.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
48 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. 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 assets that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
• Deferred inflows related to OPEB for 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 retiree healthcare benefits through the plans. • Deferred inflows from pensions resulting from 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 expecting remaining service lives of all employees that are provided with pensions through the plans. • Deferred inflows related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

G. Assets, Liabilities, Fund Balance and Net Position
Cash and Investments
The City considers all highly liquid investments, with a maturity of three months or less when purchased, to be cash equivalents. In addition, cash invested in the City’s cash management pool is considered to be cash equivalents. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool that maintains the general characteristics of a demand deposit account.

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).

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
49 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Receivables and Payables
Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and are considered available if received within 60 days of year-end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue, under the modified accrual basis of accounting, is limited to the amount that is deemed measurable and collectible. Loans extended from other funds are recorded as loans receivable.

Activity between funds, which is representative of lending/borrowing arrangements outstanding at the end of the fiscal year, is referred to as either due to/from other funds or advances to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure, are reported in the applicable governmental or business-type activities column in the governmentwide 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 and Improvements 20 - 50 Years
Equipment and Vehicles 5 - 20 Years
Infrastructure 20 - 50 Years
Compensated Absences Payable
The City recognizes a liability for compensated absences, such as vacation, sick leave, and paid time off, in accordance with GASB Statement No. 101, Compensated Absences. Employees can carry forward up to 360 hours of earned, but unused, vacation leave. Upon termination, the City is obligated to compensate employees the earned, but unused, vacation time. All vacation pay is accrued when incurred in the government- wide and proprietary fund financial statements.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
50 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Claims and Judgments
The City records a liability for claims, judgments, and litigation when it is probable that a liability has been incurred at year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. City management believes that the aggregate accrual is adequate to cover such losses, including amounts for incurred but not reported claims. Estimated claims payables are recorded in the Workers’ Compensation and Liability/Risk Management Internal Service Funds as appropriate.

Property Taxes
The assessment, levy, and collection of property taxes are the responsibility of the County of Orange (the County). The City receives property taxes pursuant to an arrangement with the County known as the Teeter Plan, whereby the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City.

The City records property taxes as revenue when received from the County, except at year-end, when property taxes received within 60 days are accrued as revenue.

Property taxes are assessed and collected according to the following property tax calendar:

Lien Date: January 1
Levy Date: July 1 to June 30
Due Dates: November 1 – First Installment
March 1 – Second Installment
Collection Dates: December 10 – First Installment
April 10 – Second Installment
Net Position
The governmental and business-type activities in the government-wide financial statements and proprietary funds utilize a net position presentation. Net position is classified in the following categories:

Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and would be reduced by outstanding debt and capitalrelated payables that are attributed to the acquisition, construction, or improvement of the assets; however, the City did not have any such debt or liabilities.

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.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
51 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Net Position Flow Assumptions
Sometimes the City 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 and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

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

Fund Balances
The fund balances reported on the fund statements consist of the following 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.

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 City Council is considered the highest authority for the City, 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.

An emergency equipment and maintenance reserve has been established through a resolution approved by the City Council. The reserve may be used to provide funding for nonscheduled capital asset repair and replacement. If used, this reserve will be replenished with future year-end operating surpluses. This emergency equipment and maintenance reserve has a balance of $150,000 as of June 30, 2025.

A technology equipment reserve has been established through a resolution approved by the City Council. The reserve may be used to provide funding for the timely replacement of technology equipment. If used, this reserve will be replenished with future year-end operating surplus. This technology equipment reserve has a balance of $150,000 as of June 30, 2025.

An emergency disaster contingency reserve has been established through a resolution approved by the City Council. The reserve is calculated at 10% of General Fund operating expenditures (rounded to the next $100,000). The reserve may be used to mitigate costs of unforeseeable emergencies, such as natural disasters, catastrophic events, or any situation requiring the declaration of an emergency as

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
52 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Fund Balances (Continued)
defined by Stanton Municipal Code Section 2.56.050.C. If used, this reserve will be replenished with future year-end operating surpluses. This emergency disaster contingency reserve has a balance of $3,300,000 as of June 30, 2025.

A capital improvement reserve has been established through a resolution approved by the City Council. This reserve may be used for key infrastructure and capital improvement projects and to provide capital repair and replacement funding. This capital improvement reserve has a balance of $5,000,000 as of June 30, 2025.

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 City Council has authorized the City Manager for that purpose. The City Manager determines the assigned amount based on encumbrances and any future budget deficits.

Unassigned – This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted.

An economic uncertainty reserve has been established through a resolution approved by the City Council. This reserve is calculated as 20% (rounded to the next $100,000) of the general fund operating expenditures. The reserve may be used to mitigate annual budget revenue shortfalls as a protection from a fluctuating economy, including financial hardship or downturns in the economy. If used or if the City’s annual operating budget grows, this reserve will be replenished with future year-end operating surpluses. This economic emergency reserve has a balance of $6,600,000 as of June 30, 2025.

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

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
53 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Program Revenues
Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

I. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the sewer fund and internal service funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

J. 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 City’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.

K. Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan and additions to/deductions from the OPEB plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the City’s OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
54 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases Payable and Subscription Agreements Payable
Lessee: The City recognizes a lease or subscription agreements liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease and subscription agreements liabilities with an initial, individual value of $50,000 or more.

At the commencement of a lease, the City initially measures the lease or subscription agreements liability at the present value of payments expected to be made during the lease term. Subsequently, the lease or subscription agreements liability is reduced by the principal portion of lease payments made. The lease and subscription agreements asset is initially measured as the initial amount of the lease and subscription agreements liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease and subscription agreements asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease and subscription agreements liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease and subscription agreements asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease and subscription agreements assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: The City is a lessor for a noncancellable leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received.

The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
55 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases Payable and Subscription Agreements Payable (continued) Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

M. 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, 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. Actual results may differ from those estimates.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
The following funds had deficit fund balances at June 30, 2025:

Major Governmental Fund:

Other Grants Special Revenue Fund $ (597,940)
The Other Grants Special Revenue Funds have deficit fund balances due to intergovernmental revenues not being collected within the City’s period of availability.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
56 NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2025, were classified in the accompanying financial statements as follows:

Government-Wide Fiduciary
Statement of Statement of
Net Position Net Position Total
Unrestricted Assets:

Cash and Investments:

City $ 75,633,471 $ - $ 75,633,471
Private-Purpose Trust Funds - 1,376,086 1,376,086
Restricted Assets:

Cash and Investments Held in
Pension Trust:

City 5,177,190 - 5,177,190
Cash and Investments Held by
Fiscal Agents:

Private-Purpose Trust Funds - 3,823,618 3,823,618
Total Cash and Investments $ 80,810,661 $ 5,199,704 $ 86,010,365 Cash and investments at June 30, 2025, consisted of the following:

Cash in Hand $ 600
Deposits With Financial Institutions 8,518,783
Investments 77,490,982
Total Cash and Investments $ 86,010,365

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
57 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by 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. This table does not address investments of debt proceeds held by bond trustees that are governed by provisions of the debt agreements. This table also does not address investments of the pension trust through Public Agency Retirement Services’ (PARS) pooled trust, that are governed by the agreement between the City and the trustee. 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 Deposits 5 Years 30% 5%
Certificate of Deposit Placement Service
(CDARS) 5 Years 30% None
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
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

N/A - Not Applicable

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
58 NOTE 3 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 City 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.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity as of June 30, 2025:

Remaining Investment Maturities
12 Months 13 to 24 25 to 36 37 to 60
Investment Type or Less Months Months Months Total
Local Agency Investment
Fund (LAIF) $32,874,457 $ - $ - $ - $32,874,457
U.S. Treasury 636,530 2,433,887 4,661,410 7,185,194 14,917,021 Corporate Notes 189,931 2,142,747 2,309,030 5,266,793 9,908,501 Federal Agency Securities - 1,743,213 1,415,350 2,406,751 5,565,314 Collateralized Mortgage
Obligations - 1,022,704 1,293,207 2,356,503 4,672,414
Asset Backed Securities - 161,634 900,901 1,568,672 2,631,207 Supernational - - - 1,100,460 1,100,460
Money Market Fund 242,409 - - - 242,409
Municipal Bonds - - - 402,009 402,009
Held by Fiscal Agent:

Pension Trust – Public Agency
Retirement Services 5,177,190 - - - 5,177,190

Total $39,120,517 $7,504,185 $10,579,898 $20,286,382 $77,490,982

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
59 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s and Moody’s as of year-end for each investment type:

Total as of
Investment Type June 30, 2025
Minimum
Legal
Rating S&P Rating
Moody's
Rating
Local Agency Investment Fund
U.S. Treasury
(LAIF) $ 32,874,457
14,917,021
None
None
Not Rated
AA+
Not Rated
Aa1
Corporate Notes 245,928 A AA A1
Corporate Notes 447,106 A AA- A1
Corporate Notes 480,800 A- AA- Aa3
Corporate Notes 310,440 A A+ Aa2
Corporate Notes 1,024,883 A A+ Aa3
Corporate Notes 1,632,488 A A+ A1
Corporate Notes 247,722 A A+ A2
Corporate Notes 900,113 A A Aa3
Corporate Notes 1,222,513 A A A1
Corporate Notes 1,615,432 A A A2
Corporate Notes 1,070,899 A- A- A1
Corporate Notes 710,177 A- A- A3
Federal Agency Securities 5,565,314 None AA+ Aa1
Supranational 1,100,460 AA AAA Aaa
Collateralized Mortgage Obligations 2,601,793 AA AA+ Aa1 Collateralized Mortgage Obligations 1,269,442 AA AAA Aa1 Collateralized Mortgage Obligations 801,179 AA AA+ Aaa
Asset Backed Securities 641,240 AA AAA N/A
Asset Backed Securities 922,959 AA AAA Not Rated
Asset Backed Securities 283,236 AA AAA Aaa
Asset Backed Securities 280,715 AA N/A Not Rated
Money Market Funds 242,409 AAA AAAm Aaa
Municipal Bonds
Held by Fiscal Agents:
402,009 A AA- Aaa
Pension Trust-Public Agency
Retirement Services 5,177,190 None Not Rated Not Rated
Total Investments $ 77,490,982

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
60 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one nongovernment sponsored issuer (other than external investment pools) that represent 5 % or more of total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the 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 fair 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 City 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 City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’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 multiplied by a fair value factor provided by LAIF). The balance available for withdrawal is based on the accounting records maintained by LAIF.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
61 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Cash and Investments - Pension Trust
The City established a trust account with the Public Agency Retirement Services (PARS) to hold assets that are legally restricted for use in funding future contributions to the City’s pension plan. The pension trust’s specific cash and investments are managed by a third-party portfolio manager under guidelines approved by the City.

Those guidelines are as follows:

Risk Tolerance: Moderate
Risk Management: The portfolio is constructed to control risk through four layers of diversification - asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value growth), managers, and securities. Disciplined mutual fund selection and monitoring process help to drive return potential while reducing portfolio risk.

Investment Objective: To provide current income and moderate capital appreciation. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important.

Strategic Ranges: 0% - 20% Cash
40% - 60% Fixed income
40% - 60% Equity
Fair Value Measurements
The City 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.

Negotiable certificates of deposit, United States Government-Sponsored Agency Securities, and Municipal Bonds classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
62 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2025:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Treasury $ - $14,917,021 $ - $14,917,021
Corporate Notes - 9,908,501 - 9,908,501
Federal Agency Securities - 5,565,314 - 5,565,314
Collateralized Mortgage Obligations - 4,672,414 - 4,672,414 Asset Backed Securities - 2,631,207 - 2,631,207
Supranational - 1,100,460 - 1,100,460
Municipal Bonds - 402,009 - 402,009
Total Leveled Investments $ - $39,196,926 $ - 39,196,926 Investments Not Subject to
Fair Value Hierarchy:

Local Agency Investment
Fund (LAIF)

32,874,457
Money Market Fund 242,409
Held by Fiscal Agent:

Pension Trust – Public Agency
Retirement Services

5,177,190

Total $77,490,982

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
63 NOTE 4 CAPITAL ASSETS
Governmental Activities
A summary of changes in governmental activities - capital assets at June 30, 2025, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 38,406,365 $ - $ - $38,406,365
Construction in process 2,639,730 2,727,090 (1,981,696) 3,385,124 Total non-depreciable 41,046,095 2,727,090 (1,981,696) 41,791,489 Depreciable:

Buildings and improvements 48,373,729 1,234,787 (2,162,496) 47,446,020 Furniture and equipment 1,206,196 733,721 - 1,939,917
Vehicles 937,217 - (99,641) 837,576
Right-to-use lease asset-
equipment 91,244 - - 91,244
Infrastructure 44,559,024 2,283,814 (903,571) 45,939,267 Total depreciable
capital assets 95,167,410 4,252,322 (3,165,708) 96,254,024 Less accumulated
depreciation for:

Buildings and improvements (15,490,870) (1,144,501) 886,291 (15,749,080) Furniture and equipment (711,697) (58,147) - (769,844)
Vehicles (723,496) (77,620) 99,641 (701,475)
Right-to-use lease asset-
equipment (10,278) (17,846) - (28,124)
Infrastructure (28,130,942) (1,293,264) 576,837 (28,847,369)

Total accumulated
depreciation (45,067,283) (2,591,378) 1,562,769 (46,095,892) Total depreciable
capital assets, net 50,100,127 1,660,944 (1,602,939) 50,158,132 Total capital assets, net $ 91,146,222 $ 4,388,034 $(3,584,635) $91,949,621 Depreciation expense was charged in the following functions in the Statement of Activities:

General Government $ 180,557
Public Safety 183,920
Community Development 246,792
Public Works 1,480,365
Culture and Recreation 499,744
Total $2,591,378

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
64 NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activity
A summary of changes in the business-type activity - capital assets at June 30, 2025, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Construction in process $ - $ 22,002 $ - $ 22,002
Total non-depreciable - 22,002 - 22,002
Depreciable:

Sanitary plant 6,748,710 7,207 - 6,755,917
General plant 654,840 - - 654,840
Total depreciable
capital assets 7,403,550 7,207 - 7,410,757
Less accumulated
depreciation for:

Sanitary plant (2,627,623) (130,401) - (2,758,024)
General plant (235,741) (13,097) - (248,838)

Total accumulated
depreciation (2,863,364) (143,498) - (3,006,862)
Total depreciable
capital assets, net 4,540,186 (136,291) - 4,403,895
Total capital assets, net $ 4,540,186 $(114,289) $ - $4,425,897 Depreciation expense of $143,498 was charged to the sewer function/program.

NOTE 5 INTERFUND TRANSACTIONS
Due From/DueTo Other Funds
Receivable Fund

Payable Fund
Total
Outstanding
General Fund Housing Authority Major Special Revenue Fund $230,510 Other Grants Major Special Revenue Fund 537,873
Nonmajor Governmental Funds 590
$768,973
The amounts due to the General Fund is a result of short-term cash deficit balances in grant funds that will be remedied when reimbursements are received from granting agencies during the subsequent fiscal year.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
65 NOTE 5 INTERFUND TRANSACTIONS (CONTINUED)
Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2025, is as follows:

Transfers To
Transfers From
General
Fund (1)
Capital
Projects
Fund (2)
Nonmajor
Governmental
Funds (3) Total
General Fund $ - $ 759,881 $ 228,946 $ 988,827
Other Grants Special Revenue Fund - 543,599 - 543,599
Nonmajor Governmental Funds 722,788 3,272,957 - 3,995,745 Sewer Enterprise Funds - 33,867 - 33,867

Total $ 722,788 $4,610,304 $ 228,946 $5,562,038
During the fiscal year ended June 30, 2025, interfund transfers were made for the following purposes:
(1) $722,788 was transferred from Other Grants Fund and Nonmajor Governmental Funds (Gas Tax Special Revenue Fund, Protective Services Tax Special Revenue Fund, and Supplemental Law Enforcement Grants Special Revenue Fund) to subsidize the General Fund for street maintenance, law enforcement, and fire protection costs.
(2) $4,610,304 was transferred from the General Fund, Other Grants Special Revenue Fund, Sewer Enterprise Fund, and Nonmajor Governmental Funds to the Capital Projects Fund to fund various capital projects.
(3) $228,946 was transferred from the General Fund to the Nonmajor Governmental Funds (Families and Communities Together (FaCT) Grant Special Revenue Fund, and Stanton Central Park Maintenance Special Revenue Fund) for the difference between program expenditures and the maximum funding provided by grants or donors.

NOTE 6 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2025, was as follows:

Rodeo 39 Marketplace LLC $ 631,212
Stanton Accessible Apartments Construction 414,428
Housing 86,975
Bonnani 1,349,729
Housing Rehabilitation 928,000
Employee Computer Loans 1,098
Allowance for Doubtful Accounts (414,428)
Total $ 2,997,014
In April 2021, the City entered into a public benefit agreement with Rodeo 39 Marketplace, LLC (“Rodeo 39”) to support and encourage economic and business development in the community with the purpose of generating municipal revenues to provide necessary public services and facilities. The City provided Rodeo 39 with a forgivable loan of $2,250,000 for the Rodeo 39 Public Market and Shops. The City agreed to credit the outstanding amount due on the loan by 50% of the sales tax, including transaction and use tax, revenue payable to the City that is generated by the Rodeo 39 Public Market (and the Raising Cane’s and In-

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
66 NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
N-Out restaurants located in its parking lot) from its inception in September 2019 through October 1, 2030. In exchange for providing the economic development subsidy loan, Rodeo 39 is required to operate the site as a commercial retail center for at least ten years. During the fiscal year ended June 30, 2023, the City reduced the amount due on the loan by $151,254 to account for 50% of the sales tax and transaction and use tax revenue that was generated by the Rodeo 39 Public Market and Shops. As of June 30, 2025, the outstanding balance on the loan was $631,212.

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, 2025, was $414,428, with an allowance for the forgivable amount of $414,428.

Housing loans receivable of $86,975 consists of various low-interest home loans made to low-income families and funded from small cities housing monies.

In June 2020, the City and Life Illuminated, LLC (“Owner”), the developer of the VRV mixeduse project located at 12736 Beach Boulevard and which is also affiliated with Bonanni Development Company III, LLC (“Bonanni”), entered into a Development Agreement (“VRV Agreement”). On August 31, 2023, the City executed an operating memorandum for the development agreements by and between the City and the Owner; and the City and Bonanni. Under the operating agreement, Bonanni paid half of the total development impact fees and public benefit fees that were due when the certificate of occupancy for the VRV project was issued. The remaining balance of $632,350 will be paid in monthly installments of $11,646 beginning on April 1, 2024, through March 1, 2029. This loan was fully paid off in March 2025.

Also in Fiscal Year 2024-25, the City and Stanton 2.0 LLC (Bonanni), the developer ("Developer") of the Cloud House residential 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 due to the lingering effects and supply chain disruptions related to the global pandemic. A second loan agreement was established in the amount of $1,349,729 with a term beginning on the issuance of the final certificate of occupancy (approximately March 2025); 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 outstanding balance as of June 30, 2025, was $1,349,729.

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, 2025, was $928,000.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
67 NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
Employees have the opportunity to purchase a personal computer with an interest-free twoyear loan from the City. Full-time employees, who have completed the one-year probationary period, or part-time employees, who have been employed with the City for over one year, are eligible to participate in this program. The total amount outstanding at June 30, 2025, was $1,098.

NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
The following is a summary of long-term liability transactions as of June 30, 2025:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated absences $ 317,649 $ 98,482 * $ - $416,131 $303,471 Cost share agreement - 320,008 (110,788) 209,220 -
Lease payable 86,350 - (21,565) 64,785 17,921
Total $ 403,999 $418,490 $(132,353) $690,136 $321,392
* The change in the compensated absences liability is presented as a net change.

Compensated Absences
The City’s liability for vested and unpaid compensated absences (accrued vacation and compensation time pay) in the governmental activities has been accrued and amounted to $416,131 at June 30, 2025. This liability is being liquidated in the Employee Benefits Internal Service Fund. The net change in the liability was $98,482.

Lease Payable
In December 2023, the City entered into a five-year lease agreement as lessee for the acquisition and use of several copiers. An initial lease liability was recorded in the amount of $91,860 at implementation. As of June 30, 2024, the value of the lease liability was $86,350. The City is required to make monthly principal and interest payments of $1,684 for the copiers. The lease has an interest rate of 5.0%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2025 was $91,244 less accumulated amortization of $28,124. The following future principal and interest payments on the leases payable for June 30 are as follows:

Principal Interest Total
2026 $ 17,921 2,353 20,274
2027 18,767 1,576 20,343
2028 19,694 764 20,412
2029 8,448 68 8,517
Total $ 64,785 $ 4,760 $ 69,545

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
68 NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Cost Share Agreement
The City is part of the North Orange County Service Planning Area (North SPA) that is a collaboration of North Orange County cities to fund emergency homeless shelters located in the Cities of Buena Park and Placentia (i.e. “service navigation centers”). All the North OC cities have allocated State of California SB-2 grant funds (passed through the County of Orange) to fund the capital and operating costs of these centers. Each City is supposed to then fund any shortfall between the actual costs and the grant funding costs. The City of La Habra is the fiscal agent for the North SPA. The total amount of the City's cost share as of June 30, 2025 was $209,220 which is not due in the subsequent year.

Business-Type Activity
The following is a summary of long-term debt transactions of the business-type activity as of June 30, 2025:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated absences $ 3,773 $ 2,653 * $ - $6,426 $6,426 Total $ 3,773 $ 2,653 $ - $6,426 $6,426
* The change in the compensated absences liability is presented as a net change.

In proprietary funds, the liability for vested and unpaid compensated absences (accrued vacation and compensation time pay) is reported in the sewer enterprise fund as the benefits are vested and earned. The compensated absences accrued in the Sewer Enterprise Fund amounted to $6,426 at June 30, 2025. The net change in the liability was $2,653.

NOTE 8 RISK MANAGEMENT
Risk Pool Membership
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee.

Excess Liability Program
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third-party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $100,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risksharing-pools/.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
69 NOTE 8 RISK MANAGEMENT (CONTINUED)
Excess Workers’ Compensation Program
The City has a retained limit of $100,000 per occurrence for workers’ compensation claims.

The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:
(A) All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $49,211,331. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible. (B) Earthquake and Flood Insurance. This coverage is part of the Property Protection Program. The City has total insured values of $26,079,111 scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
(C) Pollution Legal Liability Insurance Program. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
(D) Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $5,000,000, and the deductible is $2,500. (E) Special Event Tenant User Liability Insurance. This coverage protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays the insurance broker and/or carrier. The insurance is facilitated by the Authority.

Claims Activity and Adequacy of Protection
Claim expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. As of June 30, 2025, the amount of these liabilities was $0. This liability is the City’s best estimate based on available information.

During the past three fiscal (claims) years, none of the above programs for protection have experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-2025.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
70 NOTE 9 COMMITMENTS
On September 15, 1994, the former Redevelopment Agency entered into a Revenue Sharing Agreement with the City of Anaheim related to the development and operation of an automobile recycling facility by Pick Your Part. The location of the project is equally split between the cities of Stanton and Anaheim. All sales tax revenue for the project is collected in Stanton. Additionally, the City receives a recycling fee equal to $5 per automobile recycled by Pick Your Part at the project site. Under the terms of the agreement, the City of Anaheim will be compensated so as to mitigate the environmental impacts under CEQA associated with the project. Sales tax revenue generated by the project has been determined to be an appropriate measure of the impacts associated with the project. The City will pay to the City of Anaheim a portion of the recycling fee revenue equal to one-half of the sales tax revenue received by the City for the project on a calendar-year basis. In accordance with the agreement, the City paid the City of Anaheim $33,174 during the fiscal year ended June 30, 2025.

NOTE 10 ORANGE COUNTY FIRE AUTHORITY – JOINT VENTURE
In January 1995, the City entered into a joint powers agreement with 18 other cities and the County to create the Orange County Fire Authority (Fire Authority). The purpose of the Fire Authority is to provide for mutual fire protection, prevention and suppression services, and related and incidental services including, but not limited to, emergency medical and transport services, as well as providing facilities and personnel for such services. The Fire Authority’s governing board consists of one representative from each member city and two from the County. The operations of the Fire Authority are funded with structural fire fees collected by the County through the property tax roll or with cash contributions based on the Fire Authority’s annual budget. The City pays a cash contribution each year to the Fire Authority. The County pays all structural fire fees it collects to the Fire Authority. During the fiscal year ended June 30, 2025, the City paid $5,719,308 to the Fire Authority.

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2025. Upon dissolution of the Fire Authority, all surplus money and property of the Fire Authority will be conveyed or distributed to each member in proportion to all funds provided to the Fire Authority by that member or by the County on behalf of that member during its membership. Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Road, Irvine, CA 92602.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
71 NOTE 11 RETIREMENT PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety and Miscellaneous (all other) 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 City 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 at https://www.calpers.ca.gov/page/employers/ actuarial-resources/gasb.

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. 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.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
72 NOTE 11 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The plans’ provisions and benefits in effect at the measurement date ended June 30, 2024, are summarized as follows:

Normal Cost Rate 12.520% 10.150% 7.870%
Payment of Unfunded Liability
and Extra Payments $ 577,531 $ 4,213 $ 7,446
Safety
Hire Date Closed
Benefit Formula 1/2%@55
Benefit Vesting Schedule 5 Years of Service
Benefit Payments Monthly for Life
Retirement Age 50 - 65
Monthly Benefits, As A % Of Eligible
Compensation 1.783% to 2.5%
Required Employee Contribution Rates (1) 0%
Required Employer Contribution $ 234,276
(1) The City currently outsources the safety function to the County. There are no members of the safety plan that are active employees of the city. Therefore, there are no required employee contribution rates. Instead, the required employer contribution is a dollar amount provided by CalPERS.

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.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
73 NOTE 11 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Contributions (Continued)
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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City 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 City made contributions of $1,036,715 and $226,695 to the Miscellaneous and Safety Plans, respectively, in the current fiscal year.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City’s balances for the miscellaneous and safety plans are shown in the statement of net position as follows:

Governmental
Activities
Deferred Outflows of Resources:

Miscellaneous Plan $2,368,937
Safety Plan 817,792
Total Deferred Outflows of Resources $3,186,729

Deferred Inflows of Resources:

Miscellaneous Plan $ 161,755
Safety Plan 725,303
Total Deferred Inflows of Resources $ 887,058

Net Pension Liability (Asset):

Miscellaneous Plan $7,448,626
Safety Plan 1,281,927
Total Net Pension Liability (Asset) $8,730,553

Pension Expense (Credit):

Miscellaneous Plan $ 1,416,755
Safety Plan 433,569
Total Pension Expense (Credit) $ 1,850,324

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
74 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each plan as follows:

Proportionate
Share of Net
Pension
Liability (Asset)
Miscellaneous $ 7,448,626
Safety 1,281,927
Total Net Pension Liability $ 8,730,553
The City’s net pension liability for each plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 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, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each plan as of the measurement date ended June 30, 2023 and 2024, was as follows:

Miscellaneous Safety
Proportion - June 30, 2023 0.15078% 0.01984%
Proportion - June 30, 2024 0.15401% 0.01758%
Change - Increase (Decrease) 0.00322% (0.00226)%

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
75 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2025, the City 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

$1,036,715

$ -
Change in proportion 18,915 (88,307)
Difference in actual contributions vs.
proportionate share of contributions

49,052

(48,319)
Difference between expected and
actual experience

644,002

(25,129)
Differences between projected and
actual earnings on plan investments

428,808

-
Change in assumptions 191,445 -

Total $2,368,937 $ (161,755)
Safety
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 226,695

$ -
Change in proportion 392,934 (18,322)
Difference in actual contributions vs.
proportionate share of contributions

(703,579)
Difference between expected and
actual experience

104,616

(3,402)
Differences between projected and
actual earnings on plan investments

61,963

-
Change in assumptions 31,584 -

Total $ 817,792 $ (725,303)

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
76 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The amount of $1,036,715 and $226,695 in the miscellaneous and safety plans, respectively, which is reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. 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

Safety
2026 $ 350,209 $ 29,927
2027 956,100 (54,106)
2028 11,106 (88,825)
2029 (146,948) (21,201)
$1,170,467 $(134,205)
Actuarial Assumptions
The total pension liability was based on the following assumptions:

Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.50% 2.30%
Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Postretirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(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 postretirement 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.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
77 NOTE 11 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.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
78 NOTE 11 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 City’s proportionate share of the net pension liability for each plan, calculated using the discount rate for each plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $ 11,413,152 $ 3,294,182
Current Discount Rate 6.90% 6.90%
Net Pension Liability $ 7,448,626 $ 1,281,927
1% Increase 7.90% 7.90%
Net Pension Liability (Asset) $ 4,185,237 $ (363,815)
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plans
The City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2025.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
79 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A. General Information about the OPEB Plan
The City provides postretirement medical benefits to retirees under CalPERS and the California Public Employees Medical and Hospital Care Act (PEMHCA). The City has entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to prefund the City’s net OPEB liability. The program is an agent multiple-employer defined benefit health-care plan that provides health-care insurance for eligible retirees. To be eligible for postretirement benefits, employees must complete at least five years of continuous service and be a minimum of 50 years of age. The plan issues a publicly available financial report that includes financial statements and required supplementary information for the plan. Those reports may be obtained by writing or calling the plans at the following address or telephone number: CalPERS Member Services Division; P.O.

Box 942704, Sacramento, CA 94229-2704; 1-888-225-7377.

Employees Covered
As of the measurement date of June 30, 2024, the following current and former employees were covered by the benefit terms under the plan:

Active employees 33
Inactive employees or beneficiaries currently
receiving benefits 15
Total 48
Benefits
The City pays the greater of $215 per month or the PEMHCA minimum. The PEMHCA minimum was $157 and $215 for 2024 and 2025, respectively.

Contributions
Contribution requirements are established by City policy and may be amended by the City Council through negotiations with the respective unions. For the fiscal year ended June 30, 2025, the City made contributions of $8,285, which represents the implicit subsidy. The fiduciary net position of the plan was utilized to meet the remaining contribution requirements.

B. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, rolled forward to June 30, 2025, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
80 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Entry-Age Normal Cost Method,
Actuarial Cost Method Level Percent of Pay
Actuarial Assumptions:

Discount Rate 6.25%
Inflation 2.50%
Projected Salary Increase 2.75% Per Year
Expected Long-Term Investment Rate of Return 6.25%
Health-Care Cost Trend Rates 4.00% Per Year
Pre-Retirement Turnover Derived from 2017 CalPERS
turnover for miscellaneous
employees
Mortality Derived from 2017 CalPERS active
mortality for miscellaneous
employees and 2017 CalPERS
mortality for retired safety
employees
The actuarial assumptions used in the June 30, 2023 valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.

Long-Term Expected Rate of Return
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. The asset class percentages are taken from the current composition of CERBT, and the expected yields are taken from a recent CalPERS publication for the pension fund:

Asset Class
Percentage
of Portfolio
Long-Term
Expected Real
Rate of Return
All Equities 34.00% 7.250%
All Fixed Income 41.00% 4.250%
Real Estate Investment Trusts 17.00% 7.250%
All Commodities 3.00% 7.250%
Treasury Inflation Protected Securities 5.00% 3.000%
Total 100.00%

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
81 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. This is the expected long-term rate of return on City assets using investment strategy 2 within CERBT. The rate used for a funded plan is the real rate of return expected for plan assets plus long-term inflation assumption. This method was used to determine the discount rate assuming that the City’s contributions will be made on an ad hoc basis, but in an amount sufficient to fully fund the obligation over a period not to exceed 33 years.

Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on the plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

C. Changes in the Net OPEB Liability
The changes in the net OPEB liability (asset) are as follows:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/23
Measurement Date 6/30/23 $ 772,567

$ 835,051

$ (62,484)
Changes During the Period:

Service Cost 33,330 - 33,330
Interest on TOL/Return on FNP 48,037 67,920 (19,883)
Employer Contributions - 8,285 (8,285)
Administrative Expenses - (269) 269
Benefit Payments (45,910) (45,910) -
Plan Experience 4,630 - 4,630
Changes in Assumptions - - -
Employer Contributions Subsequent
to Measurement Date -

-
Net Changes in Fiscal Year 2023-24 40,087 30,026 10,061 Balance at Fiscal Year Ending 6/30/24
Measurement Date 6/30/24 $ 812,654

$ 865,077

$ (52,423)

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
82 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) C. Changes in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate:
1% Decrease 5.25%
Net OPEB Liability $ 53,257

Current Discount Rate 6.25%
Net OPEB Liability (Asset) $ (52,423)

1% Increase 7.25%
Net OPEB Liability (Asset) $(139,328)
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using health-care cost trend rates that are one percentage point lower or one percentage point higher than the current health-care cost trend rates:
1% Decrease Trend 1% Lower
Net OPEB Liability (Asset) $(134,817)

Current Trend Valuation Trend
Net OPEB Liability (Asset) $ (52,423)

1% Increase Trend 1% Higher
Net OPEB Liability $ 50,766
D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense of $67,213. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Difference between expected and
actual experience

$ 71,963

$ (280,181)
Change of assumptions 216,784 (38,026)
Net difference between projected and
actual earnings on investments

51,261

Total $ 340,008 $ (318,207)

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
83 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred outflows and deferred inflows of resources will be recognized as OPEB expense as follows:

Year Ended
June 30

2026 $ 34,958
2027 58,516
2028 20,767
2029 16,484
2030 19,866
Thereafter (128,790)
$ 21,801
E. Payable to the OPEB Plan
The City had no outstanding amount of contributions to the OPEB plan as required for the year ended June 30, 2025.

NOTE 13 CLASSIFICATION OF FUND BALANCES
The City has adopted the provisions of GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. GASB 54 establishes fund balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental funds statements conform to this classification. The various fund balance classifications established as of June 30, 2025, were as follows:

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
84 NOTE 13 CLASSIFICATION OF FUND BALANCES (CONTINUED)

General
Fund
Housing
Authority
Special
Revenue
Fund
Other
Grants
Special
Revenue
Fund

Capital
Project
Fund

Nonmajor
Governmental
Funds

Total
Nonspendable:

Prepaid items $ 162,647 $ - $ - $ 130,388 $ - $ 293,035 Notes and loans receivable 1,732,285 - - - - 1,732,285
Total nonspendable 1,894,932 - - 130,388 - 2,025,320
Restricted for:

Low-and moderate income
housing -

8,166,579

8,166,579
Park projects - - - - 3,167,203 3,167,203
Street lighting and median
maintenance -

2,882,991

2,882,991
Streets and roads
Maintenance and capital
projects -

5,193,935

5,193,935
Public safety programs - - - - 423,303 423,303
Traffic signal projects - - - - 35,079 35,079
Pollution remediation - - - - 202,632 202,632
New community center - - - - 302,573 302,573
New police services facility - - - - 273,496 273,496
FaCT Grant - - - - 4,481 4,481
Fire protection - - - - 8,155 8,155
Senior mobility program - - - - 157,680 157,680
Housing rehabilitation for low
and moderate income -

210,729

210,729
Disability access program - - - - 78,983 78,983
Total restricted - 8,166,579 - - 12,941,240 21,107,819
Committed for:

Emergency equipment
and maintenance 150,000

150,000
Technology equipment 150,000 - - - - 150,000
Emergency disaster
contingency 3,300,000

3,300,000
Capital improvement 5,000,000 - - - - 5,000,000
Beautification projects 190,000 - - - - 190,000
Neighborhood preservation
projects 114,000

114,000
Other public benefit projects 1,433,356 - - - - 1,433,356 Total committed 10,337,356 - - - - 10,337,356
Assigned for:

Capital improvement projects 2,940,672 - - - - 2,940,672 Information technology
Upgrades and projects 663,990

663,990
Economic Development
Services 55,000

55,000
City rebrand and
implementation 17,882

17,882
Safe Streets Together 67,300 - - - - 67,000
General Plan Update 30,000 - - - - 30,000
Other purposes 1,119,972 - - - - 1,119,972
Total assigned 4,894,816 - - - - 4,894,816
Unassigned for:

Economic uncertainty 6,600,000 - - - - 6,600,000
Unassigned 20,928,647 - (597,940) - - 20,330,707
Total unassigned 27,528,647 - (597,940) - - 26,930,707
$44,655,751 $8,166,579 $ (597,940) $ 130,388 $ 12,941,240 $65,296,018

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
85 NOTE 14 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency (Agency) were transferred to the Successor Agency to the City of Stanton Redevelopment Agency on February 1, 2012, as a result of the dissolution of the Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to notes receivable and long-term liabilities are stated below:

Long-Term Liabilities
Long-term liability transactions for the year ended June 30, 2025, were as follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Bonds Payable
Tax Allocation Bonds
(TAB) 2016 Series A $ 4,760,000 $ - $ (310,000) $ 4,450,000 $ 325,000 Add Bond Premium 305,627 - (30,563) 275,064 -
TAB, 2016 Series B 8,790,000 - (595,000) 8,195,000 615,000 Less Issuance
Discounts (52,381) - 5,238 (47,143) -
TAB, 2016 Series C 9,695,000 - - 9,695,000 -
Add Bond Premium 573,017 - (35,813) 537,204 -
TAB, 2016 Series D 18,095,000 - (1,280,000) 16,815,000 1,320,000 Less Issuance
Discounts (359,655) - 22,479 (337,176) -
TAB, 2020-A Payable 6,770,000 - (560,000) 6,210,000 580,000 Add Bond Premium 1,029,898 - (172,917) 856,981 -
Total $49,606,506 $ - $(2,956,576) $46,649,930 $2,840,000

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
86 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series A
On February 2, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series A, in the amount of $7,115,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The bonds bear interest rates between 2.00% to 5.00%, are due June 1 and December 1 of each year, and mature December 1, 2035. The bonds maturing on or after December 1, 2027, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2027, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $4,450,000 at June 30, 2025.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 325,000 $ 154,150 $ 479,150
2027 345,000 137,400 482,400
2028 360,000 119,775 479,775
2029 380,000 101,275 481,275
2030 400,000 85,275 485,275
2031-2035 2,170,000 239,581 2,409,581
2036 470,000 7,344 477,344
Total $ 4,450,000 $ 844,800 $ 5,294,800
Taxable Tax Allocation Refunding Bonds, 2016 Series B
On February 2, 2016, the Agency issued Taxable Tax Allocation Refunding Bonds, 2016 Series B, in the amount of $13,220,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The bonds bear interest rates between 1.00% to 3.50%, are due June 1 and December 1 of each year, and mature December 1, 2035. The bonds maturing on or after December 1, 2027, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2027, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium. The bonds are subject to mandatory sinking account redemption in amounts ranging from $655,000 to $900,000 as outlined in the official statements.

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
87 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Taxable Tax Allocation Refunding Bonds, 2016 Series B (CONTINUED) Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. With the issuance of the Bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $8,195,000 at June 30, 2025.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 615,000 $ 314,288 $ 929,288
2027 630,000 293,269 923,269
2028 655,000 269,144 924,144
2029 680,000 242,444 922,444
2030 710,000 214,644 924,644
2031-2035 4,005,000 609,522 4,614,522
2036 900,000 18,563 918,563
Total $ 8,195,000 $ 1,961,874 $ 10,156,874

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
88 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series C
On December 15, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series C, in the amount of $10,030,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds. The 2010 Series A have been partially paid off as of June 30, 2019.

The bonds bear interest rates between 2.00% to 5.00%, are due June 1 and December 1 of each year, and mature December 1, 2040. The bonds maturing on or after December 1, 2026, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2026, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set-aside irrevocably for that purpose. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $9,695,000 at June 30, 2025.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2026 $ - $ 484,750 $ 484,750
2027 - 484,750 484,750
2028 - 484,750 484,750
2029 - 484,750 484,750
2030 - 484,750 484,750
2031-2035 - 2,423,750 2,423,750
2036-2040 7,560,000 1,691,000 9,251,000
2041 2,135,000 53,375 2,188,375
Total $ 9,695,000 $ 6,591,875 $ 16,286,875

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
89 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series D
On December 15, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series D, in the amount of $26,080,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The outstanding balance of the bonds was $16,815,000 at June 30, 2025.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 1,320,000 $ 645,725 $ 1,965,725
2027 1,360,000 601,325 1,961,325
2028 1,410,000 550,175 1,960,175
2029 1,465,000 492,675 1,957,675
2030 1,520,000 432,975 1,952,975
2031-2035 5,615,000 1,412,044 7,027,044
2036-2040 3,400,000 522,963 3,922,963
2041 725,000 15,406 740,406
Total $ 16,815,000 $ 4,673,288 $ 21,488,288

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
90 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Taxable Tax Allocation Refunding Bonds, 2020 Series A
In August 2020, the Agency issued 2020A Tax Allocation Refunding Bonds in the amount of $7,935,000 to refund the 2010A Tax Allocation Bonds and provide for the costs of issuing the bonds.

The bonds bear interest at a rate of 4% that is payable on a semi-annual basis beginning June 1, 2021. Principal is payable December 1 of each year with a maturity date of December 1, 2035. The bonds maturing on or after December 1, 2030, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2030, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

The outstanding balance of the bonds was $6,210,000 at June 30, 2025.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 580,000 $ 236,800 $ 816,800
2027 605,000 213,100 818,100
2028 635,000 188,300 823,300
2029 655,000 162,500 817,500
2030 680,000 135,800 815,800
2031-2035 2,550,000 340,000 2,890,000
2036 505,000 10,100 515,100
Total $ 6,210,000 $ 1,286,600 $ 7,496,600

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
91 NOTE 15 CONTINGENT LIABILITIES
Lawsuits
The City is a defendant in certain legal actions arising in the normal course of operations. In the opinion of management and legal counsel, any liability resulting from these actions will not result in a material adverse effect on the City’s financial position, except as indicated in Note 18.

Federal and State Grant Programs
The City has received federal grants for specific purposes that are subject to review and audit by the federal government. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material.

NOTE 16 NONEXCHANGE TRANSACTIONS
During the fiscal year 2024, the City entered into a lease agreement with a Developer for the right to use a certain easement of which the City owns. The term is for 5 years and there are no rental payments due. This transaction was classified as a voluntary non-exchange transaction under GASB No. 33 – Accounting and Financial Reporting for Non-Exchange Transactions as the City was deemed not to receive equal value for the property.

During the fiscal year 2025, the City amended an existing joint use lease agreement with the Garden Grove Unified School District for the right to use, maintain and develop certain real property within the City of Stanton for community recreation purposes of which the School District owns. The amended term is for 30 years and there are no rental payments due. This transaction was classified as a government-mandated non-exchange transaction as the City was deemed not to receive equal value for the property.

NOTE 17 SUBSEQUENT EVENTS
Management has evaluated subsequent events through December 10, 2025 which is the date the financial statements were available to be issued, and has determined that there are no other transactions that will have a significant impact on the City. 92 This page intentionally left blank
93 REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
Fiscal year ended June 30 2025 2024 2023 2022 2021
Measurement period June 30 2024 2023 2022 2021 2020
Proportion of the net pension liability 0.15401% 0.15078% 0.15009% 0.18344% 0.14298% Proportionate share of the net pension
liability 7,448,626 $ 7,539,712 $ 7,023,242 $ 3,483,253 $ 6,031,096 $ Covered payroll 4,114,981 $ 3,914,558 $ 3,562,190 $ 3,145,319 $ 2,740,004 $ Proportionate Share of the net pension
liability as percentage of covered payroll 181.01% 192.61% 197.16% 110.74% 220.11% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 74.65% 72.86% 73.21% 85.91% 74.82% 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:

The discount rate was reduced from 7.15% to 6.90%.

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Miscellaneous Pension Plan Year Ended June 30, 2025
Last 10 Fiscal Years
94 Fiscal year ended June 30 2020 2019 2018 2017 2016
Measurement period June 30 2019 2018 2017 2016 2015
Proportion of the net pension liability 0.13918% 0.13424% 0.13038% 0.12626% 0.11916% Proportionate share of the net pension
liability 5,573,525 $ 5,059,084 $ 5,139,562 $ 4,386,167 $ 3,269,137 $ Covered payroll 2,544,215 $ 2,644,646 $ 2,188,343 $ 2,097,117 $ 1,968,200 $ Proportionate Share of the net pension
liability as percentage of covered payroll 219.07% 191.30% 234.86% 209.15% 166.10% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 76.17% 75.26% 73.31% 74.06% 82.31%

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years (Continued)
Year Ended June 30, 2025
95 Fiscal year ended June 30 2025 2024 2023 2022 2021
Contractually required contribution
(actuarially determined) 1,036,715 $ 902,656 $ 843,262 $ 740,035 $ 645,052 $ Contributions in relation to the actuarially
determined contributions (1,036,715) (902,656) (893,262) (841,240) (695,052) Contribution deficiency (excess) - $ - $ (50,000) $ (101,205) $ (50,000) $ Covered payroll 4,114,981 $ 3,914,558 $ 3,914,558 $ 3,562,190 $ 3,145,319 $ Contributions as a percentage of covered payroll 25.19% 23.06% 22.82% 23.62% 22.10% Notes to schedule:

Valuation date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 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 2.500% 2.500% 2.500% 2.500% 2.500%
Salary increases 2.75% (2) 2.75% (2) 2.75% (2) (2) (2)
Investment rate of return 7.00% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.00% (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, 2025

CITY OF STANTON
Schedule of Contributions - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years
96 Fiscal year ended June 30 2020 2019 2018 2017 2016
Contractually required contribution
(actuarially determined) 601,444 $ 469,444 $ 402,799 $ 327,584 $ 288,043 $ Contributions in relation to the actuarially
determined contributions (601,444) (469,444) (402,799) (327,584) (288,043) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll 2,740,004 $ 2,544,215 $ 2,644,646 $ 2,188,343 $ 2,097,117 $ Contributions as a percentage of covered payroll 21.95% 18.45% 15.23% 14.97% 13.74% Notes to schedule:

Valuation date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to
determine contribution rates:

CITY OF STANTON
Schedule of Contributions - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years (Continued)
97 Fiscal year ended June 30 2025 2024 2023 2022 2021
Measurement period June 30 2024 2023 2022 2021 2020
Proportion of the net pension liability 0.01758% 0.01984% 0.01907% -0.04423% 0.00935% Proportionate share of the net pension
liability (asset) 1,281,927 $ 1,483,206 $ 1,310,162 $ (1,552,129) $ 622,970 $ Covered payroll - $ - $ - $ - $ - $
Proportionate Share of the net pension
liability as percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability (Asset) 91.30% 90.25% 91.58% -109.72% 96.21% Notes to schedule:

Benefit changes:

There were no changes in benefits.

Changes in assumptions:

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

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:

The discount rate was reduced from 7.15% to 6.90%.

Year Ended June 30, 2025

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Safety Pension Plan Last 10 Fiscal Years
98 Fiscal year ended June 30 2020 2019 2018 2017 2016
Measurement period June 30 2019 2018 2017 2016 2015
Proportion of the net pension liability 0.00763% 0.09504% 0.09231% 0.09501% 0.09572% Proportionate share of the net pension
liability $ 476,073 $ 5,576,370 $ 5,515,903 $ 4,920,618 $ 3,944,111 Covered payroll -$ $ - $ - $ - -$
Proportionate Share of the net pension
liability as percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 97.30% 68.32% 68.32% 71.79% 77.44% Year Ended June 30, 2025

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Safety Pension Plan Last 10 Fiscal Years (Continued)
99 Fiscal year ended June 30 2025 2024 2023 2022 2021
Contractually required contribution (actuarially determined) 226,695 $ - $ 173,625 $ 103,850 $ 80,284 $ Contributions in relation to the actuarially
determined contributions (226,695) - (173,625) (103,850) (80,284) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll - $ - $ - $ - $ - $
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Notes to schedule:

Valuation date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 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% 2.300% 2.500% 2.500% 2.500%
Salary increases 2.75% (2) 2.75% (2) 2.75% (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.00% (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.

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years
Year Ended June 30, 2025
100
Fiscal year ended June 30 2020 2019 2018 2017 2016
Contractually required contribution (actuarially determined) - $ 559,861 $ 469,366 $ 226,818 $ 188,537 $ Contributions in relation to the actuarially
determined contributions - (5,540,542) (469,366) (226,818) (188,537) Contribution deficiency (excess) - $ (4,980,681) $ - $ - $ - $ Covered payroll - $ - $ - $ - $ - $
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Notes to schedule:

Valuation date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to
determine contribution rates:

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years (Continued)
Year Ended June 30, 2025
101
Fiscal Year End 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Measurement Date 6/30/2023 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total OPEB Liability
Service cost 33,330 $ 35,682 $ 34,727 $ 20,853 $ 20,295 $ Interest on the total OPEB Liability 48,037 61,047 59,894 64,483 64,039 Actual and expected experience difference 4,630 (212,007) (7,697) (110,610) - Changes in assumptions - (43,968) - 61,360 -
Actual minus expected benefit payment - - - (6,685) (659) Benefit payments (45,910) (65,656) (68,495) (70,646) (77,577) Net change in total OPEB liability 40,087 (224,902) 18,429 (41,245) 6,098 Total OPEB liability - beginning 772,567 997,469 979,040 1,020,285 1,014,187 Total OPEB liability - ending (a) 812,654 $ 772,567 $ 997,469 $ 979,040 $ 1,020,285 $ Plan Fiduciary Net Position
Contribution - employer 8,285 $ 27,171 $ 25,495 $ 26,356 $ 25,640 $ Net investment income (loss) 67,920 30,096 (126,752) 173,850 47,942 Benefit payments (45,910) (65,656) (68,495) (70,646) (77,577) Administrative expense (269) (242) (258) (322) (437)
Net change in plan fiduciary net position 30,026 (8,631) (170,010) 129,238 (4,432) Plan fiduciary net position - beginning 835,051 843,682 1,013,692 884,454 888,886 Plan fiduciary net position - ending (b) 865,077 $ 835,051 $ 843,682 $ 1,013,692 $ 884,454 $ Net OPEB liability (asset) - ending (a)-(b) (52,423) $ (62,484) $ 153,787 $ (34,652) $ 135,831 $ Plan fiduciary net position as a percentage
of the total OPEB liability (asset) 106.45% 108.09% 84.58% 103.54% 86.69% Employee payroll 4,114,981 $ 3,914,558 $ 3,562,190 $ 3,145,319 $ 2,740,004 $ Net OPEB liability (asset) as a
percentage of employee payroll -1.27% -1.60% 4.32% -1.10% 4.96% Notes to Schedule
Changes in assumptions:

There were no significant changes in assumptions for the measurement dates June 30, 2017 and 2018.

The following were the significant changes in assumptions for the measurement date June 30, 2019:

The implicit rate subsidy that includes using the claims or age-adjusted premiums approximating claims costs to determine that plan's liability was utilized for the measurement date June 30, 2019, and was not included.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only eight years are shown.

CITY OF STANTON
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios Year Ended June 30, 2025
Last 10 Fiscal Years *
102
Fiscal Year End 6/30/2020 6/30/2019 6/30/2018
Measurement Date 6/30/2019 6/30/2018 6/30/2017
Total OPEB Liability
Service cost 11,308 $ 11,005 $ 10,710 $
Interest on the total OPEB Liability 33,517 33,513 33,968 Actual and expected experience difference 124,860 - -
Changes in assumptions 353,544 - -
Actual minus expected benefit payment 14,271 - -
Benefit payments (51,136) (52,347) (52,812)
Net change in total OPEB liability 485,153 (6,618) (8,134) Total OPEB liability - beginning 535,652 529,034 543,786 Total OPEB liability - ending (a) 1,014,187 $ 529,034 $ 535,652 $ Plan Fiduciary Net Position
Contribution - employer -$ $ - $ 52,812
Net investment income (loss) 60,321 54,438 59,303
Benefit payments (52,347) (51,136) (52,812)
Administrative expense (189) (1,623) (432)
Net change in plan fiduciary net position 7,785 1,679 58,871 Plan fiduciary net position - beginning 881,101 879,422 820,551 Plan fiduciary net position - ending (b) 888,886 $ 881,101 $ 879,422 $ Net OPEB liability (asset) - ending (a)-(b) 125,301 $ (352,067) $ (343,770) $ Plan fiduciary net position as a percentage
of the total OPEB liability (asset) 87.65% 166.55% 164.18% Employee payroll 2,544,215 $ 2,664,646 $ 2,188,343 $
Net OPEB liability (asset) as a
percentage of employee payroll 4.92% -13.21% -15.71%

CITY OF STANTON
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios Last 10 Fiscal Years * (Continued)
Year Ended June 30, 2025
103
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 27,577,785 $ 28,875,920 $ 28,643,647 $ (232,273) $ Licenses and permits 867,750 1,009,150 1,461,025 451,875 Intergovernmental 650,500 423,810 432,890 9,080
Charges for services 2,277,500 2,616,510 2,850,793 234,283 Fines and forfeitures 403,000 592,000 690,157 98,157
Investment income 250,000 414,930 2,219,121 1,804,191
Rental income 153,930 153,930 159,200 5,270
Miscellaneous 312,020 10,000 355,872 43,852
Total revenues 32,190,465 34,398,270 36,812,705 2,414,435

EXPENDITURES
Current:

General government 4,891,230 5,580,334 5,209,700 370,634 Public safety 21,851,345 21,988,158 21,483,894 504,264
Community development 2,299,240 2,433,119 2,003,060 430,059 Public works 3,143,585 3,323,469 2,890,143 433,326
Culture and recreation 1,656,905 1,830,049 1,660,048 170,001 Capital outlay - 1,040,733 301,330 739,403
Debt service:

Principal retirement - - 17,113 (17,113)
Interest and fiscal charges - - (3,095) 3,095
Total expenditures 33,842,305 36,195,862 33,568,383 2,627,479

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,797,592) (1,651,840) 3,244,322 5,041,914

OTHER FINANCING SOURCES
(USES)
Transfers in 842,640 854,479 722,788 (131,691)
Transfers out (1,846,895) (765,375) (988,827) 858,068
Total other financing sources (uses) 77,265 (992,416) (266,039) 726,377 Net change in fund balance $ (2,790,008) (1,574,575) $ 2,978,283 $ 5,768,291 Fund balance, beginning of year 41,677,468
Fund balance, end of year 44,655,751 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2025
104
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income 100,000 $ 250,000 $ 434,706 $ 184,706 $ Rental income 620,000 470,000 435,977 (34,023)
Total revenues 720,000 720,000 870,683 150,683

EXPENDITURES
Current:

General government 170,420 391,740 377,065 14,675
Public safety 221,850 252,840 227,516 25,324
Community development 868,305 4,463,749 2,454,015 2,009,734 Total expenditures 1,260,575 5,108,329 3,058,596 2,049,733 Net change in fund balance $ (4,388,329) (540,575) $ (2,187,913) 2,200,416 $ Fund balance, beginning of year 10,354,492
Fund balance, end of year 8,166,579 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Housing Authority Special Revenue Fund
For the Year Ended June 30, 2025
105
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 2,290,000 $ 10,321,410 $ 466,985 $ (9,854,425) $ Investment income - 3,235 3,230 (5)
Total revenues 2,290,000 10,324,645 470,215 (9,854,430)

EXPENDITURES
Current:

Public works 148,066 89,828 89,828 -
Total expenditures 148,066 89,828 89,828 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 10,234,817 2,141,934 380,387 (9,854,430)

OTHER FINANCING SOURCES
(USES)
Transfers out (2,290,000) (9,741,850) (543,599) 9,198,251 Total other financing sources (uses) (2,290,000) (9,741,850) (543,599) 9,198,251 Net change in fund balance $ 492,967 (148,066) $ (163,212) (656,179) $ Fund balance (deficit), beginning of year (434,728)
Fund balance (deficit), end of year (597,940) $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Grants Special Revenue Fund
For the Year Ended June 30, 2025
106

CITY OF STANTON

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
107
JUNE 30, 2025
NOTE 1 BUDGET AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. The City Manager is required, under City Code Section 2.08.050, to prepare and submit to the City Council the annual budget of the City and administer it after adoption. Legally, expenditures may not exceed total appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts within the accounts of any fund; however, any revisions between funds must be approved by the City Council. 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 City Council or City Manager. 108
This page intentionally left blank
109

SUPPLEMENTARY INFORMATION
110

GENERAL FUND
111

CITY OF STANTON

DESCRIPTION OF GENERAL FUNDS
JUNE 30, 2025
General – The main operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund.

Transaction and Use Tax – To account for sales taxes provided by Measure GG, which imposes an additional 1% sales tax available for general purposes.

PCTA Administration – To account for the administrative costs incurred on behalf of the Public Cable Television Authority (PCTA), which primarily consist of personnel costs and digital subscriptions, which are reimbursed by PCTA.

Public Benefit Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion for the maintenance or improvement of any public facility within the City, including parks, streets, and facilities.

Beautification Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion for beautification and enhancement projects anywhere within the City.

Neighborhood Preservation Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion.

Cannabis Community Benefit Fees – To account for community contributions received from cannabis businesses pursuant to community benefit agreements. These fees can be used at the City’s discretion.

Developer Deposits – To account for refundable deposits collected from developers to fund developer funded activities.

Transaction Public
and Use PCTA Benefit Beautification
General Tax Administration Fees Fees
ASSETS
Cash and investments 40,549,799 $ - $ - $ 2,396,356 $ 240,000 $ Receivables:

Accounts 490,000 - 11,981 - -
Interest 516,194 - - - -
Taxes 1,342,213 877,030 - - -
Prepaid costs 162,647 - - - -
Due from other funds 1,986,830 - - - -
Due from other governments 222,711 - - - -
Notes and loans receivable 719,285 - - 963,000 50,000
Total assets $ 45,989,679 877,030 $ 11,981 $ 3,359,356 $ 290,000 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 3,007,892 $ - $ 435 $ - $ - $
Accrued liabilities 918,231 - - - -
Due to other funds - 1,206,260 11,597 - -
Unearned revenue 32,307 - - - -
Total liabilities 1,206,260 3,958,430 12,032 - -
Deferred inflows of resources:

Unavailable revenue 78,856 - 11,981 963,000 50,000
Total deferred inflows
of resources - 78,856 11,981 963,000 50,000
Fund Balances (Deficits):

Nonspendable 881,932 - - 963,000 50,000
Committed 8,600,000 - - 1,433,356 190,000
Assigned 4,657,619 - - - -
Unassigned 27,812,842 (329,230) (12,032) - -
Total fund balances 41,952,393 (329,230) (12,032) 2,396,356 240,000 Total liabilities, deferred
inflows of resources
and fund balances $ 45,989,679 877,030 $ 11,981 $ 3,359,356 $ 290,000 $

CITY OF STANTON
Combining Balance Sheet
General Fund
June 30, 2025
112
Neighborhood Cannabis Total
Preservation Community Developer General
Fees Benefit Fees Deposits Eliminations Funds
ASSETS
Cash and investments 114,000 $ 232,408 $ 16,587 $ - $ 43,549,150 $ Receivables:

Accounts - 49,372 47,195 - 598,548
Interest - - - - 516,194
Taxes - - - - 2,219,243
Prepaid costs - - - - 162,647
Due from other funds - - - (1,217,857) 768,973
Due from other governments - - - - 222,711
Notes and loans receivable - - - - 1,732,285
Total assets $ 281,780 114,000 $ 63,782 $ (1,217,857) $ 49,769,751 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 79 $ - $ 3,008,406 $
Accrued liabilities - - - - 918,231
Deposits payable - - - (1,217,857) -
Unearned revenue - - - - 32,307
Total liabilities - - 79 (1,217,857) 3,958,944
Deferred inflows of resources:

Unavailable revenue - 44,583 6,636 - 1,155,056
Total deferred inflows
of resources 44,583 - 6,636 - 1,155,056
Fund Balances (Deficits):

Nonspendable - - - - 1,894,932
Committed 114,000 - - - 10,337,356
Assigned - 237,197 - - 4,894,816
Unassigned - - 57,067 - 27,528,647
Total fund balances 237,197 114,000 57,067 - 44,655,751 Total liabilities, deferred
inflows of resources
and fund balances $ 281,780 114,000 $ 63,782 $ (1,217,857) $ 49,769,751 $

CITY OF STANTON
Combining Balance Sheet
General Fund
June 30, 2025
113
Transaction Public
and Use PCTA Benefit Beautification
General Tax Administration Fees Fees

REVENUES
Taxes and assessments 22,112,924 $ 5,915,082 $ - $ 615,641 $ - $ Licenses and permits 1,461,025 - - - -
Intergovernmental 432,890 - - - -
Charges for services 2,749,143 - - - -
Fines and forfeitures 690,157 - - - -
Investment income 2,203,441 - - 15,680 -
Rental income 159,200 - - - -
Miscellaneous 38,066 - 37,113 - -
Total revenues 29,846,846 5,915,082 37,113 631,321 -

EXPENDITURES
Current:

General government 5,119,278 2,037 36,980 - -
Public safety 15,412,894 6,071,000 - - -
Community development 2,003,060 - - - -
Public works 2,870,032 - - - -
Culture and recreation 1,660,048 - - - -
Capital outlay 301,330 - - - -
Debt service:

Principal retirement 17,113 - - - -
Interest and fiscal charges 3,095 - - - -
Total expenditures 27,386,850 6,073,037 36,980 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (157,955) 2,459,996 133 631,321 -

OTHER FINANCING

SOURCES (USES)
Transfers in 911,996 - - - -
Transfers out (879,467) (189,208) - (109,360) -
Total other financing
sources (uses) 32,529 (189,208) - (109,360) -
Net change in fund balance (347,163) 2,492,525 133 521,961 - Fund balance (deficit),
beginning of year 39,459,868 17,933 (12,165) 1,874,395 240,000 Fund balance (deficit),
end of year 41,952,393 $ (329,230) $ (12,032) $ 2,396,356 $ 240,000 $

CITY OF STANTON
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance General Fund
For the Year Ended June 30, 2025
114
Neighborhood Cannabis Total
Preservation Community Developer General
Fees Benefit Fees Deposits Eliminations Funds

REVENUES
Taxes and assessments - $ - $ - $ - $ 28,643,647 $
Licenses and permits - - - - 1,461,025
Intergovernmental - - - - 432,890
Charges for services - - 101,650 - 2,850,793
Fines and forfeitures - - - - 690,157
Investment income - - - - 2,219,121
Rental income - - - - 159,200
Miscellaneous - 280,693 - - 355,872
Total revenues - 280,693 101,650 - 36,812,705

EXPENDITURES
Current:

General government - 48,496 2,909 - 5,209,700
Public safety - - - - 21,483,894
Community development - - - - 2,003,060
Public works - - 20,111 - 2,890,143
Culture and recreation - - - - 1,660,048
Capital outlay - - - - 301,330
Debt service:

Principal retirement - - - - 17,113
Interest and fiscal charges - - - - 3,095
Total expenditures - 48,496 23,020 - 33,568,383

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 232,197 - 78,630 - 3,244,322

OTHER FINANCING

SOURCES (USES)
Transfers in - - - (189,208) 722,788
Transfers out - - - 189,208 (988,827)
Total other financing
sources (uses) - - - - (266,039)
Net change in fund balance 232,197 - 78,630 - 2,978,283 Fund balance (deficit),
beginning of year 114,000 5,000 (21,563) - 41,677,468
Fund balance (deficit),
end of year 114,000 $ 237,197 $ 57,067 $ - $ 44,655,751 $

CITY OF STANTON
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance (Continued) General Fund
For the Year Ended June 30, 2025
115

NONMAJOR GOVERNMENTAL FUNDS
116

CITY OF STANTON
117

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025

SPECIAL REVENUE FUNDS
Gas Tax – To account for the receipts and expenditures of money apportioned under the Streets and Highways Code Sections 2103, 2105, 2106, 2017, and 2017.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of public streets.

Protective Services Tax – To account for a special tax approved by the voters in August 1985 for fire protection and prevention services.

Supplemental Law Enforcement Grant – To account for revenues and expenditures related to funding received under the State Citizens Option for Public Safety (COPS) program.

Air Quality Improvement Program – To account for the City’s share of additional motor vehicle registration fees, imposed by the South Coast Air Quality Management District, to finance the implementation of mobile source emission reduction programs and the provisions of the California Clean Air Act.

Families and Communities Together (FaCT) Grant – To account for revenues and expenditures related to funding received by the County of Orange, through the federal government, for the Family Preservation and Support Program.

Community Development Block Grant (CDBG) – To account for grants requiring segregated fund accounting, such as the Community Development Block Grant program.

Senior Transportation – To account for the City’s share of funds identified as 1% of Renewed Measure M (M2) net sales tax revenue to be allocated to all local jurisdictions based upon the City’s respective percentage of senior population for the entire County of Orange.

Measure M – To account for funds received by the City as a result of the voter-approved ballot measure in 1990 and extended by voter approval in 2006 to increase sales tax by ½ percent in Orange County to fund transportation projects.

Public Safety Task Force (PSTF) – To account for funds used for the purpose of violence prevention and intervention activities.

Development Impact Fees – To account for street, traffic signal, community center, and police services impact fees.

Lighting and Median Maintenance – To account for benefit assessments levied under the 1919 Act Stanton Municipal Lighting District and the Stanton Lighting and Landscaping District No. 1 (Landscaping and Lighting Act of 1972) for street lighting and landscaping maintenance within the City.

Road Maintenance and Rehabilitation Account (RMRA) – To account for the receipts and expenditures of Road Maintenance and Rehabilitation Account (RMRA) funds resulting from the Road Repair and Accountability Act of 2017 (SB1). Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges and other transit related improvements.

CITY OF STANTON
118

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

SPECIAL REVENUE FUNDS (CONTINUED)
Stanton Central Park Maintenance – To account for donations received for maintenance of the central park.

Justice Assistant Grant (JAG) – To account for proceeds received from the United States Department of Justice for the Edward Byrne Memorial Justice Assistance Grant Program to fund the Homeless Outreach and Proactive Engagement Center (HOPE Center) to align homeless outreach and engagement in the North Orange County area
Certified Access Specialist Program (CASP) – To account for the state-mandated $4 fee that is required by Senate Bill 1186 to be collected with each business license issued by the City in order to fund certified access specialist programs.

CAPITAL PROJECTS FUNDS
Park in Lieu Fees – To account for the financial resources segregated for park or recreational purposes, pursuant to Stanton Municipal Code Section 19.42.090. 119
This page intentionally left blank
Supplemental Air
Protective Law Quality
Services Enforcement Improvement FaCT
Gas Tax Tax Grant Program Grant
Cash and investments 2,628,757 $ - $ 283,426 $ 201,937 $ 3,734 $ Receivables:

Accounts - - - - -
Interest 10,926 - 1,149 695 -
Taxes - 8,155 - - -
Prepaid costs - - 30,800 - -
Due from other governments 96,945 - - 14,027 21,081
Notes and loans receivable - - - - -
Total assets $ 8,155 2,736,628 $ 315,375 $ 216,659 $ 24,815 $ Liabilities:

Accounts payable - $ - $ - $ - $ 20,334 $
Accrued liabilities - - - - -
Unearned revenues - - - - -
Due to other funds - - - - -
Total liabilities - - - - 20,334
Deferred inflows of resources:

Unavailable revenue - - - 14,027 -
Total deferred inflows
of resources - - - 14,027 -
Fund Balances (Deficits):

Restricted 2,736,628 8,155 315,375 202,632 4,481
Unassigned - - - - -
Total fund balances 8,155 2,736,628 315,375 202,632 4,481 Total liabilities, deferred
inflows and fund balances $ 8,155 2,736,628 $ 315,375 $ 216,659 $ 24,815 $

CITY OF STANTON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025

LIABILITIES, DEFERRED
ASSETS

AND FUND BALANCES

INFLOWS OF RESOURCES,
Special Revenue Funds
120
Development
Senior Impact
CDBG Transportation Measure M PSTF Fees
Cash and investments 265,677 $ 148,843 $ 710,954 $ 107,928 $ 878,540 $ Receivables:

Accounts - - - - 1,120
Interest 651 532 4,921 - 3,146
Taxes - - - - -
Prepaid costs - - - - -
Due from other governments 74,789 8,305 127,914 - -
Notes and loans receivable - - - - 336,729
Total assets $ 157,680 341,117 $ 843,789 $ 107,928 $ 1,219,535 $ Liabilities:

Accounts payable - $ - $ - $ - $ - $
Accrued liabilities - - - - -
Unearned revenues 130,388 - - - -
Due to other funds - - - - -
Total liabilities - 130,388 - - -
Deferred inflows of resources:

Unavailable revenue - - - - 336,729
Total deferred inflows
of resources - - - - 336,729
Fund Balances (Deficits):

Restricted 210,729 157,680 843,789 107,928 882,806
Unassigned - - - - -
Total fund balances 157,680 210,729 843,789 107,928 882,806 Total liabilities, deferred
inflows and fund balances $ 157,680 341,117 $ 843,789 $ 107,928 $ 1,219,535 $

AND FUND BALANCES

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

LIABILITIES, DEFERRED
Special Revenue Funds
ASSETS

INFLOWS OF RESOURCES,
121
Lighting Stanton
and Central
Median Park JAG
Maintenance RMRA Maintenance Grant CASP
Cash and investments 2,962,262 $ 1,141,523 $ 10,749 $ - $ 78,983 $ Receivables:

Accounts - - - - -
Interest 8,031 6,553 - - -
Taxes 8,643 - - - -
Prepaid costs - - - - -
Due from other governments 1,829 193,784 - 90,310 -
Notes and loans receivable - - - - -
Total assets $ 1,341,860 2,980,765 $ 10,749 $ 90,310 $ 78,983 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 95,945 $ - $ 10,749 $ 89,720 $ - $
Accrued liabilities - - - - -
Unearned revenues - - - - -
Due to other funds - - - 590 -
Total liabilities - 95,945 10,749 90,310 -
Deferred inflows of resources:

Unavailable revenue 1,829 - - - -
Total deferred inflows
of resources - 1,829 - - -
Fund Balances (Deficits):

Restricted 2,882,991 1,341,860 - - 78,983
Unassigned - - - - -
Total fund balances 1,341,860 2,882,991 - - 78,983
Total liabilities, deferred
inflows and fund balances $ 1,341,860 2,980,765 $ 10,749 $ 90,310 $ 78,983 $ ASSETS
Special Revenue Funds

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
122
Capital
Projects Fund
Total
Park in Nonmajor
Lieu Governmental
Fees Funds
Cash and investments 3,151,069 $ 12,574,382 $
Receivables:

Accounts 5,875 4,755
Interest 47,983 11,379
Taxes 16,798 -
Prepaid costs 30,800 -
Due from other governments - 628,984
Notes and loans receivable - 336,729
Total assets $ 13,641,551 3,167,203 $
Liabilities:

Accounts payable - $ 216,748 $
Accrued liabilities - -
Unearned revenues - 130,388
Due to other funds - 590
Total liabilities 347,726 -
Deferred inflows of resources:

Unavailable revenue - 352,585
Total deferred inflows
of resources 352,585 -
Fund Balances (Deficits):

Restricted 3,167,203 12,941,240
Unassigned - -
Total fund balances 12,941,240 3,167,203
Total liabilities, deferred
inflows and fund balances $ 13,641,551 3,167,203 $

AND FUND BALANCES

LIABILITIES, DEFERRED
ASSETS

INFLOWS OF RESOURCES,

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
123
Supplemental Air
Protective Law Quality
Services Enforcement Improvement FaCT
Gas Tax Tax Grant Program Grant
REVENUES:

Taxes and assessments - $ - $ - $ - $ - $
Intergovernmental 1,139,685 - 194,663 52,836 353,465
Charges for services - 393,219 - - -
Investment income 143,111 - 15,550 8,773 -
Miscellaneous - - - - 88
Total revenues 393,219 1,282,796 210,213 61,609 353,553 EXPENDITURES:

Current:

General government - - - 255 -
Public safety - 1,435 33,988 - -
Public works 462,892 - - - -
Culture and recreation - - - - 461,112
Capital outlay - - - - -
Debt service:

Interest and fiscal charges - - - - -
Total expenditures 462,892 1,435 33,988 255 461,112

REVENUES OVER
(UNDER) EXPENDITURES 819,904 391,784 176,225 61,354 (107,559)

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - 121,056
Transfers out (611,449) (390,903) (160,000) - -
Total other financing
sources (uses) (390,903) (611,449) (160,000) - 121,056

NET CHANGE IN FUND
BALANCES 881 208,455 16,225 61,354 13,497
Fund balances (deficits),
beginning of year 2,528,173 7,274 299,150 141,278 (9,016) Fund balances,
end of year 2,736,628 $ 8,155 $ 315,375 $ 202,632 $ 4,481 $ Special Revenue Funds

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
124
Development
Senior Impact
CDBG Transportation Measure M PSTF Fees
REVENUES:

Taxes and assessments - $ - $ - $ - $ - $
Intergovernmental 233,106 46,496 719,779 148,442 -
Charges for services - - - - 26,297
Investment income 10,266 6,900 59,602 - 44,475
Miscellaneous - - - - -
Total revenues 53,396 243,372 779,381 148,442 70,772
EXPENDITURES:

Current:

General government - - - - -
Public safety - - - 40,514 -
Public works - - - - -
Culture and recreation - 12,010 - - -
Capital outlay - - - - -
Debt service:

Interest and fiscal charges - - - - -
Total expenditures 12,010 - - 40,514 -

REVENUES OVER
(UNDER) EXPENDITURES 41,386 243,372 779,381 107,928 70,772

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out (219,937) - (818,220) - -
Total other financing
sources (uses) - (219,937) (818,220) - -

NET CHANGE IN FUND
BALANCES 41,386 23,435 (38,839) 107,928 70,772
Fund balances (deficits),
beginning of year 187,294 116,294 882,628 - 812,034
Fund balances,
end of year 210,729 $ 157,680 $ 843,789 $ 107,928 $ 882,806 $ Special Revenue Funds

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
125
Lighting Stanton
t and Central
Median Park JAG
Maintenance RMRA Maintenance Grant CASP
REVENUES:

Taxes and assessments 926,411 $ - $ - $ - $ - $
Intergovernmental - 1,099,669 - 1,678,458 -
Charges for services 219,352 - - - 9,220
Investment income 118,957 69,643 - - -
Miscellaneous 8,286 54,900 50,000 - -
Total revenues 1,224,212 1,273,006 50,000 1,678,458 9,220 EXPENDITURES:

Current:

General government 5,664 - - 5,210 -
Public safety - - - 1,673,054 -
Public works 503,785 - 157,890 - -
Culture and recreation - - - - -
Capital outlay 71,961 - - - -
Debt service:

Interest and fiscal charges - - - - -
Total expenditures - 581,410 157,890 1,678,264 -

REVENUES OVER
(UNDER) EXPENDITURES 1,224,212 691,596 (107,890) 194 9,220

OTHER FINANCING
SOURCES (USES):

Transfers in - - 107,890 - -
Transfers out - (815,762) - - -
Total other financing
sources (uses) (815,762) - 107,890 - -

NET CHANGE IN FUND
BALANCES 408,450 691,596 - 194 9,220
Fund balances (deficits),
beginning of year 2,191,395 933,410 - (194) 69,763
Fund balances,
end of year 2,882,991 $ 1,341,860 $ - $ - $ 78,983 $
Special Revenue Funds

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
126
Capital
Projects Fund
Total
Park in Nonmajor
Lieu Governmental
Fees Funds
REVENUES:

Taxes and assessments - $ 926,411 $
Intergovernmental - 5,666,599
Charges for services 178,395 826,483
Investment income 176,394 653,671
Miscellaneous - 113,274
Total revenues 8,186,438 354,789
EXPENDITURES:

Current:

General government - 11,129
Public safety - 1,748,991
Public works - 1,124,567
Culture and recreation - 473,122
Capital outlay - 71,961
Debt service:

Interest and fiscal charges - -
Total expenditures 3,429,770 -

REVENUES OVER
(UNDER) EXPENDITURES 4,756,668 354,789

OTHER FINANCING
SOURCES (USES):

Transfers in - 228,946
Transfers out (979,474) (3,995,745)
Total other financing
sources (uses) (3,766,799) (979,474)

NET CHANGE IN FUND
BALANCES 989,869 (624,685)
Fund balances (deficits),
beginning of year 3,791,888 11,951,371
Fund balances,
end of year 3,167,203 $ 12,941,240 $

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
127
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 1,085,190 $ 1,146,865 $ 1,139,685 $ (7,180) $ Investment income 15,000 50,000 143,111 93,111
Total revenues 1,100,190 1,196,865 1,282,796 85,931

EXPENDITURES
Current:

Public works 408,045 485,675 462,892 22,783
Capital outlay - 35,000 - 35,000
Total expenditures 408,045 520,675 462,892 57,783

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 676,190 692,145 819,904 143,714

OTHER FINANCING SOURCES
(USES)
Transfers out (165,000) (941,842) (611,449) 330,393
Total other financing sources (uses) (165,000) (941,842) (611,449) 330,393 Net change in fund balance $ (265,652) 527,145 $ 208,455 474,107 $ Fund balance, beginning of year 2,528,173
Fund balance, end of year 2,736,628 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
128
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 385,000 $ 391,000 $ 393,219 $ 2,219 $ Total revenues 385,000 391,000 393,219 2,219

EXPENDITURES
Current:

Public safety 3,000 4,435 1,435 3,000
Total expenditures 3,000 4,435 1,435 3,000

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 386,565 382,000 391,784 5,219

OTHER FINANCING SOURCES
(USES)
Transfers out (382,000) (393,839) (390,903) 2,936
Total other financing sources (uses) (382,000) (393,839) (390,903) 2,936 Net change in fund balance $ (7,274) - $ 881 8,155 $
Fund balance, beginning of year 7,274
Fund balance, end of year 8,155 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Protective Services Tax Special Revenue Fund
For the Year Ended June 30, 2025
129
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 195,000 $ 195,000 $ 194,663 $ (337) $ Investment income 10,000 15,000 15,550 550
Total revenues 205,000 210,000 210,213 213

EXPENDITURES
Current:

Public safety 40,000 40,000 33,988 6,012
Total expenditures 40,000 40,000 33,988 6,012

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 170,000 165,000 176,225 6,225

OTHER FINANCING SOURCES
(USES)
Transfers out (160,000) (160,000) (160,000) -
Total other financing sources (uses) (160,000) (160,000) (160,000) - Net change in fund balance $ 10,000 5,000 $ 16,225 6,225 $ Fund balance, beginning of year 299,150
Fund balance, end of year 315,375 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2025
130
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 50,000 $ 63,150 $ 52,836 $ (10,314) $ Investment income 7,500 7,500 8,773 1,273
Total revenues 57,500 70,650 61,609 (9,041)

EXPENDITURES
Current:

General government 1,000 1,000 255 745
Capital outlay 28,000 28,000 - 28,000
Total expenditures 29,000 29,000 255 28,745
Net change in fund balance $ 41,650 28,500 $ 61,354 19,704 $ Fund balance, beginning of year 141,278
Fund balance, end of year 202,632 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Improvement Program Special Revenue Fund
For the Year Ended June 30, 2025
131
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 357,240 $ 366,257 $ 353,465 $ (12,792) $ Miscellaneous - - 88 88
Total revenues 357,240 366,257 353,553 (12,704)

EXPENDITURES
Current:

Culture and recreation 470,810 470,810 461,112 9,698
Total expenditures 470,810 470,810 461,112 9,698

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (104,553) (113,570) (107,559) (3,006)

OTHER FINANCING SOURCES
(USES)
Transfers in 113,570 113,570 121,056 7,486
Total other financing sources (uses) 113,570 113,570 121,056 7,486 Net change in fund balance $ 9,017 - $ 13,497 4,480 $
Fund balance (deficit), beginning of year (9,016)
Fund balance, end of year 4,481 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Families and Communities Together (FaCT) Grant Special Revenue Fund For the Year Ended June 30, 2025
132
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental $ 350,000 $ 713,495 $ 233,106 $ (480,389) Investment income 10,000 5,000 10,266 266
Total revenues 355,000 723,495 243,372 (480,123)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 723,495 355,000 243,372 (480,123)

OTHER FINANCING SOURCES
(USES)
Transfers out (350,000) (700,325) (219,937) 480,388
Total other financing sources (uses) (350,000) (700,325) (219,937) 480,388 Net change in fund balance $ 23,170 5,000 $ 23,435 $ 265 Fund balance, beginning of year 187,294
Fund balance, end of year 210,729 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2025
133
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 38,000 $ 38,000 $ 46,496 $ 8,496 $
Investment income 500 5,000 6,900 1,900
Total revenues 38,500 43,000 53,396 10,396

EXPENDITURES
Current:

Culture and recreation 111,440 111,440 12,010 99,430
Total expenditures 111,440 111,440 12,010 99,430

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (68,440) (72,940) 41,386 109,826

OTHER FINANCING SOURCES
(USES)
Transfers in 22,030 22,030 - (22,030)
Total other financing sources (uses) 22,030 22,030 - (22,030) Net change in fund balance $ (46,410) (50,910) $ 41,386 87,796 $ Fund balance, beginning of year 116,294
Fund balance, end of year 157,680 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Senior Transportation Special Revenue Fund
For the Year Ended June 30, 2025
134
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 757,000 $ 710,000 $ 719,779 $ 9,779 $ Investment income 15,000 40,000 59,602 19,602
Total revenues 772,000 750,000 779,381 29,381

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 750,000 772,000 779,381 29,381

OTHER FINANCING SOURCES
(USES)
Transfers out (789,730) (1,523,035) (818,220) 704,815
Total other financing sources (uses) (789,730) (1,523,035) (818,220) 704,815 Net change in fund balance $ (773,035) (17,730) $ (38,839) 734,196 $ Fund balance, beginning of year 882,628
Fund balance, end of year 843,789 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2025
135
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 46,960 $ 148,445 $ 148,442 $ (3) $
Total revenues 46,960 148,445 148,442 (3)

EXPENDITURES
Current:

Public safety 46,960 38,370 40,514 (2,144)
Total expenditures 46,960 38,370 40,514 (2,144)
Net change in fund balance $ 110,075 - $ 107,928 (2,147) $ Fund balance, beginning of year -
Fund balance, end of year 107,928 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Safety Task Force (PSTF) Special Revenue Fund
For the Year Ended June 30, 2025
136
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 334,000 $ 12,850 $ 26,297 $ 13,447 $ Investment income 15,500 31,500 44,475 12,975
Total revenues 349,500 44,350 70,772 26,422

EXPENDITURES - - - -
Net change in fund balance $ 44,350 349,500 $ 70,772 26,422 $ Fund balance, beginning of year 812,034
Fund balance, end of year 882,806 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Development Impact Fees Special Revenue Fund
For the Year Ended June 30, 2025
137
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 816,800 $ 816,800 $ 926,411 $ 109,611 $ Charges for services 217,500 230,000 219,352 (10,648)
Investment income 45,000 80,000 118,957 38,957
Miscellaneous - 8,286 8,286 -
Total revenues 1,079,300 1,135,086 1,273,006 137,920

EXPENDITURES
Current:

General government - 14,920 5,664 9,256
Public works 679,665 710,935 503,785 207,150
Capital outlay 100,000 141,821 71,961 69,860
Total expenditures 779,665 867,676 581,410 286,266
Net change in fund balance $ 267,410 299,635 $ 691,596 424,186 $ Fund balance, beginning of year 2,191,395
Fund balance, end of year 2,882,991 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Median Maintenance Special Revenue Fund
For the Year Ended June 30, 2025
138
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 1,000,250 $ 1,017,470 $ 1,099,669 $ 82,199 $ Investment income 10,000 50,000 69,643 19,643
Miscellaneous - 54,900 54,900 -
Total revenues 1,010,250 1,122,370 1,224,212 101,842

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,122,370 1,010,250 1,224,212 101,842

OTHER FINANCING SOURCES
(USES)
Transfers out (1,045,270) (1,851,555) (815,762) 1,035,793 Total other financing sources (uses) (1,045,270) (1,851,555) (815,762) 1,035,793 Net change in fund balance $ (729,185) (35,020) $ 408,450 1,137,635 $ Fund balance, beginning of year 933,410
Fund balance, end of year 1,341,860 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Road Maintenance and Rehabilitation Account (RMRA) Special Revenue Fund For the Year Ended June 30, 2025
139
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Miscellaneous 50,000 $ 50,000 $ 50,000 $ - $
Total revenues 50,000 50,000 50,000 -

EXPENDITURES
Current:

Public works 158,775 158,775 157,890 885
Total expenditures 158,775 158,775 157,890 885

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (108,775) (108,775) (107,890) 885

OTHER FINANCING SOURCES
(USES)
Transfers in 108,775 108,775 107,890 (885)
Total other financing sources (uses) 108,775 108,775 107,890 (885) Net change in fund balance $ - - $ - - $
Fund balance, beginning of year -
Fund balance, end of year - $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Stanton Central Park Maintenance Special Revenue Fund
For the Year Ended June 30, 2025
140
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental - $ 2,308,108 $ 1,678,458 $ (629,650) $ Total revenues - 2,308,108 1,678,458 (629,650)

EXPENDITURES
Current:

General government - 7,290 5,210 2,080
Public safety - 2,300,625 1,673,054 627,571
Total expenditures - 2,307,915 1,678,264 629,651
Net change in fund balance $ 193 - $ 194 1 $
Fund balance (deficit), beginning of year (194)
Fund balance, end of year - $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual JAG Grant Special Revenue Fund
For the Year Ended June 30, 2025
141
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 10,000 $ 10,000 $ 9,220 $ (780) $
Total revenues 10,000 10,000 9,220 (780)

EXPENDITURES
Current:

Community development 5,000 5,000 - 5,000
Total expenditures 5,000 5,000 - 5,000
Net change in fund balance $ 5,000 5,000 $ 9,220 4,220 $ Fund balance, beginning of year 69,763
Fund balance, end of year 78,983 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Certified Access Specialist Program (CASP) Special Revenue Fund For the Year Ended June 30, 2025
142
Original Final Actual Variance with
Budget Budget Amounts Final Budget
REVENUES $ - - $ - $ - $

EXPENDITURES
Capital outlay 8,100,000 21,925,155 4,583,725 17,341,430 Total expenditures 8,100,000 21,925,155 4,583,725 17,341,430

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (8,100,000) (21,925,155) (4,583,725) (17,341,430)

OTHER FINANCING SOURCES
(USES)
Transfers in 8,030,000 21,821,347 4,610,304 17,211,043
Total other financing sources (uses) 8,030,000 21,821,347 4,610,304 17,211,043 Net change in fund balance $ (70,000) (103,808) $ 26,579 (130,387) $ Fund balance, beginning of year 103,809
Fund balance, end of year 130,388 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Improvements Capital Projects Fund
For the Year Ended June 30, 2025
143
Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 800,000 $ 115,000 $ 178,395 $ 63,395 $ Investment income 30,000 100,000 176,394 76,394
Total revenues 830,000 215,000 354,789 139,789

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 215,000 830,000 354,789 139,789

OTHER FINANCING SOURCES
(USES)
Transfers out (220,000) (3,313,790) (979,474) 2,334,316 Total other financing sources (uses) (220,000) (3,313,790) (979,474) 2,334,316 Net change in fund balance $ (3,098,790) 610,000 $ (624,685) 2,474,105 $ Fund balance, beginning of year 3,791,888
Fund balance, end of year 3,167,203 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park in Lieu Fees Capital Projects Fund
For the Year Ended June 30, 2025
144
145

INTERNAL SERVICE FUNDS

CITY OF STANTON

DESCRIPTION OF INTERNAL REVENUE FUNDS
JUNE 30, 2025
146
Workers’ Compensation - To account for the City’s workers’ compensation insurance, including claims, legal, and other expenses.

Liability/Risk Management - To account for the City’s general liability insurance, including claims, legal, and other expenses.

Employee Benefits - To account for the employee benefits costs, including vacation, sick, and holiday hours.

Fleet Maintenance - To account for costs related to operations and fleet maintenance for the City’s vehicles.

Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Total
ASSETS
Current assets:

Cash and investments 847,335 $ 48,874 $ 519,668 $ 602,479 $ 2,018,356 $ Restricted cash and investments held
in pension trust - - 5,177,190 - 5,177,190
Receivables:

Accounts - - - 831 831
Interest 3,072 - - 2,404 5,476
Prepaids 10,000 20,000 - - 30,000
Due from other governments - - 33,325 - 33,325
Total current assets 860,407 68,874 5,730,183 605,714 7,265,178 Noncurrent assets:

Capital assets - net of accumulated depreciation - - - 144,958 144,958 Total noncurrent assets - - - 144,958 144,958
Total assets 68,874 860,407 5,730,183 750,672 7,410,136

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount from pension plan - - 3,186,729 - 3,186,729 Total deferred outflows of resources - - 3,186,729 - 3,186,729

LIABILITIES
Current liabilities:

Accounts payable 3,182 15,024 21,738 1,031 40,975
Compensated absences payable - - 301,308 2,163 303,471
Total current liabilities 3,182 15,024 323,046 3,194 344,446 Noncurrent liabilities:

Compensated absences payable - - 112,660 - 112,660
Net pension liability - - 8,730,553 - 8,730,553
Total noncurrent liabilities - - 8,843,213 - 8,843,213
Total liabilities 15,024 3,182 9,166,259 3,194 9,187,659

DEFERRED INFLOWS OF RESOURCES
Deferred amount from pension plan - - 887,058 - 887,058 Total deferred inflows of resources - - 887,058 - 887,058

NET POSITION
Net investment in capital assets - - - 144,958 144,958
Unrestricted 857,225 53,850 (1,136,405) 602,520 377,190 Total net position $ 857,225 53,850 $ (1,136,405) $ 747,478 $ 522,148 $

CITY OF STANTON
Combining Statement of Net Position
All Internal Service Funds
June 30, 2025
147
Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total OPERATING REVENUES:

Charges for services 77,360 $ 547,074 $ 2,030,475 $ 108,446 $ (41,310) $ 2,722,045 $ Miscellaneous - - - 18,598 - 18,598
Total operating revenues 547,074 77,360 2,030,475 127,044 (41,310) 2,740,643 OPERATING EXPENSES:

Equipment maintenance and operation - - - 103,325 - 103,325 Depreciation - - - 79,335 - 79,335
Administrative and personnel services - - 2,621,529 25,489 (41,310) 2,605,708 Insurance premiums and claims 100,261 542,180 - - - 642,441 Contractual services - - 30,276 - - 30,276
Total operating expenses 542,180 100,261 2,651,805 208,149 (41,310) 3,461,085 OPERATING INCOME 4,894 (22,901) (621,330) (81,105) - (720,442) NON-OPERATING REVENUES (EXPENSES):

Investment income 43,156 82 476,685 32,604 - 552,527
Gain on sale of capital assets - - - 16,960 - 16,960
Total non-operating revenues
(expenses) 82 43,156 476,685 49,564 - 569,487
INCOME BEFORE CAPITAL CONTRIBUTIONS 4,976 20,255 (144,645) (31,541) - (150,955)

CAPITAL CONTRIBUTIONS
Capital contributions from
government activities - - - - - -
Change in net position 4,976 20,255 (144,645) (31,541) - (150,955) Net position (deficit), beginning of year 836,970 48,874 (991,760) 779,019 - 673,103 Net position (deficit), end of year 857,225 $ 53,850 $ (1,136,405) $ 747,478 $ - $ 522,148 $

CITY OF STANTON
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2025
148
Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 77,360 $ 551,065 $ 2,034,775 $ 135,708 $ (41,310) $ 2,757,598 $ Cash paid to other suppliers of goods or services (109,865) (521,484) (29,471) (111,193) - (772,013) Cash paid to employees for salaries, wages, and benefits - - (1,936,963) (24,657) 41,310 (1,920,310) Net cash provided (used by) operating activities 29,581 (32,505) 68,341 (142) - 65,275 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets - - - 16,960 - 16,960 Net cash provided (used by) capital and
related financing activities - - - 16,960 - 16,960
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 45,258 82 476,685 33,600 - 555,625 Net cash provided (used by) investing activities 82 45,258 476,685 33,600 - 555,625 Net increase (decrease) in cash and cash equivalents 12,753 29,663 545,026 50,418 - 637,860 Cash and equivalents, beginning of year 834,582 19,211 5,151,832 552,061 - 6,557,686 Cash and equivalents, end of year 847,335 $ 48,874 $ 5,696,858 $ 602,479 $ - $ 7,195,546 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (22,901) $ 4,894 $ (621,330) $ (81,105) $ - $ (720,442) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - - 79,335 - 79,335
Changes in operating assets and liabilities:
(Increase) decrease in due from other
governments - 3,991 4,300 8,664 - 16,955
(Increase) decrease in prepaid expense (10,000) 10,049 - - - 49 (Increase) decrease in deferred outflows
of resources - - 1,173,346 - - 1,173,346
Increase (decrease) in accounts payable 396 10,647 805 (7,868) - 3,980 Increase (decrease) in compensated absences - - 97,651 832 - 98,483 Increase (decrease) in net pension liability - - (292,365) - - (292,365) Increase (decrease) in deferred inflows
of resources - - (294,066) - - (294,066)
Total adjustments (9,604) 24,687 689,671 80,963 - 785,717 Net cash provided (used) by operating activities $ 29,581 (32,505) $ 68,341 $ (142) $ - $ 65,275 $

CITY OF STANTON
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2025
149
150
This page intentionally left blank
151

STATISTICAL SECTION (UNAUDITED)
152
This page intentionally left blank
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 154
2 Changes in Net Position 156
3 Fund Balances of Governmental Funds 160
4 Changes in Fund Balances - Governmental Funds 162
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 164
6 Assessed Value and Estimated Actual Value of Taxable Property 165 7 Direct and Overlapping Property Tax Rates 166
8 Principal Property Tax Payers 168
9 Property Tax Levies and Collections 169
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 170
11 Direct and Overlapping Debt 171
12 Legal Debt Margin Information 172
13 Pledged - Revenue Coverage 174
Demographic and Economic Information - These schedules offer demographic and economic 14 Demographic and Economic Statistics 176
15 Principal Employers 177
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 178
17 Operating Indicators by Functions 180
18 Capital Asset Statistics by Function 186
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, 2025
indicators to help the reader understand the environment within which the City's financial activities take place.
153
2015-16 2016-17 2017-18 2018-19
Governmental activities:

Net investment in capital assets $ 87,079,00 88,342,750 $ 88,374,10 3 $ 88,077,56 3 $ 8 Restricted 19,166,30 23,062,14 3 27,536,67 7 28,086,47 8 6 Unrestricted 15,861,41 12,719,77 7 13,014,51 7 17,774,61 5 9 Total governmental activities net position 123,370,47 122,860,92 0 128,925,29 7 133,938,66 6 3 Business-type activities:

Net investment in capital assets 4,877,89 5,003,312 5,250,43 7 5,107,55 4 3 Unrestricted 3,216,88 3,666,352 4 3,595,542 4,064,31 9
Total business-type activities net position 8,544,24 8,220,196 8,845,97 9 9,171,872 6 Primary government:

Net investment in capital assets 91,956,90 93,346,062 93,624,53 0 93,185,121 7 Restricted 19,166,30 23,062,14 3 27,536,67 7 28,086,47 8 6 Unrestricted 19,078,301 16,386,12 16,610,05 9 21,838,93 7 8 Total primary government net position $ 131,405,17 131,590,666 $ 137,771,27 6 $ 143,110,53 2 $ 5 Note:
*
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 correction of errors

CITY OF STANTON

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
154
2019-20* 2020-21 2021-22 2022-23 2023-24 2024-25
$ 92,106,90 96,374,328 $ 89,960,89 6 $ 89,705,31 2 $ 91,059,87 4 $ 91,884,83 2 $ 6 21,411,32 22,693,282 23,551,70 2 21,682,34 9 22,498,31 8 21,160,23 3 9 25,179,79 21,403,422 31,132,06 7 39,965,23 4 43,428,35 9 46,483,55 9 0 138,698,02 140,471,032 144,644,66 5 151,352,901 5 156,986,54 159,528,62 4 5 4,970,60 4,964,679 4,827,13 7 4,683,66 4 4,540,18 0 4,425,89 6 7 5,193,35 4,398,961 5,920,28 7 6,616,78 6 7,600,26 0 8,802,79 4 4 10,163,96 9,363,640 10,747,42 4 11,300,44 0 12,140,45 0 13,228,691 0 97,077,51 101,339,007 94,788,02 3 94,388,97 6 95,600,05 4 96,310,73 8 3 21,411,32 22,693,282 23,551,70 2 21,682,34 9 22,498,31 8 21,160,23 3 9 30,373,15 25,802,383 37,052,35 4 46,582,01 0 51,028,62 9 55,286,34 3 4 $ 148,861,98 149,834,672 $ 155,392,08 9 $ 162,653,341 5 $ 169,126,99 $ 172,757,31 4 $ 6 Fiscal Year
155
2015-16* 2016-17* 2017-18* 2018-19*
Expenses:

Governmental activities:

General government $ 3,726,949 3,468,099 $ 3,135,756 $ 1,666,776 $ Public safety 16,162,642 15,831,683 17,294,863 21,730,025 Community development 1,747,416 2,083,114 4,746,591 1,235,126 Health and welfare 3,512 67,305 37,250 16,795
Public works 1,235,617 1,598,743 1,870,833 1,299,051
Culture and recreation 1,592,769 2,030,052 1,933,953 1,181,246 Interest and fiscal charges - - - -
Total governmental activities expenses 23,879,096 25,668,805 29,019,246 27,129,019 Business-type activities:

Sewer 737,939 643,739 926,631 1,152,003
Total business-type activities expenses 643,739 737,939 926,631 1,152,003 Total primary government expenses 26,406,744 24,522,835 29,945,877 28,281,022 Program revenues:

Governmental activities:

Charges for services:

General government 527,561 488,128 345,485 487,870
Public safety 1,375,973 913,203 1,751,036 1,754,200
Community development 1,198,820 1,244,909 2,116,525 3,283,119 Public works 10,032 - 47,389 48,076
Culture and recreation 357,585 95,746 571,210 550,144
Operating grants and contributions 2,876,853 2,961,296 3,383,242 3,586,655 Capital grants and contributions 2,350,764 - 1,353,727 - Total governmental activities
program revenues 8,279,828 6,121,042 9,568,614 9,710,064 Business-type activities:

Charges for services:

Sewer 935,798 1,016,363 1,052,745 1,267,440
Total business-type activities
program revenues 1,016,363 935,798 1,052,745 1,267,440
Total primary government
program revenues 9,296,191 7,056,840 10,621,359 10,977,504 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)
156
2019-20* 2020-21* 2021-22* 2022-23 2023-24 2024-25
$ 4,848,332 3,739,756 $ 3,144,556 $ 4,558,241 $ 4,888,922 $ 6,003,366 $ 21,046,456 18,712,309 18,643,242 21,009,218 22,334,226 23,715,571 3,696,528 3,000,334 2,574,453 5,882,403 3,308,043 4,833,294 - - - - - -
4,652,371 2,404,139 2,697,686 6,552,867 6,101,529 7,503,120 2,301,778 2,120,218 2,441,047 2,558,081 2,584,395 2,777,840 25,823 24,223 12,943 11,020 10,938 -
36,571,288 30,000,979 29,513,927 40,571,830 39,228,053 44,833,191 1,531,447 1,436,274 839,808 516,366 607,912 903,353
1,531,447 1,436,274 839,808 516,366 607,912 903,353
38,102,735 31,437,253 30,353,735 41,088,196 39,835,965 45,736,544 85,717 359,865 627,458 548,950 516,451 624,281
2,088,690 1,899,756 908,006 763,622 929,868 1,097,927
5,107,540 3,908,877 1,772,601 2,358,143 2,431,232 2,792,521 68,258 59,849 2,486,467 2,769,957 2,946,125 3,067,755
1,565,463 1,428,477 141,312 216,125 199,478 207,117
5,697,844 4,655,790 4,991,957 12,919,661 6,482,509 6,973,207 35,081 3,423,482 1,060,782 879,739 1,668,675 1,955,007
14,648,593 15,736,096 11,988,583 20,456,197 15,174,338 16,717,815 2,235,352 1,305,410 1,312,065 1,089,667 1,191,757 1,338,130 2,235,352 1,305,410 1,312,065 1,089,667 1,191,757 1,338,130 16,883,945 17,041,506 13,300,648 21,545,864 16,366,095 18,055,945 Fiscal Year
157
2015-16* 2016-17* 2017-18* 2018-19*
Net revenues (expenses)
Governmental activities (15,599,268) (19,547,763) (19,450,632) (17,418,955) Business activities 372,624 197,859 126,114 115,437
Total net revenues (expenses) (15,226,644) (19,349,904) (19,324,518) (17,303,518) General revenues and other
changes in net position:

Governmental activities:

Taxes:

Property taxes $ 5,507,417 $ 6,071,733 5,435,415 $ 6,433,535 $ Sales taxes 4,169,215 4,152,378 4,204,519 4,327,842
Transactions and use taxes 3,591,594 4,105,593 4,122,756 4,057,037 Transient occupancy taxes 512,550 437,676 514,102 483,233 Franchise taxes 1,011,630 992,798 1,088,226 1,026,619
Utility users taxes 2,015,948 1,980,854 1,986,236 1,850,880 Cannabis taxes - - - -
Other taxes 487,593 461,745 524,570 433,541
Investment earnings (loss), unrestricted 227,705 119,772 135,059 1,325,735 Miscellaneous 714,613 1,277,115 649,678 413,900
Gain on sale of capital assets - - 6,000,100 -
Transfers in - - - -
Extraordinary item (1) - 6,501,399 - -
Special item (2) - - - 2,080,000
Total governmental activities 19,038,220 24,664,790 25,296,979 22,432,322 Business-type activities:

Taxes:

Property taxes 90,532 99,852 124,950 131,641
Investment earnings (loss) 26,342 16,558 50,663 78,818
Miscellaneous - - - -
Transfers out - - - -
Total business-type activities 126,194 107,090 175,613 210,459 Total primary government 19,164,414 24,771,880 25,472,592 22,642,781 Changes in net position
Governmental activities 9,065,522 (509,543) 5,846,347 5,013,367 Business-type activities 479,714 324,053 301,727 325,896 Total primary government $ (185,490) 9,545,236 $ 6,148,074 $ 5,339,263 $ Notes:

Source: City Finance Department
(2) FY 18/19 special item relates to reinstatement of a General Fund loan to the Successor Agency. * 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-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.
158
2019-20* 2020-21* 2021-22* 2022-23* 2023-24 2024-25
(14,264,883) (21,922,695) (17,525,344) (20,115,633) (24,053,715) (28,115,376) 703,905 (130,864) 472,257 573,301 583,845 434,777
(14,395,747) (21,218,790) (17,053,087) (19,542,332) (23,469,870) (27,680,599) $ 7,561,831 6,816,387 $ 8,512,488 $ 8,964,390 $ 9,526,865 $ 10,177,482 $ 4,682,029 4,278,141 5,414,556 5,321,610 5,616,291 5,418,379 4,991,100 4,537,734 5,993,735 6,958,521 6,295,790 5,597,697 569,293 512,492 660,504 671,096 617,090 634,609
1,105,276 1,055,791 1,180,487 1,251,495 1,305,537 1,318,130 1,990,690 1,791,516 2,122,661 2,504,823 2,479,282 2,710,974 - - - 15,586 1,131,502 1,807,869
345,315 364,751 45,717 40,258 48,277 122,878
959,781 1,167,877 878,675 (956,855) 2,277,972 2,755,968 95,045 272,563 49,013 80,785 78,075 62,644
- - 430,902 12,693 9,495 16,960
81,616 - 18,776 332,010 301,183 33,867
- - - - - -
- - - - - -
22,381,976 20,797,252 23,471,984 27,031,942 29,687,359 30,657,457 165,692 147,159 188,097 194,785 227,069 258,915
12,343 167,573 116,944 (58,122) 327,691 428,416
- 7,900 - - 2,588 -
- (81,616) (18,776) (332,010) (301,183) (33,867)
96,419 322,632 111,199 256,165 (20,281) 653,464
22,478,395 21,119,884 23,583,183 27,011,661 29,943,524 31,310,921 459,281 6,532,369 5,946,640 6,916,309 5,633,644 2,542,081 800,324 191,768 583,456 553,020 840,010 1,088,241
$ 1,259,605 6,724,137 $ 6,530,096 $ 7,469,329 $ 6,473,654 $ 3,630,322 $ Fiscal Year
159
2015-16* 2016-17* 2017-18* 2018-19*
General Fund:

Nonspendable 5,398,081 $ 3,992,852 $ 1,387,690 $ 1,806,958 $ Restricted - 3,065,186 3,501,556 3,735,741
Committed 4,677,019 11,150,000 12,022,695 13,261,735
Assigned 7,200 - - -
Unassigned 11,811,587 4,566,919 5,895,617 3,509,177
Total General Fund 21,893,887 $ 22,774,957 $ 22,807,558 $ 22,313,611 $ All other governmental funds:

Nonspendable - $ - $ - $ - $
Restricted 19,166,303 19,996,961 24,035,122 24,350,735
Assigned 790,528 682,470 908,996 1,117,693
Unassigned (790,292) (303,957) (27,464) (29,247)
Total all other governmental funds 19,166,539 $ 20,375,474 $ 24,916,654 $ 25,439,181 $ 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)
160
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 2,488,780 146,069 $ 2,634,436 $ 2,265,236 $ 1,742,586 $ 1,894,932 $ - - - - - -
8,661,735 10,074,410 9,856,296 10,105,796 10,124,754 10,337,356 356,687 123,935 169,585 6,304,522 4,642,971 4,894,816
12,691,577 10,277,670 15,826,042 19,848,555 25,167,157 27,528,647 $ 24,198,779 20,622,084 $ 28,486,359 $ 38,524,109 $ 41,677,468 $ 44,655,751 $ $ - - $ - $ - $ 130,388 $ 130,388 $
21,212,537 22,636,555 23,491,748 21,360,270 22,315,073 21,107,819 278,929 320,739 244,243 181,951 - -
- (41,723) (61,410) (257,858) (470,517) (597,940)
$ 21,491,466 22,915,571 $ 23,674,581 $ 21,284,363 $ 21,974,944 $ 20,640,267 $ Fiscal Year
161
2015-16* 2016-17* 2017-18* 2018-19*
Revenues:

Taxes and assessments 17,838,271 $ 18,697,469 $ 19,821,063 $ 20,541,371 $ Licenses and permits 357,381 321,935 664,964 714,474
Intergovernmental 4,844,423 2,772,489 2,691,518 1,815,443 Charges for services* 2,361,663 2,190,769 3,182,541 3,438,846 Fines and forfeitures 296,607 360,662 460,794 410,443
Interest income (loss) 227,707 119,771 116,130 2,026,619 Rental income 619,977 605,377 589,631 624,406
Gain on sale of land held for resale - - 6,000,100 -
Miscellaneous 71,754 684,711 70,083 286,946
Contribution from Successor Agency - - - -
Total Revenues 26,617,783 25,753,183 33,596,824 29,858,548 Expenditures:

Current:

General government 2,900,169 2,879,492 2,535,059 2,605,958 Public safety 15,453,062 15,597,673 16,894,400 22,350,545 Community development 1,368,795 1,518,145 4,346,128 1,855,646 Public works 951,650 1,175,017 1,570,486 1,714,628
Culture and recreation 1,331,178 1,606,326 1,760,921 1,646,637 Health and welfare 3,512 67,305 37,250 16,795
Capital outlay 10,951,943 819,220 1,878,799 1,719,759
Debt Service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 32,960,309 23,663,178 29,023,043 31,909,968 Excess (Deficiency) of Revenues
Over (Under Expenditures (6,342,526) 2,090,005 4,573,781 (2,051,420) Other financing sources (Uses):

Proceeds from long-term debt - - - -
Proceeds from lease - - - -
Sale of capital assets - - - -
Transfers in 599,348 633,550 828,000 757,400
Transfers out (599,348) (633,550) (828,000) (757,400)
Total other financing sources (uses) - - - -
Net change in fund balance before
special/extraordinary item (6,342,526) 2,090,005 4,573,781 (2,051,420) Special/Extraordinary items (1) - 6,501,399 - 2,080,000 Net change in fund balances 158,873 $ 2,090,005 $ 4,573,781 $ 28,580 $ Debt service as a percentage of
noncapital expenditures 0% 0% 0% 0%
Notes:
*
(1)
Source: City Finance Department
FY15/16 extraordinary gain relates to payment of bond proceeds from Successor Agency; FY18/19 special item relates to reinstatement of advance to Successor Agency 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 FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
162
2019-20* 2020-21 2021-22 2022-23 2023-24 2024-25
$ 23,160,509 21,167,374 $ 25,471,470 $ 26,543,385 $ 27,901,881 $ 29,570,058 $ 2,091,517 1,132,116 1,037,171 1,294,055 959,428 1,461,025 3,992,601 3,462,782 4,811,604 12,841,895 6,272,049 6,566,474 5,015,265 4,444,656 3,737,992 3,208,712 3,623,541 3,677,276 524,705 411,644 468,222 383,517 489,223 690,157
151,183 1,565,134 (516,680) 1,128,316 2,801,292 3,310,728 579,024 637,676 700,487 836,268 764,901 595,177
- - - - - -
96,605 211,217 101,787 228,445 150,730 469,146
- 3,377,369 - - - -
35,611,409 36,409,968 35,812,053 46,464,593 42,963,045 46,340,041 4,367,607 2,706,193 3,715,597 4,022,179 4,377,155 5,597,894 20,682,528 18,023,261 18,732,182 20,724,414 22,047,240 23,460,401 3,168,880 2,303,811 2,838,526 2,386,778 2,826,962 4,457,075 1,835,882 1,477,485 1,738,520 3,548,144 3,704,862 4,104,538 1,721,498 1,603,432 2,458,165 1,859,448 1,968,821 2,133,170 - - - - - -
882,099 11,829,522 489,773 6,389,015 4,570,660 4,957,016 1,069,246 55,754 - - 5,511 17,113
35,140 14,906 12,943 11,020 10,937 3,095
33,762,880 38,014,364 29,985,706 38,940,998 39,512,148 44,730,302 1,848,529 (1,604,396) 5,826,347 7,523,595 3,450,897 1,609,739 - 1,125,000 - - - -
- - - - 91,860 -
210,100 - 756,902 - - -
1,985,777 604,623 2,336,767 4,220,436 4,798,835 5,562,038 (1,904,161) (4,340,364) (2,449,321) (3,888,426) (4,497,652) (5,528,171) 291,716 (2,610,741) 644,348 332,010 393,043 33,867
2,140,245 (4,215,137) 6,470,695 7,855,605 3,843,940 1,643,606 - - - - - -
$ 2,140,245 (4,215,137) $ 6,470,695 $ 7,855,605 $ 3,843,940 $ 1,643,606 $

0.2% 3.3% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
163
Fiscal Year Taxable Incremental Total
Ended SBE Assessed Assessed Direct Tax
June 30 Secured Unsecured Nonunitary Value (1) Secured Unsecured Value Rate 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 7,246 1,684,896 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% 2025 4,196,035 119,897 131,705 4,447,637 3,368,514 46,341 3,414,855 0.13984% 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 164
This page intentionally left blank.
165
2015-16 2016-17 2017-18
Basic Levy (1) 1.00000 1.00000 1.00000
Overlapping Rates: (2)
Anaheim Union High School District 0.04948 0.04259 0.02211 Coast Community College District 0.03092 0.03116 0.03145 Garden Grove Unified School District 0.04656 0.04487 0.07454 Magnolia Elementary School District 0.02349 0.02552 0.02849 Metropolitan Water District 0.00350 0.00350 0.00350
North Orange County
Community College District 0.03043 0.02885 0.02927
Savanna School District 0.05501 0.05948 0.06115
Total Direct and Overlapping Tax Rates 1.23939 1.23597 1.25051 City's Share of 1% Levy Per Prop 13 (3) 0.10940 0.10940 0.13645 Redevelopment Rate (4) 0.00000 0.00000 0.00000
Total Direct Rate (5) 0.13701 0.13698 0.13695
Notes:

Source: HdL, Coren & Cone
(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)
(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.
166
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.04244 0.03968 0.03971 0.03804 0.03016 0.03164 0.03256

0.03052 0.03100 0.03181 0.03119 0.03102 0.02850 0.02837

0.06848 0.06922 0.06956 0.07408 0.06329 0.06719 0.06127

0.02859 0.02722 0.02714 0.02619 0.02634 0.02279 0.02428

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00700

0.02829 0.02409 0.03198 0.02877 0.02778 0.01715 0.01735

0.06086 0.06132 0.06481 0.07355 0.04731 0.05574 0.05716

1.26268 1.25603 1.26851 1.27532 1.22940 1.22651 1.22799

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

0.13994 0.13991 0.14007 0.14002 0.14013 0.14039 0.13984 Fiscal Year
167
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 130,200,000 $ 1 2.93% - $ - - Continental Gardens LP 76,501,617 2 1.72% 16,939,685 6 0.70% CR&R, Inc. 68,482,999 3 1.54% 53,666,862 1 2.21%
City of St Anthony 64,755,083 4 1.46% - - -
Briarwood Square LP 48,183,954 5 1.08% 40,799,200 2 1.68% Stanton 20 LLC 40,471,698 6 0.91% - - -
Levanzo LLC 38,760,000 7 0.87% - - -
Fernwood Stanton LLC 33,958,656 8 0.76% - - -
Arrowhead Stanton Apartments LP 32,824,884 9 0.74% 27,858,203 3 1.14% Dunbar Stanton LLC 23,929,200 10 0.54% - - -
Shapell Socal Rental Properties LLC - - - 23,887,531 4 0.98% Icon Owner Pool 1 LA Busn Park - - - 18,237,043 5 0.75% Gilbert R Shuman Trust Plaza on the Blvd - - - 14,113,769 7 0.58% Mideb Nominees, Inc. - - - 13,306,867 8 0.55%
Faircrest, Inc. - - - 13,149,714 9 0.54%
G6 Hospitality Property - - - 12,490,241 10 0.51%
Total Top 10 Taxpayers 558,068,091 $ 12.55% 234,449,115 $ 9.64% Icon Owner Pool 1 LA Busn Park
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
2024-25 2015-16
Assessed Valuation
168
Fiscal Total Collected Percent
Year Tax Levy Amount of Levy (1)
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%
2025 1,105,894 1,105,894 100%
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
169
Tax Total % of
Fiscal Allocation Primary Personal Per
Year Bonds (1) Leases Government Income (2) Capita (2)
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 86,350 0.01% 2
2024-25 - 64,785 64,785 0.00% 1
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
170
2024-25 Assessed Valuation $4,443,476,476
Total Debt City's Share of
6/30/25 % Applicable (1) Debt 6/30/25
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 17,155,000 $ 0.108% 18,527 $ Coast Community College District 0.588% 5,026,319 854,816,084 North Orange County Joint Community College District 1.831% 5,037,716 275,134,676 Anaheim Union High School District 3.536% 15,003,741 424,313,955 Garden Grove Unified School District 6.120% 31,173,444 509,370,000 Magnolia School District 17.302% 2,923,745 16,898,305
Savanna School District 34.701% 12,356,379 35,608,134
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 71,539,871 $
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $429,065,000 0.548% 2,351,276 $ Orange County Board of Education General Fund Obligations 0.548% 49,978 9,120,000 Coast Community College District General Fund Obligations 0.588% 3,881 660,000 Coast Community College District Pension Obligation Bonds 0.588% 2,734 465,000 Anaheim Union High School District Certificates of Participation 26,880,000 3.536% 950,477 Magnolia School District General Fund Obligations 17.302% 1,934,772 11,182,363 North Orange County Regional Occupation Program
Certificates of Participation 6,880,000 1.261% 86,757
City of Stanton Leases 64,785 100% 64,785 (3)
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 5,444,660 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency) $45,365,000 100.000% 45,365,000 TOTAL DIRECT DEBT $ 64,785
TOTAL OVERLAPPING DEBT 122,284,746
COMBINED TOTAL DEBT $ 122,349,531 (2)
Notes:

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.61%
Total Direct Debt 0.00%
Total Combined Debt 2.75%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,414,855,096):

Total Overlapping Tax Increment Debt 1.33%
Source: California Municipal Statistics, Inc.
(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. (3) The GASB 87 debts on this schedule are not money borrowed by the City, but are present-value calculation of estimated future lease payments by the City. The City of Stanton implemented GASB 87 for fiscal year ended June 30, 2024. (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.

CITY OF STANTON

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
YEAR ENDED JUNE 30, 2025
171
2015-16 2016-17 2017-18 2018-19
Assessed valuation 2,433,204,888 $ 2,566,311,820 $ 2,678,905,775 $ 2,834,604,233 $ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 608,301,222 641,577,955 669,726,444 708,651,058 Debt limit percentage 15% 15% 15% 15%
Debt limit 91,245,183 96,236,693 100,458,967 106,297,659 Total net debt applicable to limit - - - -
Legal debt margin 91,245,183 $ 96,236,693 $ 100,458,967 $ 106,297,659 $ 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.

Fiscal Year

CITY OF STANTON

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
172
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 3,294,354,368 3,014,836,696 $ 3,627,670,751 $ 3,841,815,515 $ 4,129,913,981 $ 4,447,637,812 $ 25% 25% 25% 25% 25% 25%
823,588,592 753,709,174 906,917,688 960,453,879 1,032,478,495 1,111,909,453 15% 15% 15% 15% 15% 15%
123,538,289 113,056,376 136,037,653 144,068,082 154,871,774 166,786,418 - - - - - -
$ 123,538,289 113,056,376 $ 136,037,653 $ 144,068,082 $ 154,871,774 $ 166,786,418 $ 0% 0% 0% 0% 0% 0%
Fiscal Year
173
Fiscal Tax
Year Increment Principal Interest Principal Interest Principal Interest Principal Interest 2015-16 - $ - $ - $ - $ - $ - $ - $ - $ - $
2016-17 - - - - - - - - -
2017-18 - - - - - - - - -
2018-19 - - - - - - - - -
2019-20 - - - - - - - - -
2020-21 - - - - - - - - -
2021-22 - - - - - - - - -
2022-23 - - - - - - - - -
2023-24 - - - - - - - - -
2024-25 - - - - - - - - -
Note:

Source: City Finance Department
Tax Allocation Bonds,
Debt Service (1) Debt Service (1)
2005 Series B
Debt Service (1)
2005 Series A 2010 Series A

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,
174
Principal Interest Principal Interest Principal Interest Principal Interest Coverage $ - - $ - $ - $ - $ - $ - $ - $ 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
Tax Allocation Bonds,
2016 Series B 2020 Series A
Debt Service (1) Debt Service (1)
Tax Allocation Bonds, Tax Allocation Bonds,
2016 Series A
Debt Service (1) Debt Service (1)
Tax Allocation Bonds,
2011 Series B
175
Total
Median Personal Per Capita
Calendar Median Housing Income Personal Unemployment
Year Population Age Price (in thousands) Income Rate
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%
2024 40,552 38.9 785,500 1,392,029 34,327 4.0%
Source: HdL Coren & Coren

CITY OF STANTON

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
176
% of Total % of Total
City City
Employer Employees Rank Employment Employees Rank Employment Rowntree Gardens (formerly Quaker Gardens) 314 1 1.60% 312 1 n/a ORCO Block Co. 191 2 0.97% - - n/a
Home Depot 163 3 0.83% 144 5 n/a
Super King Market 149 4 0.76% - - n/a
Great Scott Tree Service, Inc. 146 5 0.74% - - n/a
White Bottle, Inc. 135 6 0.69% - - n/a
Raising Cane's Chicken Fingers Restaurant 113 7 0.58% - - n/a Walmart Market #4134 104 8 0.53% 90 9 n/a
All Metals Processing of Orange County, LLC 103 9 0.53% 129 6 n/a In-N-Out Burgers #345 98 10 0.50% 120 7 n/a
Custom Pipe & Fabrication Inc. - - - 120 7 n/a
CR&R, Inc. - - - 190 4 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 1,516 7.73% 1,361 n/a
Total City Labor Force 19,600 n/a
Notes:
n/a - Information is not available.

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

Sources: City business license database
Fiscal Year 2015-16 Annual Comprehensive Financial Report Employment Development Department (for City Labor Force data) 2024-25 2015-16

CITY OF STANTON

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
177
Department 2015-16 2016-17 2017-18 2018-19
Administration 4.00 4.50 4.50 4.50
Community Development (1) 8.50 8.50 9.00 6.00
Community Services 6.00 6.00 6.00 16.00
Finance 5.00 5.13 5.25 6.75
Public Safety (1) 0.00 0.00 0.50 8.00
Public Works 6.00 6.38 6.75 8.75
Total 29.50 30.51 32.00 50.00
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
178
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

4.50 5.50 6.50 6.50 5.98 5.98

6.00 6.50 8.50 10.00 8.00 7.00

16.00 17.00 17.00 17.00 16.58 16.58

6.75 6.00 7.00 7.50 7.44 6.44

9.00 9.50 11.00 11.50 11.94 10.42

8.75 9.50 10.50 10.50 11.21 11.48

51.00 54.00 60.50 63.00 61.15 57.90
Fiscal Year
179
2015-16 2016-17 2017-18 2018-19
City Council
Public Meetings held 35 37 36 34
Ordinances adopted 13 14 12 8
Resolutions adopted 46 41 48 39
City Attorney
Ordinances prepared 13 15 12 8
Resolutions prepared 46 41 48 39
Contracts prepared 86 88 90 84
City Clerk
Public Meetings held 35 37 36 34
Ordinances processed
and published 13 14 12 8
Resolutions processed
and published 46 41 48 39
Public Records Requests processed 300 278 280 159
Contracts Processed 86 88 90 84
City Manager
City Council meetings attended 35 36 35 34
Finance
Cash Receipts processed 8,961 10,260 6,854 5,512
Warrants processed 2,490 2,559 2,462 2,405
Journal entries processed 247 281 234 287
Business licenses processed 2,197 2,946 3,304 3,126
Police Services
Cases assigned to
general crime investigators 835 1,582 964 737
Directed enforcement
shifts deployed each week 5 5 5 5
Average response time
in minutes to emergency
life threatening calls 3:50 4:03 4:05 4:21
Shifts of traffic enforcement
in high accident and
residential areas per week 4 4 4 4
Schools receiving school
programs 1 n/a n/a n/a
Note:
n/a - Information not available
Source: Various City Departments

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
Department
Fiscal Year
180
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
37 55 38 25 24 24
14 8 10 9 11 19
60 45 54 30 33 40
14 8 10 9 11 19
60 45 54 30 33 40
90 94 98 115 72 70
37 55 38 25 24 24
14 8 10 9 11 19
60 45 54 30 33 40
170 180 182 195 292 353
90 94 98 115 72 70
37 55 37 24 24 24
5,690 4,109 4,102 3,940 4,480 3,941
2,182 2,057 1,809 2,076 1,935 2,028
344 1,493 694 662 1,865 1,990
2,649 2,577 2,481 2,388 2,695 2,815
856 1,068 1,138 1,127 958 826
555555
3:50 4:17 4:14 4:17 4:29 5:04
444445
n/a n/a 2 2 n/a n/a
Fiscal Year
181
2015-16 2016-17 2017-18 2018-19
Fire Protection
Paramedic calls responded to 2,659 2,192 2,627 2,794
Fire calls responded to 54 37 42 55
Other calls responded to 699 1042 611 494
Fire inspections made 602 524 612 674
Students receiving fire
safety education programs 490 370 200 250
Adults receiving fire
safety education programs 220 240 456 250
Plan checks completed 51 72 83 87
Planning
Administrative permits 7476
Preliminary plan review 3261
Entitlements 29 29 32 18
Environmental 26 29 21 12
Home Occupation permits 50 21 117 11
Land divisions 5463
Landscape plan checks 4 - 3 6
Sign permits 23 26 32 25
Plan Checks (Over-the-Counter) 68 70 147 93
Building
Building plan reviews 101 101 138 94
Building permits 264 254 368 358
Electrical permits 233 214 242 239
Mechanical permits 120 112 145 156
Plumbing permits 150 124 194 174
Inspections for compliance 0000
Parking Control
Citations 6,843 8,039 8,049 7,937
Vehicles towed 299 440 574 451
Engineering
Value of capital projects initiated $1M $1M $2.6M $3.0M Engineering plan checks 7 7 10 8
Permits issued 132 132 135 204
Value of competitive grants obtained $0.3M $0.3M $0.2M $0 Capital projects administered 3 3 7 7
Public Facilities
Service requests 87 277 504 475
Unscheduled repairs 68 92 73 64
Source: Various City Departments
Department

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
Fiscal Year
182
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
6,307 3,323 3,724 3,887 3,929 4,001
222 182 196 194 185 227
647 205 206 255 224 279
15 0 514 581 529 713
4 61 3 3 1,900 437
4 132 10 0 1,900 467
n/a 224 187 219 113 111
5 3 4 13 36 12
536160
35 17 13 18 33 9
110026
26 27 10 31 30 2
651131
333943
27 8 19 17 14 10
103 112 109 0 58 165
82 121 672 875 852 810
450 535 495 477 455 423
307 398 151 45 40 37
219 223 50 41 37 15
275 253 52 46 44 33
000000
5,765 9,073 8,269 7,649 10,039 15,722
347 179 236 173 101 186
$3.2M $1.47M $9.38M $3.55M $6.98M $4M
15 4 10 4 4 16
102 100 165 234 179 210
$0 $0 $8.13M $576K $626K $4.6M
8 7 10 15 20 18
682 1,134 1,586 1,353 1,773 1,202
173 146 78 67 106 28
Fiscal Year
183
2015-16 2016-17 2017-18 2018-19
Buildings/Grounds Maintenance
No. of service requests 57 64 64 120
HVAC service calls 4 3 3 13
Parks Maintenance
Service requests 61 72 226 229
Unscheduled repairs 25 17 32 68
Street Maintenance
Potholes repaired 10 43 14 35
Service requests 201 227 702 698
Tonnage of asphalt placed 6 6 6 3
Storm drain inlets cleaned 183 183 183 183
Service calls for drainage issues 1 3 3 5
Community Services
Senior clients served 2,450 2,600 3,600 4,000
Commission meetings 10 9 9 9
Recreation Programs 220 250 133 115
Info & referral inquires answered 2,230 2,500 2,051 2,216 Sports facility usage (revenue) $3,120 $13,760 $15,080 $12,600 Source: Various City Departments

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
Department
Fiscal Year
184
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
189 1,134 1,586 1,336 1,310 1,096
17 8 11 15 20 121

478 2,298 1,723 1,568 1,528 1,098
83 103 67 57 216 75
66 87 79 130 63 176
872 2,830 1,720 1,460 1,233 1,448

2.5 3 3 3 3 3
183 183 183 183 183 183
16 8 4 8 14 65
8,271 15,613 15,882 12,887 10,044 14,385
77 8895
318 134 154 543 883 1,151
1,945 1,097 1,156 1,330 1,616 1,650
$12,417 $23,141 $21,540 $26,910 $29,798 $27,558
Fiscal Year
185
2015-16 2016-17 2017-18 2018-19
Public Works
Streets (miles) 44 44 44 44
Alleys (square feet) 326,000 326,000 326,000 324,185
Curbs and gutters
(linear feet) 441,200 441,200 441,200 441,200
Sidewalks (square feet) 2,341,000 2,341,000 2,341,000 2,341,000 Streetlights 1,295 1,295 1,295 1,295
Traffic signals 16 16 16 16
Storm drain system
(linear feet) 26,889 26,889 26,889 26,889
Parks and Recreation
Parks 9 9 9 9
Community Center 3 3 3 3
Sewer
Sewer lines (miles) 40.5 40.5 40.5 40.5
Source: City Finance Department
Function

CITY OF STANTON
Fiscal Year

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
186
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
44 44.1 44.1 44.1 44.1 44.1
324,185 324,185 324,185 324,185 324,185 324,185
441,445 441,445 441,445 441,445 441,445 441,445
2,343,100 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 1,307
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
187
This page intentionally left blank.
188

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
Attachment: B
Click here to return to the agenda.

STANTON HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3

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
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, 2025, 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, 2025, 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 Opinion
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.

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
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.

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 10, 2025, 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 10, 2025
3 MANAGEMENT’S DISCUSSION AND ANALYSIS
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, 2025. 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, 2025, by $27.2 million. This amount is referred to as the net position of the Housing Authority. Of this amount, $8.0 million is restricted net position and may be used for the Housing Authority’s affordable housing programs.
 During fiscal year 2024-25, the Housing Authority’s overall net position decreased by $3.3 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).
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.

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.

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 $27.2 million as of June 30, 2025. In comparison, total net position was $30.5 million as of June 30, 2024.

The largest portion of the Housing Authority’s net position at June 30, 2025, ($19.2 million or

70.7% 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.
6 The remaining $8.0 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:
2025 2024 % Change
Current and other assets $ 8,641,026 $ 10,514,677 -17.8% Capital assets 19,217,156 20,289,219 -5.3%
Total assets 27,858,182 30,803,896 -9.6%
Deferred outflows of resources 86,939 109,893 -20.9%
Long-term liabilities 273,365 276,707 -1.2%
Other liabilities 474,447 160,185 196.2%
Total liabilities 747,812 436,892 71.2%
Deferred inflows of resources 5,936 11,601 -48.8%
Net position:
20,289,219 19,217,156 -5.3%
Restricted 7,974,217 10,176,077 -21.6%
Total net position 27,191,373 $ 30,465,296 $ -10.7%
Investment in capital assets
7 A summary of the government-wide Statement of Activities follows:

During the current fiscal year, the Housing Authority’s net position decreased by $3.3 million, primarily due to relocation payments and other operating expenses associated with the Housing Authority’s Tina/Pacific housing project.
2025 2024 % Change
Revenues:

Program Revenue:

Charges for services 435,977 $ 623,076 $ -30.0%
General revenues:

Investment earnings (loss) 434,706 511,471 15.0%
Miscellaneous - - 0.0%
Total revenues 870,683 1,134,547 -23.3%
Expenses:

General government 378,784 408,479 -7.3%
Community development 3,537,267 1,375,087 157.2%
Public safety 228,555 166,134 27.3%
Total expenses 4,144,606 1,949,700 112.6%
Change in Net Position (3,273,923) (815,153) 301.6%
Net position, beginning of year 30,465,296 31,280,449 -2.6% Net position, end of year 27,191,373 $ 30,465,296 $ -10.7% 8 The governmental activities revenues during fiscal year 2024-25 were $870,683, which was a decrease of $263,864, or 23.3%, from fiscal year 2023-24.

Charges for services decreased by $187,099, or 30.0% from the previous fiscal year due to vacant units as tenants have accepted the Housing Authority’s offer for voluntary relocation assistance and vacated their rental units.

Investment earnings decreased by $76,765, or 15.0%, in fiscal year 2024-25, due to the change in fair value in the Housing Authority’s investment portfolio, interest rate changes earned from the Housing Authority’s portfolio and primarily due to the decrease in the Housing Authority’s cash balance due to the increase in relocation payments and other operating expenses associated with the Housing Authority’s Tina/Pacific housing project. This was slightly offset by the increase of the average yield of the California Local Agency Investment Fund (LAIF) at 4.41% in fiscal year 2024-25, compared to 3.93% in fiscal year 2023-24.
9 The cost of all governmental activities during fiscal year 2024-25 was $4.1 million, an increase of $2.2 million, or 112.6% from fiscal year 2024-25.

General government expenses decreased by $29,695, or 7.3%, primarily due to decreased legal costs associated with the Tina/Pacific affordable housing project.

Community development expenses increased by $2.2 million, or 157.2%, primarily due to the cost of repairs and renovation, relocation payments and other operating expenses including demolition costs associated with the Housing Authority’s Tina/Pacific housing project.

Public safety expenses increased by $62,421, or 27.3% from the previous year, primarily due to the Housing Authority’s increased share of operating costs for the North Orange County Service Planning Area Navigation Centers. The Housing Authority’s share of operating costs increased from $119,000 in fiscal year 2023-24 to $168,050 in fiscal year 2024-25. 10 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, 2025, the General Fund reported a total fund balance of $8.2 million, which represents a decrease of $2.2 million, or 21.1%, from the previous fiscal year, primarily due to increases in demolition, relocation 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 $1.1 million or 5.3% from the previous fiscal year mainly due to the demolition of seven Tina/Pacific properties and annual 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 2025-26 Adopted Budget includes a reduction in revenues of

24.1% to conservatively anticipate a decrease in rent revenue and with expenditures remaining in line with the prior adopted budget which excludes one-time expenditures incurred during fiscal year 2024-25. The fiscal year 2025-26 adopted budget was balanced after using $706,995 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:

Sharon del Rosario, Finance Director, City of Stanton, 7800 Katella Avenue, Stanton, California 90680.
2025 2024 % Change
Land $ 15,243,865 $ 15,243,865 0.0%
Buildings and improvements 3,973,291 5,045,354 -21.2%
Totals $ 19,217,156 $ 20,289,219 -5.3%
11 This page intentionally left blank.
12 GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental
Activities

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Cash and investments (Note 2) 7,603,497 $
Receivables 109,529
Notes and loans receivable (Note 4) 928,000
Capital assets (Note 3):

Non-depreciable 15,243,865
Depreciable, net 3,973,291
Total assets 27,858,182
Deferred pension related items (Note 5) 86,939
Total deferred outflows of resources 86,939

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Accounts payable 230,692
Due to the City of Stanton 230,510
Deposits payable 11,550
Unearned revenue 1,695
Long-term liabilities:

Net pension liability (Note 5) 273,365
Total liabilities 747,812
Deferred pension related items (Note 5) 5,936
Total deferred inflows of resources 5,936

NET POSITION
Net investment in capital assets 19,217,156
Restricted for:

Low and moderate income housing 7,974,217
Total net position $ 27,191,373

STANTON HOUSING AUTHORITY
Statement of Net Position
June 30, 2025
See accompanying notes to the basic financial statements. 13 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 378,784 $ - $ - $ - $ (378,784) $
Public safety 228,555 - - - (228,555)
Community development 3,537,267 435,977 - - (3,101,290) Total governmental activities 4,144,606 $ 435,977 $ - $ - $ (3,708,629) General revenues:

Investment earnings 434,706
Total general revenues and transfers 434,706
Change in net position (3,273,923)
Net position - beginning of year 30,465,296
Net position - end of year $ 27,191,373
Program Revenues
Functions/Programs

STANTON HOUSING AUTHORITY
Statement of Activities
For the Year Ended June 30, 2025
See accompanying notes to the basic financial statements. 14 15

FUND FINANCIAL STATEMENTS
Cash and investments 7,603,497 $
Receivables:

Accounts 24,768
Interest 84,761
Notes and loans receivable 928,000
Total assets $ 8,641,026

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 230,692
Deposits payable 11,550
Due to the City of Stanton 230,510
Unearned revenues 1,695
Total liabilities 474,447
Fund Balances:

Nonspendable 928,000
Restricted for Low and Moderate-Income Housing 7,238,579 Total fund balances 8,166,579
Total liabilities and fund balances $ 8,641,026
ASSETS

STANTON HOUSING AUTHORITY
June 30, 2025
Balance Sheet - General Fund
See accompanying notes to the basic financial statements. 16 Total Fund Balances - Total Governmental Funds $ 8,166,579 Capital assets 21,861,063
Accumulated depreciation (2,643,907)
Total capital assets 19,217,156
Deferred Outflows of Resources - Pension Related 86,939 Deferred Inflows of Resources - Pension Related (5,936) Net Pension Liability (273,365)
Net position of governmental activities $ 27,191,373
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, 2025
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

See accompanying notes to the basic financial statements. 17 REVENUES:

Investment income 434,706 $
Rental income 435,977
Total revenues 870,683
EXPENDITURES:

Current:

General government 377,065
Public safety 227,516
Community development 2,454,015
Total expenditures 3,058,596
NET CHANGE IN FUND BALANCE (2,187,913)
Fund balances, beginning of year 10,354,492
Fund balances, end of year 8,166,579 $
Statement of Revenues, Expenditures, and Changes in Fund Balance -

STANTON HOUSING AUTHORITY
General Fund
For the Year Ended June 30, 2025
See accompanying notes to the basic financial statements. 18 Net Change in Fund Balances - Total Governmental Funds $ (2,187,913) Capital asset purchases (1,318,855)
Depreciation expenses 246,792
(13,947)
Change in net position of governmental activities $ (3,273,923) 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, 2025
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 20

NOTES TO BASIC FINANCIAL STATEMENTS

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

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

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025, were classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 7,603,497
Cash and investments as of June 30, 2025, consists of the following:

Deposits With Financial Institutions $ 83,720
Local Agency Investment Fund (LAIF) 7,519,777
Total Cash and Investments $ 7,603,497

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025, 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 8,086,570 168,236 (1,637,608) 6,617,198 Less accumulated
depreciation for:

Buildings and improvements (3,041,216) (246,792) 644,101 (2,643,907) Total depreciable
capital assets, net 5,045,354 (246,792) 644,101 3,973,291 Total capital assets, net $20,289,219 $ (78,556) $ (993,507) $19,217,156 Depreciation expense of $246,792 was charged to the community development program.

There were no capital asset commitments as of June 30, 2025.

NOTE 4 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2025, was as follows:

Stanton Accessible Apartments Construction $ 414,428
Housing Rehabilitation 928,000
Allowance for Doubtful Accounts (414,428)
Total $ 928,000
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, 2025, was $414,428, with an allowance for the forgivable amount of $414,428.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025, was $928,000.

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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2024, 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 12.520% 10.100% 7.470%
Payment of Unfunded Liability $ 30,950 $ 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, 2025 was $38,047.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
33 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, 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
$ 273,365
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, 2024, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The 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, 2023 and 2024, was as follows:

Miscellaneous
Proportion - June 30, 2023 3.67000%
Proportion - June 30, 2024 3.67000%
Change - Increase (Decrease) 0.00000%
For the year ended June 30, 2025, the Authority recognized pension expense of $51,995. At June 30, 2025, 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 $ 38,047 $ -
Change in proportion 694 (3,241)
Change in assumptions 7,026 -
Difference in actual contributions vs.
proportionate share of contributions 1,800 (1,773)
Difference between expected and
actual experience 23,635 (922)
Differences between projected and
actual earnings on plan investments 15,737 -
Total $ 86,939 $ (5,936)

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 $38,047 will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. 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
2026 $ 12,853
2027 35,089
2028 408
2029 (5,393)
$ 42,957
Actuarial Assumptions
The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2023
Measurement Date June 30, 2024
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.

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

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

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 $ 539,759
Current Discount Rate 6.90%
Net Pension Liability $ 273,365
1% Increase 7.90%
Net Pension Liability (Asset) $ 140,246
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, 2025, the Authority had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2025.

NOTE 6 SUBSEQUENT EVENTS
Management has evaluated subsequent events through December 10, 2025 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. 37 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Fiscal year ended June 30 2025 2024 2023 2022 2021
Measurement period June 30 2024 2023 2022 2021 2020
Proportion of the net pension liability 3.67% 3.67% 2.95% 2.95% 5.44% Proportionate share of the net pension
liability 273,365 $ 276,707 $ 207,186 $ 102,756 $ 328,093 $ Covered payroll 151,020 $ 115,479 $ 105,085 $ 171,105 $ 92,886 $ Proportionate Share of the net pension
liability as percentage of covered payroll 181.01% 239.62% 197.16% 60.05% 353.22% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 74.65% 72.86% 73.21% 85.91% 74.82% Notes to schedule:

Benefit changes:

There were no changes in benefits.

Changes in assumptions:

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

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, 2025
Last 10 Fiscal Years
38 Fiscal year ended June 30 2020 2019 2018 2017 2016
Measurement period June 30 2019 2018 2017 2016 2015
Proportion of the net pension liability 3.39% 3.39% 3.39% 3.39% 3.39% Proportionate share of the net pension
liability 188,943 $ 171,503 $ 174,231 $ 148,691 $ 110,824 $ Covered payroll 86,249 $ 89,653 $ 74,185 $ 71,092 $ 66,722 $ Proportionate Share of the net pension
liability as percentage of covered payroll 219.07% 191.30% 234.86% 209.15% 166.10% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 76.17% 75.26% 73.31% 74.06% 82.31%

STANTON HOUSING AUTHORITY
Schedule of Proportionate Share of the Net Pension Liability Last 10 Fiscal Years (Continued)
Year Ended June 30, 2025
39 Fiscal year ended June 30 2025 2024 2023 2022 2021
Contractually required contribution (actuarially determined) $ 33,127 38,047 $ 24,876 $ 21,831 $ 37,811 $ Contributions in relation to the actuarially
determined contributions (38,047) (33,127) (24,876) (21,831) (37,811) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll 151,020 $ 115,479 $ 115,479 $ 105,085 $ 171,105 $ Contributions as a percentage of covered payroll 25.19% 28.69% 21.54% 20.77% 22.10% Notes to schedule:

Valuation date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 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% 2.300% 2.500% 2.500% 2.500%
Salary increases 2.75% (2) 2.75% (2) 2.75% (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.00% (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, 2025

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years
40 Fiscal year ended June 30 2020 2019 2018 2017 2016
Contractually required contribution (actuarially determined) 20,389 $ 15,914 $ 13,655 $ 11,105 $ 9,765 $ Contributions in relation to the actuarially
determined contributions (20,389) (15,914) (13,655) (11,105) (9,765) Contribution deficiency (excess) -$ $ - $ - $ - - $
Covered payroll 92,886 $ 86,249 $ 89,653 $ 74,185 $ 71,092 $ Contributions as a percentage of covered payroll 21.95% 18.45% 15.23% 14.97% 13.74% Notes to schedule:

Valuation date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to
determine contribution rates:

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years (Continued)
41 Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income 100,000 $ 250,000 $ 434,706 $ 184,706 $ Rental income 620,000 470,000 435,977 (34,023)
Total revenues 720,000 720,000 870,683 150,683

EXPENDITURES
Current:

General government 170,420 391,740 377,065 14,675
Public safety 221,850 252,840 227,516 25,324
Community development 4,463,749 868,305 2,454,015 2,009,734 Total expenditures 1,260,575 5,108,329 3,058,596 2,049,733 Net change in fund balance $ (4,388,329) (540,575) $ (2,187,913) $ (1,899,050) Fund balance, beginning of year 10,354,492
Fund balance, end of year $ 8,166,579

STANTON HOUSING AUTHORITY
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
42 STANTON HOUSING AUTHORITY
43 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
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.

City of Stanton
Single Audit Report on Schedule of Expenditures of Federal Awards June 30, 2025
Attachment: C
Click here to return to the agenda.

CITY OF STANTON
Single Audit Report on Schedule of Expenditures of Federal Award Programs June 30, 2025

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
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, 2025, 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 10, 2025.

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. 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 10, 2025
Gruber and Lopez, Inc.
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, 2025. 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, 2025.

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. 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. 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, 2025, 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 10, 2025, 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 10, 2025
Gruber and Lopez, Inc.

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 12-23010767-CV 288,482 $ - Total U.S. Department of Housing and Urban Development 288,482 - U.S. Department of Justice
Direct assistance:

Congressionally Recommended Awards 16.753 GRANT13651473 1,678,265 1,673,054 Total U.S. Department of Justice 1,678,265 * 1,673,054
U.S. Department of Treasury
Passed through the State of California-OES:

Coronavirus State and Local Recovery Funds 21.027 FPXRE3JFQTH8 86,921 - Coronavirus State and Local Recovery Funds 21.027 Program Income 9,901 - Total U.S. Department of Treasury * 96,822 -
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 58,000 158,197 Temporary Assistance for Needy Families 93.558 FMK1120 53,629 - Stephanie Tubbs Jones Child Welfare Services Program 93.645 FMK1120 8,809 - Communit-Based Child Abuse Prevention Grants 93.590 FMK1120 20,800 - Total U.S. Department of Health and Human Services 141,238 158,197 Total Federal Awards $ 2,204,807 1,831,251
*Denotes major federal program.

CITY OF STANTON
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
6 See accompanying notes to schedule of expenditures of federal awards. 7 CITY OF STANTON
Notes to the Schedule of Expenditures of Federal Awards June 30, 2025
(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, 2025, 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, 2025:

Assistance Listing #16.753
Hope Center of Orange County $1,673,054
8 CITY OF STANTON
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
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, 2025 for purposes of determining major programs. 9 CITY OF STANTON
Summary Schedule of Prior Year Audit Findings
Year ended June 30, 2025
There were no findings noted for fiscal year June 30, 2024 that required follow up procedures.

CITY OF STANTON
Stanton, California
Report on Communication
With Those Charged with Governance
June 30, 2025
Attachment: D
Click here to return to the agenda.

CITY OF STANTON
Stanton, California
Report On Communication
With Those Charged With Governance
June 30, 2025
INDEX
PAGE
REPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3 EXHIBIT A - AUDIT ADJUSTING JOURNAL ENTRIES 4

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, 2025, and have issued our report thereon dated December 10, 2025. 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 July 10, 2025. 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. 101- Compensated Absences and No. 102- Certain Risk Exposures. 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.
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 an adjustment as a result of audit procedures which is disclosed in Exhibit A. 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 10, 2025.

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. 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 10, 2025
Gruber and Lopez, Inc.

City of Stanton EXHIBIT A

ADJUSTING JOURNAL ENTRIES
# Account # Dr Cr
1 Not used
2 Not used
3 CAJE See client entry at 25.1a JE 159-13-2025
4 71.1 Retentions payable 305-0000-204300 11,261.25

71.1 Accounts payable 305-000-201100 213,963.75

71.1 Cash pooled 305-0000-111101 225,225.00

25.1b Cash pooled 501-0000-111101 225,225.00

25.1b CIP 501-0000-136100 225,225.00
To reverse accrual of Tunnel Works invoice for July services. 2025
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, 2025. 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
Click here to return to the agenda.

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 11, 2025
Gruber and Lopez, Inc.

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: January 27, 2026
SUBJECT: FIRST AMENDMENT TO AGREEMENT FOR THE STANTON FAMILY

RESOURCE CENTER UNDER THE COUNTY OF ORANGE FAMILIES

AND COMMUNITIES TOGETHER (FACT) PROGRAM
REPORT IN BRIEF:

The City Council will consider approving the First Amendment to the Agreement for Family Resource Center Services to allow the County of Orange to add two additional Family Resource Centers to the Families and Communities Together platform. The amendment updates aggregate funding authority and administrative provisions and does not change the service delivery model or budget allocation for the Stanton Family Resource Center.

RECOMMENDED ACTION:

1. City Council declare that this item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3); and

2. Approve the First Amendment to the Agreement for Family Resource Center Services with the County of Orange Social Services Agency; and

3. Authorize the City Manager to bind the City of Stanton in an amended agreement with the County of Orange Social Services Agency to provide Family Resource Center services.

BACKGROUND:

On July 1, 2025, the City entered into an Agreement with the County of Orange Social Services Agency to provide Family Resource Center (FRC) and Differential Response – Path One Services. Thirteen additional Family Resource Center sites across Orange County entered into similar agreements, collectively forming the Families and Communities Together (FaCT) platform.

Item: 9F
Click here to return to the agenda.
2 The County continues to expand the FaCT platform to meet community needs. As part of this expansion, Minnie Street Family Resource Center and Newport Mesa Family Resource Center are being added to the platform. To accommodate this expansion, the County requires an amendment to the FaCT platform agreement that updates aggregate funding authority and revises certain contractual and compliance requirements applicable to all participating Family Resource Centers.

This first Amendment applies uniformly to all FRCs participating in the FaCT platform and does not change the scope of services provided. The amendment requires approval by the Board of Supervisors and is scheduled for Board consideration on March 24, 2026.

ANALYSIS AND JUSTIFICATION:

Specifically, the First Amendment to the FaCT agreement includes the following updates:
• Adjustment to Aggregate Maximum Funding Obligation
o Paragraph 20.1 is amended to increase the FaCT platform’s aggregate maximum funding obligation to reflect the addition of Minnie Street FRC and Newport Mesa FRC. This adjustment ensures sufficient funding authority is available across the platform. No changes are made to individual FRC funding amounts.
• Correction to Onsite Services Requirement
o Paragraph 8.1 of the agreement is amended to require a minimum of two non-FaCT funded onsite services. Each onsite service provider must have a signed memorandum of understanding or contract in place for the duration of the agreement, consistent with current program requirements. • Update to State Privacy and Security Provisions
o Attachment D of the agreement is replaced to incorporate updated state and federal privacy and security requirements. The revised provisions expand compliance obligations related to data protection, staff training, audits, incident response, remote work, cloud-based systems, and alignment with applicable NIST security standards.

FISCAL IMPACT:

The amendment increases the aggregate maximum funding obligation of the FaCT platform as reflected in Paragraph 20.1. There is no fiscal impact to the Stanton Family Resource Center.
3 ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3).

PUBLIC NOTIFICATION:

Public notification provided through the regular agenda process.

STRATEGIC GOALS:

Goal 4. Ensure fiscal stability.

Goal 5. Maintain and promote a responsive, high quality and transparent government.

Prepared by: Ashley Cain, Community Services Manager
Reviewed by: Zenia Bobadilla, Community Services Director Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. First Amendment to the Agreement for Family Resource Center Services MA-063-25010752 Page 1 of 4 December 8, 2025

AMENDMENT ONE TO CONTRACT

BETWEEN

COUNTY OF ORANGE
AND

CITY OF STANTON
AND
BOYS & GIRLS CLUBS OF GARDEN GROVE, INC.

AND

INTERVAL HOUSE

FOR THE PROVISION OF
FAMILY RESOURCE CENTER SERVICES, AND DIFFERENTIAL RESPONSE – PATH

ONE SERVICES
THIS AMENDMENT ONE made and entered into upon execution of all necessary signatures, is to that certain Contract Number MA-063-25010752 between the parties hereto, hereinafter referred to as the “Contract” and is by and between the COUNTY OF ORANGE, hereinafter referred to as “COUNTY,” and City of Stanton, a California municipal agency, and Boys & Girls Clubs of Garden Grove, Inc., a California public non-profit, and Interval House, a California private non-profit, hereinafter referred to as “Stanton Family Resource Center” or “CONTRACTOR.” COUNTY and CONTRACTOR may be referred to individually as “Party” and collectively as “the Parties.”

W I T N E S S E T H
WHEREAS, on July 1, 2025, COUNTY and CONTRACTOR entered into a Contract for the provision of Family Resource Center and Differential Response Path-One Services, for the term of July 1, 2025 through June 30, 2028;
WHEREAS, COUNTY desires to increase aggregate funding for the addition of Minnie Street and Newport-Mesa Family Resource Center; amend Subparagraph 20.1 of the Contract; amend Subparagraph 8.1 of Attachment A of the Contract; and replace Attachment D of the Contract;
Attachment: A
Click here to return to the agenda.

MA-063-25010752 Page 2 of 4 December 8, 2025
WHEREAS, CONTRACTOR agrees to such extension and to continue to provide such services under the terms and conditions set forth in this Contract; and ACCORDINGLY, THE PARTIES AGREED AS FOLLOWS:

1. Subparagraph 20.1 of the Contract is hereby amended to read as follows:

20.1 Maximum Contractual Obligation
The maximum funding obligation of COUNTY under this Contract shall not exceed the amount of $19,983,334, or actual allowable costs, whichever is less. The estimated annual amount for each twelve (12) month period is as follows:
$6,583,334 for July 1, 2025, through June 30, 2026;
$6,700,000 for July 1, 2026, through June 30, 2027; and $6,700,000 for July 1, 2027, through June 30, 2028.

2. Subparagraph 8.1 of Attachment A of the Contract is hereby amended to read as follows:

8.1 Provide a minimum of two (2) non-FaCT funded onsite services. Each non-FaCT funded service provider must have a signed MOU or contract specifying the commitment to provide services for the duration of the resulting contract term. CONTRACTOR shall provide copy of signed MOU to ADMINISTRATOR upon request.

3. Attachment D of the Contract is hereby replaced in its entirety and attached as follows.

4. The Parties agree that separate copies of this Amendment may be signed by each of the Parties, and this Amendment will have the same force and effect as if the original had been signed by all Parties.

5. All other terms and conditions of the Contract shall remain the same and in full force and in effect.

MA-063-25010752 Page 3 of 4 December 8, 2025
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment One to Contract on the date set forth opposite their signatures. If Contractor is a corporation, Contractor shall provide two signatures as follows: 1) the first signature must be either the Chairman of the Board, the President, or any Vice President; 2) the second signature must be that of the Secretary, an Assistant Secretary, the Chief Financial Officer, or any Assistant Treasurer. In the alternative, a single corporate signature is acceptable when accompanied by a corporate resolution or by-laws demonstrating the legal authority of the signature to bind the company.

Contractor: CITY OF STANTON
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
Contractor: BOYS & GIRLS CLUBS OF GARDEN GROVE, INC.
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
MA-063-25010752 Page 4 of 4 December 8, 2025
Contractor: INTERVAL HOUSE
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
__________________________________ __________________________________ Print Name Title
__________________________________ __________________________________ Signature Date
County of Orange, a political subdivision of the State of California Deputized Designee Signature:
__________________________________ _Deputy Procurement Agent_______ Print Name Title
__________________________________ __________________________________ Signature Date

APPROVED AS TO FORM

COUNTY COUNSEL

COUNTY OF ORANGE, CALIFORNIA

__________________________________ ___ Deputy County Counsel________ Print Name Title
__________________________________ __________________________________ Signature Date
MA-063-25010752 Page 1 of 58 December 8, 2025

ATTACHMENT D

OCSSA STATE PRIVACY AND SECURITY PROVISIONS

DEFINITIONS
For the purpose of this Agreement, the following terms mean:

1. “Assist in the administration of the Medi-Cal program” means performing administrative functions on behalf of Medi-Cal programs, such as establishing eligibility, determining the amount of medical assistance, and collecting PII for such purposes, to the extent such activities are authorized by law.

2. “Breach” refers to actual loss, loss of control, compromise, unauthorized disclosure, unauthorized acquisition, unauthorized access, or any similar term referring to situations where persons other than authorized users and for other than authorized purposes have access or potential access to PII, whether electronic, paper, verbal, or recorded.

3. “Contractor Worker” means those Contractor employees, contractors, subcontractors, vendors and agents performing any functions for the Contractor that require access to and/or use of PII and that are authorized by the Contractor to access and use PII. An agent is a person or organization authorized to act on behalf of the Contractor.

4. “PII” includes “Medi-Cal PII” and is defined as personally identifiable information directly obtained in the course of performing an administrative function through the MEDS or IEVS systems on behalf of Medi-Cal programs that can be used alone, or in conjunction with any other information, to identify a specific individual. PII includes any information that can be used to search for or identify individuals, or can be used to access their files, including but not limited to name, social security number (SSN), date and place of birth (DOB), mother’s maiden name, driver's license number, or identification number. PII may also include any information that is linkable to an individual, such as medical, educational, financial, and employment information. PII may be electronic, paper, verbal, or recorded and includes statements made by, or attributed to, the individual.

5. “Security Incident” means the attempted or successful unauthorized access, use, disclosure, modification, or destruction of PII, or interference with system operations in an information system which processes PII that is under the control of the County or California Statewide Automated Welfare System (CalSAWS) Consortium, or a contractor, subcontractor or vendor of the County.

6. “Secure Areas” means any area where:

A. Contractor Workers assist in the administration of Medi-Cal programs; B. Contractor Workers use or disclose PII; or
C. PII is stored in paper or electronic format.

7. “SSA-provided or verified data (SSA data)” means:

MA-063-25010752 Page 2 of 58 December 8, 2025
A. Any information under the control of the Social Security Administration (SSA) provided to Department of Health Care Services (DHCS) and California Department of Social Services (CDSS) under the terms of an information exchange agreement with SSA (e.g., SSA provided date of death, SSA Title II or Title XVI benefit and eligibility data, or SSA citizenship verification); or
B. Any information provided to the County of Orange by DHCS and CDSS, including a source other than SSA, but in which DHCS and CDSS attests that SSA verified it, or couples the information with data from SSA to certify the accuracy of it (e.g., SSN and associated SSA verification indicator displayed together on a screen, file, or report, or DOB and associated SSA verification indicator displayed together on a screen, file, or report).

AGREEMENTS
County of Orange and Contractor mutually agree as follows:

I. PRIVACY AND CONFIDENTIALITY
A. Contractor Workers may use or disclose PII only as permitted in this Agreement and only to assist in the administration of Medi-Cal programs in accordance with Section 14100.2 of the Welfare and Institutions Code, Section 431.302 of Title 42 Code of Federal Regulations, as limited by this Agreement, and as otherwise required by law. Disclosures required by law or that are made with the explicit written authorization of the client, such as through an authorized release of information form, are allowable. Any other use or disclosure of PII requires the express approval in writing of County of Orange. No Contractor Worker shall duplicate, disseminate or disclose PII except as allowed in this Agreement.

B. While County of Orange is a hybrid covered entity under the federal Health Insurance Portability and Accountability Act, as amended from time to time (HIPAA), the Contractor is not required to be the business associate of the County of Orange, if the activities of the Contractor are limited to determining eligibility for, or enrollment in, Medi-Cal programs (45 CFR 160.103). Nevertheless, it is the intention of the parties to protect the privacy and security of PII and the rights of Medi-Cal applicants and beneficiaries in a manner that is consistent with HIPAA and other laws that are applicable. It is not the intention of the parties to voluntarily subject the Contractor to federal HIPAA jurisdiction where it would not otherwise apply.

1. To the extent that other state and/or federal laws provide additional, stricter, and/or more protective (collectively, more protective) privacy and/or security protections to the PII covered under this Agreement beyond those provided through HIPAA, as applicable, Contractor shall:
a. Comply with the more protective of the privacy and security standards set forth in applicable state or federal laws to the extent such standards provide a greater degree of protection and security than HIPAA or are otherwise more favorable to the individuals whose information is concerned; and
MA-063-25010752 Page 3 of 58 December 8, 2025
b. Treat any violation of such additional and/or more protective standards as a breach or security incident, as appropriate, pursuant to Section VIII. of this Agreement. It is not the intention of the parties that this subsection I.B.(1)(b) expands the definitions of breach nor security incident set forth this Agreement unless the additional and/or more protective standard has a different definition for these terms, as applicable.

Examples of laws that provide additional and/or stricter privacy protections to certain types of PII include but are not limited to the Confidentiality of Alcohol and Drug Abuse Patient Records, 42 CFR Part 2, Welfare and Institutions Code section 5328, and California Health and Safety Code section 11845.5.

C. Access to PII shall be restricted to Contractor Workers who need to perform their official duties to assist in the administration of Medi-Cal programs.

D. Contractor Workers who access, disclose or use PII in a manner or for a purpose not authorized by this Agreement may be subject to civil and criminal sanctions contained in applicable federal and state statutes.

II. PERSONNEL CONTROLS
The Contractor agrees to advise Contractor Workers who have access to PII of the confidentiality of the information, the safeguards required to protect the information, and the civil and criminal sanctions for non-compliance contained in applicable federal and state laws. For that purpose, the Contractor shall implement the following personnel controls:

A. Employee Training. Train and use reasonable measures to ensure compliance with the requirements of this Agreement by Contractor Workers, including, but not limited to:

1. Provide initial privacy and security awareness training to each new Contractor Worker within 30 days of employment;

2. Thereafter, provide annual refresher training or reminders of the privacy and security safeguards in this Agreement to all Contractor Workers. Three or more security reminders per year are recommended;

3. Maintain records indicating each Contractor Worker’s name and the date on which the privacy and security awareness training was completed and;

4. Retain training records for a period of five years after completion of the training.

B. Employee Discipline.

1. Provide documented sanction policies and procedures for Contractor Workers who fail to comply with privacy policies and procedures or any provisions of these requirements.

MA-063-25010752 Page 4 of 58 December 8, 2025

2. Sanction policies and procedures shall include termination of employment when appropriate.

C. Confidentiality Statement. Ensure that all Contractor Workers sign a confidentiality statement. The statement shall be signed by Contractor Workers prior to accessing PII and annually thereafter. Signatures may be physical or electronic. The signed statement shall be retained for a period of five years.

The statement shall include, at a minimum, a description of the following:

1. General Use of PII;

2. Security and Privacy Safeguards for PII;

3. Unacceptable Use of PII; and

4. Enforcement Policies.

D. Background Screening.

1. Conduct a background screening of a Contractor Worker before they may access PII.

2. The background screening should be commensurate with the risk and magnitude of harm the employee could cause. More thorough screening shall be done for those employees who are authorized to bypass significant technical and operational security controls.

3. The Contractor shall retain each Contractor Worker’s background screening documentation for a period of three years following conclusion of employment relationship.

III. MANAGEMENT OVERSIGHT AND MONITORING
To ensure compliance with the privacy and security safeguards in this Agreement the Contractor shall perform the following:

A. Conduct periodic privacy and security review of work activity by Contractor Workers, including random sampling of work product. Examples include, but are not limited to, access to case files or other activities related to the handling of PII.

The periodic privacy and security reviews shall be performed or overseen by management level personnel who are knowledgeable and experienced in the areas of privacy and information security in the administration of the Medi-Cal program and the use or disclosure of PII.

B. Utilize Medi-Cal Eligibility Data System (MEDS) audit reports provided by the County of Orange and other system auditing tools available to Contractor to perform quality assurance and management oversight reviews of their Contractor Workers’ access to Medi-Cal and MA-063-25010752 Page 5 of 58 December 8, 2025
SSA PII within data systems utilized, including MEDS. For additional information see Medi-Cal Eligibility Division Information Letter | 21-34. Any instances of suspected security incidents or breaches are to be reported to the County of Orange immediately following the instructions within Section X of this Agreement.

To ensure a separation of duties, these system audit reviews shall be performed by privacy and security staff who do not have access to PII within the systems. DHCS requires the County of Orange to enforce a separation of duties, excluding any individual who uses MEDS to make benefit or entitlement determinations from participating in oversight, monitoring, or quality assurance functions. The County of Orange acknowledges that with smaller contractors the separation of duties requirement might create a hardship based on there being a small number of people available to perform various tasks. Requests for hardship exemptions will be approved on a case-by-case basis.

IV. INFORMATION SECURITY AND PRIVACY STAFFING
The Contractor agrees to:

A. Designate information security and privacy officials who are accountable for compliance with these and all other applicable requirements stated in this Agreement.

B. Provide the County of Orange with applicable contact information for these designated individuals using the County inbox listed in Section IX of this Agreement. Any changes to this information should be reported to the County of Orange within 10 days.

C. Assign Contractor Workers to be responsible for administration and monitoring of all security-related controls stated in this Agreement.

V. TECHNICAL SECURITY CONTROLS
The State of California Office of Information Security (OIS) and SSA have adopted the National Institute of Standards and Technology (NIST) Special Publication (SP) 800- 53, Security and Privacy controls for Information Systems and Organizations, and NIST SP 800-37, Risk Management Framework for Information Systems and Organizations.

OIS and SSA require organizations to comply and maintain the minimum standards outlined in NIST SP 800-53 when working with PII and SSA data. Contractor shall, at a minimum, implement an information security program that effectively manages risk in accordance with the Systems Security Standards and Requirements outlined in this Section of this Agreement.

Guidance regarding implementation of NIST SP 800-53 is available in the Statewide Information Management Manual (SIMM), SIMM-5300-A, which is hereby incorporated into this Agreement (Exhibit C) and available upon request.

MA-063-25010752 Page 6 of 58 December 8, 2025
[Remainder of page intentionally left blank]
MA-063-25010752 Page 7 of 58 December 8, 2025
A. Systems Security Standards and Requirements

1. Access Control (AC)
Control
Number
AC-1
Title Access Control Policy and Procedures

DHCS & CDSS
Requirement
The organization must:
a. Develop, document, and disseminate to designated organization officials:

1. An access control policy that addresses purpose, scope, roles, responsibilities, management commitment, coordination among organizational entities, and compliance;

2. Procedures to facilitate the implementation of the access control policy and associated access control controls;
b. Review and update the current access control procedures with the organizationdefined frequency.

Supplemental
Guidance (from
NIST 800-53)
This control addresses the establishment of policy and procedures for the effective implementation of selected security controls and control enhancements in the AC family.

Policy and procedures reflect applicable federal laws, Executive Orders, directives, regulations, policies, standards, and guidance. Security program policies and procedures at the organization level may make the need for system-specific policies and procedures unnecessary. The policy can be included as part of the general information security policy for organizations or conversely, can be represented by multiple policies reflecting the complex nature of certain organizations. The procedures can be established for the security program in general and for particular information systems, if needed. The organizational risk management strategy is a key factor in establishing policy and procedures. Related control: PM-9.

Control
Number
AC-2
Title Account Management

DHCS & CDSS
Requirement
The organization must:
a. Identify and select the accounts with access to PII to support organizational missions/business functions.
b. Assign account managers for information system accounts; c. Establish conditions for group and role membership;
d. Specify authorized users of the information system, group and role membership, and access authorizations (i.e., privileges) and other attributes (as required) for each account;
e. Require approvals by designated access authority for requests to create information system accounts;
f. Create, enable, modify, disable, and remove information system accounts in accordance with organization account management procedures; g. Monitors the use of information system accounts;
MA-063-25010752 Page 8 of 58 December 8, 2025
h. Notifies account managers when accounts are no longer required, when users are terminated or transferred; and when individual information system usage or needto-know changes. i. Authorizes access to the information systems that receive, process, store or transmit PII based on valid access authorization, need-to-know permission or under the authority to re- disclose PII.
j. Review accounts for compliance with account management requirements according to organization-based frequency; and
k. Establishes a process for reissuing shared/group account credentials (if deployed) when individuals are removed from the group.

Supplemental
Guidance (from
NIST 800-53)
Information system account types include, for example, individual, shared, group, system, guest/anonymous, emergency, developer/manufacturer/vendor, temporary, and service.

Some of the account management requirements listed above can be implemented by organizational information systems. The identification of authorized users of the information system and the specification of access privileges reflects the requirements in other security controls in the security plan. Users requiring administrative privileges on information system accounts receive additional scrutiny by appropriate organizational personnel (e.g., system owner, mission/business owner, or chief information security officer) responsible for approving such accounts and privileged access. Organizations may choose to define access privileges or other attributes by account, by type of account, or a combination of both. Other attributes required for authorizing access include, for example, restrictions on time-of-day, day-of-week, and point-of-origin. In defining other account attributes, organizations consider system-related requirements (e.g., scheduled maintenance, system upgrades) and mission/business requirements, (e.g., time zone differences, customer requirements, remote access to support travel requirements). Failure to consider these factors could affect information system availability. Temporary and emergency accounts are accounts intended for short-term use. Organizations establish temporary accounts as a part of normal account activation procedures when there is a need for short-term accounts without the demand for immediacy in account activation.

Organizations establish emergency accounts in response to crisis situations and with the need for rapid account activation. Therefore, emergency account activation may bypass normal account authorization processes. Emergency and temporary accounts are not to be confused with infrequently used accounts (e.g., local logon accounts used for special tasks defined by organizations or when network resources are unavailable). Such accounts remain available and are not subject to automatic disabling or removal dates. Conditions for disabling or deactivating accounts include, for example: (i) when shared/group, emergency, or temporary accounts are no longer required; or (ii) when individuals are transferred or terminated. Some types of information system accounts may require specialized training. Related controls: AC- 3, AC-4, AC-5, AC-6, AC-10, AC-17, AC-19, AC-20, AU-9, IA-2, IA-4, IA-5, IA-8, CM-5, CM-6, CM-11, MA-3, MA-4, MA-5, PL-4, SC-13.

Control
Number
AC-3
Title Account Management
DHCS & CDSS The organization must:

MA-063-25010752 Page 9 of 58 December 8, 2025
Requirement a. Identify and select the accounts with access to PII to support organizational missions/business functions.
b. Assign account managers for information system accounts; c. Establish conditions for group and role membership;
d. Specify authorized users of the information system, group and role membership, and access authorizations (i.e., privileges) and other attributes (as required) for each account;
e. Require approvals by designated access authority for requests to create information system accounts;
f. Create, enable, modify, disable, and remove information system accounts in accordance with organization account management procedures; g. Monitors the use of information system accounts;
h. Notifies account managers when accounts are no longer required, when users are terminated or transferred; and when individual information system usage or needto-know changes. i. Authorizes access to the information systems that receive, process, store or transmit PII based on valid access authorization, need-to-know permission or under the authority to re- disclose PII.
j. Review accounts for compliance with account management requirements according to organization-based frequency; and
k. Establishes a process for reissuing shared/group account credentials (if deployed) when individuals are removed from the group.

Organizations establish emergency accounts in response to crisis situations and with the need for rapid account activation. Therefore, emergency account activation may bypass normal account authorization processes. Emergency and temporary accounts are not to be confused with infrequently used accounts (e.g., local logon accounts used for special tasks MA-063-25010752 Page 10 of 58 December 8, 2025
defined by organizations or when network resources are unavailable). Such accounts remain available and are not subject to automatic disabling or removal dates. Conditions for disabling or deactivating accounts include, for example: (i) when shared/group, emergency, or temporary accounts are no longer required; or (ii) when individuals are transferred or terminated. Some types of information system accounts may require specialized training. Related controls: AC- 3, AC-4, AC-5, AC-6, AC-10, AC-17, AC-19, AC-20, AU-9, IA-2, IA-4, IA-5, IA-8, CM-5, CM-6, CM-11, MA-3, MA-4, MA-5, PL-4, SC-13.

Control
Number
AC-3(7)
Title Access Enforcement | Role-Based Access Control

DHCS & CDSS
Requirement
The organization information system must:
enforce a role-based access control policy over defined subjects and objects and controls access based upon the need to utilize PII.

Supplemental
Guidance (from
NIST 800-53)
Role-based access control (RBAC) is an access control policy that restricts information system access to authorized users. Organizations can create specific roles based on job functions and the authorizations (i.e., privileges) to perform needed operations on organizational information systems associated with the organization-defined roles. When users are assigned to the organizational roles, they inherit the authorizations or privileges defined for those roles. RBAC simplifies privilege administration for organizations because privileges are not assigned directly to every user (which can be a significant number of individuals for mid- to large-size organizations) but are instead acquired through role assignments. RBAC can be implemented either as a mandatory or discretionary form of access control. For organizations implementing RBAC with mandatory access controls, the requirements in AC-3 (3) define the scope of the subjects and objects covered by the policy.

Control
Number
AC-3(8)
Title Access Enforcement | Revocation of Access Authorization

DHCS & CDSS
Requirement
The organization must:

Enforce a role-based access control over users and information resources that have access to PII, and control access based upon organization defined roles and users authorized to assume such roles.

Supplemental
Guidance (from
NIST 800-53)
Revocation of access rules may differ based on the types of access revoked. For example, if a subject (i.e., user or process) is removed from a group, access may not be revoked until the next time the object (e.g., file) is opened or until the next time the subject attempts a new access to the object. Revocation based on changes to security labels may take effect immediately.

Organizations can provide alternative approaches on how to make revocations immediate if information systems cannot provide such capability and immediate revocation is necessary.

Control
Number
AC-4
Title Information Flow Enforcement
MA-063-25010752 Page 11 of 58 December 8, 2025

DHCS & CDSS
Requirement
The organization information system must: enforce approved authorizations for controlling the flow of information within the system and between interconnected systems based on the need for interconnected systems to share PII to conduct business.

Supplemental
Guidance (from
NIST 800-53)
Information flow control regulates where information is allowed to travel within an information system and between information systems (as opposed to who is allowed to access the information) and without explicit regard to subsequent accesses to that information. Flow control restrictions include, for example, keeping export-controlled information from being transmitted in the clear to the Internet, blocking outside traffic that claims to be from within the organization, restricting web requests to the Internet that are not from the internal web proxy server, and limiting information transfers between organizations based on data structures and content.

Transferring information between information systems representing different security domains with different security policies introduces risk that such transfers violate one or more domain security policies. In such situations, information owners/stewards provide guidance at designated policy enforcement points between interconnected systems.

Organizations consider mandating specific architectural solutions when required to enforce specific security policies. Enforcement includes, for example: (i) prohibiting information transfers between interconnected systems (i.e., allowing access only); (ii) employing hardware mechanisms to enforce one-way information flows; and (iii) implementing trustworthy regrading mechanisms to reassign security attributes and security labels.

Organizations commonly employ information flow control policies and enforcement mechanisms to control the flow of information between designated sources and destinations (e.g., networks, individuals, and devices) within information systems and between interconnected systems. Flow control is based on the characteristics of the information and/or the information path.

Enforcement occurs, for example, in boundary protection devices (e.g., gateways, routers, guards, encrypted tunnels, firewalls) that employ rule sets or establish configuration settings that restrict information system services, provide a packet-filtering capability based on header information, or message- filtering capability based on message content (e.g., implementing key word searches or using document characteristics). Organizations also consider the trustworthiness of filtering/inspection mechanisms (i.e., hardware, firmware, and software components) that are critical to information flow enforcement.

Control enhancements 3 through 22 primarily address cross-domain solution needs which focus on more advanced filtering techniques, in-depth analysis, and stronger flow enforcement mechanisms implemented in cross- domain products, for example, highassurance guards. Such capabilities are generally not available in commercial off-the-shelf information technology products. Related controls: AC-3, AC-17, AC-19, AC-21, CM-6, CM-7, SA-8, SC-2, SC-5, SC-7, SC-18
Control
Number
AC-5
Title Separation of Duties

DHCS & CDSS
Requirement
The organization must:
a. Separate organization-defined duties of individuals; MA-063-25010752 Page 12 of 58 December 8, 2025
b. Document separation of duties of individuals; and
c. Defines information system access authorizations to support separation of duties.

DHCS and CDSS also require that the state organization prohibit any functional component(s) or official(s) from issuing credentials or access authority to themselves or other individuals within their job- function or category of access.

Federal requirements and DHCS and CDSS policy exclude any employee who uses PII to process programmatic workloads to make benefit or entitlement determinations from participation in management or quality assurance functions.

Supplemental
Guidance (from
NIST 800-53)
Separation of duties addresses the potential for abuse of authorized privileges and helps to reduce the risk of malevolent activity without collusion. Separation of duties includes, for example:
(i) dividing mission functions and information system support functions among different individuals and/or roles; (ii) conducting information system support functions with different individuals (e.g., system management, programming, configuration management, quality assurance and testing, and network security); and (iii) ensuring security personnel administering access control functions do not also administer audit functions. Related controls: AC-3, AC-6, PE-3, PE-4, PS-2.

Control
Number
AC-6
Title Least Privilege

DHCS & CDSS
Requirement
The organization must:

Employ the principle of least privilege, allowing only authorized accesses for users (or processes acting on behalf of users) which are necessary to accomplish assigned tasks in accordance with organizational missions and business functions.

Supplemental
Guidance (from
NIST 800-53)
Organizations employ least privilege for specific duties and information systems. The principle of least privilege is also applied to information system processes, ensuring that the processes operate at privilege levels no higher than necessary to accomplish required organizational missions/business functions. Organizations consider the creation of additional processes, roles, and information system accounts as necessary, to achieve least privilege. Organizations also apply least privilege to the development, implementation, and operation of organizational information systems. Related controls: AC-2, AC-3, AC5, CM-6, CM-7, PL-2.

Control
Number
AC-6(1)
Title Least Privilege | Authorize Access to Security Functions

DHCS & CDSS
Requirement
The organization must explicitly authorize access to organization-defined security functions (deployed in hardware, software, and firmware) and security-relevant information.

Supplemental
Guidance (from
NIST 800-53)
Security functions include, for example, establishing system accounts, configuring access authorizations (i.e., permissions, privileges), setting events to be audited, and setting intrusion detection parameters. Security-relevant information includes, for example, filtering rules for routers/firewalls, cryptographic key management information, configuration parameters for security services, and access control lists. Explicitly MA-063-25010752 Page 13 of 58 December 8, 2025
authorized personnel include, for example, security administrators, system and network administrators, system security officers, system maintenance personnel, system programmers, and other privileged users.

Control
Number
AC-6(7)
Title Least Privilege | Review Of User Privileges

DHCS & CDSS
Requirement
The organization must:
a. Review the privileges assigned to organization-defined roles or classes of users to validate the need for such privileges; and
b. Reassign or removes privileges, if necessary, to correctly reflect organizational mission/business needs.

Supplemental
Guidance (from
NIST 800-53)
The need for certain assigned user privileges may change over time reflecting changes in organizational missions/business function, environments of operation, technologies, or threat. Periodic review of assigned user privileges is necessary to determine if the rationale for assigning such privileges remains valid. If the need cannot be revalidated, organizations take appropriate corrective actions. Related control: CA-7.

Control
Number
AC-7
Title Unsuccessful Logon Attempts

DHCS & CDSS
Requirement
The organization must:
a. Enforce a limit of no fewer than three (3) and no greater than five (5) consecutive invalid logon attempts by a user during an organization-defined time period; and b. Automatically lock the account/node for: an organization-defined time period; or locks the account/node until released by an administrator; or delays next logon prompt according to organization-defined delay algorithm when the maximum number of unsuccessful attempts is exceeded.

Supplemental
Guidance (from
NIST 800-53)
This control applies regardless of whether the logon occurs via a local or network connection. Due to the potential for denial of service, automatic lockouts initiated by information systems are usually temporary and automatically release after a predetermined time period established by organizations. If a delay algorithm is selected, organizations may choose to employ different algorithms for different information system components based on the capabilities of those components. Responses to unsuccessful logon attempts may be implemented at both the operating system and the application levels. Related controls: AC-2, AC-9, AC-14, IA-5.

Control
Number
AC-8
Title System Use Notification

DHCS & CDSS
Requirement
The organization must:
a. Displays to users system use notification message or banner before granting access to the system that provides privacy and security notices consistent with applicable federal laws, Executive Orders, directives, policies, regulations, standards, and guidance and states that:

MA-063-25010752 Page 14 of 58 December 8, 2025

1. Users are accessing a U.S. Government information system;

2. Information system usage may be monitored, recorded, and subject to audit;

3. Unauthorized use of the information system is prohibited and subject to criminal and civil penalties; and

4. Use of the information system indicates consent to monitoring and recording; b. Retains the notification message or banner on the screen until users acknowledge the usage conditions and take explicit actions to log on to or further access the information system; and
c. For publicly accessible systems:

1. Displays system use information organization-defined conditions, before granting further access;

2. Displays references, if any, to monitoring, recording, or auditing that are consistent with privacy accommodations for such systems that generally prohibit those activities; and

3. Includes a description of the authorized uses of the system.

At a minimum, this can be done at initial logon and is not required for every logon.

Supplemental
Guidance (from
NIST 800-53)
System use notifications can be implemented using messages or warning banners displayed before individuals log in to information systems. System use notifications are used only for access via logon interfaces with human users and are not required when such human interfaces do not exist. Organizations consider system use notification messages/banners displayed in multiple languages based on specific organizational needs and the demographics of information system users. Organizations also consult with the Office of the General Counsel for legal review and approval of warning banner content.

Control
Number
AC-11
Title Session Lock

DHCS & CDSS
Requirement
The organization's information system:
a. Prevents further access to the system by initiating a session lock after 15 minutes or upon receiving a request from a user; and
b. Retains the session lock until the user reestablishes access using established identification and authentication procedures.

Supplemental
Guidance (from
NIST 800-53)
Session locks are temporary actions taken when users stop work and move away from the immediate vicinity of information systems but do not want to log out because of the temporary nature of their absences. Session locks are implemented where session activities can be determined. This is typically at the operating system level, but can also be at the application level. Session locks are not an acceptable substitute for logging out of information systems, for example, if organizations require users to log out at the end of workdays. Related control: AC-7.

Control
Number
AC-17
Title Remote Access
DHCS & CDSS The organization must:

MA-063-25010752 Page 15 of 58 December 8, 2025
Requirement a. Establish and document usage restrictions, configuration/connection requirements, and implementation guidance for each type of remote access allowed; and b. Authorize remote access to the information system prior to allowing such connections.

Supplemental
Guidance (from
NIST 800-53)
Remote access is access to organizational information systems by users (or processes acting on behalf of users) communicating through external networks (e.g., the Internet).

Remote access methods include, for example, dial-up, broadband, and wireless.

Organizations often employ encrypted virtual private networks (VPNs) to enhance confidentiality and integrity over remote connections. The use of encrypted VPNs does not make the access non-remote; however, the use of VPNs, when adequately provisioned with appropriate security controls (e.g., employing appropriate encryption techniques for confidentiality and integrity protection) may provide sufficient assurance to the organization that it can effectively treat such connections as internal networks. Still, VPN connections traverse external networks, and the encrypted VPN does not enhance the availability of remote connections. Also, VPNs with encrypted tunnels can affect the organizational capability to adequately monitor network communications traffic for malicious code. Remote access controls apply to information systems other than public web servers or systems designed for public access. This control addresses authorization prior to allowing remote access without specifying the formats for such authorization.

While organizations may use interconnection security agreements to authorize remote access connections, such agreements are not required by this control. Enforcing access restrictions for remote connections is addressed in AC-3. Related controls: AC-2, AC-3, AC-18, AC-19, AC-20, CA-3, CA-7, CM-8, IA-2, IA-3, IA-8, MA-4, PE-17, PL-4, SC10, SI-4.

2. Accountability, Audit, and Risk Management (AR)
Control
Number
AR-3
Title Privacy Requirements for Contractors and Service Providers

DHCS & CDSS
Requirement
The organization must:
a. Establish privacy roles, responsibilities, and access requirements for contractors and service providers; and
b. Includes privacy requirements in contracts and other acquisition-related documents.

Supplemental
Guidance (from
NIST 800-53)
Contractors and service providers include, but are not limited to, information providers, information processors, and other organizations providing information system development, information technology services, and other outsourced applications.

Organizations consult with legal counsel, the Senior Agency Official for Privacy (SAOP)/Chief Privacy Officer (CPO), and contracting officers about applicable laws, directives, policies, or regulations that may impact implementation of this control. Related control: AR-1, AR-5, SA-4.

3. Audit and Accountability (AU)
MA-063-25010752 Page 16 of 58 December 8, 2025
Control
Number
AU-1
Title Audit and Accountability Policy and Procedures

DHCS & CDSS
Requirement
The organization must:
a. Develop, document, and disseminate to individuals and organizations that store, process, or transmit PII:

1. An audit and accountability policy that addresses purpose, scope, roles, responsibilities, management commitment, coordination among organizational entities, and compliance; and

2. Procedures to facilitate the implementation of the audit and accountability policy and associated audit and accountability controls; and
b. Review and update the current:

1. Audit and accountability policy at least triennially; and

2. Audit and accountability procedures at least triennially.

PM-9.

Control
Number
AU-2
Title Audit Events

DHCS & CDSS
Requirement
The organization must:
a. Audit the following events:

1. Viewing PII stored within the organization’s system;

2. Viewing of screens that contain PII;

3. All system and data interactions concerning PII.
b. Coordinate the security audit function with other organizational entities requiring audit-related information to enhance mutual support and to help guide the selection of auditable events;
c. Determines that the following events are to be audited within the information system:

1. Viewing PII stored within the organization’s system;

2. Viewing of screens that contain PII;

3. All system and data interactions concerning PII.

Supplemental
Guidance (from
An event is any observable occurrence in an organizational information system.

Organizations identify audit events as those events which are significant and relevant to the MA-063-25010752 Page 17 of 58 December 8, 2025
NIST 800-53) security of information systems and the environments in which those systems operate in order to meet specific and ongoing audit needs. Audit events can include, for example, password changes, failed logons, or failed accesses related to information systems, administrative privilege usage, PIV credential usage, or third-party credential usage. In determining the set of auditable events, organizations consider the auditing appropriate for each of the security controls to be implemented. To balance auditing requirements with other information system needs, this control also requires identifying that subset of auditable events that are audited at a given point in time. For example, organizations may determine that information systems must have the capability to log every file access both successful and unsuccessful, but not activate that capability except for specific circumstances due to the potential burden on system performance. Auditing requirements, including the need for auditable events, may be referenced in other security controls and control enhancements. Organizations also include auditable events that are required by applicable federal laws, Executive Orders, directives, policies, regulations, and standards.

Audit records can be generated at various levels of abstraction, including at the packet level as information traverses the network. Selecting the appropriate level of abstraction is a critical aspect of an audit capability and can facilitate the identification of root causes to problems.

Organizations consider in the definition of auditable events, the auditing necessary to cover related events such as the steps in distributed, transaction-based processes (e.g., processes that are distributed across multiple organizations) and actions that occur in service-oriented architectures. Related controls: AC-6, AC-17, AU-3, AU-12, MA-4, MP-2, MP-4, SI-4 Control
Number
AU-11
Title Audit Record Retention

DHCS & CDSS
Requirement
The organization must retain audit records for six (6) years to provide support for after-thefact investigations of security incidents and to meet regulatory and organizational information retention requirements.

Supplemental
Guidance (from
NIST 800-53)
Organizations retain audit records until it is determined that they are no longer needed for administrative, legal, audit, or other operational purposes. This includes, for example, retention and availability of audit records relative to Freedom of Information Act (FOIA) requests, subpoenas, and law enforcement actions. Organizations develop standard categories of audit records relative to such types of actions and standard response processes for each type of action. The National Archives and Records Administration (NARA) General Records Schedules provide federal policy on record retention. Related controls:

AU-4, AU-5, AU-9, MP-6.

Control
Number
AU-12
Title Audit Generation

DHCS & CDSS
Requirement
The organization information system must:
a. Provide audit record generation capability for the auditable events defined in AU-2 a. at the audit reporting mechanism;
b. Allow security personnel to select which auditable events are to be audited by specific components of the information system; and
MA-063-25010752 Page 18 of 58 December 8, 2025
c. Generates audit records for the events defined in AU-2 d. with the content defined in AU-3
Supplemental
Guidance (from
NIST 800-53)
Audit records can be generated from many different information system components. The list of audited events is the set of events for which audits are to be generated. These events are typically a subset of all events for which the information system is capable of generating audit records. Related controls: AC-3, AU-2, AU-3, AU-6, AU-7.

4. Awareness and Training (AT)
Control
Number
AT-1
Title Security Awareness and Training Policy and Procedures

DHCS & CDSS
Requirement
The organization must:
a. Develop, document, and disseminate to personnel and organizations with access to PII:

1. A security awareness and training policy that addresses purpose, scope, roles, responsibilities, management commitment, coordination among organizational entities, and compliance; and

2. Procedures to facilitate the implementation of the security awareness and training policy and associated security awareness and training controls; and b. Reviews and updates the current:

1. Security awareness and training policy and;

2. Security awareness and training procedures.

The training and awareness programs must include:

The sensitivity of PII,
The rules of behavior concerning use and security in systems and/or applications processing PII,
The Privacy Act and other Federal and state laws, including but not limited to Section 14100.2 of the Welfare and Institutions Code and Section 431.302 et. Seq. of Title 42 Code of Federal Regulations, governing collection, maintenance, use, and dissemination of information about individuals,
The possible criminal and civil sanctions and penalties for misuse of PII, The responsibilities of employees, contractors, and agent’s pertaining to the proper use and protection of PII,
The restrictions on viewing and/or copying PII,
The proper disposal of PII,
The security breach and data loss incident reporting procedures, The basic understanding of procedures to protect the network from viruses, worms, Trojan horses, and other malicious code,
Social engineering (phishing, vishing and pharming) and network fraud prevention.

Supplemental
Guidance (from
This control addresses the establishment of policy and procedures for the effective implementation of selected security controls and control enhancements in the AT family.

MA-063-25010752 Page 19 of 58 December 8, 2025
NIST 800-53) Policy and procedures reflect applicable federal laws, Executive Orders, directives, regulations, policies, standards, and guidance. Security program policies and procedures at the organization level may make the need for system-specific policies and procedures unnecessary. The policy can be included as part of the general information security policy for organizations or conversely, can be represented by multiple policies reflecting the complex nature of certain organizations. The procedures can be established for the security program in general and for particular information systems, if needed. The organizational risk management strategy is a key factor in establishing policy and procedures. Related control: PM-9.

Control
Number
AT-2
Title Security Awareness Training

DHCS & CDSS
Requirement
The organization must provide basic security awareness training to information system users (including managers, senior executives, and contractors):
a. As part of initial training for new users;
b. When required by information system changes; and
c. Annually thereafter.

Supplemental
Guidance (from
NIST 800-53)
Organizations determine the appropriate content of security awareness training and security awareness techniques based on the specific organizational requirements and the information systems to which personnel have authorized access. The content includes a basic understanding of the need for information security and user actions to maintain security and to respond to suspected security incidents. The content also addresses awareness of the need for operations security. Security awareness techniques can include, for example, displaying posters, offering supplies inscribed with security reminders, generating email advisories/notices from senior organizational officials, displaying logon screen messages, and conducting information security awareness events. Related controls: AT-3, AT-4, PL-4.

Control
Number
AT-3
Title Role-Based Security Training

DHCS & CDSS
Requirement
The organization must provide role-based security training to personnel with assigned security roles and responsibilities:
a. Before authorizing access to the information system or performing assigned duties; b. When required by information system changes; and
c. With organization-defined frequency thereafter.

Supplemental
Guidance (from
NIST 800-53)
Organizations determine the appropriate content of security training based on the assigned roles and responsibilities of individuals and the specific security requirements of organizations and the information systems to which personnel have authorized access. In addition, organizations provide enterprise architects, information system developers, software developers, acquisition/procurement officials, information system managers, system/network administrators, personnel conducting configuration management and auditing activities, personnel performing independent verification and validation activities, security control assessors, and other personnel having access to system-level software, adequate securityrelated technical training specifically tailored for their assigned duties. Comprehensive role- MA-063-25010752 Page 20 of 58 December 8, 2025
based training addresses management, operational, and technical roles and responsibilities covering physical, personnel, and technical safeguards and countermeasures. Such training can include for example, policies, procedures, tools, and artifacts for the organizational security roles defined. Organizations also provide the training necessary for individuals to carry out their responsibilities related to operations and supply chain security within the context of organizational information security programs. Role- based security training also applies to contractors providing services to federal agencies. Related controls: AT-2, AT-4, PL-4, PS-7, SA-3, SA-12, SA-16.

Control
Number
AT-4
Title Security Training Records

DHCS & CDSS
Requirement
The organization must:
a. Document and monitor individual information system security training activities including basic security awareness training and specific information system security training; and
b. Retain individual training records for 5 years.

SSA also requires the organization to certify that each employee, contractor, and agent who views SSA data certify that they understand the potential criminal, civil, and administrative sanctions or penalties for unlawful assess and/or disclosure.

Supplemental
Guidance (from
NIST 800-53)
Documentation for specialized training may be maintained by individual supervisors at the option of the organization. Related controls: AT-2, AT-3, PM-14.

5. Contingency Planning (CP)
Control
Number
CP-2
Title Contingency Plan

DHCS & CDSS
Requirement
The organization must:
a. Develop a contingency plan for the information system that:

1. Identifies essential missions and business functions and associated contingency requirements;

2. Provides recovery objectives, restoration priorities, and metrics;

3. Addresses contingency roles, responsibilities, assigned individuals with contact information;

4. Addresses maintaining essential missions and business functions despite an information system disruption, compromise, or failure;

5. Addresses eventual, full information system restoration without deterioration of the security safeguards originally planned and implemented; and

6. Is reviewed and approved by a senior manager;
b. Distribute copies of the contingency plan to personnel and organizations supporting the contingency plan actions;
MA-063-25010752 Page 21 of 58 December 8, 2025
c. Coordinate contingency planning activities with incident handling activities; d. Review the contingency plan for the information system at least annually; e. Update the contingency plan to address changes to the organization, information system, or environment of operation and problems encountered during contingency plan implementation, execution, or testing;
f. Communicate contingency plan changes to personnel and organizations supporting the contingency plan actions;
g. Incorporate lessons learned from contingency plan testing, training, or actual contingency activities into contingency testing and training; and h. Protect the contingency plan from unauthorized disclosure and modification.

Supplemental
Guidance (from
NIST 800-53)
Contingency planning for information systems is part of an overall organizational program for achieving continuity of operations for mission/business functions. Contingency planning addresses both information system restoration and implementation of alternative mission/business processes when systems are compromised. The effectiveness of contingency planning is maximized by considering such planning throughout the phases of the system development life cycle. Performing contingency planning on hardware, software, and firmware development can be an effective means of achieving information system resiliency. Contingency plans reflect the degree of restoration required for organizational information systems since not all systems may need to fully recover to achieve the level of continuity of operations desired.

Information system recovery objectives reflect applicable laws, Executive Orders, directives, policies, standards, regulations, and guidelines. In addition to information system availability, contingency plans also address other security-related events resulting in a reduction in mission and/or business effectiveness, such as malicious attacks compromising the confidentiality or integrity of information systems. Actions addressed in contingency plans include, for example, orderly/graceful degradation, information system shutdown, fallback to a manual mode, alternate information flows, and operating in modes reserved for when systems are under attack. By closely coordinating contingency planning with incident handling activities, organizations can ensure that the necessary contingency planning activities are in place and activated in the event of a security incident. Related controls: AC14, CP-6, CP-7, CP-8, CP-9, CP-10, IR-4, IR-8, MP-2, MP-4, MP-5, PM-8, PM-11.

6. Data Minimization and Retention (DM)
Control
Number
DM-2
Title Data Retention and Disposal

DHCS & CDSS
Requirement
The organization must:
a. Retain each collection of PII no longer than required for the organization’s business process or evidentiary purposes;
b. Dispose of, destroys, erases, and/or anonymizes the PII, regardless of the method of storage, in accordance with a NARA-approved record retention schedule and in a manner that prevents loss, theft, misuse, or unauthorized access; and c. Use organization-defined techniques or methods to ensure secure deletion or MA-063-25010752 Page 22 of 58 December 8, 2025
destruction of PII (including originals, copies, and archived records).

Supplemental
Guidance (from
NIST 800-53)
NARA provides retention schedules that govern the disposition of federal records.

Program officials coordinate with records officers and with NARA to identify appropriate retention periods and disposal methods. NARA may require organizations to retain PII longer than is operationally needed. In those situations, organizations describe such requirements in the notice. Methods of storage include, for example, electronic, optical media, or paper.

Examples of ways organizations may reduce holdings include reducing the types of PII held (e.g., delete Social Security numbers if their use is no longer needed) or shortening the retention period for PII that is maintained if it is no longer necessary to keep PII for long periods of time (this effort is undertaken in consultation with an organization’s records officer to receive NARA approval). In both examples, organizations provide notice (e.g., an updated System of Records Notice) to inform the public of any changes in holdings of PII.

Certain read-only archiving techniques, such as DVDs, CDs, microfilm, or microfiche, may not permit the removal of individual records without the destruction of the entire database contained on such media. Related controls: AR-4, AU-11, DM-1, MP-1, MP-2, MP-3, MP4, MP-5, MP-6, MP-7, MP-8, SI-12, TR-1.

7. Identification and Authentication (IA)
Control
Number
IA-2
Title Identification and Authentication (Organizational Users)

DHCS & CDSS
Requirement
The organization's information system must uniquely identify and authenticate organizational users (or processes acting on behalf of organizational users).

Supplemental
Guidance (from
NIST 800-53)
Organizational users include employees or individuals that organizations deem to have equivalent status of employees (e.g., contractors, guest researchers). This control applies to all accesses other than: (i) accesses that are explicitly identified and documented in AC-14; and (ii) accesses that occur through authorized use of group authenticators without individual authentication.

Organizations may require unique identification of individuals in group accounts (e.g., shared privilege accounts) or for detailed accountability of individual activity.

Organizations employ passwords, tokens, or biometrics to authenticate user identities, or in the case multifactor authentication, or some combination thereof. Access to organizational information systems is defined as either local access or network access. Local access is any access to organizational information systems by users (or processes acting on behalf of users) where such access is obtained by direct connections without the use of networks.

Network access is access to organizational information systems by users (or processes acting on behalf of users) where such access is obtained through network connections (i.e., nonlocal accesses). Remote access is a type of network access that involves communication through external networks (e.g., the Internet). Internal networks include local area networks and wide area networks. In addition, the use of encrypted virtual private networks (VPNs) for network connections between organization- controlled endpoints and non-organization MA-063-25010752 Page 23 of 58 December 8, 2025
controlled endpoints may be treated as internal networks from the perspective of protecting the confidentiality and integrity of information traversing the network.

Organizations can satisfy the identification and authentication requirements in this control by complying with the requirements in Homeland Security Presidential Directive 12 consistent with the specific organizational implementation plans. Multifactor authentication requiresthe use of two or more different factorsto achieve authentication. The factors are defined as: (i) something you know (e.g., password, personal identification number [PIN]); (ii) something you have (e.g., cryptographic identification device, token); or (iii) something you are (e.g., biometric).

Multifactor solutions that require devices separate from information systems gaining access include, for example, hardware tokens providing time-based or challenge-response authenticators and smart cardssuch asthe U.S. Government Personal Identity Verification card and the DoD common access card. In addition to identifying and authenticating users at the information system level (i.e., at logon), organizations also employ identification and authentication mechanisms at the application level, when necessary, to provide increased information security. Identification and authentication requirements for other than organizational users are described in IA-8. Related controls: AC-2, AC-3, AC-14, AC-17, AC18, IA-4, IA-5, IA-8.

Control
Number
IA-5
Title Authenticator Management

DHCS & CDSS
Requirement
The organization must manage information system authenticators by:
a. Verifying, as part of the initial authenticator distribution, the identity of the individual, group, role, or device receiving the authenticator;
b. Establishing initial authenticator content for authenticators defined by the organization;
c. Ensuring that authenticators have sufficient strength of mechanism for their intended use;
d. Establishing and implementing administrative procedures for initial authenticator distribution, for lost/compromised or damaged authenticators, and for revoking authenticators;
e. Changing default content of authenticators prior to information system installation; f. Establishing minimum and maximum lifetime restrictions and reuse conditions for authenticators;
g. Changing/refreshing authenticators within organization-defined time period; h. Protecting authenticator content from unauthorized disclosure and modification; i. Requiring individuals to take, and having devices implement, specific security safeguards to protect authenticators; and
j. Changing authenticators for group/role accounts when membership to those accounts changes.

Supplemental
Guidance (from
NIST 800-53)
Individual authenticators include, for example, passwords, tokens, biometrics, PKI certificates, and key cards. Initial authenticator content is the actual content (e.g., the initial password) as opposed to requirements about authenticator content (e.g., minimum password length). In many cases, developers ship information system components with factory default authentication credentials to allow for initial installation and configuration.

MA-063-25010752 Page 24 of 58 December 8, 2025
Default authentication credentials are often well known, easily discoverable, and present a significant security risk. The requirement to protect individual authenticators may be implemented via control PL-4 or PS-6 for authenticators in the possession of individuals and by controls AC-3, AC-6, and SC-28 for authenticators stored within organizational information systems (e.g., passwords stored in hashed or encrypted formats, files containing encrypted or hashed passwords accessible with administrator privileges).

Information systems support individual authenticator management by organization-defined settings and restrictions for various authenticator characteristics including, for example, minimum password length, password composition, validation time window for time synchronous one-time tokens, and number of allowed rejections during the verification stage of biometric authentication. Specific actions that can be taken to safeguard authenticators include, for example, maintaining possession of individual authenticators, not loaning or sharing individual authenticators with others, and reporting lost, stolen, or compromised authenticators immediately. Authenticator management includes issuing and revoking, when no longer needed, authenticators for temporary access such as that required for remote maintenance. Device authenticators include, for example, certificates and passwords.

Related controls: AC-2, AC-3, AC-6, CM-6, IA-2, IA-4, IA-8, PL-4, PS- 5, PS-6, SC-12, SC-13, SC-17, SC-28.

Control
Number
IA-5(1)
Title Authenticator Management | Password-Based Authentication

DHCS & CDSS
Requirement
The information system, for password-based authentication, must:
a. Enforces minimum password complexity of requirements for:
* case sensitivity (upper and lower case letters),
* number of characters (equal to or greater than fifteen characters), * mix of upper-case letters, lower-case letters, numbers, and special characters (at least one of each type);
c. Stores and transmits only cryptographically-protected passwords; d. Enforces password lifetime of at least 180 days;
e. Prohibits prior 10 passwords for reuse; and
f. Allows the use of a temporary password for system logons with an immediate change to a permanent password.

Supplemental
Guidance (from
NIST 800-53)
This control enhancement applies to single-factor authentication of individuals using passwords as individual or group authenticators, and in a similar manner, when passwords are part of multifactor authenticators. This control enhancement does not apply when passwords are used to unlock hardware authenticators (e.g., Personal Identity Verification cards). The implementation of such password mechanisms may not meet all of the requirements in the enhancement.

Cryptographically-protected passwords include, for example, encrypted versions of passwords and one-way cryptographic hashes of passwords. The number of changed characters refers to the number of changes required with respect to the total number of positions in the current password. Password lifetime restrictions do not apply to temporary passwords. To mitigate certain brute force attacks against passwords, organizations may also consider salting passwords.

MA-063-25010752 Page 25 of 58 December 8, 2025
Related control: IA-6.

8. Incident Response (IR)
Control
Number
IR-1
Title Incident Response Policy and Procedures

DHCS & CDSS
Requirement
The organization must:
a. Develops, documents, and disseminates to organization-defined personnel or roles:

1. An incident response policy that addresses purpose, scope, roles, responsibilities, management commitment, coordination among organizational entities, and compliance; and

2. Procedures to facilitate the implementation of the incident response policy and associated incident response controls; and
b. Reviews and updates the current:

1. Incident response policy with organization-defined frequency; and

2. Incident response procedures with organization-defined frequency.

DHCS, CDSS and NIST Guidelines encourage agencies to consider establishing incident response teams or identifying individuals specifically responsible for addressing PII, DHCS and CDSS data breaches.

Control
Number
IR-2
Title Incident Response Training

DHCS & CDSS
Requirement
The organization must provide incident response training to information system users consistent with assigned roles and responsibilities:
a. Within organization-defined time period of assuming an incident response role or responsibility;
b. When required by information system changes; and
c. With organization-defined frequency thereafter.

Supplemental
Guidance (from
NIST 800-53)
Incident response training provided by organizations is linked to the assigned roles and responsibilities of organizational personnel to ensure the appropriate content and level of detail is included in such training. For example, regular users may only need to know who MA-063-25010752 Page 26 of 58 December 8, 2025
to call or how to recognize an incident on the information system; system administrators may require additional training on how to handle/remediate incidents; and incident responders may receive more specific training on forensics, reporting, system recovery, and restoration. Incident response training includes user training in the identification and reporting of suspicious activities, both from external and internal sources. Related controls:

AT-3, CP-3, IR-8.

Control
Number
IR-4
Title Incident Handling

DHCS & CDSS
Requirement
The organization must:
a. Implements an incident handling capability for security incidents that includes preparation, detection and analysis, containment, eradication, and recovery; b. Coordinates incident handling activities with contingency planning activities; and c. Incorporates lessons learned from ongoing incident handling activities into incident response procedures, training, and testing, and implements the resulting changes accordingly.

Supplemental
Guidance (from
NIST 800-53)
Organizations recognize that incident response capability is dependent on the capabilities of organizational information systems and the mission/business processes being supported by those systems. Therefore, organizations consider incident response as part of the definition, design, and development of mission/business processes and information systems. Incident- related information can be obtained from a variety of sources including, for example, audit monitoring, network monitoring, physical access monitoring, user/administrator reports, and reported supply chain events. Effective incident handling capability includes coordination among many organizational entities including, for example, mission/business owners, information system owners, authorizing officials, human resources offices, physical and personnel security offices, legal departments, operations personnel, procurement offices, and the risk executive (function). Related controls: AU-6, CM-6, CP-2, CP-4, IR-2, IR-3, IR-8, PE-6, SC-5, SC-7, SI-3, SI-4, SI-7.

Control
Number
IR-8
Title Incident Response Plan

DHCS & CDSS
Requirement
The organization must:
a. Develop an incident response plan that:

1. Provides the organization with a roadmap for implementing its incident response capability;

2. Describes the structure and organization of the incident response capability;

3. Provides a high-level approach for how the incident response capability fits into the overall organization;

4. Meets the unique requirements of the organization, which relate to mission, size, structure, and functions;

5. Defines reportable incidents;

6. Provides metrics for measuring the incident response capability within the organization;
MA-063-25010752 Page 27 of 58 December 8, 2025

7. Defines the resources and management support needed to effectively maintain and mature an incident response capability; and

8. Is reviewed and approved by organization-defined personnel or roles; b. Distribute copies of the incident response plan to organization-defined incident response personnel (identified by name and/or by role) and organizational elements; c. Review the incident response plan organization-defined frequency; d. Updates the incident response plan to address system/organizational changes or problems encountered during plan implementation, execution, or testing; e. Communicate incident response plan changes to organization-defined incident response personnel (identified by name and/or by role) and organizational elements]; and
f. Protect the incident response plan from unauthorized disclosure and modification.

Supplemental
Guidance (from
NIST 800-53)
It is important that organizations develop and implement a coordinated approach to incident response. Organizational missions, business functions, strategies, goals, and objectives for incident response help to determine the structure of incident response capabilities. As part of a comprehensive incident response capability, organizations consider the coordination and sharing of information with external organizations, including, for example, external service providers and organizations involved in the supply chain for organizational information systems. Related controls: MP-2, MP-4, MP-5.

9. Media Protection (MP)
Control
Number
MP-2
Title Media Access

DHCS & CDSS
Requirement
The organization must:

Restricts access to PII to Contractor Workers who require access to PII for purposes of administering the Medi-Cal program or as required for the administration of other public benefit programs.

Supplemental
Guidance (from
NIST 800-53)
Information system media includes both digital and non-digital media. Digital media includes, for example, diskettes, magnetic tapes, external/removable hard disk drives, flash drives, compact disks, and digital video disks. Non-digital media includes, for example, paper and microfilm.

Restricting non-digital media access includes, for example, denying access to patient medical records in a community hospital unless the individuals seeking access to such records are authorized healthcare providers. Restricting access to digital media includes, for example, limiting access to design specifications stored on compact disks in the media library to the project leader and the individuals on the development team. Related controls:

AC-3, IA-2, MP-4, PE-2, PE-3, PL-2.

Control
Number
MP-6
Title Media Sanitization
DHCS & CDSS The organization must:

MA-063-25010752 Page 28 of 58 December 8, 2025
Requirement a. Sanitize media containing PII prior to disposal, release out of organizational control, or release for reuse in accordance with applicable federal and organizational standards and policies; and
b. Employs sanitization mechanisms with the strength and integrity commensurate with the security category or classification of the information.

Supplemental
Guidance (from
NIST 800-53)
This control applies to all information system media, both digital and non-digital, subject to disposal or reuse, whether or not the media is considered removable. Examples include media found in scanners, copiers, printers, notebook computers, workstations, network components, and mobile devices. The sanitization process removes information from the media such that the information cannot be retrieved or reconstructed. Sanitization techniques, including clearing, purging, cryptographic erase, and destruction, prevent the disclosure of information to unauthorized individuals when such media is reused or released for disposal. Organizations determine the appropriate sanitization methods recognizing that destruction is sometimes necessary when other methods cannot be applied to media requiring sanitization. Organizations use discretion on the employment of approved sanitization techniques and procedures for media containing information deemed to be in the public domain or publicly releasable, or deemed to have no adverse impact on organizations or individuals if released for reuse or disposal.

Sanitization of non-digital media includes, for example, removing a classified appendix from an otherwise unclassified document, or redacting selected sections or words from a document by obscuring the redacted sections/words in a manner equivalent in effectiveness to removing them from the document. NSA standards and policies control the sanitization process for media containing classified information. Related controls: MA-2, MA-4, RA-3, SC-4.

10. Personnel Security (PS)
Control
Number
PS-3
Title Personnel Screening

DHCS & CDSS
Requirement
The organization must:
a. Screen individuals (employees, contractors and agents) prior to authorizing access to the information system and PII.

Supplemental
Guidance (from
NIST 800-53)
Personnel screening and rescreening activities reflect applicable federal laws, Executive Orders, directives, regulations, policies, standards, guidance, and specific criteria established for the risk designations of assigned positions. Organizations may define different rescreening conditions and frequencies for personnel accessing information systems based on types of information processed, stored, or transmitted by the systems.

Control
Number
PS-4
Title Personnel Termination

DHCS & CDSS
Requirement
The organization, upon termination of individual employment, must:
a. Disable information system access;
MA-063-25010752 Page 29 of 58 December 8, 2025
b. Terminate/revoke any authenticators/credentials associated with the individual; c. Conduct exit interviews, as needed;
d. Retrieve all security-related organizational information system-related property; e. Retain access to organizational information and information systems formerly controlled by terminated individual; and
f. Notified organization-defined personnel upon termination.

Supplemental
Guidance (from
NIST 800-53)
Information system-related property includes, for example, hardware authentication tokens, system administration technical manuals, keys, identification cards, and building passes. Exit interviews ensure that terminated individuals understand the security constraints imposed by being former employees and that proper accountability is achieved for information systemrelated property.

Security topics of interest at exit interviews can include, for example, reminding terminated individuals of nondisclosure agreements and potential limitations on future employment. Exit interviews may not be possible for some terminated individuals, for example, in cases related to job abandonment, illnesses, and non-availability of supervisors. Exit interviews are important for individuals with security clearances. Timely execution of termination actions is essential for individuals terminated for cause. In certain situations, organizations consider disabling the information system accounts of individuals that are being terminated prior to the individuals being notified. Related controls: AC-2, IA-4, PE-2, PS-5, PS-6.

Control
Number
PS-6
Title Access Agreements

DHCS & CDSS
Requirement
The organization must:
a. Develop and document access agreements for organizational information systems; b. Reviews and updates the access agreements at organization-defined frequency; and c. Ensure that individuals requiring access to organizational information and information systems:

1. Sign appropriate access agreements prior to being granted access; and

2. Re-sign access agreements to maintain access to organizational information systems when access agreements have been updated or at an organization-defined frequency.

DHCS and CDSS requires that contracts for periodic disposal/destruction of case files or other print media contain a non-disclosure agreement signed by all personnel who will encounter products that contain PII.

Supplemental
Guidance (from
NIST 800-53)
Supplemental Guidance: Access agreements include, for example, nondisclosure agreements, acceptable use agreements, rules of behavior, and conflict-of-interest agreements. Signed access agreements include an acknowledgement that individuals have read, understand, and agree to abide by the constraints associated with organizational information systems to which access is authorized. Organizations can use electronic signatures to acknowledge access agreements unless specifically prohibited by organizational policy. Related control: PL-4, PS-2, PS-3, PS-4, PS-8.

Control
Number
PS-7
MA-063-25010752 Page 30 of 58 December 8, 2025
Title Third-Party Personnel Security

DHCS & CDSS
Requirement
The organization must:
a. Establishes personnel security requirements including security roles and responsibilities for county agents, subcontractors, and vendors; b. Requires third-party providers to comply with personnel security policies and procedures established by the organization;
c. Documents personnel security requirements;
d. Requires third-party providers to notify organization-defined personnel or roles of any personnel transfers or terminations of third-party personnel who possess organizational credentials and/or badges, or who have information system privileges within organization-defined time period; and
e. Monitors provider compliance.

The service level agreements with the contractors and agents must contain non-disclosure language as it pertains to PII. The statement shall include, at a minimum, a description of the following:

1. General Use of PII;

2. Security and Privacy Safeguards for PII;

3. Unacceptable Use of PII; and

4. Enforcement Policies.

The county department/agency must retain the non-disclosure agreements for at least five (5) to seven (7) years for all contractors and agents who processes, views, or encounters PII as part of their duties
Supplemental
Guidance (from
NIST 800-53)
Third-party providers include, for example, service bureaus, contractors, and other organizations providing information system development, information technology services, outsourced applications, and network and security management. Organizations explicitly include personnel security requirements in acquisition-related documents. Third-party providers may have personnel working at organizational facilities with credentials, badges, or information system privileges issued by organizations. Notifications of third-party personnel changes ensure appropriate termination of privileges and credentials. Organizations define the transfers and terminations deemed reportable by security-related characteristics that include, for example, functions, roles, and nature of credentials/privileges associated with individuals transferred or terminated. Related controls: PS-2, PS-3, PS-4, PS-5, PS-6, SA-9, SA-21.

Control
Number
PS-8
Title Personnel Sanctions

DHCS & CDSS
Requirement
The organization must:
a. Employ a formal sanctions process for individuals failing to comply with established information security policies and procedures; and
b. Notify organization personnel within the organization-defined time period when a formal employee sanctions process is initiated, identifying the individual sanctioned and the reason for the sanction.

Stanton City CouncilJanuary 27, 2026

Stanton City Council
January 27, 2026